In the Senate of the United States,
September 17, 1998.
Resolved, That the bill from the House of Representa-
tives (H.R. 3874) entitled ‘‘An Act to amend the National
School Lunch Act and the Child Nutrition Act of 1966 to
provide children with increased access to food and nutrition
assistance, to simplify program operations and improve pro-
gram management, to extend certain authorities contained in
those Acts through fiscal year 2003, and for other pur-
poses.’’, do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Child Nutrition and WIC Reauthorization Amendments of
1998’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
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TITLE I—SCHOOL LUNCH AND RELATED PROGRAMS
Sec. 101. Technical amendments to commodity provisions.
Sec. 102. Waiver of requirement for weighted averages for nutrient analysis.
Sec. 103. Requirement for food safety inspections.
Sec. 104. Elimination of administration of programs by regional offices.
Sec. 105. Special assistance.
Sec. 106. Adjustments to payment rates.
Sec. 107. Adjustments to reimbursement rates.
Sec. 108. Criminal penalties.
Sec. 109. Food and nutrition projects.
Sec. 110. Establishment of an adequate meal service period.
Sec. 111. Buy American.
Sec. 112. Procurement contracts.
Sec. 113. Summer food service program for children.
Sec. 114. Commodity distribution program.
Sec. 115. Child and adult care food program.
Sec. 116. Transfer of homeless assistance programs to child and adult care food
program.
Sec. 117. Meal supplements for children in afterschool care.
Sec. 118. Pilot projects.
Sec. 119. Breakfast pilot projects.
Sec. 120. Training and technical assistance.
Sec. 121. Food service management institute.
Sec. 122. Compliance and accountability.
Sec. 123. Information clearinghouse.
Sec. 124. Refocusing of effort to help accommodate the special dietary needs of in-
dividuals with disabilities.
TITLE II—SCHOOL BREAKFAST AND RELATED PROGRAMS
Sec. 201. Elimination of administration of programs by regional offices.
Sec. 202. State administrative expenses.
Sec. 203. Special supplemental nutrition program for women, infants, and chil-
dren.
Sec. 204. Nutrition education and training.
TITLE III—COMMODITY DISTRIBUTION PROGRAMS
Sec. 301. Commodity distribution program reforms.
Sec. 302. Food distribution.
TITLE IV—EFFECTIVE DATE
Sec. 401. Effective date.
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TITLE I—SCHOOL LUNCH AND
RELATED PROGRAMS
SEC. 101. TECHNICAL AMENDMENTS TO COMMODITY PROVI-
SIONS.
(a) IN GENERAL.—Section 6 of the National School
Lunch Act (42 U.S.C. 1755) is amended—
(1) by striking subsections (c) and (d); and
(2) by redesignating subsections (e), (f), and (g)
as subsections (c), (d), and (e), respectively.
(b) CONFORMING AMENDMENTS.—The National School
Lunch Act is amended by striking ‘‘section 6(e)’’ each place
it appears in sections 14(f), 16(a), and 17(h)(1)(B) (42
U.S.C. 1762a(f), 1765(a), 1766(h)(1)(B)) and inserting
‘‘section 6(c)’’.
SEC. 102. WAIVER OF REQUIREMENT FOR WEIGHTED AVER-
AGES FOR NUTRIENT ANALYSIS.
Section 9(f) of the National School Lunch Act (42
U.S.C. 1758(f)) is amended by adding at the end the follow-
ing:
‘‘(5) WAIVER OF REQUIREMENT FOR WEIGHTED
AVERAGES FOR NUTRIENT ANALYSIS.—During the pe-
riod ending on September 30, 2003, the Secretary
shall not require the use of weighted averages for nu-
trient analysis of menu items and foods offered or
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served as part of a reimbursable meal under the
school lunch or school breakfast program.’’.
SEC. 103. REQUIREMENT FOR FOOD SAFETY INSPECTIONS.
Section 9 of the National School Lunch Act (42 U.S.C.
1758) is amended by adding at the end the following:
‘‘(h) FOOD SAFETY INSPECTIONS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a school participating in the school lunch
program authorized under this Act or the school
breakfast program authorized under section 4 of the
Child Nutrition Act of 1966 (42 U.S.C. 1773) shall,
at least once during each school year, obtain a food
safety inspection conducted by a State or local gov-
ernmental agency responsible for food safety inspec-
tions.
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply to a school if a food safety inspection of the
school is required by a State or local authority.’’.
SEC. 104. ELIMINATION OF ADMINISTRATION OF PRO-
GRAMS BY REGIONAL OFFICES.
(a) IN GENERAL.—Section 10 of the National School
Lunch Act (42 U.S.C. 1759) is amended to read as follows:
‘‘SEC. 10. DISBURSEMENT TO SCHOOLS BY THE SECRETARY.
‘‘(a) AUTHORITY TO ADMINISTER PROGRAMS.—
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‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), during the period determined under sub-
section (c), the Secretary shall withhold funds payable
to a State under this Act and disburse the funds di-
rectly to school food authorities, institutions, and
service institutions within the State for the purposes
authorized by this Act to the extent that the Secretary
has so withheld and disbursed the funds continuously
since October 1, 1980.
‘‘(2) USE OF FUNDS.—Any funds withheld and
disbursed by the Secretary under paragraph (1) shall
be used for the same purposes and be subject to the
same conditions as apply to disbursing funds made
available to States under this Act.
‘‘(3) STATE ADMINISTRATION.—If the Secretary
is administering (in whole or in part) any program
authorized under this Act in a State, the State may,
on request to the Secretary, assume administrative re-
sponsibility for the program at any time during the
period determined under subsection (c).
‘‘(b) PROVISION OF TRAINING AND TECHNICAL ASSIST-
ANCE.—During the period determined under subsection (c),
the Secretary shall provide a State that assumes adminis-
trative responsibility for a program from the Secretary with
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inserting after ‘‘section 10 of this Act’’ the following:
‘‘(during the period determined under section 10(c))’’.
SEC. 105. SPECIAL ASSISTANCE.
Section 11(a)(1) of the National School Lunch Act (42
U.S.C. 1759a(a)(1)) is amended—
(1) in subparagraph (C)—
(A) in clause (i)(I), by striking ‘‘3 succes-
sive school years’’ each place it appears and in-
serting ‘‘4 successive school years’’; and
(B) in clauses (ii) and (iii), by striking ‘‘3-
school-year period’’ each place it appears and in-
serting ‘‘4-school-year period’’; and
(2) in subparagraph (D)—
(A) in clause (i)—
(i) by striking ‘‘3-school-year period’’
each place it appears and inserting ‘‘4-
school-year period’’; and
(ii) by striking ‘‘2 school years’’ and
inserting ‘‘4 school years’’;
(B) in clause (ii)—
(i) by striking the first sentence; and
(ii) by striking ‘‘5-school-year period’’
each place it appears and inserting ‘‘4-
school-year period’’; and
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(C) in clause (iii), by striking ‘‘5-school-
year period’’ and inserting ‘‘4-school-year pe-
riod’’.
SEC. 106. ADJUSTMENTS TO PAYMENT RATES.
(a) IN GENERAL.—Section 11(a)(3)(B) of the National
School Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amend-
ed—
(1) by striking ‘‘(B) The annual’’ and inserting
the following:
‘‘(B) COMPUTATION OF ADJUSTMENT.—
‘‘(i) IN GENERAL.—The annual’’;
(2) by striking ‘‘Each annual’’ and inserting the
following:
‘‘(ii) BASIS.—Each annual’’;
(3) by striking ‘‘The adjustments’’ and inserting
the following:
‘‘(iii) ROUNDING.—
‘‘(I) THROUGH APRIL 30, 1999.—
For the period ending April 30, 1999,
the adjustments’’; and
(4) by adding at the end the following:
‘‘(II) MAY 1, 1999, THROUGH JUNE
30, 1999.—For the period beginning on
May 1, 1999, and ending on June 30,
1999, the national average payment
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rates for meals and supplements shall
be adjusted to the nearest lower cent
increment and shall be based on the
unrounded amounts used to calculate
the rates in effect on July 1, 1998.
‘‘(III) JULY 1, 1999, AND THERE-
AFTER.—On July 1, 1999, and on each
subsequent July 1, the national aver-
age payment rates for meals and sup-
plements shall be adjusted to the near-
est lower cent increment and shall be
based on the unrounded amounts for
the preceding 12-month period.’’.
