‘‘(bb) with respect to an applicant, such as
homeless women or children, for whom the agency de-
termines the requirement of clause (i) would present
a barrier to participation.
‘‘(II) The Secretary shall prescribe regulations to carry
out division (aa).’’.
(b) EDUCATION AND EDUCATIONAL MATERIALS RE-
LATING TO EFFECTS OF DRUG AND ALCOHOL USE.—Sec-
tion 17(e)(1) of such Act (42 U.S.C. 1786(e)(1)) is amended
by adding at the end the following: ‘‘A local agency partici-
pating in the program shall provide education or edu-
cational materials relating to the effects of drug and alcohol
use by a pregnant, postpartum, or breastfeeding woman on
the developing child of the woman.’’.
(c) DISTRIBUTION OF NUTRITION EDUCATION MATE-
RIALS TO STATE AGENCIES ADMINISTERING THE COMMOD-
ITY SUPPLEMENTAL FOOD PROGRAM.—Section 17(e) of
such Act (42 U.S.C. 1786(e)) is amended—
(1) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(2) by inserting after paragraph (3) the follow-
ing:
‘‘(4) The Secretary may provide nutrition education
materials, including breastfeeding promotion materials, de-
veloped with funds appropriated to carry out the program
under this section in bulk quantity to State agencies admin-
istering the commodity supplemental food program author-
ized under sections 4(a) and 5 of the Agriculture and Con-
sumer Protection Act of 1973 at no cost to that program.’’.
(d) IDENTIFICATION OF RECIPIENTS PARTICIPATING
AT MORE THAN 1 SITE.—Section 17(f) of such Act (42
U.S.C. 1786(f)) is amended by adding at the end the follow-
ing:
‘‘(23) Each State agency shall implement a system de-
signed to identify recipients who are participating at more
than 1 site under the program.’’.
(e) IDENTIFICATION OF HIGH RISK VENDORS; COM-
PLIANCE INVESTIGATIONS.—
(1) IN GENERAL.—Section 17(f) of such Act (42
U.S.C. 1786(f)), as amended by this Act, is further
amended by adding at the end the following:
‘‘(24) Each State agency—
‘‘(A) shall identify vendors that have a high
probability of program abuse; and
‘‘(B) shall conduct compliance investigations of
such vendors.’’.
(2) REGULATIONS.—Not later than March 1,
1999, the Secretary of Agriculture shall promulgate
final regulations to carry out section 17(f)(24) of such
Act (42 U.S.C. 1786(f)(24)), as added by paragraph
(1).
(f) 
REAUTHORIZATION
OF
PROGRAM.—Section
17(g)(1) of such Act (42 U.S.C. 1786(g)(1)) is amended in
the first sentence by striking ‘‘1995 through 1998’’ and in-
serting ‘‘1999 through 2003’’.
(g) 
PURCHASE
OF
BREAST
PUMPS.—Section
17(h)(1)(C) of such Act (42 U.S.C. 1786(h)(1)(C)) is
amended—
(1) by striking ‘‘(C)’’ and inserting ‘‘(C)(i)’’; and
(2) by adding at the end the following:
‘‘(ii)(I) Notwithstanding any other provision of this
section, with respect to fiscal year 2000 and subsequent fis-
cal years, a State agency may use amounts made available
under clause (i) for the purchase of breast pumps.
‘‘(II) A State agency that exercises the authority of
subclause (I) shall expend from amounts allocated for nutri-
tion services and administration an amount for the pur-
chase of breast pumps that is not less than the amount ex-
pended for the purchase of breast pumps from amounts
available for nutrition services and administration for the
prior fiscal year.’’.
(h) NUTRITION SERVICES AND ADMINISTRATION.—
(1) 
ALLOCATION
OF
AMOUNTS.—Section
17(h)(2)(A) of such Act (42 U.S.C. 1786(h)(2)(A)) is
amended in the first sentence by striking ‘‘1995
through 1998’’ and inserting ‘‘1999 through 2003’’.
