[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3873 Referred in Senate (RFS)]
2d Session
H. R. 3873
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 25, 2004
Received; read twice and referred to the Committee on Agriculture,
Nutrition, and Forestry
_______________________________________________________________________
AN ACT
To amend the Richard B. Russell National School Lunch Act and the Child
Nutrition Act of 1966 to provide children with access to food and
nutrition assistance, to simplify program operations, to improve
children's nutritional health, and to restore the integrity of child
nutrition programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Child Nutrition Improvement and
Integrity Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--ENSURING ACCESS TO CHILD NUTRITION PROGRAMS
Sec. 101. Exclusion of military housing allowances.
Sec. 102. Homeless children and runaway youth eligibility.
Sec. 103. Eligibility for severe need assistance.
Sec. 104. Reauthorization of summer food programs.
Sec. 105. Child and adult care food program.
Sec. 106. Review of best practices in the breakfast program.
Sec. 107. Area eligibility demonstration.
Sec. 108. Seamless Summer administration.
Sec. 109. Year round services for eligible entities.
TITLE II--IMPROVING PROGRAM QUALITY AND INTEGRITY
Sec. 201. Eligibility and certification for free and reduced price
lunches.
Sec. 202. Duration of eligibility for free and reduced price lunches.
Sec. 203. Certification by local educational agencies.
Sec. 204. Compliance and accountability.
Sec. 205. Technology Improvement.
Sec. 206. Minimum State administrative expense grants.
Sec. 207. District-wide eligibility for special assistance.
Sec. 208. Administrative error reduction.
TITLE III--PROMOTING NUTRITION QUALITY AND PREVENTING CHILDHOOD OBESITY
Sec. 301. Local school wellness policy.
Sec. 302. Supporting nutrition education, improving meal quality, and
access to local foods.
Sec. 303. Fruits and vegetable commodities.
Sec. 304. Fluid milk.
Sec. 305. Waiver of requirements for weighted averages for nutrient
analysis.
Sec. 306. Whole grains.
Sec. 307. Fruit and vegetable pilot programs.
TITLE IV--IMPROVING THE WOMEN, INFANTS, AND CHILDREN PROGRAM
Sec. 401. Definition of nutrition education.
Sec. 402. Definition of supplemental foods.
Sec. 403. Improving certification.
Sec. 404. Reviews of available supplemental foods.
Sec. 405. Notification of violations and infant formula benefits.
Sec. 406. Healthy People 2010 initiative.
Sec. 407. Competitive bidding.
Sec. 408. Fruit and vegetable projects.
Sec. 409. Price levels of retail stores.
Sec. 410. Management information systems.
Sec. 411. Infant formula fraud prevention.
Sec. 412. State alliances.
Sec. 413. Limits on expenditures.
Sec. 414. Migrant and community health centers initiative.
Sec. 415. Demonstration projects.
Sec. 416. Authorization of appropriations.
TITLE V--REAUTHORIZATION, MISCELLANEOUS PROVISIONS, AND EFFECTIVE DATE
Sec. 501. Training, technical, and other assistance.
Sec. 502. Notice of irradiated food.
Sec. 503. Sense of Congress.
Sec. 504. Reauthorization of programs.
Sec. 505. Effective dates.
TITLE I--ENSURING ACCESS TO CHILD NUTRITION PROGRAMS
SEC. 101. EXCLUSION OF MILITARY HOUSING ALLOWANCES.
Section 9(b)(7) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(b)) is amended by striking ``For each of fiscal years
2002'' and all that follows through ``the amount'' and inserting ``The
amount''.
SEC. 102. HOMELESS CHILDREN, RUNAWAY YOUTH, AND MIGRATORY CHILD
ELIGIBILITY.
(a) In General.--Section 9(b)(6)(A) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1758(b)(6)(A)) is amended--
(1) in clause (ii), by striking ``or'';
(2) in clause (iii), by striking the period and inserting a
semicolon; and
(3) by inserting after clause (iii) the following:
``(iv) a homeless child or youth (as defined in section
725(2) of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11434a));
``(v) a youth served by programs under the Runaway and
Homeless Youth Act (42 U.S.C. 5701 et seq.); or
``(vi) a migratory child, as such term is defined in
section 1309(2) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6399(2)).''.
(b) Documentation.--Section 9(d)(2) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1758(d)(2)) is amended--
(1) in subparagraph (B), by striking ``or'';
(2) in subparagraph (C), by striking the period at the end
and inserting a semicolon; and
(3) by inserting after subparagraph (C) the following:
``(D) documentation has been provided to the appropriate
local educational agency showing that the child meets the
criteria specified in clauses (iv) or (v) of subsection
(b)(6)(A); or
``(E) documentation has been provided to the appropriate
local educational agency showing the child's status as a
migratory child, as such term is defined in section 1309(2) of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6399(2)).''.
SEC. 103. ELIGIBILITY FOR SEVERE NEED ASSISTANCE.
Section 4(d) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(d))
is amended--
(1) by striking the heading and all that follows through
paragraph (1), and inserting:
``(d) Severe Need Assistance.--
``(1) In general.--Each State educational agency shall
provide additional assistance to schools in severe need, which
shall include only those schools (having a breakfast program or
desiring to initiate a breakfast program) in which, during the
most recent second preceding school year for which lunches were
served, 40 percent or more of the lunches served to students at
the school were served free or at a reduced price (or those new
schools drawing the majority of their attendance from schools
receiving severe need assistance).''; and
(2) in paragraph (2)--
(A) by striking ``100 percent'' and all that
follows through ``food, or''; and
(B) by striking ``, whichever is less''.
SEC. 104. REAUTHORIZATION OF SUMMER FOOD PROGRAMS.
(a) Summer Food Pilot Projects.--Section 18(f) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1769(f)) is amended--
(1) by redesignating paragraphs (2) through (6) as
paragraphs (3) through (7), respectively;
(2) by inserting after paragraph (1) the following:
``(2) Additional states eligible.--In addition to the
States meeting the criteria set forth in paragraph (1), the
term `eligible State' means a State in which (based on data
available in June 2003)--
``(A) the percentage obtained by dividing--
``(i) the sum of--
``(I) the average daily number of
children attending the summer food
service program in the State in July
2002; and
``(II) the average daily number of
children receiving free or reduced
price meals under the school lunch
program in the State in July 2002; by
``(ii) the average daily number of children
receiving free or reduced price meals under the
school lunch program in the State during the
2001-2002 school year; is less than 57 percent
of
``(B) the percentage obtained by dividing--
``(i) the sum of--
``(I) the average daily number of
children attending the summer food
service program in all States in July
2002; and
``(II) the average daily number of
children receiving free or reduced
price meals under the school lunch
program in all States in July 2002; by
``(ii) the average daily number of children
receiving free or reduced price meals under the
school lunch program in all States during the
2001-2002 school year.'';
(3) in paragraph (3) (as so redesignated), by striking
``March 31, 2004'' and inserting ``September 30, 2008'';
(4) in paragraph (4) (as so redesignated), by striking
``(other than a service institution described in section
13(a)(7))'' both places it appears; and
(5) in paragraph (7)(B)(i) (as redesignated by this
section), by striking ``paragraph (5)'' and inserting
``paragraph (6)''.
(b) Summer Food Service Program for Children.--Section 13(q) of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1761(q)) is
amended by striking ``March 31, 2004'' and inserting ``September 30,
2008''.
SEC. 105. CHILD AND ADULT CARE FOOD PROGRAM.
(a) Eligibility of Private Child Care Centers.--Section 17 of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1766) is
amended--
(1) in subsection (a)(2)(B)(i), by striking ``during the
period'' and all that follows through ``March 31, 2004''; and
(2) by striking subsection (p).