(b) CONFORMING AMENDMENTS.—Section 4(b) of the
Child Nutrition Act of 1966 (42 U.S.C. 1773(b)) is amend-
ed—
(1) in the second sentence of paragraph (1)(B),
by striking ‘‘adjusted to the nearest one-fourth cent,’’;
and
(2) in paragraph (2)(B)(ii), by striking ‘‘to the
nearest one-fourth cent’’.
SEC. 107. ADJUSTMENTS TO REIMBURSEMENT RATES.
Section 12 of the National School Lunch Act (42
U.S.C. 1760) is amended by striking subsection (f) and in-
serting the following:
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‘‘(f) ADJUSTMENTS TO REIMBURSEMENT RATES.—In
providing assistance for breakfasts, lunches, suppers, and
supplements served in Alaska, Hawaii, Guam, American
Samoa, Puerto Rico, the Virgin Islands, and the Common-
wealth of the Northern Mariana Islands, the Secretary may
establish appropriate adjustments for each such State to the
national average payment rates prescribed under sections
4, 11, 13 and 17 of this Act and section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773) to reflect the dif-
ferences between the costs of providing meals in those States
and the costs of providing meals in all other States.’’.
SEC. 108. CRIMINAL PENALTIES.
Section 12(g) of the National School Lunch Act (42
U.S.C. 1760(g)) is amended by striking ‘‘$10,000’’ and in-
serting ‘‘$25,000’’.
SEC. 109. FOOD AND NUTRITION PROJECTS.
Section 12(m) of the National School Lunch Act (42
U.S.C. 1760(m)) is amended by striking ‘‘1998’’ each place
it appears and inserting ‘‘2003’’.
SEC. 110. ESTABLISHMENT OF AN ADEQUATE MEAL SERV-
ICE PERIOD.
Section 12 of the National School Lunch Act (42
U.S.C. 1760) is amended by adding at the end the following:
‘‘(n) LENGTH OF MEAL SERVICE PERIOD AND FOOD
SERVICE ENVIRONMENT.—A school participating in the
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school lunch program authorized under this Act or the
school breakfast program authorized under section 4 of the
Child Nutrition Act of 1966 (42 U.S.C. 1773) is encouraged
to establish meal service periods that provide children with
adequate time to fully consume their meals in an environ-
ment that is conducive to eating the meals.’’.
SEC. 111. BUY AMERICAN.
Section 12 of the National School Lunch Act (42
U.S.C. 1760) (as amended by section 110) is amended by
adding at the end the following:
‘‘(o) BUY AMERICAN.—
‘‘(1) DEFINITION OF DOMESTIC COMMODITY OR
PRODUCT.—In this subsection, the term ‘domestic
commodity or product’ means—
‘‘(A) an agricultural commodity that is
produced in the United States; and
‘‘(B) a food product that is processed in the
United States substantially using agricultural
commodities that are produced in the United
States.
‘‘(2) REQUIREMENT.—Subject to paragraph (3),
the Secretary shall require that a school purchase, to
the maximum extent practicable, domestic commod-
ities or products.
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‘‘(3) LIMITATIONS.—Paragraph (2) shall apply
only to—
‘‘(A) a school located in the contiguous
United States; and
‘‘(B) a purchase of an agricultural commod-
ity or product for the school lunch program au-
thorized under this Act or the school breakfast
program authorized under section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773).’’.
SEC. 112. PROCUREMENT CONTRACTS.
Section 12 of the National School Lunch Act (42
U.S.C. 1760) (as amended by section 111) is amended by
adding at the end the following:
‘‘(p) PROCUREMENT CONTRACTS.—In acquiring a
good or service using funds provided under this Act or the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), a
State, State agency, or school may enter into a contract
with a person that has provided assistance to the State,
State agency, or school in drafting contract specifications.’’.
SEC. 113. SUMMER FOOD SERVICE PROGRAM FOR CHIL-
DREN.
(a) ESTABLISHMENT OF SITE LIMITATION.—Section
13(a)(7)(B) of the National School Lunch Act (42 U.S.C.
1761(a)(7)(B)) is amended by striking clause (i) and insert-
ing the following:
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‘‘(i) operate—
‘‘(I) not more than 25 sites, with not more
than 300 children being served at any 1 site; or
‘‘(II) with a waiver granted by the State
agency under standards developed by the Sec-
retary, with not more than 500 children being
served at any 1 site;’’.
(b) ELIMINATION OF INDICATION OF INTEREST RE-
QUIREMENT, REMOVAL OF MEAL CONTRACTING RESTRIC-
TIONS, AND VENDOR REGISTRATION REQUIREMENTS.—Sec-
tion 13 of the National School Lunch Act (42 U.S.C. 1761)
is amended—
(1) in subsection (a)(7)(B)—
(A) by striking clauses (ii) and (iii); and
(B) by redesignating clauses (iv) through
(vii) as clauses (ii) through (v) respectively; and
(2) in subsection (l)—
(A) in paragraph (1)—
(i) in the first sentence—
(I) by striking ‘‘(other than pri-
vate nonprofit organizations eligible
under subsection (a)(7))’’; and
(II) by striking ‘‘only with food
service management companies reg-
istered with the State in which they
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operate’’ and inserting ‘‘with food serv-
ice management companies’’; and
(ii) by striking the last sentence;
(B) in paragraph (2)—
(i) in the first sentence, by striking
‘‘shall’’ and inserting ‘‘may’’; and
(ii) by striking the second and third
sentences;
(C) by striking paragraph (3); and
(D) by redesignating paragraphs (4) and
(5) as paragraphs (3) and (4), respectively.
(c) REAUTHORIZATION OF SUMMER FOOD SERVICE
PROGRAM.—Section 13(q) of the National School Lunch Act
(42 U.S.C. 1761(q)) is amended by striking ‘‘1998’’ and
inserting ‘‘2003’’.
SEC. 114. COMMODITY DISTRIBUTION PROGRAM.
Section 14(a) of the National School Lunch Act (42
U.S.C. 1762a(a)) is amended by striking ‘‘1998’’ and in-
serting ‘‘2003’’.
SEC. 115. CHILD AND ADULT CARE FOOD PROGRAM.
(a) AFTERSCHOOL CARE.—Section 17(a) of the Na-
tional School Lunch Act (42 U.S.C. 1766(a)) is amended
in the fourth sentence by striking ‘‘Reimbursement’’ and in-
serting ‘‘Except as provided in subsection (r), reimburse-
ment’’.
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(b) REVISION
TO LICENSING
AND ALTERNATE AP-
PROVAL
FOR SCHOOLS
AND OUTSIDE SCHOOL HOURS
CHILD CARE CENTERS.—Section 17(a) of the National
School Lunch Act (42 U.S.C. 1766(a)) is amended in the
sixth sentence by striking paragraph (1) and inserting the
following:
‘‘(1) each institution (other than a school or fam-
ily or group day care home sponsoring organization)
and family or group day care home shall—
‘‘(A)(i) have Federal, State, or local licens-
ing or approval; or
‘‘(ii) be complying with appropriate re-
newal procedures as prescribed by the Secretary
and not be the subject of information possessed
by the State indicating that the license of the in-
stitution or home will not be renewed;
‘‘(B) in any case in which Federal, State,
or local licensing or approval is not available—
‘‘(i) receive funds under title XX of the
Social Security Act (42 U.S.C. 1397 et
seq.);
‘‘(ii) meet any alternate approval
standards established by a State or local
government; or
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‘‘(iii) meet any alternate approval
standards established by the Secretary, after
consultation with the Secretary of Health
and Human Services; or
‘‘(C) in any case in which the institution
provides care to school children outside school
hours and Federal, State, or local licensing or
approval is not required, meet State or local
health and safety standards; and’’.
(c) AUTOMATIC ELIGIBILITY.—Section 17(c) of the Na-
tional School Lunch Act (42 U.S.C. 1766(c)) is amended
by striking paragraph (6).
(d) PERIODIC SITE VISITS.—Section 17(d) of the Na-
tional School Lunch Act (42 U.S.C. 1766(d)) is amended—
(1) in the second sentence of paragraph (1), by
inserting after ‘‘if it’’ the following: ‘‘has been visited
by a State agency prior to approval and it’’; and
(2) in paragraph (2)(A)—
(A) by striking ‘‘that allows’’ and inserting
‘‘that—
‘‘(i) allows’’;
(B) by striking the period at the end and
inserting ‘‘; and’’; and
(C) by adding at the end the following:
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‘‘(ii) requires periodic site visits to private insti-
tutions that the State agency determines have a high
probability of program abuse.’’.
