H. R. 3874—9
by subsection (g), is further amended by adding at the end the
following:
‘‘(r) PROGRAM FOR AT-RISK SCHOOL CHILDREN.—
‘‘(1) DEFINITION OF AT-RISK SCHOOL CHILD.—In this sub-
section, the term ‘at-risk school child’ means a school child
who—
‘‘(A) is not more than 18 years of age, except that
the age limitation provided by this subparagraph shall
not apply to a child described in section 12(d)(1)(A); and
‘‘(B) participates in a program authorized under this
section operated at a site located in a geographical area
served by a school in which at least 50 percent of the
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.).
‘‘(2) PARTICIPATION IN CHILD AND ADULT CARE FOOD PRO-
GRAM.—An institution may participate in the program author-
ized under this section only if the institution provides supple-
ments under a program—
‘‘(A) organized primarily to provide care to at-risk
school children during after-school hours, weekends, or holi-
days during the regular school year; and
‘‘(B) with an educational or enrichment purpose.
‘‘(3) ADMINISTRATION.—Except as otherwise provided in this
subsection, the other provisions of this section apply to an
institution described in paragraph (2).
‘‘(4) SUPPLEMENT REIMBURSEMENT.—
‘‘(A) 
LIMITATIONS.—An 
institution 
may 
claim
reimbursement under this subsection only for—
‘‘(i) a supplement served under a program orga-
nized primarily to provide care to at-risk school chil-
dren during after-school hours, weekends, or holidays
during the regular school year; and
‘‘(ii) one supplement per child per day.
‘‘(B) RATE.—A supplement shall be reimbursed under
this subsection at the rate established for a free supplement
under subsection (c)(3).
‘‘(C) 
NO
CHARGE.—A 
supplement 
claimed 
for
reimbursement under this subsection shall be served with-
out charge.’’.
(i) WIC INFORMATION.—Section 17 of the National School Lunch
Act (42 U.S.C. 1766), as amended by subsection (h), is further
amended by adding at the end the following:
‘‘(s) INFORMATION CONCERNING
THE SPECIAL SUPPLEMENTAL
NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN.—
‘‘(1) IN GENERAL.—The Secretary shall provide each State
agency administering a child and adult care food program under
this section with information concerning the special supple-
mental 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.—Each State
agency shall ensure that each participating family and group
day care home and child care center (other than an institution
providing care to school children outside school hours)—
‘‘(A) receives materials that include—
H. R. 3874—10
‘‘(i) a basic explanation of the importance and bene-
fits of the special supplemental nutrition program for
women, infants, and children;
‘‘(ii) the maximum State income eligibility stand-
ards, according to family size, for the program; and
‘‘(iii) information concerning how benefits under
the program may be obtained;
‘‘(B) receives periodic updates of the information
described in subparagraph (A); and
‘‘(C) provides the information described in subpara-
graph (A) to parents of enrolled children at enrollment.’’.
( j) TRANSFER OF HOMELESS PROGRAMS.—
(1) IN GENERAL.—Section 17 of the National School Lunch
Act (42 U.S.C. 1766), as amended by subsection (i), is further
amended by adding at the end the following:
‘‘(t) PARTICIPATION BY EMERGENCY SHELTERS.—
‘‘(1) DEFINITION
OF
EMERGENCY
SHELTER.—In this sub-
section, the term ‘emergency shelter’ means—
‘‘(A) an emergency shelter (as defined in section 321
of the Stewart B. McKinney Homeless Assistance Act (42
U.S.C. 11351)); or
‘‘(B) a site operated by the shelter.
‘‘(2) ADMINISTRATION.—Except as otherwise provided 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).
‘‘(3) LICENSING
REQUIREMENTS.—The licensing require-
ments contained in subsection (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 or local
health and safety standards.
‘‘(5) MEAL OR SUPPLEMENT REIMBURSEMENT.—
‘‘(A) LIMITATIONS.—An emergency shelter may claim
reimbursement under this subsection—
‘‘(i) only for a meal or supplement served to
children residing at an emergency shelter, if the chil-
dren are—
‘‘(I) not more than 12 years of age;
‘‘(II) children of migrant workers, if the chil-
dren are not more than 15 years of age; or
‘‘(III) children with disabilities; and
‘‘(ii) for not more than 3 meals, or 2 meals and
a supplement, per child per day.
‘‘(B) RATE.—A meal or supplement eligible for
reimbursement shall be reimbursed at the rate at which
free meals and supplements are reimbursed under sub-
section (c).
‘‘(C) NO CHARGE.—A meal or supplement claimed for
reimbursement shall be served without charge.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 13(a)(3)(C) of the National School Lunch
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
H. R. 3874—11
(iii) by redesignating clause (iii) as clause (ii).
(B) Section 17(a) of the National School Lunch Act
(42 U.S.C. 1766(a)) is amended in the third sentence—
(i) by striking ‘‘and public’’ and inserting ‘‘public’’;
and
(ii) by inserting before the period at the end the
following: ‘‘, and emergency shelters (as provided in
subsection (t))’’.