(b) Duration of Determination as Tier 1 Family or Group Day Care
Home.--Section 17(f)(3)(E)(iii) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766(f)(3)(E)(iii)) is amended by striking
``3 years'' and inserting ``5 years''.
(c) Duration of Agreements.--Section 17(j) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1766(j)) is amended to
read as follows:
``(j) Agreements.--
``(1) In general.--The Secretary may issue regulations
directing States to develop and provide for the use of a
standard form of agreement between each family or group day
care sponsoring organization and the family or group day care
homes participating in the program under such organization, for
the purpose of specifying the rights and responsibilities of
each party.
``(2) Duration.--An agreement under paragraph (1) shall
remain in effect until terminated by either party to the
agreement.''.
(d) Management Improvement Initiative.--Section 17(q)(3) of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1766(q)(3)) is
amended by striking ``1999 through 2003'' and inserting ``2005 and
2006''.
(e) Audits.--Section 17(i) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766(i)) is amended to read as follows:
``(i) Audits.--
``(1) Funds for audits.--The Secretary shall make available
for each fiscal year to a State administering the child and
adult care food program, for the purpose of conducting audits
of participating institutions, an amount up to 1.5 percent
(except in the case of fiscal years 2005 through 2007, 1
percent) of the funds used by the State in the program under
this section during the second preceding fiscal year.
``(2) Audit procedures.--
``(A) In general.--Subject to subparagraph (B), in
conducting management evaluations, reviews, or audits
of the program under this subsection, the Secretary or
a State agency may disregard any overpayment to an
institution if the total overpayment for any fiscal
year does not exceed an amount, consistent with the
disregards allowed in other programs under this Act,
which recognizes the cost of collecting small claims.
``(B) Criminal or fraud violations.--In carrying
out this subsection, the Secretary and a State agency
shall not disregard any overpayment for which there is
evidence of a violation of a criminal law or civil
fraud law.''.
(f) Emergency Shelters.--Section 17(t)(5)(A)(i) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1766(t)(5)(A)(i) is
amended--
(1) in subclause (I)--
(A) by striking ``12'' and inserting ``18''; and
(B) by inserting ``or'' after the semicolon; and
(2) by striking subclause (II) and redesignating subclause
(III) as subclause (II).
(g) Paperwork Reduction.--The Secretary of Agriculture, in
conjunction with States and participating institutions, shall examine
the feasibility of reducing paper work resulting from regulations and
record-keeping requirements for State agencies, family child care
homes, child care centers, and sponsoring organizations participating
in the child and adult care food program established under section 17
of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766).
SEC. 106. REVIEW OF BEST PRACTICES IN THE BREAKFAST PROGRAM.
(a) Review.--Subject to the availability of funds, the Secretary of
Agriculture shall enter into an agreement with a research organization
to collect and disseminate a review of best practices to assist schools
in addressing existing impediments at the State and local level that
hinder the growth of the school breakfast program under section 4 of
the Child Nutrition Act of 1966 (42 U.S.C. 1773). The review shall
describe model breakfast programs and offer recommendations for schools
to overcome obstacles, such as:
(1) the length of the school day;
(2) bus schedules; and
(3) potential increases in costs at the State and local
level.
(b) Dissemination.--Not later than 12 months after the date of
enactment of this Act, the Secretary shall make the review required
under subsection (a) available to local educational agencies via the
Internet, including recommendations to improve participation in the
school breakfast program. Not later than 12 months after the date of
enactment of this Act, the review shall also be transmitted to the
Committee on Education of the House of Representatives and the
Committee on Agriculture of the Senate.
SEC. 107. AREA ELIGIBILITY DEMONSTRATION.
Section 13 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1761) is amended by adding at the end the following:
``(r) Demonstration.--For fiscal years 2004 through 2008, in rural
areas of the State of Pennsylvania, the threshold for determining
`areas in which poor economic conditions exist' under subsection
(a)(1)(C) for the program authorized by this section shall be 40
percent of children enrolled are eligible for free or reduced price
school meals and the State agency shall report to the Secretary on the
effect of the demonstration on program participation in rural areas.''.
SEC. 108. SEAMLESS SUMMER ADMINISTRATION.
(a) Seamless Summer Waiver.--Section 13(a) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1761(a)) is amended by
inserting after paragraph (7) the following:
``(8) Service institutions that are public or private
nonprofit school food authorities may administer summer or
school vacation food service under the provisions of the school
lunch program established under this Act and the school
breakfast program established under the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.), except as determined by the
Secretary.''.
(b) Payments.--Section 13(b)(1) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1761(b)(1)) is amended by inserting after
subparagraph (C) the following:
``(D) Service institutions described in paragraph
(a)(8) of this section shall be reimbursed for meals
and meal supplements in accordance with the applicable
provisions under this Act (other than subparagraphs
(A), (B), and (C) of this paragraph) and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), as
determined by the Secretary.''.
SEC. 109. YEAR ROUND SERVICES FOR ELIGIBLE ENTITIES.
Section 18 of the Richard B. Russell National School Lunch Act is
amended by adding at the end the following:
``(h) Year Round Services for Eligible Entities.--
``(1) In general.--A service institution (as defined in
section 13(a)(6) or 13(a)(7) of this Act) located in California
may be reimbursed for up to 3 meals and 2 supplements for any
day for which services are being offered at such institution.
Such service institution shall be reimbursed for costs
consistent with section 13(b)(1) of this Act.
``(2) Exemptions.--A service institution that receives
assistance under this subsection shall comply with all
provisions of section 13 of this Act other than subsections
13(b)(2) and 13(c)(1).
``(3) Funding.--The Secretary shall provide to the State of
California an amount not to exceed $1,000,000 for fiscal years
2004 through 2008, for the additional reimbursement costs for
meals and supplements authorized by this subsection.''.
TITLE II--IMPROVING PROGRAM QUALITY AND INTEGRITY
SEC. 201. ELIGIBILITY AND CERTIFICATION FOR FREE AND REDUCED PRICE
LUNCHES.
(a) In General.--Section 9(b) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1758) is amended by striking ``(b)(1)(A)
Not later'' and all that follows through paragraph (2) and inserting
the following:
``(b) Eligibility for Free and Reduced Price Lunches.--
``(1) Income guidelines.--
``(A) In general.--Not later than June 1 of each
fiscal year, the Secretary shall prescribe income
guidelines for determining eligibility for free and
reduced price lunches during the 12-month period
beginning July 1 of such fiscal year and ending June 30
of the following fiscal year. The income guidelines for
determining eligibility for free lunches shall be 130
percent of the applicable family size income levels
contained in the nonfarm income poverty guidelines
issued by the Secretary of Health and Human Services,
as adjusted annually in accordance with subparagraph
(B). The income guidelines for determining eligibility
for reduced price lunches for any school year shall be
185 percent of the applicable family size income levels
contained in the nonfarm income poverty guidelines
issued by the Secretary of Health and Human Services,
as adjusted annually in accordance with subparagraph
(B). Such guidelines shall be revised at annual
intervals, or at any shorter interval deemed feasible
and desirable.
``(B) Formula for revision.--The revision required
by subparagraph (A) of this paragraph shall be made by
multiplying--
``(i) the official poverty line (as defined
by the Secretary of Health and Human Services);
by
``(ii) the percentage change in the
Consumer Price Index during the annual or other
interval immediately preceding the time at
which the adjustment is made.
Revisions under this subparagraph shall be made not
more than 30 days after the date on which the Consumer
Price Index data required to compute the adjustment
becomes available.
``(2) Certification of eligibility.--
``(A) Announcement by state educational agency.--
Following the determination by the Secretary under
paragraph (1) of this subsection of the income
eligibility guidelines for each school year, each State
educational agency shall announce the income
eligibility guidelines, by family size, to be used by
schools in the State in making determinations of
eligibility for free and reduced price lunches. Local
educational agencies shall, each year, publicly
announce the income eligibility guidelines for free and
reduced price lunches on or before the opening of
school.
