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SEC. 106. COMMODITY DISTRIBUTION PROGRAM.
Section 14(a) of the National School Lunch Act (42
U.S.C. 1762a(a)) is amended in the matter preceding
paragraph (1) by striking ‘‘1998’’ and inserting ‘‘2003’’.
SEC. 107. CHILD AND ADULT CARE FOOD PROGRAM.
(a) 
ELIGIBILITY
OF
INSTITUTIONS.—Section
17(a)(1) of the National School Lunch Act (42 U.S.C.
1766(a)(1)) is amended to read as follows:
‘‘(1) an institution (except a school or family or
group day care home sponsoring organization) or
family or group day care home—
‘‘(A)(i) shall be licensed, or otherwise have
approval, by the appropriate Federal, State, or
local licensing authority; or
‘‘(ii) shall be in compliance with appro-
priate procedures for renewing participation in
the program, as prescribed by the Secretary,
unless the State has information indicating that
the institution or family or group day care
home’s license will not be renewed;
‘‘(B) if Federal, State, or local licensing or
approval is not available—
‘‘(i) shall meet any alternate approval
standards established by the appropriate
State or local governmental agency; or
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‘‘(ii) shall meet any alternate approval
standards established by the Secretary
after consultation with the Secretary of
Health and Human Services; or
‘‘(C) if the institution provides care to
school children outside of school hours and Fed-
eral, State, or local licensing or approval is not
required for such institution, shall meet State
or local health and safety standards; and’’.
(b) CATEGORICAL ELIGIBILITY
FOR EVEN START
PROGRAM PARTICIPANTS.—Section 17(c)(6)(B) of such
Act (42 U.S.C. 1766(c)(6)(B)) is amended by striking
‘‘1997’’ and inserting ‘‘2003’’.
(c) TAX EXEMPT STATUS OF ELIGIBLE INSTITU-
TIONS; REMOVAL OF NOTIFICATION REQUIREMENT FOR
INCOMPLETE APPLICATIONS.—Section 17(d)(1) of such
Act (42 U.S.C. 1766(d)(1)) is amended—
(1) by inserting after the third sentence the fol-
lowing: ‘‘An institution moving toward compliance
with the requirement for tax exempt status shall be
allowed to participate in the program for a period of
not more than 6 months unless it can demonstrate
to the satisfaction of the State agency that its in-
ability to obtain tax exempt status within the 6-
month period is beyond the control of the institution
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in which case the State agency may grant a single
extension not to exceed 90 days.’’; and
(2) by striking the last sentence.
(d) USE OF FUNDS FOR AUDITS OF PARTICIPATING
INSTITUTIONS.—Section 17(i) of such Act (42 U.S.C.
1766(i)) is amended by striking ‘‘2 percent’’ and inserting
‘‘1 percent’’.
(e) PERMANENT AUTHORIZATION OF DEMONSTRA-
TION PROJECT.—Section 17(p) of such Act (42 U.S.C.
1766(p)) is amended by striking paragraphs (4) and (5).
(f) TRANSFER OF HOMELESS PROGRAMS.—
(1) IN GENERAL.—Section 17 of such Act (42
U.S.C. 1766) is amended by adding at the end the
following:
‘‘(q) PARTICIPATION BY EMERGENCY SHELTERS.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, an emergency shelter shall
be eligible to participate in the program authorized
under this section in accordance with the terms and
conditions applicable to eligible institutions described
in subsection (a).
‘‘(2) LICENSING REQUIREMENTS.—The licens-
ing requirements contained in subsection (a)(1) shall
not apply to emergency shelters or sites operated by
such shelters under the program.
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‘‘(3) ADDITIONAL REQUIREMENTS.—
‘‘(A) HEALTH AND SAFETY STANDARDS.—
An emergency shelter and each site operated by
such shelter shall comply with State or local
health and safety standards.
‘‘(B) MEAL REIMBURSEMENT.—
‘‘(i) 
LIMITATION.—An 
emergency
shelter may claim reimbursement—
‘‘(I) only for meals and supple-
ments served to children who have not
attained the age of 13 and who are
residing at an emergency shelter; and
‘‘(II) for not more than 3 meals,
or 2 meals and a supplement, per
child per day.
‘‘(ii) RATE.—A meal or supplement
eligible for reimbursement shall be reim-
bursed at the rate at which free meals and
supplements are reimbursed under sub-
section (c).
‘‘(iii) NO CHARGE.—A meal or supple-
ment claimed for reimbursement shall be
served without charge.