(C)(i) Section 17B of the National School Lunch Act
(42 U.S.C. 1766b) is repealed.
(ii) Section 25(b)(1) of the National School Lunch Act
(42 U.S.C. 1769f(b)(1) is amended—
(I) by striking subparagraph (D); and
(II) by redesignating subparagraphs (E) through
(G) as subparagraphs (D) through (F), respectively.
(3) TECHNICAL AMENDMENTS.—
(A) Section 12(d) of the National School Lunch Act
(42 U.S.C. 1760(d)) is amended—
(i) in paragraph (1)(A), by striking ‘‘mental or phys-
ical’’ each place it appears; and
(ii) by adding at the end the following:
‘‘(8) DISABILITY.—The term ‘disability’ has the meaning
given the term in the Rehabilitation Act of 1973 for purposes
of title II of that Act (29 U.S.C 760 et seq.).’’.
(B) Section 13(a)(1) of the National School Lunch Act
(42 U.S.C. 1761(a)(1)) is amended in subparagraph (D)
of the second sentence—
(i) in clause (i), by striking ‘‘to be mentally or
physically handicapped’’ and inserting ‘‘to have a
disability’’; and
(ii) in clause (ii), by striking ‘‘the mentally or phys-
ically handicapped’’ and inserting ‘‘individuals who
have a disability’’.
(C) Section 17(a) of the National School Lunch Act
(42 U.S.C. 1766(a)) is amended by striking ‘‘handicaps’’
each place it appears and inserting ‘‘disabilities’’.
(D) Section 15 of the Child Nutrition Act of 1966 (42
U.S.C. 1784) is amended—
(i) in paragraph (6), by striking ‘‘mental or physical
handicaps’’ each place it appears and inserting ‘‘disabil-
ities’’; and
(ii) by adding at the end the following:
‘‘(7) DISABILITY.—The term ‘disability’ has the meaning
given the term in the Rehabilitation Act of 1973 for purposes
of title II of that Act (29 U.S.C 760 et seq.).’’.
(4) EFFECTIVE DATE.—The amendments made by para-
graphs (1) and (2) take effect on July 1, 1999.
SEC. 108. MEAL SUPPLEMENTS FOR CHILDREN IN AFTERSCHOOL
CARE.
(a) GENERAL AUTHORITY.—Section 17A(a) of the National School
Lunch Act (42 U.S.C. 1766a(a)) is amended—
(1) in paragraph (1), by striking ‘‘supplements to’’ and
inserting ‘‘supplements under a program organized primarily
to provide care for’’; and
(2) in paragraph (2), by striking subparagraph (C) and
inserting the following:
H. R. 3874—12
‘‘(C) operate afterschool programs with an educational
or enrichment purpose.’’.
(b) ELIGIBLE CHILDREN.—Section 17A(b) of the National School
Lunch Act (42 U.S.C. 1766a(b)) is amended by striking ‘‘served
to children’’ and all that follows and inserting ‘‘served to school
children who are not more than 18 years of age, except that the
age limitation provided by this subsection shall not apply to a
child described in section 12(d)(1)(A).’’.
(c) REIMBURSEMENT.—Section 17A(c) of the National School
Lunch Act (42 U.S.C. 1766a(c)) is amended by striking ‘‘(c)
REIMBURSEMENT.—For’’ and inserting the following:
‘‘(c) REIMBURSEMENT.—
‘‘(1) AT-RISK SCHOOL CHILDREN.—In the case of an eligible
child who is participating in a program authorized under this
section operated at a site located in a geographical area served
by a school in which at least 50 percent of the 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.), a supplement provided under this section
to the child shall be—
‘‘(A) reimbursed at the rate at which free supplements
are reimbursed under section 17(c)(3); and
‘‘(B) served without charge.
‘‘(2) OTHER SCHOOL CHILDREN.—In the case of an eligible
child who is participating in a program authorized under this
section at a site that is not described in paragraph (1), for’’.
SEC. 109. PILOT PROJECTS.
(a) IN GENERAL.—Section 18 of the National School Lunch
Act (42 U.S.C. 1769) is amended by striking subsections (c), (e),
(g), and (h).
(b) 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) BREAKFAST PILOT PROJECTS.—
‘‘(1) IN GENERAL.—Subject to the availability of funds made
available under paragraph (10), for a period of 3 successive
school years, the Secretary shall make grants to State agencies
to conduct pilot projects in elementary schools under the juris-
diction of not more than 6 school food authorities approved
by the Secretary to—
‘‘(A) reduce paperwork, simplify meal counting require-
ments, and make changes that will increase participation
in the school breakfast program; and
‘‘(B) evaluate the effect of providing free breakfasts
to elementary school children, without regard to family
income, on participation, academic achievement, attend-
ance and tardiness, and dietary intake over the course
of a day.