``(B) Applications.--
``(i) In general.--Applications for free
and reduced price lunches, in such form as the
Secretary may prescribe or approve, and any
descriptive material, in an understandable and
uniform format, and to the extent practicable,
in a language that parents can understand,
shall be distributed at least annually to the
parents or guardians of children in attendance
at the school.
``(ii) Income levels.--Applications and
descriptive material shall contain only the
family size income eligibility guidelines for
reduced price meal eligibility, with the
explanation that households with incomes less
than or equal to these values would be eligible
for free or reduced price lunches. Such
applications and descriptive material may not
contain the income eligibility guidelines for
free lunches.
``(iii) Notification.--Descriptive
materials shall contain a notification that
participants in 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. 1771 et
seq.), the food stamp program established under
the Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.), the Food Distribution Program on Indian
Reservations (FDPIR) authorized under section
4(b) of the Food Stamp Act of 1977 (7 U.S.C.
2013(b)), or a State program funded under part
A of title IV of the Social Security Act (if
the Secretary determines the State program
complies with standards established by the
Secretary that ensure that the standards under
the State program are comparable to or more
restrictive than those in effect on June 1,
1995) may be eligible for free or reduced price
lunches. Such descriptive materials shall also
contain a notice to parents that documentation
may be requested for verification.
``(iv) Electronic availability.--In
addition to the distribution of such
applications and descriptive material in paper
form as provided for in this paragraph, such
applications and material may be made available
electronically via the Internet.
``(C) Eligibility.--
``(i) Household applications.--
``(I) In general.--If an
eligibility determination for a child
is not made under clause (ii) or (iii),
an eligibility determination shall be
made on the basis of a complete
household application executed by an
adult member of the household, or in
accordance with other guidance issued
by the Secretary.
``(II) Additional bases.--
Eligibility may be determined by the
local educational agency on the basis
of a complete application executed by
an adult member of the household, or in
accordance with other guidance issued
by the Secretary, including an
electronic signature when the
application is submitted
electronically, and if the application
filing system meets confidentiality
standards established by the Secretary.
``(III) Children in household.--
``(aa) In general.--The
application shall identify the
names of each child in the
household for whom meal
benefits are requested, as well
as the total number of members
of the household.
``(bb) Separate
applications.--A State
educational agency or local
educational agency may not
request a separate application
for each child in the
household, if the children in
the household attend schools in
the same local educational
agency.
``(IV) Verification.--The
Secretary, State, or local educational
agency may verify any data contained in
such application. In accordance with
guidance issued by the Secretary, each
local educational agency shall verify a
sample of approved free and reduced
price applications and shall make
appropriate changes in the eligibility
determination with respect to such
applications on the basis of such
verification. The sample selected for
verification shall be as follows:
``(aa) For local
educational agencies unable to
obtain verification information
for no more than 25 percent of
all applications selected for
verification in the prior year,
or local educational agencies
receiving more than 20,000
applications and that in the
prior year had a verification
non-response rate that was 10
percent below the verification
non-response rate of the second
prior year, the sample selected
shall be either--
``(AA) the lesser
of 3,000 or 3 percent
of approved
applications selected
at random by the local
educational agencies
from all approved
applications; or
``(BB) the lesser
of 1,000 or 1 percent
of all approved
applications selected
from applications that
indicate monthly income
that is within $100, or
annual income that is
within $1,200, of the
income eligibility
limits for free or
reduced price meals,
plus the lesser of 500
or \1/2\ of 1 percent
of approved
applications that
provided a case number
in lieu of income
information showing
participation in the
food stamp program, the
Temporary Assistance
for Needy Families
program, or the Food
Distribution Program on
Indian Reservations
(FDPIR) selected from
those approved
applications that
provided a case number
in lieu of income
information verifying
such participation. If,
for any local
educational agency, the
total number of
applications that
indicate monthly income
that is within $100, or
annual income that is
within $1,200, of the
income eligibility
limits for free or
reduced price meals is
less than 1,500 or 1
and \1/2\ percent of
all approved
applications, the local
educational agency
shall select additional
applications at random
from all approved
applications in order
to obtain a total
sample for verification
of 1,500 or 1 and \1/2\
percent of all approved
applications.
``(bb) For all other local
educational agencies, the
sample selected shall be the
lesser of 3,000 or 3 percent of
all approved applications
selected from applications that
indicate monthly income that is
within $100, or annual income
that is within $1,200, of the
income eligibility limits for
free or reduced price meals.
If, for any local educational
agency, the total number of
such applications is less than
3,000 or 3 percent of all
approved applications, the
local educational agency shall
select additional applications
at random from all approved
applications in order to obtain
a total sample for verification
of 3,000 or 3 percent of all
approved applications.
``(V) Substitutions.--
``(aa) In general.--In
accordance with the regulations
prescribed by the Secretary,
the local educational agency
may, upon individual review,
decline to verify any
application selected under
subclause (IV) and replace it
with another application to be
verified. Such agency may
decline to verify no more than
2 percent of the applications
selected for verification under
this subclause.
``(bb) Substitute criteria
in cases of emergencies.--The
Secretary may substitute
alternative criteria for the
sample size and sample
selection criteria in subclause
(IV) to address a natural
disaster, civil disorder,
strike, or other local
condition.
``(VI) Direct verification.--
``(aa) In general.--In
accordance with regulations
promulgated by the Secretary,
in verifying the sample
selected in accordance with
subclause (IV), the local
educational agency may first
obtain from certain public
agencies administering the
programs identified in item
(bb) of this subclause, and
similar income-tested programs,
information to verify
eligibility for free or reduced
price meals.
``(bb) Public agency
records.--Public agency records
that may be used to verify
eligibility for free meals
shall include income
information relied upon within
12 months prior to verification
under subclause (IV) in the
administration of the following
programs: the food stamp
program established under the
Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.); the State
program funded under part A of
title IV of the Social Security
Act; the Food Distribution
Program on Indian Reservations
(FDPIR) authorized under
section 4(b) of the Food Stamp
Act of 1977 (7 U.S.C. 2013(b));
and the State Medicaid program
under title XIX of the Social
Security Act (42 U.S.C. 1396 et
seq.) in a State in which the
income eligibility limit
described in section
1902(l)(2)(C) of the Social
Security Act is no higher than
133 percent of the income
official poverty line as
specified in section
1902(l)(2)(A) of such Act, in
the case of eligibility for
free meals, and 185 percent of
the income official poverty
line as specified in such
section in the case of reduced
price meals.
``(VII) Plain, understandable
language.--Any and all communications
to parents regarding verification under
subclause (IV) shall be in an
understandable and uniform format, and,
to the extent practicable, in a
language that parents can understand.
``(ii) Direct certification for children in
food stamp households.--
``(I) In general.--Each State
agency shall, to the extent
practicable, enter into an agreement
with the State agency conducting
eligibility determinations for the food
stamp program established under the
Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.).
``(II) Procedures.--Subject to
clause (iv), the agreement shall
establish procedures under which a
child who is a member of a household
receiving assistance under the program
referred to in subclause (I) shall be
certified as eligible for free meals
under this Act, without further
application.
``(III) Direct certification.--
Subject to clause (iv), under the
agreement, the local educational agency
conducting eligibility determinations
for a school meal program conducted
under this Act shall certify a child
who is a member of a household
receiving assistance under the program
referred to in subclause (I) as
eligible for free meals under this Act
without further application.
``(IV) Notice.--The appropriate
local educational agency shall provide
annually to the parents or guardians of
all students who are members of a
household receiving assistance under
the program referred to in subclause
(I), notification, in an understandable
and uniform format, and, to the extent
practicable, in a language that parents
can understand, that any school-aged
child in that household is eligible for
free lunches or breakfasts.