‘‘(4) DEFINITION OF EMERGENCY SHELTER.—
As used in this subsection, the term ‘emergency
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shelter’ has the meaning given such term in section
321(2) of the Stewart B. McKinney Homeless As-
sistance Act (42 U.S.C. 11351(2)).’’.
(2) CONFORMING AMENDMENTS.—(A) Section
13(a)(3)(C) of such Act (42 U.S.C. 1761(a)(3)(C))
is amended—
(i) in clause (i), by adding ‘‘or’’ at the end;
(ii) by striking clause (ii); and
(iii) by redesignating clause (iii) as clause
(ii).
(B) Section 17B of such Act (42 U.S.C. 1766b)
is hereby repealed.
(g) PARTICIPATION BY ‘‘AT RISK’’ CHILD CARE PRO-
GRAMS.—Section 17 of such Act (42 U.S.C. 1766), as
amended by this Act, is further amended by adding at the
end the following:
‘‘(r) ‘AT RISK’ CHILD CARE.—
‘‘(1) IN GENERAL.—Subject to the conditions in
this subsection, institutions that provide care to at
risk school children during after-school hours, week-
ends, or holidays during the regular school year may
participate in the program authorized under this
section. Unless otherwise specified in this subsection,
all other provisions of this section shall apply to
these institutions.
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‘‘(2) AT
RISK
SCHOOL
CHILDREN.—Children
ages 12 through 18 who live in a geographical area
served by a school enrolling elementary students in
which at least 50 percent of the total number of
children enrolled are certified eligible to receive free
or reduced price school meals under this Act or the
Child Nutrition Act of 1966 shall be considered at
risk.
‘‘(3) SUPPLEMENT REIMBURSEMENT.—
‘‘(A) 
LIMITATION.—Only 
supplements
served to at risk school children during after-
school hours, weekends, or holidays during the
regular school year may be claimed for reim-
bursement. Institutions may claim reimburse-
ment for only one supplement per child per day.
‘‘(B) RATE.—Eligible supplements shall be
reimbursed at the rate for free supplements
under subsection (c)(3).
‘‘(C) 
NO
CHARGE.—All 
supplements
claimed for reimbursement shall be served with-
out charge.’’.
SEC. 108. MEAL SUPPLEMENTS FOR CHILDREN IN AFTER-
SCHOOL CARE.
Section 17A of the National School Lunch Act (42
U.S.C. 1766a) is amended—
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(1) in subsection (a)(2)(C) to read as follows:
‘‘(C) operate afterschool programs with an
educational or enrichment purpose.’’; and
(2) in subsection (b), by striking ‘‘served to
children’’ and all that follows and inserting ‘‘served
to children who are not more than 18 years of age.’’.
SEC. 109. UNIVERSAL FREE BREAKFAST PILOT PROJECTS.
Section 18(i) of the National School Lunch Act (42
U.S.C. 1769(i)) is amended to read as follows:
‘‘(i) 
UNIVERSAL
FREE
BREAKFAST
PILOT
PROJECTS.—
‘‘(1) IN GENERAL.—
‘‘(A) GRANTS TO STATES.—(i) Subject to
the availability of advance appropriations under
paragraph (8), the Secretary shall make grants
to not more than 5 States to conduct pilot
projects in elementary schools under school food
authorities located in each such State—
‘‘(I) to reduce paperwork;
‘‘(II) to simplify meal counting re-
quirements; and
‘‘(III) to make changes that will in-
crease participation in the school breakfast
program.
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‘‘(ii) The Secretary shall select States to
receive grants under clause (i), and make
grants to such States, in the first fiscal year for
which appropriations are made to carry out this
subsection.
‘‘(B) GRANTS TO SCHOOL FOOD AUTHORI-
TIES; DURATION OF PILOT PROJECTS.—(i)(I) A
State receiving a grant under subparagraph (A)
shall make grants to school food authorities to
carry out the pilot projects described in such
subparagraph.
‘‘(II) The State shall select school food au-
thorities to receive grants under clause (i), and
make grants to such authorities, in the first fis-
cal year for which the State receives amounts
under a grant.
‘‘(ii) A school food authority receiving
amounts under a grant to conduct a pilot
project described in subparagraph (A) shall
conduct such project for the 3-year period be-
ginning in the first fiscal year in which the au-
thority receives amounts under a grant from
the State.
‘‘(C) 
PARTICIPATION
LIMITATION.—A
school food authority conducting a pilot project