‘‘(2) NOMINATIONS.—A State agency that seeks a grant
under this subsection shall submit to the Secretary nominations
of school food authorities to participate in a pilot project under
this subsection
‘‘(3) APPROVAL.—The Secretary shall approve for participa-
tion in pilot projects under this subsection elementary schools
under the jurisdiction of not more than 6 nominated school
food authorities selected so as to—
H. R. 3874—13
‘‘(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 varying family income
levels; and
‘‘(C) permit the evaluation of pilot projects to distin-
guish the effects of the pilot projects from other factors,
such as changes or differences in educational policies or
programs.
‘‘(4) GRANTS TO SCHOOL FOOD AUTHORITIES.—A State agency
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.—Subject to the availabil-
ity of funds made available to carry out this subsection, a
school food authority receiving amounts under a grant to con-
duct a pilot project described in paragraph (1) shall conduct
the project during a period of 3 successive school years.
‘‘(6) WAIVER AUTHORITY.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the Secretary may waive the requirements of this
Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771
et seq.) relating to counting of meals, applications for eligi-
bility, and related requirements that would preclude the
Secretary from making a grant to conduct a pilot project
under paragraph (1).
‘‘(B) NONWAIVABLE
REQUIREMENTS.—The Secretary
may not waive a requirement under subparagraph (A) if
the waiver would prevent a program participant, a poten-
tial program participant, or a school from receiving all
of the benefits and protections of this Act, the Child Nutri-
tion Act of 1966 (42 U.S.C. 1771 et seq.), or a Federal
law (including a regulation) that protects an individual
constitutional right or a statutory civil right.
‘‘(7) REQUIREMENTS FOR PARTICIPATION IN PILOT PROJECT.—
To be eligible to participate in a pilot project under this sub-
section—
‘‘(A) a State agency—
‘‘(i) shall submit an application to the Secretary
at such time and in such manner as the Secretary
shall establish to meet criteria the Secretary has estab-
lished to enable a valid evaluation to be conducted;
and
‘‘(ii) shall provide such information relating to the
operation and results of the pilot project as the Sec-
retary may reasonably require; and
‘‘(B) a school food authority—
‘‘(i) shall agree to serve all breakfasts at no charge
to all children enrolled in participating elementary
schools;
‘‘(ii) shall not have a history of violations 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 participating in the pilot projects
H. R. 3874—14
to permit a valid evaluation of the effects of the pilot
projects; and
‘‘(iv) shall meet all other requirements that the
Secretary may reasonably require.
‘‘(8) EVALUATION OF PILOT PROJECTS.—
‘‘(A) IN GENERAL.—The Secretary, acting through the
Administrator of the Food and Nutrition Service, shall
conduct an evaluation of the pilot projects conducted by
the school food authorities selected for participation.
‘‘(B) CONTENT.—The evaluation shall include—
‘‘(i) a determination of the effect of participation
in the pilot project on the academic achievement,
attendance and tardiness, and dietary intake over the
course of a day of participating children that is not
attributable to changes in educational policies and
practices; and
‘‘(ii) a determination of the effect that participation
by elementary schools in the pilot project has on the
proportion of students who eat breakfast and on the
paperwork 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 Represent-
atives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report describing the results of
the evaluation of the pilot projects required under subpara-
graph (A).
‘‘(9) 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 to reflect changes
in the series for food away from home of the Consumer
Price Index for All Urban Consumers published by the
Bureau of Labor Statistics of the Department of Labor
and adjusted for fluctuations in enrollment).
‘‘(B) EXCESS
NEEDS.—Funds required for the pilot
project in excess of the level of reimbursement received
by the school for the prior year (adjusted to reflect changes
described in subparagraph (A) and adjusted for fluctuations
in enrollment) may be taken from any non-Federal source
or from amounts provided under this subsection.
‘‘(10) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(A) IN GENERAL.—There are authorized to be appro-
priated such sums as are necessary to carry out this sub-
section.
‘‘(B) REQUIREMENT.—No amounts may be provided
under this subsection unless specifically provided in appro-
priations Acts.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 18 of the National School Lunch Act (42 U.S.C.
1769), as amended by subsections (a) and (b), is further amend-
ed by redesignating subsections (d), (f ), and (i) as subsections
(c), (d), and (e), respectively.
H. R. 3874—15
(2) Section 101(b) of the Child Nutrition Amendments of
1992 (42 U.S.C. 1769 note; Public Law 102–342) is amended—
(A) in paragraph (1)—
(i) by striking ‘‘(1)’’; and
(ii) by striking ‘‘other than those required under
section 18(c) of the National School Lunch Act (42
U.S.C. 1769(c)) to identify other’’ and inserting ‘‘to
identify’’; and
(B) by striking paragraph (2).
SEC. 110. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE
MANAGEMENT INSTITUTE.
(a) TECHNICAL AMENDMENTS.—Section 21(c)(2) of the National
School Lunch Act (42 U.S.C. 1769b–1(c)(2)) is amended by striking
‘‘of section 24’’ each place it appears in subparagraphs (F) and
(H) and inserting ‘‘established by the Secretary’’.
(b) 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’’.