``(iii) Direct certification of children in
other households.--Subject to clause (iv), any
local educational agency may certify any child
as eligible for free lunches or breakfasts,
without further application, by directly
communicating with the appropriate State or
local agency to obtain documentation of such
child's status as a migratory child, as such
term is defined in section 1309(2) of the
Elementary and Secondary Education Act of 1965
(20 U.S.C. 6399(2)), or a member of a family
that is receiving assistance under a State
program funded under part A of title IV of the
Social Security Act if the Secretary determines
the State program complies with standards
established by the Secretary that ensure that
the standards under the State program are
comparable to or more restrictive than those in
effect on June 1, 1995.
``(iv) Disclosure of information.--The use
or disclosure of any information obtained from
an application for free or reduced price meals,
or from a State or local agency referred to in
clauses (ii) and (iii), shall be limited to--
``(I) a person directly connected
with the administration or enforcement
of this Act or the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.), or a
regulation issued pursuant to either
Act;
``(II) a person directly connected
with the administration or enforcement
of--
``(aa) a Federal education
program;
``(bb) a State health or
education program administered
by the State or local
educational agency (other than
a program carried out under
title XIX of the Social
Security Act (42 U.S.C. 1396 et
seq.); or
``(cc) a Federal, State, or
local means-tested nutrition
program with eligibility
standards comparable to the
program under this section;
``(III)(aa) the Comptroller General
of the United States for audit and
examination authorized by any other
provision of law; and
``(bb) notwithstanding any other
provision of law, a Federal, State, or
local law enforcement official for the
purpose of investigating an alleged
violation of any program requirements
under paragraph (1) or this paragraph;
and
``(IV) a person directly connected
with the administration of the State
Medicaid program under title XIX of the
Social Security Act (42 U.S.C. 1396 et
seq.) or the State children's health
insurance program under title XXI of
that Act (42 U.S.C. 1397aa et seq.)
solely for the purpose of identifying
children eligible for benefits under,
and enrolling children in, such
programs, except that this subclause
shall apply only to the extent that the
State and the local educational agency
so elect.
``(v) Limitation.--Information provided
under clause (iv)(II) shall be limited to the
income eligibility status of the child for whom
application for free or reduced price meal
benefits was made or for whom eligibility
information was provided under clause (ii) or
(iii), unless the consent of the parent or
guardian of the child for whom application for
benefits was made is obtained.
``(vi) Penalty for unauthorized
disclosure.--A person described in clause (iv)
who publishes, divulges, discloses, or makes
known in any manner, or to any extent not
authorized by Federal law (including a
regulation), any information obtained under
this subsection shall be fined not more than
$1,000 or imprisoned not more than 1 year, or
both.
``(vii) Requirements for waiver of
confidentiality.--A State that elects to
exercise the option described in clause
(iv)(IV) shall ensure that any local
educational agency acting in accordance with
that option--
``(I) has a written agreement with
the State or local agency or agencies
administering health insurance programs
for children under titles XIX and XXI
of the Social Security Act (42 U.S.C.
1396 et seq. and 1397aa et seq.) that
requires the health agencies to use the
information obtained under clause (iv)
to seek to enroll children in those
health insurance programs; and
``(II)(aa) notifies each household,
the information of which shall be
disclosed under clause (iv), that the
information disclosed will be used only
to enroll children in health programs
referred to in clause (iv)(IV); and
``(bb) provides each parent or
guardian of a child in the household
with an opportunity to elect not to
have the information disclosed.
``(viii) Use of disclosed information.--A
person to which information is disclosed under
clause (iv)(IV) shall use or disclose the
information only as necessary for the purpose
of enrolling children in health programs
referred to in clause (iv)(IV).
``(D) Free and reduced price policy statement.--
After the initial submission, a local educational
agency shall not be required to submit a free and
reduced price policy statement to a State educational
agency under this Act unless there is a substantive
change in the free and reduced price policy of the
local educational agency. A routine change in the
policy of a local educational agency, such as an annual
adjustment of the income eligibility guidelines for
free and reduced price meals, shall not be sufficient
cause for requiring the local educational agency to
submit a policy statement.''.
(b) Conforming Amendment.--Section 9(b)(6)(B) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1758(b)(6)(B) is amended
by inserting ``, or documentation showing the child's status as a
migratory child, as such term is defined in section 1309(2) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6399(2))''
after ``subparagraph (A)(iii)''.
SEC. 202. DURATION OF ELIGIBILITY FOR FREE AND REDUCED PRICE LUNCHES.
Section 9(b)(3) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(b)(3)) is amended to read as follows:
``(3) Eligibility for free and reduced price lunches.--
``(A) Free lunches.--Any child who is a member of a
household whose income, at the time the application is
submitted, is at an annual rate which does not exceed
the applicable family size income level of the income
eligibility guidelines for free lunches, as determined
under paragraph (1), shall be served a free lunch.
``(B) Reduced price lunches.--
``(i) In general.--Any child who is a
member of a household whose income, at the time
the application is submitted, is at an annual
rate greater than the applicable family size
income level of the income eligibility
guidelines for free lunches, as determined
under paragraph (1), but less than or equal to
the applicable family size income level of the
income eligibility guidelines for reduced price
lunches, as determined under paragraph (1),
shall be served a reduced price lunch.
``(ii) Maximum price.--The price charged
for a reduced price lunch shall not exceed 40
cents.
``(C) Duration.--Except as otherwise specified in
section 11(a) or section 9(b)(2)(C)(i)(IV), eligibility
for free or reduced price meals for any school year
shall remain in effect--
``(i) beginning on the date of eligibility
approval for the current school year; and
``(ii) ending on the date of the beginning
of school in the subsequent school year or as
otherwise specified by the Secretary.''.
SEC. 203. CERTIFICATION BY LOCAL EDUCATIONAL AGENCIES.
(a) Certification by Local Educational Agency.--Section 9 of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1758) is
further amended--
(1) in subsection (b)(5), by striking ``Local school
authorities'' and inserting ``Local educational agencies''; and
(2) in subsection (d)(2)--
(A) by striking ``local school food authority''
each place it appears and inserting ``local educational
agency''; and
(B) in subparagraph (A), by striking ``such
authority'' and inserting ``the local educational
agency''.
(b) Definition of Local Educational Agency.--Section 12(d) of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1760(d)) is
amended--
(1) by redesignating paragraphs (3) through (8) as
paragraphs (4) through (9), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Local educational agency.--
``(A) In general.--The term `local educational
agency' has the meaning given the term in section 9101
of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7801).
``(B) Inclusion.--The term `local educational
agency' includes, in the case of a private nonprofit
school food authority, an appropriate entity determined
by the Secretary.''.
(c) School Breakfast Program.--Section 4(b)(1)(E)) of the Child
Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(E)) is amended by striking
``school food authority'' each place it appears and inserting ``local
educational agency''.
SEC. 204. COMPLIANCE AND ACCOUNTABILITY.
Section 22 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769c) is amended by inserting ``and local educational
agencies'' after ``food service authorities'' each place it appears.
SEC. 205. TECHNOLOGY IMPROVEMENT.
(a) Priority for Reallocated Funds.--Section 7(a)(5)(B)(ii) of the
Child Nutrition Act of 1966 (42 U.S.C. 1776(a)(5)(B)(ii)) is amended by
inserting the following new sentence at the end: ``The Secretary shall
give special consideration to States that will use the funds for
improvements in technology and information management systems described
in subsection (e)(2).''.
(b) Conforming Amendment.--Section 7(b) of the Child Nutrition Act
of 1966 (42 U.S.C. 1776(b)) is amended by striking ``and for staff
development'' and inserting ``for staff development; and technology and
information management systems''.