(e) TAX EXEMPT STATUS AND REMOVAL OF NOTIFICA-
TION REQUIREMENT FOR INCOMPLETE APPLICATIONS.—
Section 17(d)(1) of the National School Lunch 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 child and adult care
food program for a period of not more than 180 days,
except that a State agency may grant a single exten-
sion of not to exceed an additional 90 days if the in-
stitution demonstrates, to the satisfaction of the State
agency, that the inability of the institution to obtain
tax exempt status within the 180-day period is due
to circumstances beyond the control of the institu-
tion.’’; and
(2) by striking the last sentence.
(f) DEMONSTRATION PROJECTS.—Section 17(p) of the
National School Lunch Act (42 U.S.C. 1766(p)) is amend-
ed—
(1) in paragraph (1), by striking ‘‘appropriated
or otherwise made available for purposes of carrying
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out this section’’ and inserting ‘‘made available under
paragraph (4)’’;
(2) by striking paragraphs (4) and (5); and
(3) by adding at the end the following:
‘‘(4) FUNDING.—Out of any moneys in the
Treasury not otherwise appropriated, the Secretary of
the Treasury shall provide to the Secretary such sums
as are necessary to carry out this subsection for each
of fiscal years 1999 through 2003. The Secretary shall
be entitled to receive the funds and shall accept the
funds.’’.
(g) MANAGEMENT SUPPORT, PARTICIPATION BY AT-
RISK CHILD CARE PROGRAMS, AND WIC OUTREACH.—Sec-
tion 17 of the National School Lunch Act (42 U.S.C. 1766)
is amended by adding at the end the following:
‘‘(q) MANAGEMENT SUPPORT.—
‘‘(1) TECHNICAL AND TRAINING ASSISTANCE.—In
addition to the training and technical assistance that
is provided to State agencies under other provisions
of this Act and the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.), the Secretary shall provide
training and technical assistance in order to assist
the State agencies in improving their program man-
agement and oversight under this section.
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‘‘(2) FUNDING.—For each of fiscal years 1999
through 2003, the Secretary shall reserve to carry out
paragraph (1) $1,000,000 of the amounts made avail-
able to carry out this section.
‘‘(r) PROGRAM FOR AT-RISK SCHOOL CHILDREN.—
‘‘(1) DEFINITION OF AT-RISK SCHOOL CHILD.—
In this subsection, the term ‘at-risk school child’
means a school child who—
‘‘(A) is not more than 18 years of age; and
‘‘(B) lives in a geographical area served by
a school enrolling elementary students in which
at least 50 percent of the total number of chil-
dren enrolled are certified as eligible to receive
free or reduced price school meals under this Act
or the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.).
‘‘(2) PARTICIPATION IN CHILD AND ADULT CARE
FOOD PROGRAM.—Subject to the other provisions of
this subsection, an institution that provides supple-
ments under a program organized primarily to pro-
vide care to at-risk school children during after-school
hours, weekends, or holidays during the regular school
year may participate in the program authorized
under this section.
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‘‘(3) ADMINISTRATION.—Except as otherwise
provided in this subsection, the other provisions of
this section apply to an institution described in para-
graph (2).
‘‘(4) SUPPLEMENT REIMBURSEMENT.—
‘‘(A) LIMITATIONS.—An institution may
claim reimbursement under this subsection only
for—
‘‘(i) a supplement served under a pro-
gram organized primarily to provide care
to at-risk school children during after-school
hours, weekends, or holidays during the reg-
ular school year; and
‘‘(ii) 1 supplement per child per day.
‘‘(B) RATE.—Supplements shall be reim-
bursed under this subsection at the rate estab-
lished for free supplements under subsection
(c)(3).
‘‘(C) NO CHARGE.—A supplement claimed
for reimbursement under this subsection shall be
served without charge.
‘‘(s) INFORMATION CONCERNING THE SPECIAL SUP-
PLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS,
AND CHILDREN.—
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‘‘(1) IN GENERAL.—The Secretary shall provide
each State agency administering a child and adult
care food program under this section with informa-
tion concerning 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. 1786).
‘‘(2) REQUIREMENTS FOR STATE AGENCIES.—A
State agency shall ensure that each participating
family and group day care home and child care cen-
ter (other than an institution providing care to school
children outside school hours)—
‘‘(A) receives materials that include—
‘‘(i) a basic explanation of the impor-
tance and benefits of the special supple-
mental nutrition program for women, in-
fants, and children;
‘‘(ii) the maximum State income eligi-
bility standards, according to family size,
for the program; and
‘‘(iii) information concerning how ben-
efits under the program may be obtained;
‘‘(B) is provided periodic updates of the in-
formation described in subparagraph (A); and
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‘‘(C) provides the information described in
subparagraph (A) to parents of enrolled children
at enrollment.’’.
SEC. 116. TRANSFER OF HOMELESS ASSISTANCE PRO-
GRAMS TO CHILD AND ADULT CARE FOOD
PROGRAM.
(a) SUMMER FOOD SERVICE PROGRAM FOR CHIL-
DREN.—Section 13(a)(3)(C) of the National School Lunch
Act (42 U.S.C. 1761(a)(3)(C)) is amended—
(1) in clause (i), by inserting ‘‘or’’ after the
semicolon;
(2) by striking clause (ii); and
(3) by redesignating clause (iii) as clause (ii).
(b) CHILD AND ADULT CARE FOOD PROGRAM.—Sec-
tion 17 of the National School Lunch Act (as amended by
section 115(g)) is amended—
(1) in the third sentence of subsection (a)—
(A) by striking ‘‘and public’’ and inserting
‘‘public’’; and
(B) by inserting before the period at the fol-
lowing: ‘‘, and emergency shelters described in
subsection (t)’’; and
(2) by adding at the end the following:
‘‘(t) PARTICIPATION BY EMERGENCY SHELTERS.—
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‘‘(1) DEFINITION OF EMERGENCY SHELTER.—In
this subsection, the term ‘emergency shelter’ means a
public or private nonprofit emergency shelter (as de-
fined in section 321 of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11351)), or a site
operated by the shelter, that provides food service to
homeless children and their parents or guardians.
‘‘(2) ADMINISTRATION.—Except as otherwise
provided in this subsection, the other provisions of
this section shall apply to an emergency shelter that
is participating in the program authorized under this
section.
‘‘(3) INSTITUTION AND SITE LICENSING.—Sub-
section (a)(1) shall not apply to an emergency shelter.
‘‘(4) HEALTH AND SAFETY STANDARDS.—To be
eligible to participate in the program authorized
under this section, an emergency shelter shall comply
with applicable State and local health and safety
standards.
‘‘(5) MEAL OR SUPPLEMENT REIMBURSEMENT.—
‘‘(A) LIMITATIONS.—An emergency shelter
may claim reimbursement under this subsection
only for—
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‘‘(i) a meal or supplement served to
children who are not more than 12 years of
age residing at the emergency shelter; and
‘‘(ii) not more than 3 meals, or 2
meals and 1 supplement, per child per day.
‘‘(B) RATE.—A meal or supplement shall be
reimbursed under this subsection at the rate es-
tablished for a free meal or supplement under
subsection (c).
‘‘(C) NO CHARGE.—A meal or supplement
claimed for reimbursement under this subsection
shall be served without charge.’’.
(c) HOMELESS CHILDREN NUTRITION PROGRAM.—
Section 17B of the National School Lunch Act (42 U.S.C.
1766b) is repealed.
SEC. 117. MEAL SUPPLEMENTS FOR CHILDREN IN AFTER-
SCHOOL CARE.
(a) GENERAL AUTHORITY.—Section 17A(a) of the Na-
tional School Lunch Act (42 U.S.C. 1766a(a)) is amend-
ed—
(1) in paragraph (1), by striking ‘‘supplements
to’’ and inserting ‘‘supplements under a program or-
ganized primarily to provide care for’’; and
(2) in paragraph (2), by striking subparagraph
(C) and inserting the following:
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‘‘(C) operate afterschool programs with an
educational or enrichment purpose.’’.
(b) ELIGIBLE CHILDREN.—Section 17A(b) of the Na-
tional School Lunch Act (42 U.S.C. 1766a(b)) is amend-
ed—
(1) in paragraph (1), by striking ‘‘or’’ at the
end;
(2) in paragraph (2), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(3) in the case of children who live in a geo-
graphical area served by a school enrolling elemen-
tary students in which at least 50 percent of the total
number of children enrolled are certified as eligible to
receive free or reduced price school meals under this
Act or the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.), who are not more than 18 years of
age.’’.
