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Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''School Food Modernization Act''.

SEC. 2. LOAN GUARANTEES AND GRANTS TO FINANCE CERTAIN IMPROVEMENTS TO
SCHOOL LUNCH FACILITIES.

The Richard B. Russell National School Lunch Act is amended by
inserting after section 26 (42 U.S.C. 1769g) the following:

''SEC. 27. LOAN GUARANTEES AND GRANTS TO FINANCE CERTAIN IMPROVEMENTS
TO SCHOOL LUNCH FACILITIES.

''(a) Definitions.--In this section:
''(1) Durable equipment.--The term 'durable equipment'
means durable food preparation, handling, cooking, serving, and
storage equipment greater than $500 in value.
''(2) Eligible entity.--The term 'eligible entity' means--
''(A) a local educational agency or a school food
authority administering or operating a school lunch
program;
''(B) a tribal organization; or
''(C) a consortium that includes a local
educational agency or school food authority described
in subparagraph (A), a tribal organization, or both.
''(3) Infrastructure.--The term 'infrastructure' means a
food storage facility, kitchen, food service facility,
cafeteria, dining room, or food preparation facility.
''(4) Local educational agency.--The term 'local
educational agency' has the meaning given the term in section
8101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).
''(5) School food authority.--The term 'school food
authority' has the meaning given the term in section 210.2 of
title 7, Code of Federal Regulations (or a successor
regulation).
''(6) Tribal organization.--The term 'tribal organization'
has the meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304).
''(b) Loan Guarantees for Assistance to Schools for Infrastructure
Improvements and Durable Equipment Necessary To Provide Healthy Meals
Through School Lunch Programs.--
''(1) Authority to guarantee loans.--The Secretary shall
issue a loan guarantee to an eligible entity for purposes of
financing the construction, remodeling, or expansion of
infrastructure or the purchase of durable equipment that the
Secretary determines will assist the eligible entity in
providing healthy meals through a school lunch program.
''(2) Competitive basis.--Subject to paragraph (3), the
Secretary shall select eligible entities to receive a loan
guarantee under this subsection on a competitive basis.
''(3) Preferences.--In issuing a loan guarantee under this
subsection, the Secretary shall give a preference to an
eligible entity that, as compared with other eligible entities
seeking a loan guarantee under this subsection, the Secretary
determines demonstrates substantial or disproportionate--
''(A) need for infrastructure improvement; or
''(B) durable equipment need or impairment.
''(4) Oversight.--The Secretary shall establish procedures
to enable the Secretary to oversee the construction,
remodeling, or expansion of infrastructure or the purchase of
durable equipment for which a loan guarantee is issued under
this subsection.
''(5) Guarantee amount.--A loan guarantee issued under this
subsection may not guarantee more than 80 percent of the
principal amount of the loan.
''(6) Fees.--The Secretary shall establish fees with
respect to loan guarantees under this subsection that, as
determined by the Secretary--
''(A) are sufficient to cover all the
administrative costs to the Federal Government for the
operation of the program;
''(B) may be in the form of an application or
transaction fee, or interest rate adjustment; and
''(C) may be based on the risk premium associated
with the loan or loan guarantee, taking into
consideration--
''(i) the price of Treasury obligations of
a similar maturity;
''(ii) prevailing market conditions;
''(iii) the ability of the eligible
infrastructure project to support the loan
guarantee; and
''(iv) the total amount of the loan
guarantee.
''(7) Funding.--
''(A) In general.--To provide loan guarantees under
this subsection, the Secretary shall reserve
$300,000,000 of the loan guarantee authority remaining
and unobligated as of the date of enactment of the
School Food Modernization Act under the program of
community facility guaranteed loans under section
306(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1926(a)).
''(B) Technical assistance.--The Secretary may use
not more than 5 percent of the amount made available to
carry out this subsection for each fiscal year to
provide technical assistance to applicants and
prospective applicants in preparing applications and
creating financing packages that leverage a mix of
public and private funding sources.
''(c) Equipment Grants.--
''(1) Authority to make grants.--Beginning in fiscal year
2018 and subject to the availability of appropriations, the
Secretary shall make grants, on a competitive basis, to
eligible entities to assist the eligible entities in purchasing
the durable equipment and infrastructure needed to serve
healthier meals and improve food safety.
''(2) Priority.--In awarding grants under this subsection,
the Secretary shall give priority to--
''(A) eligible entities in States that have enacted
comparable statutory grant funding mechanisms or that
have otherwise appropriated funds to assist eligible
entities in purchasing the durable equipment and
infrastructure needed to serve healthier meals and
improve food safety, as determined by the Secretary;
and
''(B) eligible entities that have identified and
are reasonably expected to meet an unmet local or
community need, including through--
''(i) a public-private partnership or
partnership with a food pantry or other low-
income assistance agency; or
''(ii) the provision for or allowance of
kitchen or cafeteria usage by related or
outside community organizations.
''(3) Federal share.--
''(A) In general.--The Federal share of costs for
assistance funded through a grant awarded under this
subsection shall not exceed 80 percent of the total
cost of the durable equipment or infrastructure.
''(B) Matching.--As a condition on receiving a
grant under this subsection, an eligible entity shall
provide matching support in the form of cash or in-kind
contributions.
''(C) Waiver.--The Secretary may waive or vary the
requirements of subparagraphs (A) and (B) if the
Secretary determines that undue hardship or effective
exclusion from participation in the grant program under
this subsection would otherwise result.
''(4) Authorization of appropriations.--
''(A) In general.--There are authorized to be
appropriated such sums as may be necessary to carry out
this subsection for fiscal year 2018 and each
subsequent fiscal year.
''(B) Technical assistance.--The Secretary may use
not more than 5 percent of the amount made available to
carry out this subsection for each fiscal year to
provide technical assistance to applicants and
prospective applicants in preparing applications and
creating financing packages that leverage a mix of
public and private funding sources.''.