SEC. 206. MINIMUM STATE ADMINISTRATIVE EXPENSE GRANTS.
Section 7(a) of the Child Nutrition Act (42 U.S.C. 1776(a)(1)) is
further amended--
(1) by striking the heading and all that follows through
paragraph (1), and inserting the following:
``SEC. 7. STATE ADMINISTRATIVE EXPENSES.
``(a) Amount and Allocation of Funds.--
``(1) Amount available.--
``(A) In general.--Except as provided in
subparagraph (B), each fiscal year the Secretary shall
make available to the States for their Administrative
costs an amount equal to not less than 1\1/2\ percent
of the Federal funds expended under sections 4, 11, 17,
and 17A of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1753, 1759a) 1766, and 1766a)) and
sections 3 and 4 of this Act during the second
preceding fiscal year.
``(B) Minimum amount.--In the case of each of
fiscal years 2005 through 2007, the Secretary shall
make available to each State for their administrative
costs not less than the initial allocation made to the
State under this subsection for fiscal year 2004.
``(C) Allocation.--The Secretary shall allocate the
funds so provided in accordance with paragraphs (2),
(3), and (4) of this subsection.
``(D) Authorization of appropriations.--There is
authorized to be appropriated such sums as may be
necessary to carry out the purposes of this section.'';
and
(2) in paragraph (2), by striking ``$100,000'' and
inserting ``$200,000''.
SEC. 207. DISTRICT-WIDE ELIGIBILITY FOR SPECIAL ASSISTANCE.
Section 11(a)(1) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1759a(a)(1)) is amended--
(1) in subparagraph (C)--
(A) in clause (i)--
(i) by inserting ``or school district''
after ``in the case of any school'';
(ii) by inserting ``or school district''
after ``in the school'' both times it appears;
(iii) by inserting ``or school district''
after ``in the case of a school''; and
(iv) by inserting ``or school district''
after ``with respect to the school'';
(B) in clause (ii)--
(i) by inserting ``or school district''
after ``served by a school''; and
(ii) by inserting ``or school district''
after ``served by the school''; and
(C) in clause (iii) by inserting ``or school
district'' after ``a school'';
(2) in subparagraph (D)--
(A) in clause (i)--
(i) by inserting ``or school district''
after ``any school''; and
(ii) by inserting ``or school district''
after ``the school'';
(B) in clause (ii)--
(i) by inserting ``or school district''
after ``A school''; and
(ii) by inserting ``or school district''
after ``the school'';
(C) in clause (iii)--
(i) by inserting ``or school district''
after ``a school''; and
(ii) by inserting ``or school district''
after ``the school''; and
(D) in clause (iv) by inserting ``or school
district'' after ``levels, a school''; and
(3) in subparagraph (E)--
(A) in clause (i)--
(i) by inserting ``or school district''
after ``In the case of any school'';
(ii) by inserting ``or school district''
after ``in the school'' both times it appears;
(iii) by inserting ``or school district''
after ``in the case of a school'';
(iv) by inserting ``or school district''
after ``with respect to the school'';
(v) by inserting ``or school district''
after ``received by the school''; and
(vi) by inserting ``or school district''
after ``for which the school''; and
(B) in clause (ii)--
(i) by inserting ``or school district''
after ``A school'';
(ii) by inserting ``or school district''
after ``for which the school'' both times it
appears; and
(iii) by inserting ``or school district''
after ``population of the school'' both times
it appears.
SEC. 208. ADMINISTRATIVE ERROR REDUCTION.
(a) Federal Support for Training and Technical Assistance.--Section
21 of the Richard B. Russell National School Lunch Act (42 U.S.C.
1769b-1) is amended--
(1) by redesignating subsection (e) as subsection (g); and
(2) by inserting after subsection (d) the following:
``(e) Administrative Training and Technical Assistance Materials.--
In collaboration with State educational agencies, school food
authorities, and local educational agencies of varying sizes, the
Secretary shall develop and distribute training and technical
assistance materials relating to the administration of school meal
programs that are--
``(1) prepared by the Secretary (based on research or other
sources), a State educational agency, a school food authority,
or a local educational agency; and
``(2) representative of the best management and
administrative practices of State agencies, school food
authorities, and local educational agencies as determined by
the Secretary.
``(f) Federal Administrative Support.--
``(1) Funding.--
``(A) In general.--Out of any funds in the Treasury
not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary of Agriculture
to carry out this subsection--
``(i) on October 1, 2004 and October 1,
2005, $3,000,000; and
``(ii) on October 1, 2006, and October 1,
2007, $2,000,000.
``(B) Receipt and acceptance.--The Secretary shall
be entitled to receive, shall accept, and shall use to
carry out this subsection the funds transferred under
subparagraph (A), without further appropriation.
``(C) Availability of funds.--Funds transferred
under subparagraph (A) shall remain available until
expended.
``(2) Use of funds.--The Secretary may use funds provided
under this subsection--
``(A) to provide training and technical assistance
related to administrative practices designed to improve
program integrity and administrative accuracy in school
meals programs (including administrative requirements
established by the Child Nutrition Improvement and
Integrity Act and amendments made by that Act) to State
educational agencies and, to the extent determined by
the Secretary, to school food authorities and local
educational agencies;
``(B) to assist State educational agencies in
reviewing the administrative practices of school food
authorities, to the extent determined by the Secretary;
and
``(C) to carry out the activities described in
subsection (e).''.
(b) Selected Administrative Reviews.--Section 22(b) of the Richard
B. Russell National School Lunch Act (42 U.S.C. 1769c(b)) is amended by
adding at the end the following:
``(3) Additional review requirement for selected local
educational agencies.--
``(A) Definition of selected local educational
agency.--In this paragraph, the term `selected local
educational agency' means a local educational agency
that has a demonstrated a high level of, or a high risk
for, administrative error, as determined by the
Secretary.
``(B) Additional administrative review.--In
addition to any review required by subsection (a) or
paragraph (1), each State educational agency shall
conduct an administrative review of each selected local
educational agency during the review cycle established
under subsection (a).
``(C) Scope of review.--In carrying out a review
under subparagraph (B), a State educational agency
shall only review the administrative processes of a
selected local educational agency, including
application, certification, verification, meal
counting, and meal claiming procedures.
``(D) Results of review.--If the State educational
agency determines (on the basis of a review conducted
under subparagraph (B)) that a selected local
educational agency fails to meet performance criteria
established by the Secretary, the State educational
agency shall--
``(i) require the selected local
educational agency to develop and carry out an
approved plan of corrective action;
``(ii) except to the extent technical
assistance is provided directly by the
Secretary, provide technical assistance to
assist the selected local educational agency in
carrying out the corrective action plan; and
``(iii) conduct a follow-up review of the
selected local educational agency under
standards established by the Secretary.
``(4) Recovering funds after administrative reviews.--
``(A) In general.--Subject to subparagraphs (B) and
(C), if the local educational agency fails to meet
administrative performance criteria established by the
Secretary in both an initial review and a follow-up
review under paragraph (1) or (3) or subsection (a),
the Secretary may require the State educational agency
to recover funds from the local educational agency that
would otherwise be paid to the school food authority or
local educational agency for school meals programs
under procedures prescribed by the Secretary.
``(B) Amount.--The amount of funds recovered under
subparagraph (A) shall equal the value of any
overpayments made to the school food authority or local
educational agency as a result of an erroneous claim
during the time period described in subparagraph (C).
