Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Child Nutrition Im-
provement and Integrity Act’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—ENSURING ACCESS TO CHILD NUTRITION PROGRAMS
Sec. 101. Exclusion of military housing allowances.
Sec. 102. Homeless children and runaway youth eligibility.
Sec. 103. Eligibility for severe need assistance.
Sec. 104. Reauthorization of summer food programs.
Sec. 105. Child and adult care food program.
Sec. 106. Review of best practices in the breakfast program.
Sec. 107. Area eligibility demonstration.
Sec. 108. Seamless Summer administration.
Sec. 109. Year round services for eligible entities.
TITLE II—IMPROVING PROGRAM QUALITY AND INTEGRITY
Sec. 201. Eligibility and certification for free and reduced price lunches.
Sec. 202. Duration of eligibility for free and reduced price lunches.
Sec. 203. Certification by local educational agencies.
Sec. 204. Compliance and accountability.
Sec. 205. Technology Improvement.
Sec. 206. Minimum State administrative expense grants.
Sec. 207. District-wide eligibility for special assistance.
Sec. 208. Administrative error reduction.
TITLE III—PROMOTING NUTRITION QUALITY AND PREVENTING
CHILDHOOD OBESITY
Sec. 301. Local school wellness policy.
Sec. 302. Supporting nutrition education, improving meal quality, and access to
local foods.
Sec. 303. Fruits and vegetable commodities.
Sec. 304. Fluid milk.
Sec. 305. Waiver of requirements for weighted averages for nutrient analysis.
Sec. 306. Whole grains.
Sec. 307. Fruit and vegetable pilot programs.
TITLE IV—IMPROVING THE WOMEN, INFANTS, AND CHILDREN
PROGRAM
Sec. 401. Definition of nutrition education.
Sec. 402. Definition of supplemental foods.
Sec. 403. Improving certification.
Sec. 404. Reviews of available supplemental foods.
Sec. 405. Notification of violations and infant formula benefits.
Sec. 406. Healthy People 2010 initiative.
Sec. 407. Competitive bidding.
Sec. 408. Fruit and vegetable projects.
Sec. 409. Price levels of retail stores.
Sec. 410. Management information systems.
Sec. 411. Infant formula fraud prevention.
Sec. 412. State alliances.
Sec. 413. Limits on expenditures.
Sec. 414. Migrant and community health centers initiative.
Sec. 415. Demonstration projects.
Sec. 416. Authorization of appropriations.
TITLE V—REAUTHORIZATION, MISCELLANEOUS PROVISIONS, AND
EFFECTIVE DATE
Sec. 501. Training, technical, and other assistance.
Sec. 502. Notice of irradiated food.
Sec. 503. Sense of Congress.
Sec. 504. Reauthorization of programs.
Sec. 505. Effective dates.
TITLE I—ENSURING ACCESS TO
CHILD NUTRITION PROGRAMS
SEC. 101. EXCLUSION OF MILITARY HOUSING ALLOW-
ANCES.
Section 9(b)(7) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1758(b)) is amended by
striking ‘‘For each of fiscal years 2002’’ and all that fol-
lows through ‘‘the amount’’ and inserting ‘‘The amount’’.
SEC. 102. HOMELESS CHILDREN, RUNAWAY YOUTH, AND MI-
GRATORY CHILD ELIGIBILITY.
(a) IN GENERAL.—Section 9(b)(6)(A) of the Richard
B. Russell National School Lunch Act (42 U.S.C.
1758(b)(6)(A)) is amended—
(1) in clause (ii), by striking ‘‘or’’;
(2) in clause (iii), by striking the period and in-
serting a semicolon; and
(3) by inserting after clause (iii) the following:
‘‘(iv) a homeless child or youth (as defined in
section 725(2) of the McKinney-Vento Homeless As-
sistance Act (42 U.S.C. 11434a));
‘‘(v) a youth served by programs under the
Runaway and Homeless Youth Act (42 U.S.C. 5701
et seq.); or
‘‘(vi) a migratory child, as such term is defined
in section 1309(2) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6399(2)).’’.
(b) DOCUMENTATION.—Section 9(d)(2) of the Rich-
ard B. Russell National School Lunch Act (42 U.S.C.
1758(d)(2)) is amended—
(1) in subparagraph (B), by striking ‘‘or’’;
(2) in subparagraph (C), by striking the period
at the end and inserting a semicolon; and
(3) by inserting after subparagraph (C) the fol-
lowing:
‘‘(D) documentation has been provided to the
appropriate local educational agency showing that
the child meets the criteria specified in clauses (iv)
or (v) of subsection (b)(6)(A); or
‘‘(E) documentation has been provided to the
appropriate local educational agency showing the
child’s status as a migratory child, as such term is
defined in section 1309(2) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
6399(2)).’’.
SEC. 103. ELIGIBILITY FOR SEVERE NEED ASSISTANCE.
Section 4(d) of the Child Nutrition Act of 1966 (42
U.S.C. 1773(d)) is amended—
(1) by striking the heading and all that follows
through paragraph (1), and inserting:
‘‘(d) SEVERE NEED ASSISTANCE.—
‘‘(1) IN
GENERAL.—Each State educational
agency shall provide additional assistance to schools
in severe need, which shall include only those schools
(having a breakfast program or desiring to initiate
a breakfast program) in which, during the most re-
cent second preceding school year for which lunches
were served, 40 percent or more of the lunches
served to students at the school were served free or
at a reduced price (or those new schools drawing the
majority of their attendance from schools receiving
severe need assistance).’’; and
(2) in paragraph (2)—
(A) by striking ‘‘100 percent’’ and all that
follows through ‘‘food, or’’; and
(B) by striking ‘‘, whichever is less’’.
SEC. 104. REAUTHORIZATION OF SUMMER FOOD PRO-
GRAMS.
(a) SUMMER FOOD PILOT PROJECTS.—Section 18(f)
of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769(f)) is amended—
(1) by redesignating paragraphs (2) through
(6) as paragraphs (3) through (7), respectively;
(2) by inserting after paragraph (1) the fol-
lowing:
‘‘(2) ADDITIONAL STATES ELIGIBLE.—In addi-
tion to the States meeting the criteria set forth in
paragraph (1), the term ‘eligible State’ means a
State in which (based on data available in June
2003)—
‘‘(A) the percentage obtained by dividing—
‘‘(i) the sum of—
‘‘(I) the average daily number of
children attending the summer food
service program in the State in July
2002; and
‘‘(II) the average daily number of
children receiving free or reduced
price meals under the school lunch
program in the State in July 2002; by
‘‘(ii) the average daily number of chil-
dren receiving free or reduced price meals
under the school lunch program in the
State during the 2001–2002 school year; is
less than 57 percent of
‘‘(B) the percentage obtained by dividing—
‘‘(i) the sum of—
‘‘(I) the average daily number of
children attending the summer food
service program in all States in July
2002; and
‘‘(II) the average daily number of
children receiving free or reduced
price meals under the school lunch
program in all States in July 2002; by
‘‘(ii) the average daily number of chil-
dren receiving free or reduced price meals
under the school lunch program in all
States 
during 
the 
2001–2002 
school
year.’’;
(3) in paragraph (3) (as so redesignated), by
striking ‘‘March 31, 2004’’ and inserting ‘‘Sep-
tember 30, 2008’’;
(c) DURATION OF AGREEMENTS.—Section 17(j) of
the Richard B. Russell National School Lunch Act (42
U.S.C. 1766(j)) is amended to read as follows:
‘‘(j) AGREEMENTS.—
‘‘(1) IN GENERAL.—The Secretary may issue
regulations directing States to develop and provide
for the use of a standard form of agreement between
each family or group day care sponsoring organiza-
tion and the family or group day care homes partici-
pating in the program under such organization, for
the purpose of specifying the rights and responsibil-
ities of each party.
‘‘(2) DURATION.—An agreement under para-
graph (1) shall remain in effect until terminated by
either party to the agreement.’’.
(d) MANAGEMENT IMPROVEMENT INITIATIVE.—Sec-
tion 17(q)(3) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1766(q)(3)) is amended by striking
‘‘1999 through 2003’’ and inserting ‘‘2005 and 2006’’.
(e) AUDITS.—Section 17(i) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1766(i)) is amend-
ed to read as follows:
‘‘(i) AUDITS.—
‘‘(1) FUNDS FOR AUDITS.—The Secretary shall
make available for each fiscal year to a State admin-
istering the child and adult care food program, for
the purpose of conducting audits of participating in-
stitutions, an amount up to 1.5 percent (except in
the case of fiscal years 2005 through 2007, 1 per-
cent) of the funds used by the State in the program
under this section during the second preceding fiscal
year.
‘‘(2) AUDIT PROCEDURES.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), in conducting management evalua-
tions, reviews, or audits of the program under
this subsection, the Secretary or a State agency
may disregard any overpayment to an institu-
tion if the total overpayment for any fiscal year
does not exceed an amount, consistent with the
disregards allowed in other programs under this
Act, which recognizes the cost of collecting
small claims.
‘‘(B) CRIMINAL OR FRAUD VIOLATIONS.—
In carrying out this subsection, the Secretary
and a State agency shall not disregard any
overpayment for which there is evidence of a
violation of a criminal law or civil fraud law.’’.
(f) EMERGENCY SHELTERS.—Section 17(t)(5)(A)(i)
of the Richard B. Russell National School Lunch Act (42
U.S.C. 1766(t)(5)(A)(i) is amended—
(1) in subclause (I)—
(A) by striking ‘‘12’’ and inserting ‘‘18’’;
and
(B) by inserting ‘‘or’’ after the semicolon;
and
(2) by striking subclause (II) and redesignating
subclause (III) as subclause (II).
(g) PAPERWORK REDUCTION.—The Secretary of Ag-
riculture, in conjunction with States and participating in-
stitutions, shall examine the feasibility of reducing paper
work resulting from regulations and record-keeping re-
quirements for State agencies, family child care homes,
child care centers, and sponsoring organizations partici-
pating in the child and adult care food program estab-
lished under section 17 of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766).
SEC. 106. REVIEW OF BEST PRACTICES IN THE BREAKFAST
PROGRAM.
(a) REVIEW.—Subject to the availability of funds, the
Secretary of Agriculture shall enter into an agreement
with a research organization to collect and disseminate a
review of best practices to assist schools in addressing ex-
isting impediments at the State and local level that hinder
the growth of the school breakfast program under section
4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
The review shall describe model breakfast programs and
offer recommendations for schools to overcome obstacles,
such as:
(1) the length of the school day;
(2) bus schedules; and
(3) potential increases in costs at the State and
local level.
(b) DISSEMINATION.—Not later than 12 months
after the date of enactment of this Act, the Secretary shall
make the review required under subsection (a) available
to local educational agencies via the Internet, including
recommendations to improve participation in the school
breakfast program. Not later than 12 months after the
date of enactment of this Act, the review shall also be
transmitted to the Committee on Education of the House
of Representatives and the Committee on Agriculture of
the Senate.
SEC. 107. AREA ELIGIBILITY DEMONSTRATION.
Section 13 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1761) is amended by adding at the
end the following:
‘‘(r) DEMONSTRATION.—For fiscal years 2004
through 2008, in rural areas of the State of Pennsylvania,
the threshold for determining ‘areas in which poor eco-
nomic conditions exist’ under subsection (a)(1)(C) for the
program authorized by this section shall be 40 percent of
children enrolled are eligible for free or reduced price
school meals and the State agency shall report to the Sec-
retary on the effect of the demonstration on program par-
ticipation in rural areas.’’.
SEC. 108. SEAMLESS SUMMER ADMINISTRATION.