(c) 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 in the first sentence 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. 111. COMPLIANCE AND ACCOUNTABILITY.
Section 22(d) of the National School Lunch Act (42 U.S.C.
1769c(d)) is amended by striking ‘‘1996’’ and inserting ‘‘2003’’.
SEC. 112. INFORMATION CLEARINGHOUSE.
Section 26(d) of the National School Lunch Act (42 U.S.C.
1769g(d)) is amended in the first sentence by striking ‘‘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’’.
SEC. 113. ACCOMMODATION OF THE SPECIAL DIETARY NEEDS OF
INDIVIDUALS 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 THE 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 authorized 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 (except for section 17)
that the Secretary determines is appropriate.
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible entity’ means a
school food authority, institution, or service institution that
participates in a covered program.
H. R. 3874—16
‘‘(b) ACTIVITIES.—The Secretary may carry out activities to help
accommodate the special dietary needs of individuals with disabil-
ities who are participating in a covered program. The activities
may include—
‘‘(1) developing and disseminating to State agencies guid-
ance and technical assistance materials;
‘‘(2) conducting training of State agencies and eligible enti-
ties; and
‘‘(3) providing grants to State agencies and eligible entities.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 1999 through 2003.’’.
TITLE II—SCHOOL BREAKFAST AND
RELATED PROGRAMS
SEC. 201. SCHOOL BREAKFAST PROGRAM AUTHORIZATION.
Section 4(a) of the Child Nutrition Act of 1966 (42 U.S.C.
1773(a)) is amended in the first sentence by striking ‘‘and to carry
out the provisions of subsection (g)’’.
SEC. 202. STATE ADMINISTRATIVE EXPENSES.
(a) HOMELESS SHELTERS.—Section 7(a)(5)(B) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1776(a)(5)(B)) is amended to read
as follows:
‘‘(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 subparagraph
(A) shall be returned to the Secretary.
‘‘(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
10 PERCENT
TRANSFER
LIMITATION.—
Section 7(a)(6) of the Child Nutrition Act of 1966 (42 U.S.C.
1776(a)(6)) is amended to read as follows:
‘‘(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 this Act (except for the programs authorized
under sections 17 and 21) and the National School Lunch
Act (42 U.S.C. 1751 et seq.) without regard 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’’.
SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR
WOMEN, INFANTS, AND CHILDREN.
(a) ADDITIONAL REQUIREMENTS FOR APPLICANTS.—
(1) PHYSICAL PRESENCE REQUIREMENT.—Section 17(d)(3) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is amend-
ed by adding at the end the following:
H. R. 3874—17
‘‘(C) PHYSICAL PRESENCE.—
‘‘(i) IN
GENERAL.—Except as provided in clause
(ii) and subject to the requirements of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.)
and section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794), each individual seeking certification or
recertification for participation in the program shall
be physically present at each certification or recertifi-
cation determination in order to determine eligibility
under the program.
‘‘(ii) WAIVERS.—If the agency determines that the
requirement of clause (i) would present an unreason-
able barrier to participation, a local agency may waive
the requirement of clause (i) with respect to—
‘‘(I) an infant or child who—
‘‘(aa) was present at the initial certifi-
cation visit; and
‘‘(bb) is receiving ongoing health care from
a provider other than the local agency; or
‘‘(II) an infant or child who—
‘‘(aa) was present at the initial certifi-
cation visit;
‘‘(bb) was present at a certification or re-
certification determination within the 1-year
period ending on the date of the certification
or recertification determination described in
clause (i); and
‘‘(cc) has one or more parents who work.’’.
(2) 
INCOME
DOCUMENTATION
REQUIREMENT.—Section
17(d)(3) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(d)(3)), as amended by paragraph (1), is further amended
by adding at the end the following:
‘‘(D) INCOME DOCUMENTATION.—
‘‘(i) IN
GENERAL.—Except as provided in clause
(ii), in order to participate in the program pursuant
to clause (i) of paragraph (2)(A), an individual seeking
certification or recertification for participation in the
program shall provide documentation of family income.
‘‘(ii) WAIVERS.—A State agency may waive the
documentation requirement of clause (i), in accordance
with criteria established by the Secretary, with respect
to—
‘‘(I) an individual for whom the necessary
documentation is not available; or
‘‘(II) an individual, such as a homeless woman
or child, for whom the agency determines the
requirement of clause (i) would present an
unreasonable barrier to participation.’’.
(3) 
ADJUNCT
DOCUMENTATION
REQUIREMENT.—Section
17(d)(3) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(d)(3)), as amended by paragraph (2), is further amended
by adding at the end the following:
‘‘(E) ADJUNCT DOCUMENTATION.—In order to participate
in the program pursuant to clause (ii) or (iii) of paragraph
(2)(A), an individual seeking certification or recertification
for participation in the program shall provide documenta-
tion of receipt of assistance described in that clause.’’.