``(C) Time period.--The period for determining the
value of any such overpayments under subparagraph (B)
shall be the period--
``(i) beginning on the date the erroneous
claim was made; and
``(ii) ending on the earlier of the date
the erroneous claim is corrected or--
``(I) in the case of the first
review conducted by the State
educational agency of the local
educational agency under this section
after July 1, 2005, the date that is 60
days after the beginning of the period
under clause (i); or
``(II) in the case of any
subsequent review conducted by the
State educational agency of the local
educational agency under this section,
the date that is 90 days after the
beginning of the period under clause
(i).
``(5) Use of recovered funds.--
``(A) In general.--Subject to subparagraph (B),
funds recovered under paragraph (4) shall--
``(i) be returned to the Secretary under
procedures established by the Secretary, and
may be used--
``(I) to provide training and
technical assistance related to
administrative practices designed to
improve program integrity and
administrative accuracy in school meals
programs (including administrative
requirements established by the Child
Nutrition Improvement and Integrity Act
and amendments made by that Act) to
State educational agencies and, to the
extent determined by the Secretary, to
school food authorities and local
educational agencies;
``(II) to assist State educational
agencies in reviewing the
administrative practices of school food
authorities, to the extent determined
by the Secretary; and
``(III) to carry out section 21(e);
or
``(ii) be credited to the child nutrition
programs appropriation account.
``(B) State share.--Subject to subparagraph (C), a
State educational agency may retain not more than 25
percent of an amount recovered under paragraph (4), to
carry out school meals program integrity initiatives to
assist school food authorities and local educational
agencies that have repeatedly failed (as determined by
the Secretary) to meet administrative performance
criteria.
``(C) Requirement.--To be eligible to retain funds
under subparagraph (B), a State educational agency
shall--
``(i) submit to the Secretary a plan
describing how the State educational agency
will use the funds to improve school meals
program integrity, including measures to give
priority to school food authorities and local
educational agencies from which funds were
retained under paragraph (4); and
``(ii) obtain the approval of the Secretary
for the plan.''.
(c) Training and Technical Assistance.--Section 7 of the Child
Nutrition Act of 1966 (42 U.S.C. 1776) is amended--
(1) in subsection (e)--
(A) by striking ``(e) Each'' and inserting the
following:
``(e) Plans for Use of Administrative Expense Funds.--
``(1) In general.--Each''; and
(B) by striking ``After submitting'' and all that
follows through ``change in the plan.'', and inserting
the following:
``(2) Updates and information management systems.--After
submitting the initial plan, a State shall be required to
submit to the Secretary for approval only a substantive change
in the plan. Each State plan shall at a minimum include a
description of how technology and information management
systems will be used to improve program integrity by--
``(A) monitoring the nutrient content of meals
served;
``(B) training schools and school food authorities
how to utilize technology and information management
systems for activities such as menu planning,
collecting point of sale data, processing applications
for free and reduced price meals and verifying
eligibility for free and reduced price meals using
existing databases to access program participation or
income data collected by State or local educational
agencies; and
``(C) using electronic data to establish benchmarks
to compare and monitor program integrity, program
participation, and financial data across schools and
school food authorities.
``(3) Training and technical assistance.--Each State shall
submit to the Secretary for approval a plan describing the
manner in which the State intends to implement subsection (g)
and section 22(b)(3) of the Richard B. Russell National School
Lunch Act (as added by section 208 of the Child Nutrition
Improvement and Integrity Act).'';
(2) by redesignating subsection (g) as subsection (i); and
(3) by inserting after subsection (f) the following:
``(g) State Training.--
``(1) In general.--At least annually, each State shall
provide training in administrative practices (including
training in application, certification, verification, meal
counting, and meal claiming procedures) to school food
authority administrative personnel and other appropriate
personnel, with emphasis on the requirements established by the
Child Nutrition Improvement and Integrity Act and the
amendments made by that Act.
``(2) Federal role.--The Secretary shall--
``(A) provide training and technical assistance
(including training materials and information developed
under subsections (e) and (f) of section 21 of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1769b-1)) to a State to assist the State in carrying
out paragraph (1); or
``(B) at the option of the Secretary, directly
provide training and technical assistance described in
paragraph (1).
``(3) Third-party contracting.--In carrying out this
subsection, the Secretary or a State may contract with a third
party under procedures established by the Secretary.
``(4) Required participation.--Under procedures established
by the Secretary that consider the various needs and
circumstances of school food authorities, each school food
authority or local educational agency shall ensure that an
individual conducting or overseeing administrative procedures
described in paragraph (1) receives training at least annually,
unless determined otherwise by the Secretary.
``(h) Funding for Training and Administrative Reviews.--
``(1) Funding.--
``(A) In general.--On October 1, 2004, and on each
October 1 thereafter, out of any funds in the Treasury
not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary of Agriculture
to carry out this subsection $4,000,000, to remain
available until expended.
``(B) Receipt and acceptance.--The Secretary shall
be entitled to receive, shall accept, and shall use to
carry out this subsection the funds transferred under
subparagraph (A), without further appropriation.
``(2) Use of funds.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary shall use funds
provided under this subsection to assist States in
carrying out subsection (g) and administrative reviews
of selected school food authorities and local
educational agencies under section 22(b)(3) of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1769c(b)(3)).
``(B) Exception.--The Secretary may retain a
portion of the amount provided to cover costs of
activities carried out by the Secretary in lieu of the
State.
``(3) Allocation.--The Secretary shall allocate funds
provided in this subsection to States based on the number of
local educational agencies that have demonstrated a high level
of or a high risk for administrative error, as determined by
the Secretary, taking into account the requirements established
by the Child Nutrition Improvement and Integrity Act and the
amendments made by that Act.
``(4) Reallocation.--The Secretary may reallocate, to carry
out this section, any amounts made available to carry out this
subsection that are not obligated or expended, as determined by
the Secretary.''.
TITLE III--PROMOTING NUTRITION QUALITY AND PREVENTING CHILDHOOD OBESITY
SEC. 301. LOCAL SCHOOL WELLNESS POLICY.
Not later than the first day of the school year beginning after
June 30, 2006, local educational agencies participating in the programs
authorized by the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.) and the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) shall establish a local school wellness policy for such
local agency that at a minimum--
(1) includes goals for nutrition education, physical
activity and other school-based activities designed to promote
student wellness that the local educational agency determines
are appropriate;
(2) includes nutrition guidelines selected by the local
educational agencies for all foods available on school campus
during the school day with the objective of promoting student
health and reducing childhood obesity;
(3) provides an assurance that guidelines for reimbursable
school meals shall not be less restrictive than regulations and
guidance issued by the Secretary pursuant to section 10(a) and
(b) of the Child Nutrition Act (42 U.S.C. 1779(a) and (b)) and
section 9(f)(1) and section 17(a) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1758(f)(1) and 1766(a)),
as those regulations and guidance apply to schools;
(4) establishes a plan for ensuring implementation of the
local wellness policy, including designation of a person or
persons within the local educational agency, or at each school
as appropriate, charged with operational responsibility for
ensuring that such school meets the local wellness policy; and
(5) involves parents, students, representatives of the
school food authority, the school board, school administrators,
and public in the development of the school wellness policy.
SEC. 302. SUPPORTING NUTRITION EDUCATION, IMPROVING MEAL QUALITY, AND
ACCESS TO LOCAL FOODS.