(a) SEAMLESS SUMMER WAIVER.—Section 13(a) of
the Richard B. Russell National School Lunch Act (42
U.S.C. 1761(a)) is amended by inserting after paragraph
(7) the following:
‘‘(8) Service institutions that are public or pri-
vate nonprofit school food authorities may admin-
ister summer or school vacation food service under
the provisions of the school lunch program estab-
lished under this Act and the school breakfast pro-
gram established under the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.), except as determined
by the Secretary.’’.
(b) PAYMENTS.—Section 13(b)(1) of the Richard B.
Russell 
National 
School 
Lunch 
Act 
(42 
U.S.C.
1761(b)(1)) is amended by inserting after subparagraph
(C) the following:
‘‘(D) Service institutions described in para-
graph (a)(8) of this section shall be reimbursed
for meals and meal supplements in accordance
with the applicable provisions under this Act
(other than subparagraphs (A), (B), and (C) of
this paragraph) and the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.), as determined
by the Secretary.’’.
SEC. 109. YEAR ROUND SERVICES FOR ELIGIBLE ENTITIES.
Section 18 of the Richard B. Russell National School
Lunch Act is amended by adding at the end the following:
‘‘(h) YEAR ROUND SERVICES FOR ELIGIBLE ENTI-
TIES.—
‘‘(1) IN GENERAL.—A service institution (as de-
fined in section 13(a)(6) or 13(a)(7) of this Act) lo-
cated in California may be reimbursed for up to 3
meals and 2 supplements for any day for which serv-
ices are being offered at such institution. Such serv-
ice institution shall be reimbursed for costs con-
sistent with section 13(b)(1) of this Act.
‘‘(2) EXEMPTIONS.—A service institution that
receives assistance under this subsection shall com-
ply with all provisions of section 13 of this Act other
than subsections 13(b)(2) and 13(c)(1).
‘‘(3) FUNDING.—The Secretary shall provide to
the State of California an amount not to exceed
$1,000,000 for fiscal years 2004 through 2008, for
the additional reimbursement costs for meals and
supplements authorized by this subsection.’’.
TITLE II—IMPROVING PROGRAM
QUALITY AND INTEGRITY
SEC. 201. ELIGIBILITY AND CERTIFICATION FOR FREE AND
REDUCED PRICE LUNCHES.
(a) IN GENERAL.—Section 9(b) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1758) is
amended by striking ‘‘(b)(1)(A) Not later’’ and all that
follows through paragraph (2) and inserting the following:
‘‘(b) ELIGIBILITY FOR FREE AND REDUCED PRICE
LUNCHES.—
‘‘(1) INCOME GUIDELINES.—
‘‘(A) IN GENERAL.—Not later than June 1
of each fiscal year, the Secretary shall prescribe
income guidelines for determining eligibility for
free and reduced price lunches during the 12-
month period beginning July 1 of such fiscal
year and ending June 30 of the following fiscal
year. The income guidelines for determining eli-
gibility for free lunches shall be 130 percent of
the applicable family size income levels con-
tained in the nonfarm income poverty guidelines
issued by the Secretary of Health and Human
Services, as adjusted annually in accordance
with subparagraph (B). The income guidelines
for determining eligibility for reduced price
lunches for any school year shall be 185 percent
of the applicable family size income levels con-
tained in the nonfarm income poverty guidelines
issued by the Secretary of Health and Human
Services, as adjusted annually in accordance
with subparagraph (B). Such guidelines shall be
revised at annual intervals, or at any shorter in-
terval deemed feasible and desirable.
‘‘(B) FORMULA FOR REVISION.—The revi-
sion required by subparagraph (A) of this para-
graph shall be made by multiplying—
‘‘(i) the official poverty line (as de-
fined by the Secretary of Health and
Human Services); by
‘‘(ii) the percentage change in the
Consumer Price Index during the annual
or other interval immediately preceding the
time at which the adjustment is made.
Revisions under this subparagraph shall be
made not more than 30 days after the date on
which the Consumer Price Index data required
to compute the adjustment becomes available.
‘‘(2) CERTIFICATION OF ELIGIBILITY.—
‘‘(A) ANNOUNCEMENT
BY
STATE
EDU-
CATIONAL AGENCY.—Following the determina-
tion by the Secretary under paragraph (1) of
this subsection of the income eligibility guide-
lines for each school year, each State edu-
cational agency shall announce the income eligi-
bility guidelines, by family size, to be used by
schools in the State in making determinations
of eligibility for free and reduced price lunches.
Local educational agencies shall, each year,
publicly announce the income eligibility guide-
lines for free and reduced price lunches on or
before the opening of school.
‘‘(B) APPLICATIONS.—
‘‘(i) IN
GENERAL.—Applications for
free and reduced price lunches, in such
form as the Secretary may prescribe or ap-
prove, and any descriptive material, in an
understandable and uniform format, and
to the extent practicable, in a language
that parents can understand, shall be dis-
tributed at least annually to the parents or
guardians of children in attendance at the
school.
‘‘(ii) INCOME
LEVELS.—Applications
and descriptive material shall contain only
the family size income eligibility guidelines
for reduced price meal eligibility, with the
explanation that households with incomes
less than or equal to these values would be
eligible for free or reduced price lunches.
Such applications and descriptive material
may not contain the income eligibility
guidelines for free lunches.
‘‘(iii) 
NOTIFICATION.—Descriptive
materials shall contain a notification that
participants in the Special Supplemental
Nutrition Program for Women, Infants,
and Children authorized under Section 17
of the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.), the food stamp pro-
gram established under the Food Stamp
Act of 1977 (7 U.S.C. 2011 et seq.), the
Food Distribution Program on Indian Res-
ervations (FDPIR) authorized under sec-
tion 4(b) of the Food Stamp Act of 1977
(7 U.S.C. 2013(b)), or a State program
funded under part A of title IV of the So-
cial Security Act (if the Secretary deter-
mines the State program complies with
standards established by the Secretary that
ensure that the standards under the State
program are comparable to or more re-
strictive than those in effect on June 1,
1995) may be eligible for free or reduced
price lunches. Such descriptive materials
shall also contain a notice to parents that
documentation 
may 
be 
requested 
for
verification.
‘‘(iv) ELECTRONIC AVAILABILITY.—In
addition to the distribution of such appli-
cations and descriptive material in paper
form as provided for in this paragraph,
such applications and material may be
made available electronically via the Inter-
net.
‘‘(C) ELIGIBILITY.—
‘‘(i) HOUSEHOLD APPLICATIONS.—
‘‘(I) IN
GENERAL.—If an eligi-
bility determination for a child is not
made under clause (ii) or (iii), an eli-
gibility determination shall be made
on the basis of a complete household
application executed by an adult mem-
ber of the household, or in accordance
with other guidance issued by the Sec-
retary.
‘‘(II) ADDITIONAL BASES.—Eligi-
bility may be determined by the local
educational agency on the basis of a
complete application executed by an
adult member of the household, or in
accordance with other guidance issued
by the Secretary, including an elec-
tronic signature when the application
is submitted electronically, and if the
application filing system meets con-
fidentiality standards established by
the Secretary.
‘‘(III) CHILDREN
IN
HOUSE-
HOLD.—
‘‘(aa) IN
GENERAL.—The
application 
shall 
identify 
the
names of each child in the house-
hold for whom meal benefits are
requested, as well as the total
number of members of the house-
hold.
‘‘(bb) SEPARATE
APPLICA-
TIONS.—A 
State 
educational
agency or local educational agen-
cy may not request a separate
application for each child in the
household, if the children in the
household attend schools in the
same local educational agency.
‘‘(IV) VERIFICATION.—The Sec-
retary, State, or local educational
agency may verify any data contained
in such application. In accordance
with guidance issued by the Secretary,
each local educational agency shall
verify a sample of approved free and
reduced price applications and shall
make appropriate changes in the eligi-
bility determination with respect to
such applications on the basis of such
verification. The sample selected for
verification shall be as follows:
‘‘(aa) For local educational
agencies 
unable 
to 
obtain
verification information for no
more than 25 percent of all ap-
plications selected for verification
in the prior year, or local edu-
cational agencies receiving more
than 20,000 applications and
that in the prior year had a
verification 
non-response 
rate
that was 10 percent below the
verification non-response rate of
the second prior year, the sample
selected shall be either—
‘‘(AA) the lesser of
3,000 or 3 percent of ap-
proved applications selected
at random by the local edu-
cational agencies from all
approved applications; or
‘‘(BB) the lesser of
1,000 or 1 percent of all ap-
proved applications selected
from applications that indi-
cate monthly income that is
within $100, or annual in-
come that is within $1,200,
of the income eligibility lim-
its for free or reduced price
meals, plus the lesser of 500
or 1⁄2 of 1 percent of ap-
proved applications that pro-
vided a case number in lieu
of income information show-
ing participation in the food
stamp program, the Tem-
porary Assistance for Needy
Families program, or the
Food Distribution Program
on 
Indian 
Reservations
(FDPIR) 
selected 
from
those approved applications
that provided a case number
in lieu of income information
verifying such participation.
If, for any local educational
agency, the total number of
applications 
that 
indicate
monthly income that is with-
in $100, or annual income
that is within $1,200, of the
income eligibility limits for
free or reduced price meals
is less than 1,500 or 1 and
1⁄2 percent of all approved
applications, the local edu-
cational agency shall select
additional 
applications 
at
random from all approved
applications in order to ob-
tain a total sample for
verification of 1,500 or 1
and 1⁄2 percent of all ap-
proved applications.
‘‘(bb) For all other local
educational agencies, the sample
selected shall be the lesser of
3,000 or 3 percent of all ap-
proved applications selected from
applications that indicate month-
ly income that is within $100, or
annual income that is within
$1,200, of the income eligibility
limits for free or reduced price
meals. If, for any local edu-
cational agency, the total number
of such applications is less than
3,000 or 3 percent of all ap-
proved applications, the local
educational agency shall select
additional applications at random
from all approved applications in
order to obtain a total sample for
verification of 3,000 or 3 percent
of all approved applications.
‘‘(V) SUBSTITUTIONS.—
‘‘(aa) IN GENERAL.—In ac-
cordance with the regulations
prescribed by the Secretary, the
local educational agency may,
upon individual review, decline to
verify any application selected
under subclause (IV) and replace
it with another application to be
verified. Such agency may decline
to verify no more than 2 percent
of the applications selected for
verification under this subclause.
‘‘(bb) SUBSTITUTE CRITERIA
IN
CASES
OF
EMERGENCIES.—
The Secretary may substitute al-
ternative criteria for the sample
size and sample selection criteria
in subclause (IV) to address a
natural disaster, civil disorder,
strike, or other local condition.
‘‘(VI) DIRECT VERIFICATION.—
‘‘(aa) IN GENERAL.—In ac-
cordance with regulations pro-
mulgated by the Secretary, in
verifying the sample selected in
accordance with subclause (IV),
the local educational agency may
first obtain from certain public
agencies administering the pro-
grams identified in item (bb) of
this subclause, and similar in-
come-tested programs, informa-
tion to verify eligibility for free or
reduced price meals.