(c) REIMBURSEMENT.—Section 17A(c) of the National
School Lunch Act (42 U.S.C. 1766a(c)) is amended—
(1) by striking ‘‘(c) REIMBURSEMENT.—For’’
and inserting the following:
‘‘(c) REIMBURSEMENT.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), for’’; and
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(2) by adding at the end the following:
‘‘(2) LOW-INCOME
AREAS.—A supplement pro-
vided under this section to a child described in sub-
section (b)(3) shall be—
‘‘(A) reimbursed at the rate at which free
supplements are reimbursed under section 17(c);
and
‘‘(B) served without charge.’’.
SEC. 118. PILOT PROJECTS.
Section 18 of the National School Lunch Act (42
U.S.C. 1769) is amended—
(1) in subsection (c)—
(A) in paragraphs (1) and (7)(A), by strik-
ing ‘‘1998’’ each place it appears and inserting
‘‘2003’’; and
(B) in paragraph (7)—
(i) by striking ‘‘(A)’’; and
(ii) by striking subparagraph (B); and
(2) by striking subsections (e), (g), (h), and (i).
SEC. 119. BREAKFAST PILOT PROJECTS.
Section 18 of the National School Lunch Act (42
U.S.C. 1769) (as amended by section 118(2)) is amended
by inserting after subsection (d) the following:
‘‘(e) BREAKFAST PILOT PROJECTS.—
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‘‘(1) IN GENERAL.—During each of the school
years beginning July 1, 1999, July 1, 2000, and July
1, 2001, the Secretary shall make grants to State
agencies to conduct pilot projects in elementary
schools under the jurisdiction of not more than 6
school food authorities approved by the Secretary—
‘‘(A) to reduce paperwork and simplify
meal counting requirements; and
‘‘(B) to evaluate the effect of providing free
breakfasts to elementary school children, without
regard to family income, on participation, aca-
demic achievement, attendance and tardiness,
and dietary intake over the course of a day.
‘‘(2) NOMINATIONS.—A State agency that desires
to receive a grant under this subsection shall submit
to the Secretary nominations of school food authori-
ties to participate in a pilot project under this sub-
section
‘‘(3) APPROVAL.—The Secretary shall approve
for participation in pilot projects under this sub-
section elementary schools under the jurisdiction of
not more than 6 school food authorities selected so as
to—
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‘‘(A) provide for an equitable distribution of
pilot projects among urban and rural elementary
schools;
‘‘(B) provide for an equitable distribution of
pilot projects among elementary schools of vary-
ing family income levels; and
‘‘(C) permit the evaluation of pilot projects
to distinguish the effects of the pilot projects from
other factors, such as changes or differences in
educational policies or program.
‘‘(4) GRANTS TO SCHOOL FOOD AUTHORITIES.—
A State receiving a grant under paragraph (1) shall
make grants to school food authorities to conduct the
pilot projects described in paragraph (1).
‘‘(5) DURATION OF PILOT PROJECTS.—A school
food authority receiving amounts under a grant to
conduct a pilot project described in paragraph (1)
shall conduct the project for the 3-year period begin-
ning July 1, 1999.
‘‘(6) WAIVER AUTHORITY.—The Secretary may
waive the requirements of this Act and the Child Nu-
trition Act of 1966 (42 U.S.C. 1771 et seq.) relating
to counting of meals, applications for eligibility, and
other requirements that would preclude the Secretary
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from making a grant to conduct a pilot project under
paragraph (1).
‘‘(7) REQUIREMENTS
FOR
PARTICIPATION
IN
PILOT PROJECT.—To be eligible to participate in a
pilot project under this subsection—
‘‘(A) a State—
‘‘(i) shall submit an application to the
Secretary at such time and in such manner
as the Secretary shall establish to meet cri-
teria the Secretary has established to enable
a valid evaluation to be conducted; and
‘‘(ii) shall provide such information re-
lating to the operation and results of the
pilot project as the Secretary may reason-
ably require; and
‘‘(B) a school food authority—
‘‘(i) shall agree to serve all breakfasts
at no charge to all children in participating
elementary schools;
‘‘(ii) shall not have a history of viola-
tions of this Act or the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.);
‘‘(iii) shall have, under the jurisdiction
of the school food authority, a sufficient
number of elementary schools that are not
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participating in the pilot projects to permit
an evaluation of the effects of the pilot
projects; and
‘‘(iv) shall meet all other requirements
that the Secretary may reasonably require.
‘‘(8) REIMBURSEMENT
RATES.—A school food
authority conducting a pilot project under this sub-
section shall receive reimbursement for each breakfast
served under the pilot project in an amount that is
equal to—
‘‘(A) in the case of a school food authority
that is determined by the Secretary not to be in
severe need, the rate for free breakfasts estab-
lished under section 4(b)(1)(B) of the Child Nu-
trition Act of 1966 (42 U.S.C. 1773(b)(1)(B));
and
‘‘(B) in the case of a school food authority
that is determined by the Secretary to be in se-
vere need, the rate for free breakfasts established
under section 4(b)(2)(B) of the Child Nutrition
Act of 1966 (42 U.S.C. 1773(b)(2)(B)).
‘‘(9) EVALUATION OF PILOT PROJECTS.—
‘‘(A) IN GENERAL.—The Secretary, acting
through the Administrator of the Food and Nu-
trition Service, shall conduct an evaluation of
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the pilot projects conducted by the school food
authorities selected for participation.
‘‘(B) CONTENT.—The evaluation shall in-
clude—
‘‘(i) a determination of the effect of
participation in the pilot project on the
academic achievement, attendance and tar-
diness, and dietary intake over the course of
a day of participating children that is not
attributable to changes in educational poli-
cies and practices; and
‘‘(ii) a determination of the effect that
participation by elementary schools in the
pilot project has on the proportion of stu-
dents who eat breakfast and on the paper-
work required to be completed by the
schools.
‘‘(C) REPORT.—On completion of the pilot
projects and the evaluation, the Secretary shall
submit to the Committee on Education and the
Workforce of the House of Representatives and
the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report containing the
results of the evaluation of the pilot projects re-
quired under subparagraph (A).
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‘‘(10) FEDERAL REIMBURSEMENT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), a school conducting a pilot
project under this subsection shall receive a total
Federal reimbursement under the school breakfast
program in an amount that is equal to the total
Federal reimbursement for the school for the
prior year under the program (adjusted for in-
flation and fluctuations in enrollment).
‘‘(B) EXCESS NEEDS.—Funds required for
the pilot project in excess of the level of reim-
bursement received by the school for the prior
year (adjusted for inflation and fluctuations in
enrollment) may be taken from any non-Federal
source or from amounts provided under this sub-
section.
‘‘(11) FUNDING.—
‘‘(A) IN GENERAL.—Out of any moneys in
the Treasury not otherwise appropriated, the
Secretary of the Treasury shall provide to the
Secretary such sums as are necessary to carry
out 
this 
subsection, 
but 
not 
more 
than
$20,000,000. The Secretary shall be entitled to
receive the funds and shall accept the funds.
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‘‘(B) EVALUATION.—Of the amounts made
available under subparagraph (A), not more
than $12,000,000 shall be made available to
carry out paragraph (9).’’.
SEC. 120. TRAINING AND TECHNICAL ASSISTANCE.
Section 21(e)(1) of the National School Lunch Act (42
U.S.C. 1769b–1(e)(1)) is amended by striking ‘‘1998’’ and
inserting ‘‘2003’’.
SEC. 121. FOOD SERVICE MANAGEMENT INSTITUTE.
Section 21(e)(2)(A) of the National School Lunch Act
(42 U.S.C. 1769b–1(e)(2)(A)) is amended by striking ‘‘and
$2,000,000 for fiscal year 1996 and each subsequent fiscal
year,’’ and inserting ‘‘$2,000,000 for each of fiscal years
1996 through 1998, and $3,000,000 for fiscal year 1999 and
each subsequent fiscal year’’.
SEC. 122. COMPLIANCE AND ACCOUNTABILITY.
Section 22(d) of the National School Lunch Act (42
U.S.C. 1769c(d)) is amended by striking ‘‘1996’’ and insert-
ing ‘‘2003’’.
SEC. 123. INFORMATION CLEARINGHOUSE.
Section 26(d) of the National School Lunch Act (42
U.S.C. 1769g(d)) is amended in the first sentence by strik-
ing ‘‘and $100,000 for fiscal year 1998’’ and inserting
‘‘$100,000 for fiscal year 1998, and $166,000 for each of
fiscal years 1999 through 2003’’.