Section 19 of the Child Nutrition Act of 1966 (42 U.S.C. 1788) is
amended--
(1) by amending subsection (b) to read as follows:
``(b) Purpose.--It is the purpose of this section to support
effective nutrition education through assistance to State agencies,
schools, and nonprofit entities for Team Nutrition and other nutrition
education projects that improve student understanding of healthful
eating patterns, including an awareness and understanding of the
Dietary Guidelines for Americans, the quality of school meals and
access to local foods in schools and institutions operating programs
under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751
et seq.) and section 4 of this Act.'';
(2) by striking subsections (c) through (h) and inserting
after subsection (b) the following:
``(c) Team Nutrition Network.--
``(1) Purpose.--The purpose of the Team Nutrition Network
is to--
``(A) promote the nutritional health of the
Nation's school children through nutrition education,
physical activity and other activities that support
healthy lifestyles for children based on the Dietary
Guidelines for Americans, issued jointly by the
Secretary of Agriculture and the Secretary of Health
and Human Services, and the physical fitness guidelines
issued by the Secretary of Health and Human Services;
``(B) provide assistance to States for the
development of State-wide, comprehensive, and
integrated nutrition education and physical fitness
programs; and
``(C) provide training and technical assistance to
States, school and community nutrition programs, and
child nutrition food service professionals.
``(2) State coordinator.--The State Team Nutrition Network
Coordinator shall--
``(A) administer and coordinate a comprehensive
integrated statewide nutrition education program; and
``(B) coordinate efforts with the Food and
Nutrition Service and State agencies responsible for
children's health programs.
``(3) Team nutrition network.--Subject to the availability
or appropriations to carry out this subsection, the Secretary,
in consultation with the Secretary of Education, shall, on a
competitive basis, provide assistance to States for the purpose
of creating model nutrition education and physical activity
programs, consistent with current dietary and fitness
guidelines, for students in elementary schools and secondary
schools.
``(4) Requirements for state participation.--To be eligible
to receive assistance under this subsection, a State
Coordinator shall submit an application to the Secretary at
such time, an in such manner, and containing such information
as the Secretary may require, including--
``(A) a description of how the proposed nutrition
and physical activity program will promote healthy
eating and physical activity and fitness and address
the health and social consequences of children who are
at risk of becoming overweight or obese;
``(B) information describing how nutrition
activities are to be coordinated at the State level
with other health activities conducted by education,
health and agriculture agencies;
``(C) information describing how initiatives to
promote physical activity are to be coordinated at the
State level with other initiatives to promote physical
activity conducted by education, health, and parks and
recreation agencies;
``(D) a description of the consultative process
that the State Coordinator employed in the development
of the model nutrition and physical activity programs,
including consultations with individuals and
organizations with expertise in promoting public
health, nutrition, or physical activity, and
organizations representing the agriculture, food and
beverage, fitness, and sports and recreation
industries;
``(E) a description of how the State Coordinator
will evaluate the effectiveness of its program; and
``(F) a description of how any and all
communications to parents and guardians of all students
who are members of a household receiving or applying
for assistance under the program shall be in an
understandable and uniform format, and, to the extent
practicable, in a language that parents can understand.
``(5) Duration.--Subject to the availability of funds made
available to carry out this subsection, a State Coordinator
shall conduct the project for a period of 3 successive school
years.
``(6) Authorized activities.--An eligible applicant that
receives assistance under this subsection may use funds to
carry out one or more of the following activities--
``(A) collecting, analyzing, and disseminating data
regarding the extent to which children and youth in the
State are overweight or physically inactive and the
programs and services available to meet those needs;
``(B) developing and implementing model elementary
and secondary education curricula to create a
comprehensive, coordinated nutrition and physical
fitness awareness and obesity prevention program;
``(C) developing and implementing pilot programs in
schools to increase physical activity and to enhance
the nutritional status of students, including through
the increased consumption of fruits and vegetables,
whole grains, and lowfat dairy products;
``(D) developing and implementing State guidelines
in health, which include nutrition education, and
physical education and emphasize regular physical
activity during school hours;
``(E) collaborating with community based
organizations, volunteer organizations, State medical
associations, and public health groups to develop and
implement nutrition and physical education programs
targeting lower income children, ethnic minorities, and
youth at a greater risk for obesity;
``(F) collaborating with public or private
organizations that have as a mission the raising of
public awareness of the importance of a balanced diet
and an active lifestyle; and
``(G) providing training and technical assistance
to teachers and school food service professionals
consistent with the purpose of this section.
``(7) Limitation.--Materials prepared under this subsection
regarding agricultural commodities, food, or beverages must be
factual and without bias.
``(8) Report.--Within 18 months of completion of the
projects and the evaluations, the Secretary shall submit to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor,
and Pensions of the Senate and the Committee on Agriculture,
Nutrition and Forestry of the Senate a report describing the
results of the evaluation of the demonstration programs and
shall make such reports available to the public, including
through the Internet.
``(9) Independent evaluation.--
``(A) In general.--The Secretary shall enter into
an agreement with an independent, non-partisan science-
based research organization to conduct a comprehensive
independent evaluation of the effectiveness of the Team
Nutrition initiative and the Team Nutrition Network
authorized by this subsection and to identify best
practices in--
``(i) improving student understanding of
healthful eating patterns;
``(ii) engaging students in regular
physical activity and improving physical
fitness;
``(iii) reducing diabetes and obesity rates
in school children;
``(iv) improving student nutrition
behaviors on the school campus including
healthier meal choices evidenced by greater
inclusion of fruits, vegetables, whole grains,
and lean dairy and protein in meal and snack
selections;
``(v) providing training and technical
assistance for food service professionals
resulting in the availability of healthy meals
that appeal to ethnic and cultural taste
preferences;
``(vi) linking meals programs to nutrition
education activities; and
``(vii) successfully involving school
administrators, the private sector, public
health agencies, non-profit organizations, and
other community partners.
``(B) Report.--Not later than October 1, 2007, the
Secretary shall transmit the findings of the
independent evaluation to the Committee on Education
and the Workforce of the House of Representatives, the
Committee on Health, Education, Labor, and Pensions and
the Committee on Agriculture, Nutrition, and Forestry
of the Senate.
``(d) Local Nutrition and Physical Activity Project.--
``(1) In general.--Subject to the availability of
appropriations to carry out this subsection, the Secretary, in
consultation with the Secretary of Education, shall provide
assistance to not more than 100 local educational agencies, at
least one per State, for the establishment of pilot projects
for purposes of promoting healthy eating habits and increasing
physical activity, consistent with the Dietary Guidelines for
Americans issued jointly by the Secretary of Agriculture and
the Secretary of Health and Human Services, among elementary
and secondary education students.
``(2) Requirement for participation in pilot project.--To
be eligible to receive assistance under this subsection, a
local educational agency shall, in consultation with
individuals who possess education or experience appropriate for
representing the general field of public health, including
nutrition and fitness professionals, submit to the Secretary an
application that shall include--
``(A) a description of the local educational
agency's need for nutrition and physical activity
programs;
``(B) a description of how the proposed project
will improve health and nutrition through education and
increased access to physical activity;
``(C) a description of how funds under this
subsection will be coordinated with other programs
under this Act, the Richard B. Russell National School
Lunch Act, or other Acts, as appropriate, to improve
student health and nutrition;
``(D) a statement of the local educational agency's
measurable goals for nutrition and physical education
programs and promotion;
``(E) a description of how the proposed project
will be aligned with the local wellness policy required
under the Act;
``(F) a description of the procedures the agency
will use for assessing and publicly reporting progress
toward meeting those goals; and
``(G) a description of how communications to
parents and guardians of participating students
regarding the activities under this subsection shall be
in an understandable and uniform format, and, to the
extent practicable, in a language that parents can
understand.
``(3) Duration.--Subject to the availability of funds made
available to carry out this subsection, a local educational
agency receiving assistance under this subsection shall conduct
the project during a period of 3 successive school years.