(2) LEVEL
OF
PER
PARTICIPANT
EXPENDI-
TURE.—Section 17(h)(2)(B)(ii) of such Act (42
U.S.C. 1786(h)(2)(B)(ii)) is amended by striking ‘‘15
percent’’ and inserting ‘‘10 percent (except that the
Secretary may establish a higher percentage for small
State agencies)’’.
(i) CONVERSION OF AMOUNTS FOR FOOD BENEFITS TO
AMOUNTS
FOR NUTRITION SERVICES
AND ADMINISTRA-
TION.—Section 17(h)(5)(A) of such Act (42 U.S.C.
1786(h)(5)(A)) is amended in the matter preceding clause
(i) by striking ‘‘achieves’’ and all that follows through ‘‘such
State agency may’’ and inserting ‘‘submits a plan to reduce
average food costs per participant and to increase partici-
pation above the level estimated for such State agency, such
State agency may, with the approval of the Secretary,’’.
(j) 
INFANT
FORMULA
PROCUREMENT.—Section
17(h)(8)(A) of such Act (42 U.S.C. 1786(h)(8)(A)) is
amended by adding at the end the following:
‘‘(iii) A State agency using a competitive bidding sys-
tem for infant formula shall award contracts to the bidder
offering the lowest net price unless the State agency dem-
onstrates to the satisfaction of the Secretary that the weight-
ed average retail price for different brands of infant for-
mula in the State does not vary by more than five percent.’’.
(k) INFRASTRUCTURE
AND
BREASTFEEDING
PRO-
MOTION/SUPPORT
ACTIVITIES.—Section 17(h)(10)(A) of
such Act (42 U.S.C. 1786(h)(10)(A)) is amended by striking
‘‘For each of fiscal years 1995 through 1998,’’ and inserting
‘‘For each fiscal year through 2003,’’.
(l) CONSIDERATION
OF PRICE LEVELS
OF RETAIL
STORES FOR PARTICIPATION IN THE PROGRAM.—
(1) IN GENERAL.—Section 17(h) of such Act (42
U.S.C. 1786(h)) is amended by adding at the end the
following:
‘‘(11)(A) For the purpose of promoting efficiency and
to contain costs under the program, a State agency shall,
in selecting a retail store for participation in the program,
take into consideration the prices that the store charges for
foods under the program as compared to the prices that
other stores charge for such foods.
‘‘(B) The State agency shall establish procedures to in-
sure that a retail store selected for participation in the pro-
gram does not subsequently raise prices to levels that would
otherwise make the store ineligible for selection in the pro-
gram.’’.
(2) REGULATIONS.—Not later than March 1,
1999, the Secretary of Agriculture shall promulgate
final regulations to carry out section 17(h)(11)(A) of
the Child Nutrition Act of 1966 (42 U.S.C.
1786(h)(11)(A)), as added by paragraph (1).
(m) USE OF FUNDS IN PRECEDING AND SUBSEQUENT
FISCAL YEARS.—
(1) IN GENERAL.—Clauses (i) and (ii) of section
17(i)(3)(A) of such Act (42 U.S.C. 1786(i)(3)(A)(i)
and (ii)) are amended to read as follows:
‘‘(i) not more than 1 percent (except as provided
in subparagraph (C)) of the amount of funds allo-
cated to a State agency under this section for supple-
mental foods for a fiscal year, and not more than 1
percent of the amount of funds allocated to a State
agency under this section for nutrition services and
administration for a fiscal year, may be expended by
the State agency for allowable expenses incurred
under this section for supplemental foods and nutri-
tion services and administration, respectively, during
the preceding fiscal year; and
‘‘(ii)(I) a State agency may expend, from
amounts allocated to the agency for nutrition services
and administration, an amount equal to not more
than 1 percent of the total amount of funds allocated
to the agency under this section for a fiscal year for
allowable expenses incurred under this section for nu-