‘‘(bb) 
PUBLIC
AGENCY
RECORDS.—Public 
agency
records that may be used to
verify eligibility for free meals
shall include income information
relied upon within 12 months
prior to verification under sub-
clause (IV) in the administration
of the following programs: the
food stamp program established
under the Food Stamp Act of
1977 (7 U.S.C. 2011 et seq.); the
State program funded under part
A of title IV of the Social Secu-
rity Act; the Food Distribution
Program on Indian Reservations
(FDPIR) authorized under sec-
tion 4(b) of the Food Stamp Act
of 1977 (7 U.S.C. 2013(b)); and
the 
State 
Medicaid 
program
under title XIX of the Social Se-
curity Act (42 U.S.C. 1396 et
seq.) in a State in which the in-
come eligibility limit described in
section 1902(l)(2)(C) of the So-
cial Security Act is no higher
than 133 percent of the income
official poverty line as specified
in section 1902(l)(2)(A) of such
Act, in the case of eligibility for
free meals, and 185 percent of
the income official poverty line as
specified in such section in the
case of reduced price meals.
‘‘(VII) PLAIN, UNDERSTANDABLE
LANGUAGE.—Any and all communica-
tions to parents regarding verification
under subclause (IV) shall be in an
understandable and uniform format,
and, to the extent practicable, in a
language that parents can under-
stand.
‘‘(ii) DIRECT
CERTIFICATION
FOR
CHILDREN
IN
FOOD
STAMP
HOUSE-
HOLDS.—
‘‘(I) IN
GENERAL.—Each State
agency shall, to the extent practicable,
enter into an agreement with the
State agency conducting eligibility de-
terminations for the food stamp pro-
gram established under the Food
Stamp Act of 1977 (7 U.S.C. 2011 et
seq.).
‘‘(II) PROCEDURES.—Subject to
clause (iv), the agreement shall estab-
lish procedures under which a child
who is a member of a household re-
ceiving assistance under the program
referred to in subclause (I) shall be
certified as eligible for free meals
under this Act, without further appli-
cation.
‘‘(III) DIRECT CERTIFICATION.—
Subject to clause (iv), under the
agreement, the local educational agen-
cy conducting eligibility determina-
tions for a school meal program con-
ducted under this Act shall certify a
child who is a member of a household
receiving assistance under the pro-
gram referred to in subclause (I) as
eligible for free meals under this Act
without further application.
‘‘(IV) NOTICE.—The appropriate
local educational agency shall provide
annually to the parents or guardians
of all students who are members of a
household receiving assistance under
the program referred to in subclause
(I), notification, in an understandable
and uniform format, and, to the ex-
tent practicable, in a language that
parents can understand, that any
school-aged child in that household is
eligible for free lunches or breakfasts.
‘‘(iii) 
DIRECT
CERTIFICATION
OF
CHILDREN IN OTHER HOUSEHOLDS.—Sub-
ject to clause (iv), any local educational
agency may certify any child as eligible for
free lunches or breakfasts, without further
application, by directly communicating
with the appropriate State or local agency
to obtain documentation of such child’s
status as a migratory child, as such term
is defined in section 1309(2) of the Ele-
mentary and Secondary Education Act of
1965 (20 U.S.C. 6399(2)), or a member of
a family that is receiving assistance under
a State program funded under part A of
title IV of the Social Security Act if the
Secretary determines the State program
complies with standards established by the
Secretary that ensure that the standards
under the State program are comparable
to or more restrictive than those in effect
on June 1, 1995.
‘‘(iv) 
DISCLOSURE
OF
INFORMA-
TION.—The use or disclosure of any infor-
mation obtained from an application for
free or reduced price meals, or from a
State or local agency referred to in clauses
(ii) and (iii), shall be limited to—
‘‘(I) a person directly connected
with the administration or enforce-
ment of this Act or the Child Nutri-
tion Act of 1966 (42 U.S.C. 1771 et
seq.), or a regulation issued pursuant
to either Act;
‘‘(II) a person directly connected
with the administration or enforce-
ment of—
‘‘(aa) a Federal education
program;
‘‘(bb) a State health or edu-
cation program administered by
the State or local educational
agency (other than a program
carried out under title XIX of
the Social Security Act (42
U.S.C. 1396 et seq.); or
‘‘(cc) a Federal, State, or
local means-tested nutrition pro-
gram with eligibility standards
comparable to the program under
this section;
‘‘(III)(aa) the Comptroller Gen-
eral of the United States for audit
and examination authorized by any
other provision of law; and
‘‘(bb) notwithstanding any other
provision of law, a Federal, State, or
local law enforcement official for the
purpose of investigating an alleged
violation of any program requirements
under paragraph (1) or this para-
graph; and
‘‘(IV) a person directly connected
with the administration of the State
Medicaid program under title XIX of
the Social Security Act (42 U.S.C.
1396 et seq.) or the State children’s
health insurance program under title
XXI of that Act (42 U.S.C. 1397aa et
seq.) solely for the purpose of identi-
fying children eligible for benefits
under, and enrolling children in, such
programs, except that this subclause
shall apply only to the extent that the
State and the local educational agency
so elect.
‘‘(v) LIMITATION.—Information pro-
vided under clause (iv)(II) shall be limited
to the income eligibility status of the child
for whom application for free or reduced
price meal benefits was made or for whom
eligibility information was provided under
clause (ii) or (iii), unless the consent of the
parent or guardian of the child for whom
application for benefits was made is ob-
tained.
‘‘(vi) PENALTY
FOR
UNAUTHORIZED
DISCLOSURE.—A 
person 
described 
in
clause (iv) who publishes, divulges, dis-
closes, or makes known in any manner, or
to any extent not authorized by Federal
law (including a regulation), any informa-
tion obtained under this subsection shall be
fined not more than $1,000 or imprisoned
not more than 1 year, or both.
‘‘(vii) REQUIREMENTS
FOR
WAIVER
OF CONFIDENTIALITY.—A State that elects
to exercise the option described in clause
(iv)(IV) shall ensure that any local edu-
cational agency acting in accordance with
that option—
‘‘(I) has a written agreement
with the State or local agency or
agencies administering health insur-
ance programs for children under ti-
tles XIX and XXI of the Social Secu-
rity Act (42 U.S.C. 1396 et seq. and
1397aa et seq.) that requires the
health agencies to use the information
obtained under clause (iv) to seek to
enroll children in those health insur-
ance programs; and
‘‘(II)(aa) notifies each household,
the information of which shall be dis-
closed under clause (iv), that the in-
formation disclosed will be used only
to enroll children in health programs
referred to in clause (iv)(IV); and
‘‘(bb) provides each parent or
guardian of a child in the household
with an opportunity to elect not to
have the information disclosed.
‘‘(viii) USE OF DISCLOSED INFORMA-
TION.—A person to which information is
disclosed under clause (iv)(IV) shall use or
disclose the information only as necessary
for the purpose of enrolling children in
health programs referred to in clause
(iv)(IV).
‘‘(D) FREE AND REDUCED PRICE POLICY
STATEMENT.—After the initial submission, a
local educational agency shall not be required to
submit a free and reduced price policy state-
ment to a State educational agency under this
Act unless there is a substantive change in the
free and reduced price policy of the local edu-
cational agency. A routine change in the policy
of a local educational agency, such as an annual
adjustment of the income eligibility guidelines
for free and reduced price meals, shall not be
sufficient cause for requiring the local edu-
cational agency to submit a policy statement.’’.
(b) CONFORMING AMENDMENT.—Section 9(b)(6)(B)
of the Richard B. Russell National School Lunch Act (42
U.S.C. 1758(b)(6)(B) is amended by inserting ‘‘, or docu-
mentation showing the child’s status as a migratory child,
as such term is defined in section 1309(2) of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C.
6399(2))’’ after ‘‘subparagraph (A)(iii)’’.
SEC. 202. DURATION OF ELIGIBILITY FOR FREE AND RE-
DUCED PRICE LUNCHES.
Section 9(b)(3) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1758(b)(3)) is amended to
read as follows:
‘‘(3) ELIGIBILITY
FOR
FREE
AND
REDUCED
PRICE LUNCHES.—
‘‘(A) FREE LUNCHES.—Any child who is a
member of a household whose income, at the
time the application is submitted, is at an an-
nual rate which does not exceed the applicable
family size income level of the income eligibility
guidelines for free lunches, as determined under
paragraph (1), shall be served a free lunch.
‘‘(B) REDUCED PRICE LUNCHES.—
‘‘(i) IN GENERAL.—Any child who is a
member of a household whose income, at
the time the application is submitted, is at
an annual rate greater than the applicable
family size income level of the income eligi-
bility guidelines for free lunches, as deter-
mined under paragraph (1), but less than
or equal to the applicable family size in-
come level of the income eligibility guide-
lines for reduced price lunches, as deter-
mined under paragraph (1), shall be served
a reduced price lunch.
‘‘(ii) MAXIMUM
PRICE.—The price
charged for a reduced price lunch shall not
exceed 40 cents.
‘‘(C) DURATION.—Except as otherwise
specified 
in 
section 
11(a) 
or 
section
9(b)(2)(C)(i)(IV), eligibility for free or reduced
price meals for any school year shall remain in
effect—
‘‘(i) beginning on the date of eligi-
bility approval for the current school year;
and
‘‘(ii) ending on the date of the begin-
ning of school in the subsequent school
year or as otherwise specified by the Sec-
retary.’’.
SEC. 203. CERTIFICATION BY LOCAL EDUCATIONAL AGEN-
CIES.
(a) CERTIFICATION BY LOCAL EDUCATIONAL AGEN-
CY.—Section 9 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1758) is further amended—
(1) in subsection (b)(5), by striking ‘‘Local
school authorities’’ and inserting ‘‘Local educational
agencies’’; and
(2) in subsection (d)(2)—
(A) by striking ‘‘local school food author-
ity’’ each place it appears and inserting ‘‘local
educational agency’’; and
(B) in subparagraph (A), by striking ‘‘such
authority’’ and inserting ‘‘the local educational
agency’’.
(b) DEFINITION
OF LOCAL EDUCATIONAL AGEN-
CY.—Section 12(d) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1760(d)) is amended—
(1) by redesignating paragraphs (3) through
(8) as paragraphs (4) through (9), respectively; and
(2) by inserting after paragraph (2) the fol-
lowing:
‘‘(3) LOCAL EDUCATIONAL AGENCY.—
‘‘(A) IN GENERAL.—The term ‘local edu-
cational agency’ has the meaning given the
term in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
7801).
‘‘(B) INCLUSION.—The term ‘local edu-
cational agency’ includes, in the case of a pri-
vate nonprofit school food authority, an appro-
priate entity determined by the Secretary.’’.
(c) 
SCHOOL
BREAKFAST
PROGRAM.—Section
4(b)(1)(E)) of the Child Nutrition Act of 1966 (42 U.S.C.
1773(b)(1)(E)) is amended by striking ‘‘school food au-
thority’’ each place it appears and inserting ‘‘local edu-
cational agency’’.
SEC. 204. COMPLIANCE AND ACCOUNTABILITY.
Section 22 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769c) is amended by inserting
‘‘and local educational agencies’’ after ‘‘food service au-
thorities’’ each place it appears.
SEC. 205. TECHNOLOGY IMPROVEMENT.
(a) PRIORITY FOR REALLOCATED FUNDS.—Section
7(a)(5)(B)(ii) of the Child Nutrition Act of 1966 (42
U.S.C. 1776(a)(5)(B)(ii)) is amended by inserting the fol-
lowing new sentence at the end: ‘‘The Secretary shall give
special consideration to States that will use the funds for
improvements in technology and information management
systems described in subsection (e)(2).’’.
(b) CONFORMING AMENDMENT.—Section 7(b) of the
Child Nutrition Act of 1966 (42 U.S.C. 1776(b)) is
amended by striking ‘‘and for staff development’’ and in-
serting ‘‘for staff development; and technology and infor-
mation management systems’’.
SEC. 206. MINIMUM STATE ADMINISTRATIVE EXPENSE
GRANTS.
Section 7(a) of the Child Nutrition Act (42 U.S.C.