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SEC. 124. REFOCUSING OF EFFORT TO HELP ACCOMMO-
DATE THE SPECIAL DIETARY NEEDS OF INDI-
VIDUALS WITH DISABILITIES.
Section 27 of the National School Lunch Act (42
U.S.C. 1769h) is amended to read as follows:
‘‘SEC. 27. ACCOMMODATION OF SPECIAL DIETARY NEEDS
OF INDIVIDUALS WITH DISABILITIES.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) COVERED
PROGRAM.—The term ‘covered
program’ means—
‘‘(A) the school lunch program authorized
under this Act;
‘‘(B) the school breakfast program author-
ized under section 4 of the Child Nutrition Act
of 1966 (42 U.S.C. 1773); and
‘‘(C) any other program authorized under
this Act or the Child Nutrition Act of 1966 that
the Secretary determines is appropriate.
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means a school food authority, institution, or
service institution that participates in a covered pro-
gram.
‘‘(3) INDIVIDUALS
WITH
DISABILITIES.—The
term ‘individual with disabilities’ has the meaning
given the term in section 7 of the Rehabilitation Act
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of 1973 (29 U.S.C. 706) for purposes of title VII of
that Act (29 U.S.C. 796 et seq.).
‘‘(b) ACTIVITIES.—The Secretary may carry out ac-
tivities to help accommodate the special dietary needs of
individuals with disabilities who are participating in a
covered program, including—
‘‘(1) developing and disseminating to State agen-
cies guidance and technical assistance materials;
‘‘(2) conducting training of State agencies and
eligible entities; and
‘‘(3) issuing grants to State agencies and eligible
entities.’’.
TITLE II—SCHOOL BREAKFAST
AND RELATED PROGRAMS
SEC. 201. ELIMINATION OF ADMINISTRATION OF PRO-
GRAMS BY REGIONAL OFFICES.
Section 5 of the Child Nutrition Act of 1966 (42 U.S.C.
1774) is amended to read as follows:
‘‘SEC. 5. DISBURSEMENT TO SCHOOLS BY THE SECRETARY.
‘‘(a) AUTHORITY TO ADMINISTER PROGRAMS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), during the period determined under sub-
section (c), the Secretary shall withhold funds payable
to a State under this Act and disburse the funds di-
rectly to school food authorities, institutions, and
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service institutions within the State for the purposes
authorized by this Act to the extent that the Secretary
has so withheld and disbursed the funds continuously
since October 1, 1980.
‘‘(2) USE OF FUNDS.—Any funds withheld and
disbursed by the Secretary under paragraph (1) shall
be used for the same purposes and be subject to the
same conditions as apply to disbursing funds made
available to States under this Act.
‘‘(3) STATE ADMINISTRATION.—If the Secretary
is administering (in whole or in part) any program
authorized under this Act in a State, the State may,
on request to the Secretary, assume administrative re-
sponsibility for the program at any time during the
period determined under subsection (c).
‘‘(b) PROVISION OF TRAINING AND TECHNICAL ASSIST-
ANCE.—During the period determined under subsection (c),
the Secretary shall provide a State that assumes adminis-
trative responsibility for a program from the Secretary with
training and technical assistance to allow for an efficient
and effective transfer of administrative responsibility.
‘‘(c) PERIOD.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), this section shall apply during the period
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beginning on October 1, 1998, and ending on Septem-
ber 30, 2001.
‘‘(2) EXTENSION.—The Secretary may extend the
period described in paragraph (1) that applies to a
program administered by the Secretary for a State,
for a period not to exceed 2 years, if the State—
‘‘(A) demonstrates to the Secretary that the
State will not be able to assume administrative
responsibility for the program during the period
described in paragraph (1); and
‘‘(B) submits a plan to the Secretary that
describes when and how the State will assume
administrative responsibility for the program.’’.
SEC. 202. STATE ADMINISTRATIVE EXPENSES.
(a) HOMELESS SHELTERS.—Section 7(a)(5) of the
Child Nutrition Act of 1966 (42 U.S.C. 1776(a)(5)) is
amended by striking subparagraph (B) and inserting the
following:
‘‘(B) REALLOCATION OF FUNDS.—
‘‘(i) RETURN
TO
SECRETARY.—For
each fiscal year, any amounts appropriated
that are not obligated or expended during
the fiscal year and are not carried over for
the succeeding fiscal year under subpara-
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graph (A) shall be returned to the Sec-
retary.
‘‘(ii) REALLOCATION BY SECRETARY.—
The Secretary shall allocate, for purposes of
administrative 
costs, 
any 
remaining
amounts among States that demonstrate a
need for the amounts.’’.
(b) ELIMINATION OF TRANSFER LIMITATION.—Section
7(a) of the Child Nutrition Act of 1966 (42 U.S.C. 1776(a))
is amended by striking paragraph (6) and inserting the fol-
lowing:
‘‘(6) USE OF ADMINISTRATIVE FUNDS.—Funds
available to a State under this subsection and under
section 13(k)(1) of the National School Lunch Act (42
U.S.C. 1761(k)(1)) may be used by the State for the
costs of administration of the programs authorized
under the National School Lunch Act (42 U.S.C. 1751
et seq.) or this Act (except for the programs author-
ized under sections 17 and 21 of this Act) without re-
gard to the basis on which the funds were earned and
allocated.’’.
(c) REAUTHORIZATION OF PROGRAM.—Section 7(g) of
the Child Nutrition Act of 1966 (42 U.S.C. 1776(g)) is
amended by striking ‘‘1998’’ and inserting ‘‘2003’’.
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SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM
FOR WOMEN, INFANTS, AND CHILDREN.
(a) CERTIFICATION PERIOD FOR INFANTS.—Section
17(d)(3) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(d)(3)) is amended by adding at the end the following:
‘‘(C) 
CERTIFICATION
PERIOD
FOR
IN-
FANTS.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii), the procedures prescribed
under subparagraph (A) shall include a re-
quirement that a family that includes an
infant shall not be certified to meet income
eligibility criteria for the program for more
than 180 days after the date of any certifi-
cation.
‘‘(ii) PRESUMPTIVELY ELIGIBLE FAMI-
LIES.—Clause (i) shall not apply to a fam-
ily with a member who is an individual de-
scribed in clause (ii) or (iii) of paragraph
(2)(A).’’.
(b) ADDITIONAL REQUIREMENTS FOR APPLICANTS.—
Section 17(d)(3) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(d)(3)) (as amended by subsection (a)) is
amended by adding at the end the following:
‘‘(D) PHYSICAL PRESENCE.—
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‘‘(i) IN GENERAL.—Except as provided
in clause (ii), each applicant to the pro-
gram shall be physically present at each
certification determination to determine eli-
gibility under the program.
‘‘(ii) WAIVERS.—A local agency may
waive the requirement of clause (i) with re-
spect to an applicant if the agency deter-
mines that the requirement, as applied to
the applicant, would—
‘‘(I) conflict with the Americans
with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.);
‘‘(II) present a barrier to partici-
pation of a child (including an infant)
who—
‘‘(aa) was present at the ini-
tial certification visit; and
‘‘(bb) is receiving ongoing
health care from a provider other
than the local agency; or
‘‘(III) present a barrier to par-
ticipation of a child (including an in-
fant) who—
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‘‘(aa) was present at the ini-
tial certification visit;
‘‘(bb) was present at a cer-
tification determination within
the 1-year period ending on the
date of the certification deter-
mination described in clause (i);
and
‘‘(cc) has 1 or more parents
who work.
‘‘(E) INCOME DOCUMENTATION.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii), to be eligible for the program,
each applicant to the program shall pro-
vide—
‘‘(I) documentation of household
income; or
‘‘(II) documentation of participa-
tion in a program described in clause
(ii) or (iii) of paragraph (2)(A).
‘‘(ii) WAIVERS.—A State agency may
waive the requirement of clause (i) with re-
spect to—
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‘‘(I) an applicant for whom the
necessary documentation is not avail-
able; or
‘‘(II) an applicant, such as a
homeless woman or child, for whom the
agency determines the requirement of
clause (i) would present a barrier to
participation.
‘‘(iii) REGULATIONS.—The Secretary
shall prescribe regulations to carry out
clause (ii)(I).
‘‘(F) VERIFICATION.—The Secretary shall
issue regulations under this paragraph prescrib-
ing when and how verification of income shall be
required.’’.