H. R. 3874—18
(b) EDUCATION
AND EDUCATIONAL MATERIALS RELATING
TO
EFFECTS OF DRUG AND ALCOHOL USE.—Section 17(e)(1) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(e)(1)) is amended by adding
at the end the following: ‘‘A local agency participating in the pro-
gram shall provide education or educational 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
MATERIALS.—
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 following:
‘‘(3) NUTRITION EDUCATION MATERIALS.—
‘‘(A) IN GENERAL.—The’’; and
(2) by adding at the end the following:
‘‘(B) SHARING OF MATERIALS.—The Secretary may pro-
vide, in bulk quantity, nutrition education materials
(including materials promoting breastfeeding) developed
with funds made available for the program authorized
under this section to State agencies administering the
commodity supplemental food program authorized under
sections 4(a) and 5 of the Agriculture and Consumer Protec-
tion Act of 1973 (7 U.S.C. 612c note; Public Law 93–
86) at no cost to that program.’’.
(d) USE OF CLAIMS FROM VENDORS AND PARTICIPANTS.—Section
17(f )(21) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f )(21))
is amended to read as follows:
‘‘(21) USE OF CLAIMS FROM VENDORS AND PARTICIPANTS.—
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;
and
‘‘(C) the fiscal year following the fiscal year in which
the funds are collected.’’.
(e) INDIVIDUALS PARTICIPATING AT MORE THAN ONE 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 following:
‘‘(23) INDIVIDUALS PARTICIPATING AT MORE THAN ONE SITE.—
Each State agency shall implement a system designed by the
State agency to identify individuals who are participating at
more than one site under the program.’’.
(f ) IDENTIFICATION
OF
HIGH
RISK
VENDORS; COMPLIANCE
INVESTIGATIONS.—
(1) IN GENERAL.—Section 17(f ) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(f )), as amended by subsection (e),
is further amended by adding at the end the following:
‘‘(24) HIGH RISK VENDORS.—Each State agency shall—
‘‘(A) identify vendors that have a high probability of
program abuse; and
‘‘(B) conduct compliance investigations of the vendors.’’.
(2) REGULATIONS.—The Secretary of Agriculture shall
promulgate—
(A) not later than March 1, 1999, proposed regulations
to carry out section 17(f )(24) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(f )(24)), as added by paragraph
(1); and
H. R. 3874—19
(B) not later than March 1, 2000, final regulations
to carry out section 17(f )(24) of that Act.
(g) REAUTHORIZATION
OF PROGRAM.—Section 17(g)(1) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(g)(1)) is amended
in the first sentence by striking ‘‘1998’’ and inserting ‘‘2003’’.
(h) 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 following:
‘‘(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.—A State agency may use
amounts made available under clause (i) for the pur-
chase of breast pumps.’’.
(i) NUTRITION SERVICES AND ADMINISTRATION.—
(1) ALLOCATION OF AMOUNTS.—Section 17(h)(2)(A) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(A)) is amend-
ed in the first sentence by striking ‘‘1998’’ and inserting ‘‘2003’’.
(2) 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,’’.
(3) 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 percent’’ and inserting ‘‘10 percent
(except that the Secretary may establish a higher percentage
for State agencies that are small)’’.
(4) TECHNICAL AMENDMENTS.—Section 17(h)(3) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(h)(3)) is amended—
(A) in subparagraph (E), by striking ‘‘In the case’’ and
all that follows through ‘‘subsequent fiscal year,’’ and
inserting ‘‘For each fiscal year,’’; and
(B) by striking subparagraphs (F) and (G).
(5) CONVERSION OF AMOUNTS FOR SUPPLEMENTAL FOODS
TO AMOUNTS FOR NUTRITION SERVICES AND ADMINISTRATION.—
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 participant and to increase participation above
the level estimated for the State agency, the State agency
may, with the approval of the Secretary,’’.
( j) INFANT FORMULA PROCUREMENT.—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
SYSTEM.—A State
agency using a competitive bidding system for infant
formula shall award contracts to bidders offering the
lowest net price unless the State agency demonstrates
to the satisfaction of the Secretary that the weighted
average retail price for different brands of infant for-
mula in the State does not vary by more than 5 per-
cent.’’.
(k) INFRASTRUCTURE AND BREASTFEEDING PROMOTION AND SUP-
PORT ACTIVITIES.—Section 17(h)(10)(A) of the Child Nutrition Act
H. R. 3874—20
of 1966 (42 U.S.C. 1786(h)(10)(A)) is amended by striking ‘‘1998’’
and inserting ‘‘2003’’.
(l) CONSIDERATION OF PRICE LEVELS OF RETAIL STORES FOR
PARTICIPATION IN PROGRAM.—
(1) IN GENERAL.—Section 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) CONSIDERATION OF PRICE LEVELS OF RETAIL STORES
FOR PARTICIPATION IN PROGRAM.—
‘‘(A) IN GENERAL.—For the purpose of promoting effi-
ciency 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 the foods.
‘‘(B) SUBSEQUENT PRICE INCREASES.—The State agency
shall establish procedures to ensure that a retail store
selected for participation in the program does not subse-
quently raise prices to levels that would otherwise make
the store ineligible for participation in the program.’’.