SEC. 3. TRAINING AND TECHNICAL ASSISTANCE FOR SCHOOL FOOD SERVICE
PERSONNEL.

The Richard B. Russell National School Lunch Act is amended by
inserting after section 21 (42 U.S.C. 1769b-1) the following:

''SEC. 21A. TRAINING AND TECHNICAL ASSISTANCE FOR SCHOOL FOOD SERVICE
PERSONNEL.

''(a) In General.--The Secretary shall carry out a grant program
under which the Secretary shall award grants, on a competitive basis,
to provide support to eligible third-party training institutions
described in subsection (b) to develop and administer training and
technical assistance for school food service personnel to meet
nutrition standards under section 4(b)(3) and improve efficacy and
efficiency of the school lunch program under this Act and the school
breakfast program established by section 4 of the Child Nutrition Act
of 1966 (42 U.S.C. 1773).
''(b) Criteria for Eligible Third-Party Institutions.--The
Secretary shall establish specific criteria that eligible third-party
training institutions shall meet to qualify to receive grants under
this section, which shall include--
''(1) a demonstrated capacity to administer effective
training and technical assistance programming to school food
service personnel;
''(2) prior, successful experience in providing or engaging
in training and technical assistance programming or applied
research activities involving eligible entities, school food
service administrators, or directors;
''(3) prior, successful experience in developing relevant
educational training tools or course materials or curricula on
topics addressing child and school nutrition or the updated
nutrition standards under section 4(b)(3); and
''(4) the ability to deliver effective and cost-efficient
training and technical assistance programming to school food
service personnel--
''(A) at training sites that are located within a
proximate geographic distance to schools, central
kitchens, or other worksites; or
''(B) through an online training and assistance
program on topics that do not require in-person
attendance.
''(c) Program Assistance.--The Secretary shall assist the
institutions receiving grants under this section in publicizing and
disseminating training and other project materials and online tools to
the maximum extent practicable.
''(d) Federal Share.--
''(1) In general.--The Federal share of costs for training
and technical assistance funded through a grant awarded under
this section shall not exceed 80 percent of the total cost of
the training and technical assistance.
''(2) Matching.--As a condition of receiving a grant under
this section, the eligible third-party training institution
shall provide matching support in the form of cash or in-kind
contributions.
''(e) Oversight.--The Secretary shall establish procedures to
enable the Secretary--
''(1) to oversee the administration and operation of
training and technical assistance funded through grants awarded
under this section; and
''(2) to ensure that the training and assistance is
operated consistent with the goals and requirements of this
Act.
''(f) Authorization of Appropriations.--
''(1) In general.--There are authorized to be appropriated
such sums as may be necessary to carry out this section for
fiscal year 2018 and each subsequent fiscal year.
''(2) Technical assistance.--The Secretary may use not more
than 5 percent of the amount made available to carry out this
section for each fiscal year to provide technical assistance to
applicants and prospective applicants in preparing applications
and creating financing packages that leverage a mix of public
and private funding sources.''.

SEC. 4. REPORT TO CONGRESS.

Not later than 1 year after funds are made available to carry out
the amendments made by this Act, and annually thereafter, the Secretary
of Agriculture shall submit to Congress a report on the progress of the
Secretary in implementing the amendments made by this Act.
A:
School Food Modernization Act This bill amends the Richard B. Russell National School Lunch Act to direct the Department of Agriculture (USDA) to issue loan guarantees to local educational agencies (LEAs), school food authorities, tribal organizations, and other eligible entities to finance infrastructure improvements or equipment purchases to facilitate their provision of healthy meals through the school lunch program. USDA must give preference to applicants that demonstrate a substantial or disproportionate need for food service infrastructure or durable equipment, and shall establish fees for the loan guarantee program that are sufficient to cover the federal government's administrative costs in operating the program. USDA must alsoaward competitive matching grants to assist LEAs, school food authorities, tribal organizations, and other eligible entitiesin purchasing the durable equipment and infrastructure they need to serve healthier meals and improve food safety. In doing so, USDA must give grant priority to applicants that: (1) have identified and are reasonably expected to meet an unmet local or community need, and (2) are located in states that have enacted funding measures to assist them with such purchases. In addition,USDA must award competitive matching grants to experienced third-party training institutions to provide school food service personnel with the training and technical assistance they need to: (1) meet school lunch program nutrition standards, and (2) improve the efficacy and efficiency of the school lunch and breakfast programs.