(c) DISTRIBUTION OF NUTRITION EDUCATION MATE-
RIALS.—Section 17(e)(3) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(e)(3)) is amended—
(1) by striking ‘‘(3) The’’ and inserting the fol-
lowing:
‘‘(3) NUTRITION EDUCATION MATERIALS.—
‘‘(A) IN GENERAL.—The’’; and
(2) by adding at the end the following:
‘‘(B) SHARING OF MATERIALS WITH CSFP.—
The Secretary may provide, in bulk quantity,
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nutrition education materials (including mate-
rials promoting breastfeeding) developed with
funds made available for the program authorized
under this section to State agencies administer-
ing the commodity supplemental food program
authorized under sections 4(a) and 5 of the Agri-
culture and Consumer Protection Act of 1973
(Public Law 93–86; 7 U.S.C. 612c note) at no
cost to that program.’’.
(d) VARIETY OF FOODS.—Section 17(f)(1)(C) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(1)(C)) is
amended—
(1) by redesignating clauses (ii) through (x) as
clauses (iii) through (xi), respectively; and
(2) by inserting after clause (i) the following:
‘‘(ii) in the case of any State that provides for
the purchase of foods under the program at retail gro-
cery stores, a plan to limit participation by the stores
to stores that offer a variety of foods, as determined
by the Secretary;’’.
(e) USE
OF CLAIMS
FOR VENDORS
AND PARTICI-
PANTS.—Section 17(f) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(f)) is amended by striking paragraph (21)
and inserting the following:
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‘‘(21) USE OF CLAIMS FROM VENDORS AND PAR-
TICIPANTS.—A State agency may use funds recovered
from vendors and participants, as a result of a claim
arising under the program, to carry out the program
during—
‘‘(A) the fiscal year in which the claim
arises;
‘‘(B) the fiscal year in which the funds are
collected; or
‘‘(C) the fiscal year following the fiscal year
in which the funds are collected.’’.
(f) RECIPIENTS PARTICIPATING
AT MORE THAN 1
SITE.—Section 17(f) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(f)) is amended by adding at the end the follow-
ing:
‘‘(23) RECIPIENTS
PARTICIPATING
AT
MORE
THAN 1 SITE.—Each State agency shall implement a
system designed by the State agency to identify re-
cipients who are participating at more than 1 site
under the program.’’.
(g) HIGH RISK VENDORS.—Section 17(f) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(f)) (as amended by
subsection (f)) is amended by adding at the end the follow-
ing:
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‘‘(24) HIGH RISK VENDORS.—Each State agency
shall—
‘‘(A) identify vendors that have a high prob-
ability of program abuse; and
‘‘(B) conduct compliance investigations of
the vendors.’’.
(h) REAUTHORIZATION OF PROGRAM.—Section 17 of
the Child Nutrition Act of 1966 (42 U.S.C. 1786) is amend-
ed in subsections (g)(1) and (h)(2)(A) by striking ‘‘1998’’
each place it appears and inserting ‘‘2003’’.
(i) 
PURCHASE
OF
BREAST
PUMPS.—Section
17(h)(1)(C) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(h)(1)(C)) is amended—
(1) by striking ‘‘(C) In’’ and inserting the fol-
lowing:
‘‘(C) REMAINING AMOUNTS.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii), in’’; and
(2) by adding at the end the following:
‘‘(ii) BREAST PUMPS.—
‘‘(I) 
IN
GENERAL.—Beginning
with fiscal year 2000, a State agency
may use amounts made available
under clause (i) for the purchase of
breast pumps.
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‘‘(II) 
MAINTENANCE
OF
EF-
FORT.—From amounts allocated for
nutrition services and administration
to amounts allocated for supplemental
foods, a State agency that exercises the
authority of subclause (I) shall transfer
an amount equal to the amount ex-
pended for the purchase of breast
pumps, or transferred under this sub-
clause, from amounts allocated for nu-
trition services and administration for
the preceding fiscal year.’’.
(j) TECHNICAL AMENDMENT.—Section 17(h)(2)(A)(iv)
of the Child Nutrition Act of 1966 (42 U.S.C.
1786(h)(2)(A)(iv)) is amended by striking ‘‘, to the extent
funds are not already provided under subparagraph (I)(v)
for the same purpose,’’.
(k) LEVEL OF PER-PARTICIPANT EXPENDITURE FOR
NUTRITION
SERVICES
AND
ADMINISTRATION.—Section
17(h)(2)(B)(ii) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(h)(2)(B)(ii)) is amended by striking ‘‘15 per-
cent’’ and inserting ‘‘10 percent (except that the Secretary
may establish a higher percentage for State agencies that
are small)’’.
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(l) TECHNICAL AMENDMENTS.—Section 17(h)(3) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(3)) is
amended—
(1) in subparagraph (E), by striking ‘‘(except as
provided in subparagraph (G))’’; and
(2) by striking subparagraphs (F) and (G).
(m) CONVERSION OF AMOUNTS FOR SUPPLEMENTAL
FOODS TO AMOUNTS FOR NUTRITION SERVICES AND AD-
MINISTRATION.—Section 17(h)(5)(A) of the Child Nutrition
Act of 1966 (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 partici-
pant and to increase participation above the level estimated
for the State agency, the State agency may, with the ap-
proval of the Secretary,’’.
(n) INFANT FORMULA PROCUREMENT.—
(1) COMPETITIVE
BIDDING
SYSTEM.—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:
‘‘(iii) 
COMPETITIVE
BIDDING
SYS-
TEM.—A State agency using a competitive
bidding system for infant formula shall
award a contract to the bidder offering the
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lowest net price unless the State agency
demonstrates to the satisfaction of the Sec-
retary that the weighted average retail price
for different brands of infant formula in the
State does not vary by more than 5 per-
cent.’’.
(2) REVIEW AND APPROVAL OF SOLICITATIONS.—
Section 17(h)(8) of the Child Nutrition Act of 1966
(42 U.S.C. 1786(h)(8)) is amended by adding at the
end the following:
‘‘(K) REVIEW AND APPROVAL OF SOLICITA-
TIONS.—The Secretary shall—
‘‘(i) prior to the issuance of an infant
formula cost containment contract solicita-
tion under this paragraph, review the solici-
tation to ensure that the solicitation does
not contain any anticompetitive provisions;
and
‘‘(ii) approve the solicitation only if
the solicitation does not contain any anti-
competitive provisions.’’.
(o) INFRASTRUCTURE AND BREASTFEEDING SUPPORT
AND PROMOTION.—Section 17(h)(10)(A) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786(h)(10)(A)) is amended
by striking ‘‘1998’’ and inserting ‘‘2003’’.
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(p) MANAGEMENT INFORMATION SYSTEM PLAN.—Sec-
tion 17(h) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(h)) is amended by adding at the end the following:
‘‘(11) 
MANAGEMENT
INFORMATION
SYSTEM
PLAN.—
‘‘(A) IN
GENERAL.—In consultation with
State agencies, retailers, and other interested
persons, the Secretary shall establish a long-
range plan for the development and implementa-
tion of management information systems (in-
cluding electronic benefit transfers) to be used in
carrying out the program.
‘‘(B) REPORT.—Not later than 2 years after
the date of enactment of this paragraph, the Sec-
retary shall submit to the Committee on Edu-
cation and the Workforce of the House of Rep-
resentatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report
on actions taken to carry out subparagraph (A).
‘‘(C) INTERIM PERIOD.—Prior to the date of
submission of the report of the Secretary required
under subparagraph (B), the cost of systems or
equipment that may be required to test manage-
ment information systems (including electronic
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benefit transfers) for the program may not be
imposed on a retail food store.’’.
(q) USE OF FUNDS IN PRECEDING AND SUBSEQUENT
FISCAL YEARS.—
(1) IN
GENERAL.—Section 17(i)(3)(A) of the
Child 
Nutrition 
Act 
of 
1966 
(42 
U.S.C.
1786(i)(3)(A)) is amended—
(A) by striking ‘‘subparagraphs (B) and
(C)’’ and inserting ‘‘subparagraph (B)’’; and
(B) by striking clauses (i) and (ii) and in-
serting the following:
‘‘(i)(I) not more than 1 percent (except as pro-
vided in subparagraph (C)) of the amount of funds
allocated to a State agency under this section for sup-
plemental foods for a fiscal year may be expended by
the State agency for allowable expenses incurred
under this section for supplemental foods during the
preceding fiscal year; and
‘‘(II) 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 allow-
able expenses incurred under this section for supple-
mental foods and nutrition services and administra-
tion during the preceding fiscal year; and
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‘‘(ii)(I) for each fiscal year, of the amounts allo-
cated to a State agency for nutrition services and ad-
ministration, an amount equal to not more than 1
percent of the amount allocated to the State agency
under this section for the fiscal year may be expended
by the State agency for allowable expenses incurred
under this section for nutrition services and adminis-
tration during the subsequent fiscal year; and
‘‘(II) for each fiscal year, of the amounts allo-
cated to a State agency for nutrition services and ad-
ministration, an amount equal to not more than 1⁄2
of 1 percent of the amount allocated to the State agen-
cy under this section for the fiscal year may be ex-
pended by the State agency, with the prior approval
of the Secretary, for the development of a management
information system, including an electronic benefit
transfer system, during the subsequent fiscal year.’’.