1776(a)(1)) is further amended—
(1) by striking the heading and all that follows
through paragraph (1), and inserting the following:
‘‘SEC. 7. STATE ADMINISTRATIVE EXPENSES.
‘‘(a) AMOUNT AND ALLOCATION OF FUNDS.—
‘‘(1) AMOUNT AVAILABLE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), each fiscal year the Sec-
retary shall make available to the States for
their Administrative costs an amount equal to
not less than 11⁄2 percent of the Federal funds
expended under sections 4, 11, 17, and 17A of
the Richard B. Russell National School Lunch
Act (42 U.S.C. 1753, 1759a) 1766, and
1766a)) and sections 3 and 4 of this Act during
the second preceding fiscal year.
‘‘(B) MINIMUM AMOUNT.—In the case of
each of fiscal years 2005 through 2007, the
Secretary shall make available to each State for
their administrative costs not less than the ini-
tial allocation made to the State under this sub-
section for fiscal year 2004.
‘‘(C) ALLOCATION.—The Secretary shall
allocate the funds so provided in accordance
with paragraphs (2), (3), and (4) of this sub-
section.
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
such sums as may be necessary to carry out the
purposes of this section.’’; and
(2) in paragraph (2), by striking ‘‘$100,000’’
and inserting ‘‘$200,000’’.
SEC. 207. DISTRICT-WIDE ELIGIBILITY FOR SPECIAL AS-
SISTANCE.
Section 11(a)(1) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1759a(a)(1)) is amended—
(1) in subparagraph (C)—
(A) in clause (i)—
(i) by inserting ‘‘or school district’’
after ‘‘in the case of any school’’;
(ii) by inserting ‘‘or school district’’
after ‘‘in the school’’ both times it appears;
(iii) by inserting ‘‘or school district’’
after ‘‘in the case of a school’’; and
(iv) by inserting ‘‘or school district’’
after ‘‘with respect to the school’’;
(B) in clause (ii)—
(i) by inserting ‘‘or school district’’
after ‘‘served by a school’’; and
(ii) by inserting ‘‘or school district’’
after ‘‘served by the school’’; and
(C) in clause (iii) by inserting ‘‘or school
district’’ after ‘‘a school’’;
(2) in subparagraph (D)—
(A) in clause (i)—
(i) by inserting ‘‘or school district’’
after ‘‘any school’’; and
(ii) by inserting ‘‘or school district’’
after ‘‘the school’’;
(B) in clause (ii)—
(i) by inserting ‘‘or school district’’
after ‘‘A school’’; and
(ii) by inserting ‘‘or school district’’
after ‘‘the school’’;
(C) in clause (iii)—
(i) by inserting ‘‘or school district’’
after ‘‘a school’’; and
(ii) by inserting ‘‘or school district’’
after ‘‘the school’’; and
(D) in clause (iv) by inserting ‘‘or school
district’’ after ‘‘levels, a school’’; and
(3) in subparagraph (E)—
(A) in clause (i)—
(i) by inserting ‘‘or school district’’
after ‘‘In the case of any school’’;
(ii) by inserting ‘‘or school district’’
after ‘‘in the school’’ both times it appears;
(iii) by inserting ‘‘or school district’’
after ‘‘in the case of a school’’;
(iv) by inserting ‘‘or school district’’
after ‘‘with respect to the school’’;
(v) by inserting ‘‘or school district’’
after ‘‘received by the school’’; and
(vi) by inserting ‘‘or school district’’
after ‘‘for which the school’’; and
(B) in clause (ii)—
(i) by inserting ‘‘or school district’’
after ‘‘A school’’;
(ii) by inserting ‘‘or school district’’
after ‘‘for which the school’’ both times it
appears; and
(iii) by inserting ‘‘or school district’’
after ‘‘population of the school’’ both times
it appears.
SEC. 208. ADMINISTRATIVE ERROR REDUCTION.
(a) FEDERAL SUPPORT FOR TRAINING AND TECH-
NICAL ASSISTANCE.—Section 21 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1769b-1) is
amended—
(1) by redesignating subsection (e) as sub-
section (g); and
(2) by inserting after subsection (d) the fol-
lowing:
‘‘(e) ADMINISTRATIVE TRAINING
AND TECHNICAL
ASSISTANCE MATERIALS.—In collaboration with State
educational agencies, school food authorities, and local
educational agencies of varying sizes, the Secretary shall
develop and distribute training and technical assistance
materials relating to the administration of school meal
programs that are—
‘‘(1) prepared by the Secretary (based on re-
search or other sources), a State educational agency,
a school food authority, or a local educational agen-
cy; and
‘‘(2) representative of the best management and
administrative practices of State agencies, school
food authorities, and local educational agencies as
determined by the Secretary.
‘‘(f) FEDERAL ADMINISTRATIVE SUPPORT.—
‘‘(1) FUNDING.—
‘‘(A) IN GENERAL.—Out of any funds in
the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the
Secretary of Agriculture to carry out this
subsection—
‘‘(i) on October 1, 2004 and October
1, 2005, $3,000,000; and
‘‘(ii) on October 1, 2006, and October
1, 2007, $2,000,000.
‘‘(B) RECEIPT
AND
ACCEPTANCE.—The
Secretary shall be entitled to receive, shall ac-
cept, and shall use to carry out this subsection
the funds transferred under subparagraph (A),
without further appropriation.
‘‘(C) AVAILABILITY
OF
FUNDS.—Funds
transferred under subparagraph (A) shall re-
main available until expended.
‘‘(2) USE OF FUNDS.—The Secretary may use
funds provided under this subsection—
‘‘(A) to provide training and technical as-
sistance related to administrative practices de-
signed to improve program integrity and admin-
istrative accuracy in school meals programs (in-
cluding administrative requirements established
by the Child Nutrition Improvement and Integ-
rity Act and amendments made by that Act) to
State educational agencies and, to the extent
determined by the Secretary, to school food au-
thorities and local educational agencies;
‘‘(B) to assist State educational agencies
in reviewing the administrative practices of
school food authorities, to the extent deter-
mined by the Secretary; and
‘‘(C) to carry out the activities described in
subsection (e).’’.
(b) SELECTED ADMINISTRATIVE REVIEWS.—Section
22(b) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1769c(b)) is amended by adding at the
end the following:
‘‘(3) ADDITIONAL REVIEW REQUIREMENT FOR
SELECTED LOCAL EDUCATIONAL AGENCIES.—
‘‘(A) DEFINITION
OF
SELECTED
LOCAL
EDUCATIONAL AGENCY.—In this paragraph, the
term ‘selected local educational agency’ means a
local educational agency that has a dem-
onstrated a high level of, or a high risk for, ad-
ministrative error, as determined by the Sec-
retary.
‘‘(B) ADDITIONAL
ADMINISTRATIVE
RE-
VIEW.—In addition to any review required by
subsection (a) or paragraph (1), each State
educational agency shall conduct an administra-
tive review of each selected local educational
agency during the review cycle established
under subsection (a).
‘‘(C) SCOPE OF REVIEW.—In carrying out
a review under subparagraph (B), a State edu-
cational agency shall only review the adminis-
trative processes of a selected local educational
agency, 
including 
application, 
certification,
verification, meal counting, and meal claiming
procedures.
‘‘(D) RESULTS OF REVIEW.—If the State
educational agency determines (on the basis of
a review conducted under subparagraph (B))
that a selected local educational agency fails to
meet performance criteria established by the
Secretary, the State educational agency shall—
‘‘(i) require the selected local edu-
cational agency to develop and carry out
an approved plan of corrective action;
‘‘(ii) except to the extent technical as-
sistance is provided directly by the Sec-
retary, provide technical assistance to as-
sist the selected local educational agency in
carrying out the corrective action plan; and
‘‘(iii) conduct a follow-up review of
the selected local educational agency under
standards established by the Secretary.
‘‘(4) RECOVERING FUNDS AFTER ADMINISTRA-
TIVE REVIEWS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), if the local educational
agency fails to meet administrative performance
criteria established by the Secretary in both an
initial review and a follow-up review under
paragraph (1) or (3) or subsection (a), the Sec-
retary may require the State educational agency
to recover funds from the local educational
agency that would otherwise be paid to the
school food authority or local educational agen-
cy for school meals programs under procedures
prescribed by the Secretary.
‘‘(B) AMOUNT.—The amount of funds re-
covered under subparagraph (A) shall equal the
value of any overpayments made to the school
food authority or local educational agency as a
result of an erroneous claim during the time pe-
riod described in subparagraph (C).
‘‘(C) TIME PERIOD.—The period for deter-
mining the value of any such overpayments
under subparagraph (B) shall be the period—
‘‘(i) beginning on the date the erro-
neous claim was made; and
‘‘(ii) ending on the earlier of the date
the erroneous claim is corrected or—
‘‘(I) in the case of the first re-
view conducted by the State edu-
cational agency of the local edu-
cational agency under this section
after July 1, 2005, the date that is 60
days after the beginning of the period
under clause (i); or
‘‘(II) in the case of any subse-
quent review conducted by the State
educational agency of the local edu-
cational agency under this section, the
date that is 90 days after the begin-
ning of the period under clause (i).
‘‘(5) USE OF RECOVERED FUNDS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), funds recovered under paragraph
(4) shall—
‘‘(i) be returned to the Secretary
under procedures established by the Sec-
retary, and may be used—
‘‘(I) to provide training and tech-
nical assistance related to administra-
tive practices designed to improve pro-
gram integrity and administrative ac-
curacy in school meals programs (in-
cluding administrative requirements
established by the Child Nutrition Im-
provement and Integrity Act and
amendments made by that Act) to
State educational agencies and, to the
extent determined by the Secretary, to
school food authorities and local edu-
cational agencies;
‘‘(II) to assist State educational
agencies in reviewing the administra-
tive practices of school food authori-
ties, to the extent determined by the
Secretary; and
‘‘(III) to carry out section 21(e);
or
‘‘(ii) be credited to the child nutrition
programs appropriation account.
‘‘(B) STATE SHARE.—Subject to subpara-
graph (C), a State educational agency may re-
tain not more than 25 percent of an amount re-
covered under paragraph (4), to carry out
school meals program integrity initiatives to as-
sist school food authorities and local edu-
cational agencies that have repeatedly failed (as
determined by the Secretary) to meet adminis-
trative performance criteria.
‘‘(C) REQUIREMENT.—To be eligible to re-
tain funds under subparagraph (B), a State
educational agency shall—
‘‘(i) submit to the Secretary a plan
describing how the State educational agen-
cy will use the funds to improve school
meals program integrity, including meas-
ures to give priority to school food authori-
ties and local educational agencies from
which funds were retained under para-
graph (4); and
‘‘(ii) obtain the approval of the Sec-
retary for the plan.’’.
(c) TRAINING AND TECHNICAL ASSISTANCE.—Sec-
tion 7 of the Child Nutrition Act of 1966 (42 U.S.C.
1776) is amended—
(1) in subsection (e)—
(A) by striking ‘‘(e) Each’’ and inserting
the following:
‘‘(e) PLANS FOR USE OF ADMINISTRATIVE EXPENSE
FUNDS.—
‘‘(1) IN GENERAL.—Each’’; and
(B) by striking ‘‘After submitting’’ and all
that follows through ‘‘change in the plan.’’, and
inserting the following:
‘‘(2) UPDATES
AND
INFORMATION
MANAGE-
MENT SYSTEMS.—After submitting the initial plan, a
State shall be required to submit to the Secretary
for approval only a substantive change in the plan.