(2) REGULATIONS.—The Secretary of Agriculture shall
promulgate—
(A) not later than March 1, 1999, proposed regulations
to carry out section 17(h)(11) of the Child Nutrition Act
of 1966 (42 U.S.C. 1786(h)(11)), as added by paragraph
(1); and
(B) not later than March 1, 2000, final regulations
to carry out section 17(h)(11) of that Act.
(m) MANAGEMENT INFORMATION SYSTEM PLAN.—Section 17(h)
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)), as amended
by subsection (l)(1), is further amended by adding at the end the
following:
‘‘(12) MANAGEMENT INFORMATION SYSTEM PLAN.—
‘‘(A) IN GENERAL.—In consultation with State agencies,
vendors, and other interested persons, the Secretary shall
establish a long-range plan for the development and
implementation 
of 
management 
information 
systems
(including electronic benefit transfers) to be used in carry-
ing out the program.
‘‘(B) REPORT.—Not later than 2 years after the date
of enactment of this paragraph, the Secretary shall submit
to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Agri-
culture, 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), a State agency may not require retail stores to pay
the cost of systems or equipment that may be required
to test electronic benefit transfer systems.’’.
(n) 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 insert-
ing ‘‘subparagraph (B)’’; and
H. R. 3874—21
(B) by striking clauses (i) and (ii) and inserting the
following:
‘‘(i)(I) not more than 1 percent (except as provided in
subparagraph (C)) of the amount of funds allocated to a State
agency under this section for supplemental 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 allowable expenses incurred under
this section for supplemental foods and nutrition services and
administration during the preceding fiscal year; and
‘‘(ii)(I) for each fiscal year, of the amounts allocated to
a State agency for nutrition services and administration, an
amount equal to not more than 1 percent of the amount allo-
cated 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
administration during the subsequent fiscal year; and
‘‘(II) for each fiscal year, of the amounts allocated to a
State agency for nutrition services and administration, an
amount equal to not more than 1⁄2 of 1 percent of the amount
allocated to the State agency under this section for the fiscal
year may be expended 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 ‘‘nutri-
tion services and administration funds’’ the following: ‘‘and
supplemental foods funds’’; and
(B) in subsection (i)(3)—
(i) by striking subparagraphs (C) through (G); and
(ii) by redesignating subparagraph (H) as subpara-
graph (C).
(o) FARMERS’ MARKET NUTRITION PROGRAM.—
(1) MATCHING REQUIREMENT.—Section 17(m)(3) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(m)(3)) is amended in
the first sentence by inserting ‘‘program income or’’ after ‘‘satis-
fied from’’.
(2) CRITERIA FOR ADDITIONAL FUNDS.—Section 17(m)(6)(C)
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)(C))
is amended—
(A) by striking ‘‘serve additional recipients in’’;
(B) by striking clause (ii) and inserting 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;’’;
(C) in clause (iii), by striking the period at the end
and inserting ‘‘; and’’; and
(D) by adding at the end the following:
H. R. 3874—22
‘‘(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.’’.
(3) RANKING CRITERIA FOR STATE PLANS.—Section 17(m)(6)
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)) is
amended—
(A) by striking subparagraph (F); and
(B) by redesignating subparagraph (G) as subpara-
graph (F).
(4) FUNDING
FOR
CURRENT
AND
NEW
STATES.—Section
17(m)(6)(F) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(m)(6)(F)), as redesignated by paragraph (3)(B), is
amended—
(A) in clause (i)—
(i) in the first sentence, by striking ‘‘that wish’’
and all follows through ‘‘to do so’’ and inserting ‘‘whose
State plan’’; and
(ii) in the second sentence, by striking ‘‘for addi-
tional recipients’’; and
(B) in the second sentence of clause (ii), by striking
‘‘that desire to serve additional recipients, and’’.
(5) REAUTHORIZATION OF PROGRAM.—Section 17(m)(9)(A) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is
amended by striking ‘‘1998’’ and inserting ‘‘2003’’.
(p) DISQUALIFICATION OF CERTAIN VENDORS.—
(1) IN GENERAL.—Section 17 of the Child Nutrition 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 paragraph (4),
a State agency shall permanently disqualify from participation
in the program authorized under this section a vendor convicted
of—
‘‘(A) trafficking in food instruments (including any
voucher, draft, check, or access device (including an elec-
tronic benefit transfer card or personal identification num-
ber) issued in lieu of a food instrument under this section);
or
‘‘(B) selling firearms, ammunition, explosives, or con-
trolled substances (as defined in section 102 of the Con-
trolled Substances Act (21 U.S.C. 802)) in exchange for
food instruments (including any item described in subpara-
graph (A) issued in lieu of a food instrument under this
section).
‘‘(2) NOTICE
OF
DISQUALIFICATION.—The State agency
shall—
‘‘(A) provide the vendor with notification of the
disqualification; and
‘‘(B) make the disqualification effective on the date
of receipt of the notice of disqualification.