(2) CONFORMING AMENDMENTS.—Section 17 of
the Child Nutrition Act of 1966 (42 U.S.C. 1786) is
amended—
(A) in subsection (h)(10)(A), by inserting
after ‘‘nutrition services and administration
funds’’ the following: ‘‘and supplemental foods
funds’’; and
(B) in subsection (i)(3)—
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(i) by striking subparagraphs (C)
through (G); and
(ii) by redesignating subparagraph
(H) as subparagraph (C).
(r) FARMERS MARKET NUTRITION PROGRAM.—Sec-
tion 17(m) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(m)) is amended—
(1) in the first sentence of paragraph (3), by in-
serting ‘‘or from program income’’ before the period
at the end;
(2) in paragraph (6)—
(A) in subparagraph (C)—
(i) by striking ‘‘serve additional recipi-
ents in’’;
(ii) by striking clause (ii) and insert-
ing the following:
‘‘(ii) documentation that demonstrates that—
‘‘(I) there is a need for an increase in
funds; and
‘‘(II) the use of the increased funding will
be consistent with serving nutritionally at-risk
persons and expanding the awareness and use of
farmers’ markets;’’;
(iii) in clause (iii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
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(iv) by adding at the end the following:
‘‘(iv) whether, in the case of a State that intends
to use any funding provided under subparagraph
(G)(i) to increase the value of the Federal share of the
benefits received by a recipient, the funding provided
under subparagraph (G)(i) will increase the rate of
coupon redemption.’’;
(B) by striking subparagraph (F);
(C) in subparagraph (G)—
(i) in clause (i)—
(I) in the first sentence, by strik-
ing ‘‘that wish’’ and all follows through
‘‘to do so’’ and inserting ‘‘whose State
plan’’; and
(II) in the second sentence, by
striking ‘‘for additional recipients’’;
and
(ii) in the second sentence of clause
(ii), by striking ‘‘that desire to serve addi-
tional recipients, and’’; and
(D) by redesignating subparagraph (G) as
subparagraph (F); and
(3) in paragraph (9)(A), by striking ‘‘1998’’ and
inserting ‘‘2003’’.
(s) DISQUALIFICATION OF CERTAIN VENDORS.—
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(1) IN GENERAL.—Section 17 of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1786) is amended by
adding at the end the following:
‘‘(o) DISQUALIFICATION OF VENDORS CONVICTED OF
TRAFFICKING OR ILLEGAL SALES.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (4), a State agency shall permanently dis-
qualify from participation in the program authorized
under this section a vendor convicted of—
‘‘(A) trafficking in food instruments (in-
cluding any voucher, draft, check, or access de-
vice (including an electronic benefit transfer
card or personal identification number) issued
in lieu of a food instrument under this section);
or
‘‘(B) selling firearms, ammunition, explo-
sives, or controlled substances (as defined in sec-
tion 102 of the Controlled Substances Act (21
U.S.C. 802)) in exchange for food instruments.
‘‘(2) NOTICE OF DISQUALIFICATION.—The State
agency shall—
‘‘(A) provide the vendor with notification of
the disqualification; and
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‘‘(B) make the disqualification effective on
the date of receipt of the notice of disqualifica-
tion.
‘‘(3) PROHIBITION OF RECEIPT OF LOST REVE-
NUES.—A vendor shall not be entitled to receive any
compensation for revenues lost as a result of disquali-
fication under this subsection.
‘‘(4) EXCEPTIONS
IN
LIEU
OF
DISQUALIFICA-
TION.—
‘‘(A) IN GENERAL.—A State agency may
permit a vendor that, but for this paragraph,
would be disqualified under paragraph (1), to
continue to redeem food instruments or otherwise
provide supplemental foods to participants if the
State agency determines, in its sole discretion
according to criteria established by the Sec-
retary, that—
‘‘(i) disqualification of the vendor
would cause hardship to participants in the
program authorized under this section; or
‘‘(ii)(I) the vendor had, at the time of
the conviction under paragraph (1), an ef-
fective policy and program in effect to pre-
vent violations of this section; and
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‘‘(II) the ownership of the vendor was
not aware of, did not approve of, did not
benefit from, and was not involved in the
conduct of the violation.
‘‘(B) CIVIL
PENALTY.—If a State agency
authorizes a vendor that, but for this paragraph,
would be disqualified under paragraph (1) to re-
deem food instruments or provide supplemental
foods under subparagraph (A), in lieu of dis-
qualification, the State agency shall assess the
vendor a civil penalty in an amount determined
by the State agency, except that—
‘‘(i) the amount of the civil penalty
shall not exceed $20,000; and
‘‘(ii) the amount of civil penalties im-
posed for violations investigated as part of
a single investigation may not exceed
$40,000.’’.
(2) REGULATIONS.—The amendment made by
paragraph (1) shall take effect on the date on which
the Secretary of Agriculture issues a final regulation
that includes the criteria for—
(A) making hardship determinations; and
(B) determining the amount of a civil
money penalty in lieu of disqualification.
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(t) CRIMINAL FORFEITURE.—Section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786) (as amended by
subsection (s)(1)) is amended by adding at the end the fol-
lowing:
‘‘(p) CRIMINAL FORFEITURE.—
‘‘(1) IN
GENERAL.—In addition to any other
penalty or sentence, a court may order that a person
forfeit to the United States all property described in
paragraph (2), in imposing a sentence on a person
convicted of a violation of this section (including a
regulation) under—
‘‘(A) section 12(g) of the National School
Lunch Act (42 U.S.C. 1760(g)); or
‘‘(B) any other Federal law imposing a
penalty for embezzlement, willful misapplication,
stealing, obtaining by fraud, or trafficking in
food instruments, funds, assets, or property, that
have a value of $100 or more.
‘‘(2) PROPERTY SUBJECT TO FORFEITURE.—All
property, real and personal, used in a transaction or
attempted transaction, to commit, or to facilitate the
commission of, a violation (other than a mis-
demeanor) of any provision of this section (including
a regulation), or proceeds traceable to a violation of
any provision of this section (including a regulation),
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shall be subject to forfeiture to the United States
under paragraph (1).
‘‘(3) INTEREST OF OWNER.—No interest in prop-
erty shall be forfeited under this subsection as the re-
sult of any act or omission established by the owner
of the interest to have been committed or omitted
without the knowledge or consent of the owner.
‘‘(4) PROCEEDS.—The proceeds from any sale of
forfeited property and any amounts forfeited under
this subsection shall be used—
‘‘(A) first, to reimburse the Department of
Justice, the Department of the Treasury, and the
United States Postal Service for the costs in-
curred by the Departments or Service to initiate
and complete the forfeiture proceeding;
‘‘(B) second, to reimburse the Office of In-
spector General of the Department of Agriculture
for any costs incurred by the Office in the law
enforcement effort resulting in the forfeiture;
‘‘(C) third, to reimburse any Federal, State,
or local law enforcement agency for any costs in-
curred in the law enforcement effort resulting in
the forfeiture; and
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‘‘(D) fourth, by the State agency to carry
out approval, reauthorization, and compliance
investigations of vendors.’’.
(u) STUDY
AND REPORT
ON COST CONTAINMENT
PRACTICES.—
(1) STUDY.—The Comptroller General of the
United States shall conduct a study on the effect of
cost containment practices of States under 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. 1786) for the selec-
tion of vendors and approved food items (other than
infant formula) on—
(A) program participation;
(B) access and availability of prescribed
foods;
(C) voucher redemption rates and actual
food selections by participants;
(D) participants on special diets or with
specific food allergies;
(E) participant consumption of, and satis-
faction with, prescribed foods;
(F) achievement of positive health outcomes;
and
(G) program costs.
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(2) REPORT.—Not later than 2 years after the
date of enactment of this Act, the Comptroller General
shall submit to the Secretary of Agriculture, the Com-
mittee on Education and the Workforce of the House
of Representatives, and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report con-
taining the results of the study conducted under para-
graph (1).