Each State plan shall at a minimum include a de-
scription of how technology and information man-
agement systems will be used to improve program
integrity by—
‘‘(A) monitoring the nutrient content of
meals served;
‘‘(B) training schools and school food au-
thorities how to utilize technology and informa-
tion management systems for activities such as
menu planning, collecting point of sale data,
processing applications for free and reduced
price meals and verifying eligibility for free and
reduced price meals using existing databases to
access program participation or income data
collected by State or local educational agencies;
and
‘‘(C) using electronic data to establish
benchmarks to compare and monitor program
integrity, program participation, and financial
data across schools and school food authorities.
‘‘(3) TRAINING AND TECHNICAL ASSISTANCE.—
Each State shall submit to the Secretary for ap-
proval a plan describing the manner in which the
State intends to implement subsection (g) and sec-
tion 22(b)(3) of the Richard B. Russell National
School Lunch Act (as added by section 208 of the
Child Nutrition Improvement and Integrity Act).’’;
(2) by redesignating subsection (g) as sub-
section (i); and
(3) by inserting after subsection (f) the fol-
lowing:
‘‘(g) STATE TRAINING.—
‘‘(1) IN
GENERAL.—At least annually, each
State shall provide training in administrative prac-
tices (including training in application, certification,
verification, meal counting, and meal claiming proce-
dures) to school food authority administrative per-
sonnel and other appropriate personnel, with empha-
sis on the requirements established by the Child Nu-
trition Improvement and Integrity Act and the
amendments made by that Act.
‘‘(2) FEDERAL ROLE.—The Secretary shall—
‘‘(A) provide training and technical assist-
ance (including training materials and informa-
tion developed under subsections (e) and (f) of
section 21 of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1769b-1)) to a
State to assist the State in carrying out para-
graph (1); or
‘‘(B) at the option of the Secretary, di-
rectly provide training and technical assistance
described in paragraph (1).
‘‘(3) THIRD-PARTY CONTRACTING.—In carrying
out this subsection, the Secretary or a State may
contract with a third party under procedures estab-
lished by the Secretary.
‘‘(4) REQUIRED PARTICIPATION.—Under proce-
dures established by the Secretary that consider the
various needs and circumstances of school food au-
thorities, each school food authority or local edu-
cational agency shall ensure that an individual con-
ducting or overseeing administrative procedures de-
scribed in paragraph (1) receives training at least
annually, unless determined otherwise by the Sec-
retary.
‘‘(h) FUNDING FOR TRAINING AND ADMINISTRATIVE
REVIEWS.—
‘‘(1) FUNDING.—
‘‘(A) IN GENERAL.—On October 1, 2004,
and on each October 1 thereafter, out of any
funds in the Treasury not otherwise appro-
priated, the Secretary of the Treasury shall
transfer to the Secretary of Agriculture to carry
out this subsection $4,000,000, to remain avail-
able until expended.
‘‘(B) RECEIPT
AND
ACCEPTANCE.—The
Secretary shall be entitled to receive, shall ac-
cept, and shall use to carry out this subsection
the funds transferred under subparagraph (A),
without further appropriation.
‘‘(2) USE OF FUNDS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the Secretary shall use
funds provided under this subsection to assist
States in carrying out subsection (g) and ad-
ministrative reviews of selected school food au-
thorities and local educational agencies under
section 22(b)(3) of the Richard B. Russell Na-
tional 
School 
Lunch 
Act 
(42 
U.S.C.
1769c(b)(3)).
‘‘(B) EXCEPTION.—The Secretary may re-
tain a portion of the amount provided to cover
costs of activities carried out by the Secretary
in lieu of the State.
‘‘(3) ALLOCATION.—The Secretary shall allo-
cate funds provided in this subsection to States
based on the number of local educational agencies
that have demonstrated a high level of or a high risk
for administrative error, as determined by the Sec-
retary, taking into account the requirements estab-
lished by the Child Nutrition Improvement and In-
tegrity Act and the amendments made by that Act.
‘‘(4) REALLOCATION.—The Secretary may re-
allocate, to carry out this section, any amounts made
available to carry out this subsection that are not
obligated or expended, as determined by the Sec-
retary.’’.
TITLE III—PROMOTING NUTRI-
TION 
QUALITY 
AND 
PRE-
VENTING 
CHILDHOOD 
OBE-
SITY
SEC. 301. LOCAL SCHOOL WELLNESS POLICY.
Not later than the first day of the school year begin-
ning after June 30, 2006, local educational agencies par-
ticipating in the programs authorized by the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et
seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 1771
et seq.) shall establish a local school wellness policy for
such local agency that at a minimum—
(1) includes goals for nutrition education, phys-
ical activity and other school-based activities de-
signed to promote student wellness that the local
educational agency determines are appropriate;
(2) includes nutrition guidelines selected by the
local educational agencies for all foods available on
school campus during the school day with the objec-
tive of promoting student health and reducing child-
hood obesity;
(3) provides an assurance that guidelines for re-
imbursable school meals shall not be less restrictive
than regulations and guidance issued by the Sec-
retary pursuant to section 10(a) and (b) of the Child
Nutrition Act (42 U.S.C. 1779(a) and (b)) and sec-
tion 9(f)(1) and section 17(a) of the Richard B.
Russell National School Lunch Act (42 U.S.C.
1758(f)(1) and 1766(a)), as those regulations and
guidance apply to schools;
(4) establishes a plan for ensuring implementa-
tion of the local wellness policy, including designa-
tion of a person or persons within the local edu-
cational agency, or at each school as appropriate,
charged with operational responsibility for ensuring
that such school meets the local wellness policy; and
(5) involves parents, students, representatives
of the school food authority, the school board, school
administrators, and public in the development of the
school wellness policy.
SEC. 302. SUPPORTING NUTRITION EDUCATION, IMPROV-
ING MEAL QUALITY, AND ACCESS TO LOCAL
FOODS.
Section 19 of the Child Nutrition Act of 1966 (42
U.S.C. 1788) is amended—
(1) by amending subsection (b) to read as fol-
lows:
‘‘(b) PURPOSE.—It is the purpose of this section to
support effective nutrition education through assistance to
State agencies, schools, and nonprofit entities for Team
Nutrition and other nutrition education projects that im-
prove student understanding of healthful eating patterns,
including an awareness and understanding of the Dietary
Guidelines for Americans, the quality of school meals and
access to local foods in schools and institutions operating
programs under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.) and section 4 of this
Act.’’;
(2) by striking subsections (c) through (h) and
inserting after subsection (b) the following:
‘‘(c) TEAM NUTRITION NETWORK.—
‘‘(1) PURPOSE.—The purpose of the Team Nu-
trition Network is to—
‘‘(A) promote the nutritional health of the
Nation’s school children through nutrition edu-
cation, physical activity and other activities that
support healthy lifestyles for children based on
the Dietary Guidelines for Americans, issued
jointly by the Secretary of Agriculture and the
Secretary of Health and Human Services, and
the physical fitness guidelines issued by the
Secretary of Health and Human Services;
‘‘(B) provide assistance to States for the
development of State-wide, comprehensive, and
integrated nutrition education and physical fit-
ness programs; and
‘‘(C) provide training and technical assist-
ance to States, school and community nutrition
programs, and child nutrition food service pro-
fessionals.
‘‘(2) STATE COORDINATOR.—The State Team
Nutrition Network Coordinator shall—
‘‘(A) administer and coordinate a com-
prehensive integrated statewide nutrition edu-
cation program; and
‘‘(B) coordinate efforts with the Food and
Nutrition Service and State agencies respon-
sible for children’s health programs.
‘‘(3) TEAM NUTRITION NETWORK.—Subject to
the availability or appropriations to carry out this
subsection, the Secretary, in consultation with the
Secretary of Education, shall, on a competitive basis,
provide assistance to States for the purpose of cre-
ating model nutrition education and physical activity
programs, consistent with current dietary and fit-
ness guidelines, for students in elementary schools
and secondary schools.
‘‘(4) REQUIREMENTS
FOR
STATE
PARTICIPA-
TION.—To be eligible to receive assistance under this
subsection, a State Coordinator shall submit an ap-
plication to the Secretary at such time, an in such
manner, and containing such information as the Sec-
retary may require, including—
‘‘(A) a description of how the proposed nu-
trition and physical activity program will pro-
mote healthy eating and physical activity and
fitness and address the health and social con-
sequences of children who are at risk of becom-
ing overweight or obese;
‘‘(B) information describing how nutrition
activities are to be coordinated at the State
level with other health activities conducted by
education, health and agriculture agencies;
‘‘(C) information describing how initiatives
to promote physical activity are to be coordi-
nated at the State level with other initiatives to
promote physical activity conducted by edu-
cation, health, and parks and recreation agen-
cies;
‘‘(D) a description of the consultative proc-
ess that the State Coordinator employed in the
development of the model nutrition and physical
activity programs, including consultations with
individuals and organizations with expertise in
promoting public health, nutrition, or physical
activity, and organizations representing the ag-
riculture, food and beverage, fitness, and sports
and recreation industries;
‘‘(E) a description of how the State Coor-
dinator will evaluate the effectiveness of its pro-
gram; and
‘‘(F) a description of how any and all com-
munications to parents and guardians of all
students who are members of a household re-
ceiving or applying for assistance under the
program shall be in an understandable and uni-
form format, and, to the extent practicable, in
a language that parents can understand.
‘‘(5) DURATION.—Subject to the availability of
funds made available to carry out this subsection, a
State Coordinator shall conduct the project for a pe-
riod of 3 successive school years.
‘‘(6) AUTHORIZED ACTIVITIES.—An eligible ap-
plicant that receives assistance under this subsection
may use funds to carry out one or more of the fol-
lowing activities—
‘‘(A) collecting, analyzing, and dissemi-
nating data regarding the extent to which chil-
dren and youth in the State are overweight or
physically inactive and the programs and serv-
ices available to meet those needs;
‘‘(B) developing and implementing model
elementary and secondary education curricula
to create a comprehensive, coordinated nutrition
and physical fitness awareness and obesity pre-
vention program;
‘‘(C) developing and implementing pilot
programs in schools to increase physical activity
and to enhance the nutritional status of stu-
dents, including through the increased con-
sumption of fruits and vegetables, whole grains,
and lowfat dairy products;
‘‘(D) developing and implementing State
guidelines in health, which include nutrition
education, and physical education and empha-
size regular physical activity during school
hours;
‘‘(E) collaborating with community based
organizations, volunteer organizations, State
medical associations, and public health groups
to develop and implement nutrition and physical
education programs targeting lower income chil-
dren, ethnic minorities, and youth at a greater
risk for obesity;
‘‘(F) collaborating with public or private
organizations that have as a mission the raising
of public awareness of the importance of a
balanced diet and an active lifestyle; and
‘‘(G) providing training and technical as-
sistance to teachers and school food service pro-
fessionals consistent with the purpose of this
section.
‘‘(7) LIMITATION.—Materials prepared under
this subsection regarding agricultural commodities,
food, or beverages must be factual and without bias.
‘‘(8) REPORT.—Within 18 months of comple-
tion of the projects and the evaluations, the Sec-
retary shall submit to the Committee on Education
and the Workforce of the House of Representatives
and the Committee on Health, Education, Labor,
and Pensions of the Senate and the Committee on
Agriculture, Nutrition and Forestry of the Senate a
report describing the results of the evaluation of the
demonstration programs and shall make such re-
ports available to the public, including through the
Internet.