‘‘(3) PROHIBITION OF RECEIPT OF LOST REVENUES.—A vendor
shall not be entitled to receive any compensation for revenues
lost as a result of disqualification under this subsection.
‘‘(4) EXCEPTIONS IN LIEU OF DISQUALIFICATION.—
H. R. 3874—23
‘‘(A) IN GENERAL.—A State agency may permit a vendor
that, but for this paragraph, would be disqualified under
paragraph (1), to continue to participate in the program
if the State agency determines, in its sole discretion accord-
ing to criteria established by the Secretary, 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 violation
under paragraph (1), an effective policy and program
in effect to prevent violations described in paragraph
(1); and
‘‘(II) the ownership of the vendor was not aware
of, did not approve of, and was not involved in the
conduct of the violation.
‘‘(B) CIVIL PENALTY.—If a State agency under subpara-
graph (A) permits a vendor to continue to participate in
the program in lieu of disqualification, the State agency
shall assess the vendor a civil penalty in an amount deter-
mined by the State agency, in accordance with criteria
established by the Secretary, except that—
‘‘(i) the amount of the civil penalty shall not exceed
$10,000 for each violation; and
‘‘(ii) the amount of civil penalties imposed for viola-
tions investigated as part of a single investigation may
not exceed $40,000.’’.
(2) REGULATIONS.—The Secretary of Agriculture shall
promulgate—
(A) not later than March 1, 1999, proposed regulations
to carry out section 17(o) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(o)), as added by paragraph (1); and
(B) not later than March 1, 2000, final regulations
to carry out section 17(o) of that Act.
(q) CRIMINAL FORFEITURE.—Section 17 of the Child Nutrition
Act of 1966 (42 U.S.C. 1786), as amended by subsection (p)(1),
is amended by adding at the end the following:
‘‘(p) CRIMINAL FORFEITURE.—
‘‘(1) IN GENERAL.—Notwithstanding any provision of State
law and in addition to any other penalty authorized by law,
a court may order a person that is convicted of a violation
of a provision of law described in paragraph (2), with respect
to food instruments (including any item described in subsection
(o)(1)(A) issued in lieu of a food instrument under this section),
funds, assets, or property that have a value of $100 or more
and that are the subject of a grant or other form of assistance
under this section, to forfeit to the United States all property
described in paragraph (3).
‘‘(2) APPLICABLE LAWS.—A provision of law described in
this paragraph is—
‘‘(A) section 12(g) of the National School Lunch Act
(42 U.S.C. 1760(g)); and
‘‘(B) any other Federal law imposing a penalty for
embezzlement, willful misapplication, stealing, obtaining
by fraud, or trafficking in food instruments (including any
item described in subsection (o)(1)(A) issued in lieu of a
food instrument under this section), funds, assets, or prop-
erty.
H. R. 3874—24
‘‘(3) PROPERTY
SUBJECT
TO
FORFEITURE.—The following
property shall be subject to forfeiture under paragraph (1):
‘‘(A) All property, real and personal, used in a trans-
action or attempted transaction, to commit, or to facilitate
the commission of, a violation described in paragraph (1).
‘‘(B) All property, real and personal, constituting,
derived from, or traceable to any proceeds a person obtained
directly or indirectly as a result of a violation described
in paragraph (1).
‘‘(4) PROCEDURES; INTEREST OF OWNER.—Except as provided
in paragraph (5), all property subject to forfeiture under this
subsection, any seizure or disposition of the property, and any
proceeding relating to the forfeiture, seizure, or disposition
shall be subject to section 413 of the Comprehensive Drug
Abuse Prevention and Control Act of 1970 (21 U.S.C. 853),
other than subsection (d) of that section.
‘‘(5) 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 incurred by the Departments or Serv-
ice to initiate and complete the forfeiture proceeding;
‘‘(B) second, to reimburse the Office of Inspector Gen-
eral 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 incurred in the law
enforcement effort resulting in the forfeiture; and
‘‘(D) fourth, by the State agency to carry out approval,
reauthorization, and compliance investigations of vendors.’’.
(r) STUDY OF COST CONTAINMENT PRACTICES.—
(1) IN GENERAL.—The Secretary of Agriculture shall con-
duct a study on the effect of cost containment practices estab-
lished by States under the special supplemental nutrition pro-
gram for women, infants, and children authorized under section
17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) for
the selection 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 use and satisfaction of prescribed foods;
(F) achievement of positive health outcomes; and
(G) program costs.
(2) REPORT.—The Secretary shall submit to the Committee
on Education and the Workforce of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate—
(A) not later than 2 years after the date of enactment
of this Act, an interim report describing the results of
the study conducted under paragraph (1); and
H. R. 3874—25
(B) not later than 3 years after the date of enactment
of this Act, a final report describing the results of the
study conducted under paragraph (1).