(v) STUDY AND REPORT ON WIC SERVICES.—
(1) STUDY.—The Comptroller General of the
United States shall conduct a study that assesses—
(A) the cost of delivering services under 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. 1786), including the costs of implement-
ing and administering cost containment efforts;
(B) the fixed and variable costs incurred by
State and local governments for delivering the
services;
(C) the quality of the services delivered, tak-
ing into account the effect of the services on the
health of participants; and
(D) the costs incurred for personnel, auto-
mation, central support, and other activities to
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deliver the services and whether the costs meet
Federal audit standards for allowable costs
under the program.
(2) REPORT.—Not later than 3 years after the
date of enactment of this Act, the Comptroller General
shall submit to the Secretary of Agriculture, the Com-
mittee on Education and the Workforce of the House
of Representatives, and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report con-
taining the results of the study conducted under para-
graph (1).
SEC. 204. NUTRITION EDUCATION AND TRAINING.
Section 19(i) of the Child Nutrition Act of 1966 (42
U.S.C. 1788(i)) is amended—
(1) by striking the subsection heading and all
that follows through paragraph (3)(A) and inserting
the following:
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—
‘‘(A) FUNDING.—There are authorized to be
appropriated such sums as are necessary to
carry out this section for each of fiscal years
1997 through 2003.’’; and
(2) by redesignating paragraphs (4) and (5) as
paragraphs (2) and (3), respectively.
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TITLE III—COMMODITY
DISTRIBUTION PROGRAMS
SEC. 301. COMMODITY DISTRIBUTION PROGRAM REFORMS.
(a) COMMODITY SPECIFICATIONS.—Section 3(a) of the
Commodity Distribution Reform Act and WIC Amend-
ments of 1987 (Public Law 100–237; 7 U.S.C. 612c note)
is amended by striking paragraph (2) and inserting the fol-
lowing:
‘‘(2) APPLICABILITY.—Paragraph (1) shall apply
to—
‘‘(A) the commodity supplemental food pro-
gram authorized under sections 4(a) and 5 of the
Agriculture and Consumer Protection Act of
1973 (Public Law 93–86; 7 U.S.C. 612c note);
‘‘(B) the food distribution program on In-
dian reservations authorized under section 4(b)
of the Food Stamp Act of 1977 (7 U.S.C.
2013(b)); and
‘‘(C) the school lunch program authorized
under the National School Lunch Act (42 U.S.C.
1751 et seq.).’’.
(b) CUSTOMER ACCEPTABILITY INFORMATION.—Sec-
tion 3(f) of the Commodity Distribution Reform Act and
WIC Amendments of 1987 (Public Law 100–237; 7 U.S.C.
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612c note) is amended by striking paragraph (2) and in-
serting the following:
‘‘(2) CUSTOMER ACCEPTABILITY INFORMATION.—
‘‘(A) IN GENERAL.—The Secretary shall en-
sure that information with respect to the types
and forms of commodities that are most useful is
collected from recipient agencies participating in
programs described in subsection (a)(2).
‘‘(B) FREQUENCY.—The information shall
be collected at least once every 2 years.
‘‘(C) ADDITIONAL SUBMISSIONS.—The Sec-
retary—
‘‘(i) may require submission of infor-
mation described in subparagraph (A) from
recipient agencies participating in other do-
mestic food assistance programs adminis-
tered by the Secretary; and
‘‘(ii) shall provide the recipient agen-
cies a means for voluntarily submitting cus-
tomer acceptability information.’’.
SEC. 302. FOOD DISTRIBUTION.
(a) IN GENERAL.—Sections 8 through 12 of the Com-
modity Distribution Reform Act and WIC Amendments of
1987 (Public Law 100–237; 7 U.S.C. 612c note) are amend-
ed to read as follows:
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‘‘SEC. 8. AUTHORITY TO TRANSFER COMMODITIES BE-
TWEEN PROGRAMS.
‘‘(a) TRANSFER.—Subject to subsection (b), the Sec-
retary may transfer any commodities purchased for a do-
mestic food assistance program administered by the Sec-
retary to any other domestic food assistance program ad-
ministered by the Secretary if the transfer is necessary to
ensure that the commodities will be used while the commod-
ities are still suitable for human consumption.
‘‘(b) REIMBURSEMENT.—The Secretary shall, to the
maximum extent practicable, provide reimbursement for the
value of the commodities transferred under subsection (a)
from accounts available for the purchase of commodities
under the program receiving the commodities.
‘‘(c) CREDITING.—Any reimbursement made under
subsection (b) shall—
‘‘(1) be credited to the accounts that incurred the
costs when the transferred commodities were origi-
nally purchased; and
‘‘(2) be available for the purchase of commodities
with the same limitations as are provided for appro-
priated funds for the reimbursed accounts for the fis-
cal year in which the transfer takes place.
‘‘SEC. 9. AUTHORITY TO RESOLVE CLAIMS.
‘‘(a) IN GENERAL.—The Secretary may determine the
amount of, settle, and adjust all or part of a claim arising
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under a domestic food assistance program administered by
the Secretary.
‘‘(b) WAIVERS.—The Secretary may waive a claim de-
scribed in subsection (a) if the Secretary determines that
a waiver would serve the purposes of the program.
‘‘(c) AUTHORITY OF THE ATTORNEY GENERAL.—Noth-
ing in this section diminishes the authority of the Attorney
General under section 516 of title 28, United States Code,
or any other provision of law, to supervise and conduct liti-
gation on behalf of the United States.
‘‘SEC. 10. PAYMENT OF COSTS ASSOCIATED WITH REMOVAL
OF COMMODITIES THAT POSE A HEALTH OR
SAFETY HAZARD.
‘‘(a) IN GENERAL.—The Secretary may use funds
available to carry out section 32 of the Act of August 24,
1935 (49 Stat. 774, chapter 641; 7 U.S.C. 612c), that are
not otherwise committed, for the purpose of reimbursing
States for State and local costs associated with the removal
of commodities distributed under any domestic food assist-
ance program administered by the Secretary if the Sec-
retary determines that the commodities pose a health or
safety hazard.
‘‘(b) ALLOWABLE COSTS.—The costs—
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‘‘(1) may include costs for storage, transpor-
tation, processing, and destruction of the hazardous
commodities; and
‘‘(2) shall be subject to the approval of the Sec-
retary.
‘‘(c) REPLACEMENT COMMODITIES.—
‘‘(1) IN GENERAL.—The Secretary may use funds
described in subsection (a) for the purpose of purchas-
ing additional commodities if the purchase will expe-
dite replacement of the hazardous commodities.
‘‘(2) RECOVERY.—Use of funds under paragraph
(1) shall not restrict the Secretary from recovering
funds or services from a supplier or other entity re-
garding the hazardous commodities.
‘‘(d) CREDITING OF RECOVERED FUNDS.—Funds re-
covered from a supplier or other entity regarding the haz-
ardous commodities shall—
‘‘(1) be credited to the account available to carry
out section 32 of the Act of August 24, 1935 (49 Stat.
774, chapter 641; 7 U.S.C. 612c), to the extent the
funds represent expenditures from that account under
subsections (a) and (c); and
‘‘(2) remain available to carry out the purposes
of section 32 of that Act until expended.
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‘‘SEC. 11. AUTHORITY TO ACCEPT COMMODITIES DONATED
BY FEDERAL SOURCES.
‘‘(a) IN GENERAL.—The Secretary may accept dona-
tions of commodities from any Federal agency, including
commodities of another Federal agency determined to be ex-
cess personal property pursuant to section 202(d) of the
Federal Property and Administrative Services Act of 1949
(40 U.S.C. 483(d)).
‘‘(b) USE.—The Secretary may donate the commod-
ities received under subsection (a) to States for distribution
through any domestic food assistance program administered
by the Secretary.
‘‘(c) PAYMENT.—Notwithstanding section 202(d) of the
Federal Property and Administrative Services Act of 1949
(40 U.S.C. 483(d)), the Secretary shall not be required to
make any payment in connection with the commodities re-
ceived under subsection (a).’’.
(b) EFFECT ON PRIOR AMENDMENTS.—The amend-
ment made by subsection (a) does not affect the amendments
made by sections 8 through 12 of the Commodity Distribu-
tion Reform Act and WIC Amendments of 1987 (Public
Law 100–237; 7 U.S.C. 612c note), as in effect on Septem-
ber 30, 1998.
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