HR 3874 PCS
17(o) of such Act (42 U.S.C. 1786(o)), as
added by paragraph (1).
(B) 
ADDITIONAL
REQUIREMENT.—The
final regulations described in subparagraph (A)
shall include criteria for determining the
amount of civil money penalties in lieu of dis-
qualification and for making hardship deter-
minations under such section.
(q) STUDY AND REPORT BY ECONOMIC RESEARCH
SERVICE.—Section 17 of such Act (42 U.S.C. 1786), as
amended by this Act, is further amended by adding at the
end the following:
‘‘(p) STUDY AND REPORT BY ECONOMIC RESEARCH
SERVICE.—
‘‘(1) STUDY.—The Secretary, acting through
the Administrator of the Economic Research Service,
shall conduct a study on the effect of cost contain-
ment practices established by States under the pro-
gram for the selection of vendors and approved food
items (other than infant formula) on the following:
‘‘(A) Program participation.
‘‘(B) Access and availability of prescribed
foods.
‘‘(C) Voucher redemption rates and actual
food selections by participants.
HR 3874 PCS
‘‘(D) Participants on special diets or with
specific food allergies.
‘‘(E) Participant use and satisfaction of
prescribed foods.
‘‘(F) Achievement of positive health out-
comes.
‘‘(G) Program costs.
‘‘(2) REPORT.—Not later than 3 years after the
date of the enactment of the Child Nutrition and
WIC Reauthorization Amendments of 1998, the Ad-
ministrator shall submit to the Secretary of Agri-
culture, the Committee on Education and the Work-
force of the House of Representatives, and the Com-
mittee on Agriculture, Nutrition, and Forestry of
the Senate a report containing the results of the
study conducted under paragraph (1).’’.
(r) COLLECTION
AND USE
OF PENALTIES FROM
VENDOR AND RECIPIENT FRAUD AND ABUSE.—Section
17 of such Act (42 U.S.C. 1786), as amended by this Act,
is further amended by adding at the end the following:
‘‘(q) USE OF PENALTIES FROM VENDOR AND RECIP-
IENT FRAUD AND ABUSE.—Amounts collected from pen-
alties from vendors and recipients relating to violations of
any provision of this section (including any regulation es-
tablished to carry out this section) for fraud and abuse
HR 3874 PCS
under the program may be used for nutrition services and
administration and food benefits only for the 1-year period
beginning on the date on which amounts under the penalty
are received.’’.
(s) MAXIMUM AMOUNT OF FINE FOR CERTAIN VIO-
LATIONS UNDER THE PROGRAM.—Section 17 of such Act
(42 U.S.C. 1786), as amended by this Act, is further
amended by adding at the end the following:
‘‘(r) MAXIMUM AMOUNT OF FINE FOR CERTAIN VIO-
LATIONS UNDER THE PROGRAM.—The maximum amount
of a fine with respect to the embezzlement, willful
misapplication, stealing, obtaining by fraud, or trafficking
in food instruments of funds, assets, or property that are
of a value of $100 or more under the program shall be
$25,000.’’.
(t) CRIMINAL FORFEITURE.—Section 17 of such Act
(42 U.S.C. 1786), as amended by this Act, is further
amended by adding at the end the following:
‘‘(s) CRIMINAL FORFEITURE.—
‘‘(1) IN GENERAL.—In imposing a sentence on
a person convicted of an offense in violation of any
provision of this section (or any regulation promul-
gated under this section), a court shall order, in ad-
dition to any other sentence imposed under this sec-
HR 3874 PCS
tion, that the person forfeit to the United States all
property described in paragraph (2).
‘‘(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 (or any
regulation promulgated under this section), or pro-
ceeds traceable to a violation of any provision of this
section (or any regulation promulgated under this
section), shall be subject to forfeiture to the United
States under paragraph (1).
‘‘(3) INTEREST
OF
OWNER.—No interest in
property shall be forfeited under this subsection as
the result 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 monies forfeited under
this subsection shall be used—
‘‘(A) first, to reimburse the Department of
Justice for the costs incurred by the Depart-
ment to initiate and complete the forfeiture pro-
ceeding;
HR 3874 PCS
‘‘(B) second, to reimburse the Department
of Agriculture Office of Inspector General for
any costs the Office incurred in the law enforce-
ment effort resulting in the forfeiture;
‘‘(C) third, to reimburse any Federal or
State law enforcement agency for any costs in-
curred in the law enforcement effort resulting
in the forfeiture; and
‘‘(D) fourth, by the State agency to carry
out the approval, reauthorization, and compli-
ance investigations of vendors.’’.
SEC. 203. NUTRITION EDUCATION AND TRAINING PRO-
GRAM.
Section 19(i) of the Child Nutrition Act of 1966 (42
U.S.C. 1788(i)) is amended—
(1) by striking paragraphs (1) and (2);
(2) by redesignating paragraphs (3), (4), and
(5) as paragraphs (1), (2), and (3), respectively; and
(3) in paragraph (1) (as redesignated)—
(A) in the paragraph heading, by striking
‘‘1997
THROUGH
2002 ’’ and inserting ‘‘1999
THROUGH 2003’’; and
(B) by amending subparagraph (A) to read
as follows:
HR 3874 PCS
‘‘(A) IN GENERAL.—There are authorized
to be appropriated to carry out this section
such sums as are necessary for fiscal years
1999 through 2003.’’.
Passed the House of Representatives July 20, 1998.
Attest:
ROBIN H. CARLE,
Clerk.