‘‘(9) INDEPENDENT EVALUATION.—
‘‘(A) IN
GENERAL.—The Secretary shall
enter into an agreement with an independent,
non-partisan science-based research organiza-
tion to conduct a comprehensive independent
evaluation of the effectiveness of the Team Nu-
trition initiative and the Team Nutrition Net-
work authorized by this subsection and to iden-
tify best practices in—
‘‘(i) improving student understanding
of healthful eating patterns;
‘‘(ii) engaging students in regular
physical activity and improving physical
fitness;
‘‘(iii) reducing diabetes and obesity
rates in school children;
‘‘(iv) improving student nutrition be-
haviors on the school campus including
healthier meal choices evidenced by greater
inclusion 
of 
fruits, 
vegetables, 
whole
grains, and lean dairy and protein in meal
and snack selections;
‘‘(v) providing training and technical
assistance for food service professionals re-
sulting in the availability of healthy meals
that appeal to ethnic and cultural taste
preferences;
‘‘(vi) linking meals programs to nutri-
tion education activities; and
‘‘(vii) successfully involving school ad-
ministrators, the private sector, public
health agencies, non-profit organizations,
and other community partners.
‘‘(B) REPORT.—Not later than October 1,
2007, the Secretary shall transmit the findings
of the independent evaluation to the Committee
on Education and the Workforce of the House
of Representatives, the Committee on Health,
Education, Labor, and Pensions and the Com-
mittee on Agriculture, Nutrition, and Forestry
of the Senate.
‘‘(d) LOCAL NUTRITION AND PHYSICAL ACTIVITY
PROJECT.—
‘‘(1) IN GENERAL.—Subject to the availability
of appropriations to carry out this subsection, the
Secretary, in consultation with the Secretary of Edu-
cation, shall provide assistance to not more than 100
local educational agencies, at least one per State, for
the establishment of pilot projects for purposes of
promoting healthy eating habits and increasing
physical activity, consistent with the Dietary Guide-
lines for Americans issued jointly by the Secretary
of Agriculture and the Secretary of Health and
Human Services, among elementary and secondary
education students.
‘‘(2) REQUIREMENT
FOR
PARTICIPATION
IN
PILOT PROJECT.—To be eligible to receive assistance
under this subsection, a local educational agency
shall, in consultation with individuals who possess
education or experience appropriate for representing
the general field of public health, including nutrition
and fitness professionals, submit to the Secretary an
application that shall include—
‘‘(A) a description of the local educational
agency’s need for nutrition and physical activity
programs;
‘‘(B) a description of how the proposed
project will improve health and nutrition
through education and increased access to phys-
ical activity;
‘‘(C) a description of how funds under this
subsection will be coordinated with other pro-
grams under this Act, the Richard B. Russell
National School Lunch Act, or other Acts, as
appropriate, to improve student health and nu-
trition;
‘‘(D) a statement of the local educational
agency’s measurable goals for nutrition and
physical education programs and promotion;
‘‘(E) a description of how the proposed
project will be aligned with the local wellness
policy required under the Act;
‘‘(F) a description of the procedures the
agency will use for assessing and publicly re-
porting progress toward meeting those goals;
and
‘‘(G) a description of how communications
to parents and guardians of participating stu-
dents regarding the activities under this sub-
section shall be in an understandable and uni-
form format, and, to the extent practicable, in
a language that parents can understand.
‘‘(3) DURATION.—Subject to the availability of
funds made available to carry out this subsection, a
local educational agency receiving assistance under
this subsection shall conduct the project during a pe-
riod of 3 successive school years.
‘‘(4) AUTHORIZED ACTIVITIES.—An eligible ap-
plicant 
that 
receives 
assistance 
under 
this
subsection—
‘‘(A) shall use funds provided to—
‘‘(i) promote healthy eating through
the development and implementation of nu-
trition education programs and curricula
based on the Dietary Guidelines for Ameri-
cans; and
‘‘(ii) increase opportunities for phys-
ical activity through after school programs,
athletics, intramural activities, and recess;
and
‘‘(B) may use funds provided to—
‘‘(i) educate parents and students
about the relationship of a poor diet and
inactivity to obesity and other health prob-
lems;
‘‘(ii) develop and implement physical
education programs that promote fitness
and lifelong activity;
‘‘(iii) provide training and technical
assistance to food service professionals to
develop nutritious, more appealing menus
and recipes;
‘‘(iv) incorporate nutrition education
into physical education, health education,
and after school programs, including ath-
letics;
‘‘(v) involve parents, nutrition profes-
sionals, food service staff, educators, com-
munity leaders, and other interested par-
ties in assessing the food options in the
school environment and developing and im-
plementing an action plan to promote a
balanced and healthy diet;
‘‘(vi) provide nutrient content or nu-
trition 
information 
on 
meals 
served
through the school lunch or school break-
fast programs and items sold a la carte
during meal times;
‘‘(vii) encourage the increased con-
sumption of a variety of healthy foods
through new initiatives such as salad bars
and fruit bars; and
‘‘(viii) provide nutrition education, in-
cluding sports nutrition education, for
teachers, coaches, food service staff, ath-
letic trainers, and school nurses.
‘‘(5) LIMITATION.—Materials prepared under
this subsection regarding agricultural commodities,
food, or beverages must be factual and without bias.
‘‘(6) REPORT.—Within 18 months of comple-
tion of the projects and evaluations, the Secretary
shall transmit to the Committee on Education and
the Workforce of the House of Representatives and
the Committee on Health, Education, Labor, and
Pensions and the Committee on Agriculture, Nutri-
tion and Forestry of the Senate a report describing
the results of the evaluation of the pilot projects and
shall make such reports available to the public, in-
cluding through the Internet.
‘‘(e) NUTRITION EDUCATION SUPPORT.—
‘‘(1) IN GENERAL.—In carrying out the purpose
of this section to support nutrition education, the
Secretary may provide for technical assistance and
grants to improve the quality of school meals and
access to local foods in schools and institutions.
‘‘(2) SCHOOL
MEALS
INITIATIVE.—The Sec-
retary may provide assistance to enable State edu-
cational agencies to—
‘‘(A) implement the recommendations of
the Secretary’s School Meals Initiative for
Healthy Children;
‘‘(B) increase the consumption of fruits,
vegetables, low-fat dairy products, and whole
grains;
‘‘(C) reduce saturated fat and sodium in
school meals;
‘‘(D) improve school nutritional environ-
ments; and
‘‘(E) conduct other activities that aid
schools in carrying out the Secretary’s School
Meals Initiative for Healthy Children.
‘‘(3) ACCESS TO LOCAL FOODS.—The Secretary
may provide assistance, through competitive match-
ing grants and technical assistance, to schools and
nonprofit entities for projects that—
‘‘(A) improve access to local foods in
schools and institutions participating in pro-
grams under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.) and
Section 4 of this Act through farm-to-cafeteria
activities that may include the acquisition of
food and appropriate equipment and the provi-
sion of training and education;
‘‘(B) are, at a minimum, designed to pro-
cure local foods from small- and medium-sized
farms for school meals;
‘‘(C) support nutrition education activities
or curriculum planning that incorporates the
participation of schoolchildren in farm and agri-
culture education activities;
‘‘(D) develop a sustained commitment to
farm-to-cafeteria projects in the community by
linking schools, agricultural producers, parents,
and other community stakeholders;
‘‘(E) require $100,000 or less in Federal
contributions;
‘‘(F) require a Federal share of costs not
to exceed 75 percent;
‘‘(G) provide matching support in the form
of cash or in kind contributions (including fa-
cilities, equipment, or services provided by State
and local governments and private sources); and
‘‘(H) cooperate in an evaluation to be car-
ried out by the Secretary.’’; and
(3) by redesignating subsection (i) as subsection
(f), and amending paragraph (1) of such subsection
to read as follows:
‘‘(1) IN GENERAL.—There is authorized to be
appropriated such sums as may be necessary for car-
rying out this section for fiscal years 2004 through
2008.’’.
SEC. 303. FRUITS AND VEGETABLE COMMODITIES.
Section 6(c)(1)(D) of the Richard B. Russell Na-
tional School Lunch Act (42 U.S.C. 1755(c)(1)(D)) is
amended by inserting ‘‘, and fruits and vegetables’’ before
the period.
SEC. 304. FLUID MILK.
Section 9(a)(2) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1758(a)(2)) is amended to
read as follows:
‘‘(2) FLUID MILK.—
‘‘(A) IN
GENERAL.—Lunches served by
schools participating in the school lunch pro-
gram under this Act—
‘‘(i) shall offer students fluid milk in
a variety of fat contents;
‘‘(ii) may offer students flavored and
unflavored fluid milk and lactose-free fluid
milk; and
‘‘(iii) shall provide a substitute for
fluid milk for students whose disability re-
stricts their diet, upon receipt of a written
statement from a licensed physician that
identifies the disability that restricts the
student’s diet and that specifies the sub-
stitute for fluid milk.
‘‘(B) SUBSTITUTES.—
‘‘(i) 
STANDARDS
FOR
SUBSTI-
TUTION.—Schools may substitute for the
fluid milk provided under subparagraph
(A), a non-dairy beverage that is nutrition-
ally equivalent to fluid milk and meets nu-
tritional standards as established by the
Secretary (which shall, among other re-
quirements to be determined by the Sec-
retary, include fortification of calcium, pro-
tein, vitamin A, and vitamin D to levels
found in cow’s milk) for students who can-
not consume fluid milk because of a med-
ical or other special dietary need other
than a disability described in subparagraph
(A)(iii).
‘‘(ii) 
NOTICE.—Such 
substitutions
may be made if the school notifies the
State agency that it is implementing a var-
iation allowed under this subparagraph,
and if such substitution is requested by
written statement of a medical authority or
by a student’s parent or legal guardian
that identifies the medical or other special
dietary need that restricts the student’s
diet, provided that the school shall not be
required to provide beverages other than
those it has identified as acceptable sub-
stitutes.
‘‘(iii) EXCESS
EXPENSES
BORNE
BY
THE
SCHOOL
DISTRICT.—Expenses in-
curred in providing substitutions pursuant
to this subparagraph that are in excess of
those covered by reimbursements under
this Act shall be paid by the school dis-
trict.
‘‘(C) RESTRICTIONS
ON
SALE
OF
MILK
PROHIBITED.—A school or institution that par-
ticipates in the school lunch program under this
Act shall not directly or indirectly restrict the
sale or marketing of fluid milk products by the
school (or by a person approved by the school)
at any time or any place—
‘‘(i) on the school premises; or
‘‘(ii) at any school-sponsored event.’’.
SEC. 305. WAIVER OF REQUIREMENTS FOR WEIGHTED
AVERAGES FOR NUTRIENT ANALYSIS.
Section 9(f)(5) of the Richard B. Russell National
School Lunch Act (42 U.S.C 1758(f)(5)) is amended to
read as follows:
‘‘(5) WAIVER OF REQUIREMENTS FOR WEIGHT-
ED
AVERAGES
FOR
NUTRIENT
ANALYSIS.—State
educational agencies may grant waivers to school
food authorities to the requirement for weighted
averages for nutrient analysis of menu items and
foods offered or served as part of a meal offered or
served under the school lunch program under this
Act or the school breakfast program under section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773)
if—
‘‘(A) the school food authority has an
equivalent system for conducting a nutrient
analysis, subject to State agency approval; and
‘‘(B) the equivalent system adequately doc-
uments the extent to which the school food au-
thority is meeting the Dietary Guidelines for
Americans and other nutrition standards.
In addition, the Secretary may waive, on a case by
case basis, the requirement for a State agency to use
weighted averages when conducting a nutrient anal-
ysis as part of a review (of compliance with the Die-
tary Guidelines and other nutrition standards) of a
school food authority not using nutrient standard
menu planning, when, in the Secretary’s determina-
tion, an alternative analysis would yield results that
would adequately measure a school food authority’s
compliance with current nutrition standards for
school meals.’’.