(s) STUDY OF WIC SERVICES.—
(1) IN GENERAL.—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
implementing and administering cost containment efforts;
(B) the fixed and variable costs incurred by State and
local governments for delivering the services and the extent
to which those costs are charged to State agencies;
(C) the quality of the services delivered, taking into
account the effect of the services on the health of partici-
pants; and
(D) the costs incurred for personnel, automation, cen-
tral support, and other activities to 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 enact-
ment of this Act, the Comptroller General shall submit to
the Secretary of Agriculture, the Committee on Education and
the Workforce of the House of Representatives, and the Commit-
tee on Agriculture, Nutrition, and Forestry of the Senate a
report containing the results of the study conducted under
paragraph (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 appro-
priated 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.
TITLE III—COMMODITY DISTRIBUTION
PROGRAMS
SEC. 301. INFORMATION FROM RECIPIENT AGENCIES.
Section 3(f )(2) of the Commodity Distribution Reform Act and
WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100–
237) is amended to read as follows:
‘‘(2) INFORMATION FROM RECIPIENT AGENCIES.—
‘‘(A) IN
GENERAL.—The Secretary shall ensure that
information with respect to the types and forms of commod-
ities that are most useful to persons participating in pro-
grams described in subsection (a)(2) is collected from recipi-
ent agencies operating the programs.
H. R. 3874—26
‘‘(B) FREQUENCY.—The information shall be collected
at least once every 2 years.
‘‘(C) ADDITIONAL
SUBMISSIONS.—The Secretary shall
provide the recipient agencies a means for voluntarily
submitting customer acceptability information.’’.
SEC. 302. FOOD DISTRIBUTION.
The Commodity Distribution Reform Act and WIC Amendments
of 1987 (7 U.S.C. 612c note; Public Law 100–237) is amended—
(1) by redesignating sections 13 and 14 as sections 17
and 18, respectively; and
(2) by inserting after section 12 the following:
‘‘SEC. 13. AUTHORITY TO TRANSFER COMMODITIES BETWEEN PRO-
GRAMS.
‘‘(a) TRANSFER.—Subject to subsection (b), the Secretary may
transfer any commodities purchased with appropriated funds for
a domestic food assistance program administered by the Secretary
to any other domestic food assistance program administered by
the Secretary if the transfer is necessary to ensure that the commod-
ities will be used while the commodities 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 avail-
able 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 originally purchased;
and
‘‘(2) be available for the purchase of commodities with
the same limitations as are provided for appropriated funds
for the reimbursed accounts for the fiscal year in which the
transfer takes place.
‘‘SEC. 14. AUTHORITY TO RESOLVE CLAIMS.
‘‘(a) IN GENERAL.—The Secretary may determine the amount
of, settle, and adjust all or part of a claim arising under a domestic
food assistance program administered by the Secretary.
‘‘(b) WAIVER.—The Secretary may waive a claim described in
subsection (a) if the Secretary determines that a waiver would
serve the purposes of the program.
‘‘(c) AUTHORITY OF THE ATTORNEY GENERAL.—Nothing 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 litigation on behalf of the United
States.
‘‘SEC. 15. PAYMENT OF COSTS ASSOCIATED WITH REMOVAL OF
COMMODITIES THAT POSE A HEALTH OR SAFETY RISK.
‘‘(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 assistance program administered by the Secretary
H. R. 3874—27
if the Secretary determines that the commodities pose a health
or safety risk.
‘‘(b) ALLOWABLE COSTS.—The costs—
‘‘(1) may include costs for storage, transportation, process-
ing, and destruction of the commodities described in subsection
(a); and
‘‘(2) shall be subject to the approval of the Secretary.
‘‘(c) REPLACEMENT COMMODITIES.—
‘‘(1) IN GENERAL.—The Secretary may use funds described
in subsection (a) for the purpose of purchasing additional
commodities if the purchase will expedite replacement of the
commodities described in subsection (a).
‘‘(2) RECOVERY.—Use of funds under paragraph (1) shall
not restrict the Secretary from recovering funds or services
from a supplier or other entity regarding the commodities
described in subsection (a).
‘‘(d) CREDITING OF RECOVERED FUNDS.—Funds recovered from
a supplier or other entity regarding the commodities described
in subsection (a) shall—
‘‘(1) be credited to the account available to carry out section
32 of the Act of August 24, 1935 (49 Stat. 774, ch. 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.
‘‘(e) TERMINATION DATE.—The authority provided by this section
terminates effective October 1, 2000.
‘‘SEC. 16. AUTHORITY TO ACCEPT COMMODITIES DONATED BY
FEDERAL SOURCES.
‘‘(a) IN GENERAL.—The Secretary may accept donations of
commodities from any Federal agency, including commodities of
another Federal agency determined to be excess personal property
pursuant to section 202(d) of the Federal Property and Administra-
tive Services Act of 1949 (40 U.S.C. 483(d)).
‘‘(b) USE.—The Secretary may donate the commodities 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 connec-
tion with the commodities received under subsection (a).’’.
H. R. 3874—28
TITLE IV—EFFECTIVE DATE
SEC. 401. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and the
amendments made by this Act shall take effect on October 1,
1998.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.