SEC. 306. WHOLE GRAINS.
Not later than 18 months after the date of enactment
of this Act, the Secretary shall promulgate rules, based
on Federal nutrition guidelines, to increase the presence
of whole grains in foods offered in school nutrition pro-
grams under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.) and the Child Nutri-
tion Act of 1966 (42 U.S.C. 1771 et seq.).
SEC. 307. FRUIT AND VEGETABLE PILOT PROGRAM.
Section 18(g) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1769) is amended—
(1) in paragraph (1), by striking ‘‘In the school
year beginning’’ and inserting ‘‘Beginning’’;
(2) by striking paragraph (3) and redesignating
paragraphs (2) and (4) as paragraphs (5) and (6),
respectively, and inserting after paragraph (1) the
following:
‘‘(2) ADDITIONAL STATES.—In addition to the
States participating under subsection (1), the Sec-
retary shall make available free fresh and dried
fruits and fresh vegetables to students in 25 elemen-
tary or secondary schools in each State or Indian
reservation selected for participation.
‘‘(3) SELECTION OF SCHOOLS.—In selecting ad-
ditional schools to participate in the pilot program
under paragraph (2) of this subsection, the Sec-
retary shall—
‘‘(A) to the maximum extent practicable,
ensure that the majority of schools selected are
those in which not less than 50 percent of stu-
dents are eligible for free or reduced price
meals under this Act;
‘‘(B) solicit applications from interested
schools that include—
‘‘(i) information pertaining to the per-
centage of students enrolled in the school
submitting the application who are eligible
for free or reduced price school lunches
under this Act;
‘‘(ii) a certification of support for par-
ticipation in the pilot program signed by
the school food manager, the school prin-
cipal, and the district superintendent (or
their equivalent positions, as determined by
the school); and
‘‘(iii) a plan for implementation of the
pilot program that includes a partnership
with an entity or entities of the fruit and
vegetable industry, which shall contribute
not less than 15 percent, in cash or in
kind, for the acquisition, handling, pro-
motion, and distribution of fresh and dried
fruits and fresh vegetables provided under
this program; and
‘‘(iv) such other information as may
be requested by the Secretary; and
‘‘(C) for each application received, deter-
mine whether the application is from a school
in which not less than 50 percent of students
are eligible for free or reduced price meals
under this Act.
‘‘(4) SPECIAL RULE.—Schools participating in
the program described in paragraph (1) shall receive
a priority in the receipt of assistance under this sub-
section and shall not be subject to the requirements
of paragraph (3).’’; and
(3) by amending paragraph (6) (as redesig-
nated by this section) to read as follows:
‘‘(6) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated $11,000,000
for fiscal year 2004 and such sums as may be nec-
essary for fiscal years 2005 through 2008, to carry
out this subsection.’’.
TITLE 
IV—IMPROVING 
THE
WOMEN, INFANTS, AND CHIL-
DREN PROGRAM
SEC. 401. DEFINITION OF NUTRITION EDUCATION.
Section 17(b)(7) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(b)(7)) is amended—
(1) by inserting ‘‘and physical activity’’ after
‘‘dietary habits’’; and
(2) by striking ‘‘nutrition and health’’ and in-
serting ‘‘nutrition, health, and child development’’.
SEC. 402. DEFINITION OF SUPPLEMENTAL FOODS.
Section 17(b)(14) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(b)(14)) is amended by inserting after
‘‘children’’ the following: ‘‘and foods that promote the
health of the population served by the program authorized
by this section, as indicated by relevant nutrition science,
public health concerns, and cultural eating patterns’’.
SEC. 403. IMPROVING CERTIFICATION.
(a) 
CERTIFICATION
OF
WOMEN
WHO
ARE
BREASTFEEDING.—Section 17(d)(3)(A) of the Child Nu-
trition Act of 1966 (42 U.S.C. 1786(d)(3)(A)) is amended
by adding at the end the following: ‘‘A State may certify
breast-feeding women for up to 1 year, or until women
stop breast-feeding, whichever is earlier.’’
(b) PHYSICAL PRESENCE REQUIREMENT.—Section
17(d)(3)(C)(ii) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(d)(3)(C)(ii)) is amended—
(1) in subclause (I)(bb), by striking ‘‘from a
provider other than the local agency; or’’ and insert-
ing a semicolon;
(2) in subclause (II)(cc), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by inserting after subclause (II) the fol-
lowing:
‘‘(III) an infant under 8 weeks of
age—
‘‘(aa) who cannot be present
at certification for a reason de-
termined appropriate by the local
agency; and
‘‘(bb) for whom all necessary
certification information is pro-
vided.’’.
(c) PROCESSING APPLICATIONS UNDER SPECIAL
CIRCUMSTANCES.—Section 17(f)(1)(C) of the Child Nu-
trition Act of 1966 (42 U.S.C. 1786(f)(1)(C)) is amended
by—
(1) redesignating clauses (ix) and (x) as clauses
(x) and (xi), respectively; and
(2) inserting after clause (viii) the following:
‘‘(ix) procedures whereby a State
agency may accept and process vendor ap-
plications outside of the established time-
frames, such as in situations in which a
previously authorized vendor changes own-
ership under circumstances that do not
permit timely notification to the State
agency of such change in ownership;’’.
(d) RESCHEDULING POLICIES.—Section 17(f)(19) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(19))
is amended—
(1) in subparagraph (A), by striking ‘‘; and’’
and inserting a semicolon;
(2) in subparagraph (B), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(C) require local agencies that schedule certification
appointments to permit an applicant or participant to re-
schedule an appointment to apply or be recertified for the
program.’’.
SEC. 404. REVIEWS OF AVAILABLE SUPPLEMENTAL FOODS.
(a) SCIENTIFIC REVIEW.—Section 17(f)(11) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(11)) is
amended to read as follows:
‘‘(11)(A) The Secretary shall prescribe by regulations
the supplemental foods to be made available in the pro-
gram under this section. To the degree possible the Sec-
retary shall assure that the fat, sugar, and salt content
of the prescribed foods is appropriate.
‘‘(B) Beginning in 2013 and every 10 years there-
after, or more frequently if determined by the Secretary
to be necessary to reflect current scientific knowledge, the
Secretary shall conduct a scientific review of the supple-
mental foods available in the program and recommend, as
necessary, changes to reflect nutrition science, current
public health concerns, and cultural eating patterns.’’.
(b) RULEMAKING.—The Secretary shall promulgate
a final rule updating the prescribed supplemental foods
available through the program authorized under section
17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786)
within 18 months of receiving the review of the food pack-
age for such program undertaken by the National Acad-
emy of Sciences, Institute of Medicine in September 2003.
SEC. 405. NOTIFICATION OF VIOLATIONS AND INFANT FOR-
MULA BENEFITS.
Section 17(f) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(f)) is amended by adding at the end the fol-
lowing:
‘‘(25) NOTIFICATION
OF
VIOLATIONS.—If a
State agency finds that a vendor has committed a
violation that requires a pattern of occurrences in
order to impose a sanction, the State agency shall
notify the vendor of the initial violation in writing
prior to documentation of another violation, unless
the State agency determines that notifying the ven-
dor would compromise an investigation.
‘‘(26) INFANT FORMULA BENEFITS.—
‘‘(A) IN GENERAL.—The State agency may
round up to the next whole can of formula to
ensure that all participants receive the full-au-
thorized nutritional benefit specified by regula-
tion.
‘‘(B) LIMITATION.—For formula covered
by infant formula contracts, subparagraph (A)
shall take effect as contracts are awarded under
bid solicitations made on or after October 1,
2004.’’.
SEC. 406. HEALTHY PEOPLE 2010 INITIATIVE.
Section 17(h)(4) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(h)(4)) is amended—
(1) in subparagraph (D), by striking ‘‘; and’’
and inserting a semicolon;
(2) in subparagraph (E), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by inserting after subparagraph (E) the fol-
lowing:
‘‘(F) partner with communities, State and
local agencies, employers, health care profes-
sionals, and the private sector to build a sup-
portive breastfeeding environment for women
participating in the program under this section
to support the breastfeeding goals of the
Healthy People 2010 initiative.’’.
SEC. 407. COMPETITIVE BIDDING.
Section 17(h)(8)(A) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(h)(8)(A)) is amended by adding at
the end the following:
‘‘(iv) REBATE INVOICES.—Each State
agency shall have a system to ensure that
infant formula rebate invoices, under com-
petitive bidding, provide a reasonable esti-
mate or an actual count of the number of
units sold to participants in the program
under this section.
‘‘(v) 
CENT-FOR-CENT
ADJUST-
MENTS.—A bid solicitation for infant for-
mula under the program made on or after
October 1, 2004 shall require the manufac-
turer to adjust for price changes subse-
quent to the opening of the bidding process
in a manner that requires—
‘‘(I) a cent-for-cent increase in
the rebate amounts if there is an in-
crease in the lowest national wholesale
price for a full truckload of the par-
ticular infant formula; or
‘‘(II) a cent-for-cent decrease in
the rebate amounts if there is a de-
crease in the lowest national wholesale
price for a full truckload of the par-
ticular infant formula.’’.
SEC. 408. FRUIT AND VEGETABLE PROJECTS.
Section 17(h)(10)(B)(ii) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(h)(10)(B)(ii)) is amended by in-
serting after ‘‘under this section’’ the following: ‘‘, which
may include demonstration projects in up to 10 local sites,
determined to be geographically and culturally representa-
tive of local States and Indian agencies, to evaluate the
inclusion of fresh, frozen, or canned fruits and vegetables
(to be made available through private funds) as an addi-
tion to the supplemental food provided under this section’’.
SEC. 409. PRICE LEVELS OF RETAIL STORES.
Section 17(h)(11) of the Child Nutrition Act of 1966
is amended by adding at the end the following:
‘‘(C) ADDITIONAL REQUIREMENTS.—
‘‘(i) The State agency shall evaluate a
vendor applicant based on its shelf prices
or on the prices it bids for supplemental
foods, which may not exceed its shelf
prices.
‘‘(ii) The State agency shall establish
price limitations on the amount that it will
pay vendors for supplemental foods. The
State agency shall ensure that price limita-
tions do not result in inadequate partici-
pant access by geographic area.
‘‘(iii) In establishing competitive price
and price limitation requirements, the
State agency may exclude pharmacy ven-
dors that supply only exempt infant for-
mula or medical foods that are eligible
under the program.
‘‘(iv) The State agency shall establish
competitive price requirements and price
limitations for vendor peer groups, as nec-
essary to ensure that prices paid to ven-
dors are competitive. Vendor peer group
competitive price requirements and price
limitations may reflect reasonable esti-
mates of varying costs of acquisition of
supplemental foods.
‘‘(D) INCENTIVE ITEMS.—The State agen-
cy shall not authorize a retail food store that
provides incentive items or other free merchan-
dise to program participants if funds available
under this program were used to purchase such
items or merchandise.
‘‘(E) RULES OF CONSTRUCTION.—Nothing
in this section may be construed to authorize
violation of the Sherman Antitrust Act (15
U.S.C. 1 et seq.) or the Robinson-Patman Act
(15 U.S.C. 13 et seq.).’’.
SEC. 410. MANAGEMENT INFORMATION SYSTEMS.
Section 17(h)(12) of the Child Nutrition Act of 1996
(42 U.S.C. 1786(h)(12)) is amended—
(1) by amending subparagraph (B) to read as
follows:
‘‘(B) ELECTRONIC
BENEFIT
TRANSFER
SYSTEMS.—
‘‘(i) IN GENERAL.—All States that re-
ceive Federal funds for design or imple-
mentation of electronic benefit transfer
(EBT) systems for the program under this
section shall use technical specifications or
standards, as applicable, as determined by
the Secretary, except as provided in clause
(ii).
‘‘(ii) EXISTING SYSTEMS.—EBT sys-
tems for the program under this section
that are in development or are issuing ben-
efits as of the date of enactment shall be
required to submit within 6 months after
the date of enactment of this subparagraph
a plan for compliance.
‘‘(iii) WAIVER.—The Secretary may
waive compliance with this subparagraph
for State EBT systems for the program
under this section that are issuing benefits
as of the date of enactment of this sub-
paragraph until such time that compliance
is feasible.’’; and
(2) by amended subparagraph (C) to read as
follows:
‘‘(C) UNIVERSAL PRODUCT CODES DATABASE.—The
Secretary shall implement a national Universal Product
Code Database for use by all State agencies in carrying
out the program and shall make available from appro-
priated funds such sums as may be required for hosting,
hardware, and software configuration, and support.’’.
SEC. 411. INFANT FORMULA FRAUD PREVENTION.
Section 17(h) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(h)) is further amended by adding at the end
the following:
‘‘(13) APPROVED
PROVIDERS
OF
INFANT
FOR-
MULA.—
‘‘(A) IN
GENERAL.—The State agency shall
maintain a list of infant formula manufacturers,
wholesalers, distributors, and retailers approved to
provide infant formula to vendors.
‘‘(B) LIST.—The list required under subpara-
graph (A) shall include food manufacturers, whole-
salers, distributors, and retailers licensed in the
State in accordance with State law and regulations
to distribute infant formula and food manufacturers
registered with the U.S. Food and Drug Administra-
tion that provide infant formula.
‘‘(C) PURCHASE REQUIREMENT.—Vendors au-
thorized to participate in the program under this
section shall purchase infant formula from the list
required under subparagraph (A).’’.
SEC. 412. STATE ALLIANCES.
Section 17 of the Child Nutrition Act of 1966 (42
U.S.C. 1786) is further amended—
(1) in subsection (b) by adding at the end the
following:
‘‘(22) ‘State alliance’ means 2 or more State
agencies that join together for the purpose of pro-
curing infant formula by soliciting competitive
bids.’’; and
(2) in subsection (h)(8)(A) by adding at the
end the following:
‘‘(vi) SIZE OF STATE ALLIANCES.—No
State alliance may form among States
whose infant participation exceeds 200,000
based on program participation as of Octo-
ber 2003, except that—
‘‘(I) an alliance among States
with a combined 200,000 infant par-
ticipants as of October 2003 may con-
tinue, and may expand to include
more than 200,000 infants, but may
not expand to include any additional
State agencies that were not included
in the alliance as of October 1, 2003,
other than as provided in subclause
(II); and
‘‘(II) any State agency serving
fewer than 5,000 infant participants
as of October 2003, or any Indian
Tribal Organization, may request to
join any State alliance.’’.
SEC. 413. LIMITS ON EXPENDITURES.
Section 17(i)(3)(A)(ii)(I) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(i)(3)(A)(ii)(I)) is amended by
striking ‘‘1 percent’’ and inserting ‘‘3 percent’’.
SEC. 414. MIGRANT AND COMMUNITY HEALTH CENTERS
INITIATIVE.
Section 17(j) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(j)) is amended by striking paragraph (4) and
redesignating paragraph (5) as paragraph (4).
SEC. 415. DEMONSTRATION PROJECTS.
(a) CHILD NUTRITION ACT OF 1966.—Section 17 of
the Child Nutrition Act of 1966 (42 U.S.C. 1786) is
amended by striking subsection (r).
(b) NATIONAL SCHOOL LUNCH ACT.—Section 12 of
the Richard B. Russell National School Lunch Act (42
U.S.C. 1760) is amended by striking subsection (p).
SEC. 416. AUTHORIZATION OF APPROPRIATIONS.
(a) REAUTHORIZATION OF PROGRAM.—Section 17(g)
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(g))
is amended by striking ‘‘(g)(1) There are authorized’’ and
all that follows through ‘‘through 2003.’’ in paragraph (1)
and inserting the following:
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There is authorized to be
appropriated to carry out this section such sums as
are necessary for each of fiscal years 2004 through
2008.’’.
(b) NUTRITION SERVICES
AND ADMINISTRATION
FUNDS.—Section 17(h) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(h)) is amended—
(1) in paragraph (2)(A), by striking ‘‘1995
through 2003’’ and inserting ‘‘2004 through 2008’’;
and
(2) in paragraph (10)(A), by striking ‘‘1995
through 2003’’ and inserting ‘‘2004 through 2008’’.
(c) FARMERS’ MARKET NUTRITION PROGRAM.—Sec-
tion 17(m)(9)(A)(i) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(m)(9)) is amended to read as follows:
‘‘(i) AUTHORIZATION OF APPROPRIA-
TIONS.—There is authorized to be appro-
priated to carry out this subsection such
sums as are necessary for each of fiscal
years 2004 through 2008.’’.
TITLE 
V—REAUTHORIZATION,
MISCELLANEOUS 
PROVI-
SIONS, AND EFFECTIVE DATE
SEC. 501. TRAINING, TECHNICAL, AND OTHER ASSISTANCE.
Section 21(a) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1769b–1(a)) is amended—
(1) by amending paragraph (1) to read as fol-
lows:
‘‘(1) subject to the availability of and from
amounts appropriated pursuant to subsection (g)(1),
shall provide—
‘‘(A) training and technical assistance to
improve the skills of individuals employed in
food service programs carried out under this
Act, section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773), and, as appropriate,
other federally assisted feeding programs;
‘‘(B) training and technical assistance to
States, State agencies, schools, and school food
authorities in the procurement of goods and
services for programs under this Act and the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.), including training and technical assist-
ance to ensure compliance with section 12(n) of
this Act (42 U.S.C. 1760(n));
‘‘(C) assistance, on a competitive basis, to
State agencies for the purpose of aiding schools
and school food authorities with at least 50 per-
cent of enrolled children certified to receive free
or reduced price meals, and, if there are any re-
maining funds, other schools and school food
authorities in meeting the cost of acquiring or
upgrading technology and information manage-
ment systems for use in food service programs
carried out under this Act and section 4 of the
Child Nutrition Act of 1966 (42 U.S.C. 1773)
if the school or school food authority submits to
the State agency an infrastructure development
plan that addresses the cost savings and im-
provements in program integrity and operations
that would result from the use of new or up-
graded technology in—
‘‘(i) methods to ensure that there
shall not be any overt identification of any
such child by special tokens or tickets, an-
nounced or published list of names, or by
any other means;
‘‘(ii) processing and verifying applica-
tions for free and reduced price school
meals;
‘‘(iii) integrating menu planning, pro-
duction, and serving data to monitor com-
pliance with section 9(f)(1); and
‘‘(iv) establishing compatibility with
statewide reporting systems;
‘‘(D) assistance, on a competitive basis, to
State agencies with low proportions of schools
or students that participate in the school break-
fast program under section 4 of the Child Nu-
trition Act of 1966 (42 U.S.C. 1773) and that
demonstrate the greatest need, for the purpose
of aiding schools in meeting costs associated
with initiating or expanding a school breakfast
program under section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773), including out-
reach and informational activities; and’’; and
(2) in paragraph (2), by striking ‘‘subsection
(e)(2)’’ and inserting ‘‘subsection (g)(2).’’
SEC. 502. NOTICE OF IRRADIATED FOOD.
Section 14 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1762a) is amended by adding at
the end the following:
‘‘(h) NOTICE OF IRRADIATED FOOD.—The Secretary
shall develop policy and establish procedures for the pur-
chase and distribution of irradiated food products in Fed-
eral school meals programs. The policies and procedures
shall ensure at a minimum that—
‘‘(1) irradiated food products are made avail-
able only at the request of States and school food
authorities;
‘‘(2) reimbursements to schools for irradiated
food products are equal to reimbursements to
schools for non-irradiated products;
‘‘(3) States and school food service authorities
are provided factual information on the science and
evidence regarding irradiation technology, including
notice that irradiation is not a substitute for safe
food handling techniques and any such other infor-
mation necessary to promote food safety in school
meal programs;
‘‘(4) States and school food service authorities
are provided model procedures for providing factual
information on the science and evidence regarding
irradiation technology and any such other informa-
tion necessary to promote food safety in school
meals to school food service authorities, parents, and
students regarding irradiation technology;
‘‘(5) irradiated food products distributed to the
Federal school meals program are labeled with a
symbol or other printed notice indicating that the
product was treated with irradiation and is promi-
nently displayed in a clear and understandable for-
mat on the container;
‘‘(6) irradiated products are not commingled
with non-irradiated products in containers; and
‘‘(7) encourages schools that offer irradiated
foods to offer alternatives to irradiated food prod-
ucts as part of the meal plan used by schools.’’.
100
SEC. 503. SENSE OF CONGRESS.
Section 12 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1760) is further amended by adding
at the end the following:
‘‘(p) SENSE OF CONGRESS.—It is the sense of Con-
gress that Federal resources provided under this Act and
the Child Nutrition Act of 1966 dedicated to child nutri-
tion should support the most effective programs within the
Federal agency that is most capable of assisting children
in nutritional need. Congress encourages the elimination
of initiatives that are duplicative of other Federal efforts,
particularly those that are duplicative of programs con-
ducted under this Act and the Child Nutrition Act of
1966.’’.
SEC. 504. REAUTHORIZATION OF PROGRAMS.
(a) STATE ADMINISTRATIVE EXPENSES.—Section
7(i) of the Child Nutrition Act of 1966 (42 U.S.C.
1776(g)) (as amended by this Act) is amended by striking
‘‘2003’’ and inserting ‘‘2008’’.
(b) COMMODITY DISTRIBUTION PROGRAM.—
(1) Section 14(a) of the Richard B. Russell Na-
tional School Lunch Act (42 U.S.C. 1762a(a)) is
amended by striking ‘‘March 31, 2004’’ and insert-
ing ‘‘September 30, 2008’’.
(2) Section 15(e) of the Commodity Distribu-
tion Reform Act and WIC Amendments of 1987 (7
101
U.S.C. 612c note; Public Law 100–237) is amended
by striking ‘‘April 1, 2004’’ and inserting ‘‘October
1, 2008’’.
(c) PURCHASES OF LOCALLY PRODUCED FOODS.—
Section 9(j)(2)(A) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 758(j)(2)(A)) is amended
by striking ‘‘2007’’ and inserting ‘‘2008’’.
(d) TRAINING, TECHNICAL ASSISTANCE, AND FOOD
SERVICE MANAGEMENT INSTITUTE.—Section 21(g)(1) of
the Richard B. Russell National School Lunch Act (42
U.S.C. 1769b-1(e)(1)) (as amended by this Act) is further
amended by striking ‘‘for each of fiscal years 1992
through 2003’’ and inserting ‘‘for fiscal year 2004, and
such sums as may be necessary for fiscal years 2005
through 2008’’.
(e) COMPLIANCE
AND ACCOUNTABILITY.—Section
22(d) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1769c(d)) is amended by striking ‘‘2003’’
and inserting ‘‘2008’’.
SEC. 505. EFFECTIVE DATES.
The amendments made by sections 101, 104, 105(a),
202, 410, 416, and 504 shall take effect on the date of
enactment of this Act. The amendments made by sections
201 and 208(c) shall take effect on July 1, 2005. All other
102
amendments made by this Act shall take effect October
1, 2004.
Passed the House of Representatives March 24,
2004.
Attest:
Clerk.