``(4) Authorized activities.--An eligible applicant that
receives assistance under this subsection--
``(A) shall use funds provided to--
``(i) promote healthy eating through the
development and implementation of nutrition
education programs and curricula based on the
Dietary Guidelines for Americans; and
``(ii) increase opportunities for physical
activity through after school programs,
athletics, intramural activities, and recess;
and
``(B) may use funds provided to--
``(i) educate parents and students about
the relationship of a poor diet and inactivity
to obesity and other health problems;
``(ii) develop and implement physical
education programs that promote fitness and
lifelong activity;
``(iii) provide training and technical
assistance to food service professionals to
develop nutritious, more appealing menus and
recipes;
``(iv) incorporate nutrition education into
physical education, health education, and after
school programs, including athletics;
``(v) involve parents, nutrition
professionals, food service staff, educators,
community leaders, and other interested parties
in assessing the food options in the school
environment and developing and implementing an
action plan to promote a balanced and healthy
diet;
``(vi) provide nutrient content or
nutrition information on meals served through
the school lunch or school breakfast programs
and items sold a la carte during meal times;
``(vii) encourage the increased consumption
of a variety of healthy foods through new
initiatives such as salad bars and fruit bars;
and
``(viii) provide nutrition education,
including sports nutrition education, for
teachers, coaches, food service staff, athletic
trainers, and school nurses.
``(5) Limitation.--Materials prepared under this subsection
regarding agricultural commodities, food, or beverages must be
factual and without bias.
``(6) Report.--Within 18 months of completion of the
projects and evaluations, the Secretary shall transmit to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor,
and Pensions and the Committee on Agriculture, Nutrition and
Forestry of the Senate a report describing the results of the
evaluation of the pilot projects and shall make such reports
available to the public, including through the Internet.
``(e) Nutrition Education Support.--
``(1) In general.--In carrying out the purpose of this
section to support nutrition education, the Secretary may
provide for technical assistance and grants to improve the
quality of school meals and access to local foods in schools
and institutions.
``(2) School meals initiative.--The Secretary may provide
assistance to enable State educational agencies to--
``(A) implement the recommendations of the
Secretary's School Meals Initiative for Healthy
Children;
``(B) increase the consumption of fruits,
vegetables, low-fat dairy products, and whole grains;
``(C) reduce saturated fat and sodium in school
meals;
``(D) improve school nutritional environments; and
``(E) conduct other activities that aid schools in
carrying out the Secretary's School Meals Initiative
for Healthy Children.
``(3) Access to local foods.--The Secretary may provide
assistance, through competitive matching grants and technical
assistance, to schools and nonprofit entities for projects
that--
``(A) improve access to local foods in schools and
institutions participating in programs under the
Richard B. Russell National School Lunch Act (42 U.S.C.
1751 et seq.) and Section 4 of this Act through farm-
to-cafeteria activities that may include the
acquisition of food and appropriate equipment and the
provision of training and education;
``(B) are, at a minimum, designed to procure local
foods from small- and medium-sized farms for school
meals;
``(C) support nutrition education activities or
curriculum planning that incorporates the participation
of schoolchildren in farm and agriculture education
activities;
``(D) develop a sustained commitment to farm-to-
cafeteria projects in the community by linking schools,
agricultural producers, parents, and other community
stakeholders;
``(E) require $100,000 or less in Federal
contributions;
``(F) require a Federal share of costs not to
exceed 75 percent;
``(G) provide matching support in the form of cash
or in kind contributions (including facilities,
equipment, or services provided by State and local
governments and private sources); and
``(H) cooperate in an evaluation to be carried out
by the Secretary.''; and
(3) by redesignating subsection (i) as subsection (f), and
amending paragraph (1) of such subsection to read as follows:
``(1) In general.--There is authorized to be appropriated
such sums as may be necessary for carrying out this section for
fiscal years 2004 through 2008.''.
SEC. 303. FRUITS AND VEGETABLE COMMODITIES.
Section 6(c)(1)(D) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1755(c)(1)(D)) is amended by inserting ``, and fruits
and vegetables'' before the period.
SEC. 304. FLUID MILK.
Section 9(a)(2) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1758(a)(2)) is amended to read as follows:
``(2) Fluid milk.--
``(A) In general.--Lunches served by schools
participating in the school lunch program under this
Act--
``(i) shall offer students fluid milk in a
variety of fat contents;
``(ii) may offer students flavored and
unflavored fluid milk and lactose-free fluid
milk; and
``(iii) shall provide a substitute for
fluid milk for students whose disability
restricts their diet, upon receipt of a written
statement from a licensed physician that
identifies the disability that restricts the
student's diet and that specifies the
substitute for fluid milk.
``(B) Substitutes.--
``(i) Standards for substitution.--Schools
may substitute for the fluid milk provided
under subparagraph (A), a non-dairy beverage
that is nutritionally equivalent to fluid milk
and meets nutritional standards as established
by the Secretary (which shall, among other
requirements to be determined by the Secretary,
include fortification of calcium, protein,
vitamin A, and vitamin D to levels found in
cow's milk) for students who cannot consume
fluid milk because of a medical or other
special dietary need other than a disability
described in subparagraph (A)(iii).
``(ii) Notice.--Such substitutions may be
made if the school notifies the State agency
that it is implementing a variation allowed
under this subparagraph, and if such
substitution is requested by written statement
of a medical authority or by a student's parent
or legal guardian that identifies the medical
or other special dietary need that restricts
the student's diet, provided that the school
shall not be required to provide beverages
other than those it has identified as
acceptable substitutes.
``(iii) Excess expenses borne by the school
district.--Expenses incurred in providing
substitutions pursuant to this subparagraph
that are in excess of those covered by
reimbursements under this Act shall be paid by
the school district.
``(C) Restrictions on sale of milk prohibited.--A
school or institution that participates in the school
lunch program under this Act shall not directly or
indirectly restrict the sale or marketing of fluid milk
products by the school (or by a person approved by the
school) at any time or any place--
``(i) on the school premises; or
``(ii) at any school-sponsored event.''.
SEC. 305. WAIVER OF REQUIREMENTS FOR WEIGHTED AVERAGES FOR NUTRIENT
ANALYSIS.
Section 9(f)(5) of the Richard B. Russell National School Lunch Act
(42 U.S.C 1758(f)(5)) is amended to read as follows:
``(5) Waiver of requirements for weighted averages for
nutrient analysis.--State educational agencies may grant
waivers to school food authorities to the requirement for
weighted averages for nutrient analysis of menu items and foods
offered or served as part of a meal offered or served under the
school lunch program under this Act or the school breakfast
program under section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773) if--
``(A) the school food authority has an equivalent
system for conducting a nutrient analysis, subject to
State agency approval; and
``(B) the equivalent system adequately documents
the extent to which the school food authority is
meeting the Dietary Guidelines for Americans and other
nutrition standards.
In addition, the Secretary may waive, on a case by case basis,
the requirement for a State agency to use weighted averages
when conducting a nutrient analysis as part of a review (of
compliance with the Dietary Guidelines and other nutrition
standards) of a school food authority not using nutrient
standard menu planning, when, in the Secretary's determination,
an alternative analysis would yield results that would
adequately measure a school food authority's compliance with
current nutrition standards for school meals.''.
SEC. 306. WHOLE GRAINS.
Not later than 18 months after the date of enactment of this Act,
the Secretary shall promulgate rules, based on Federal nutrition
guidelines, to increase the presence of whole grains in foods offered
in school nutrition programs under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.) and the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.).
SEC. 307. FRUIT AND VEGETABLE PILOT PROGRAM.
Section 18(g) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1769) is amended--
(1) in paragraph (1), by striking ``In the school year
beginning'' and inserting ``Beginning'';
(2) by striking paragraph (3) and redesignating paragraphs
(2) and (4) as paragraphs (5) and (6), respectively, and
inserting after paragraph (1) the following:
``(2) Additional states.--In addition to the States
participating under subsection (1), the Secretary shall make
available free fresh and dried fruits and fresh vegetables to
students in 25 elementary or secondary schools in each State or
Indian reservation selected for participation.
``(3) Selection of schools.--In selecting additional
schools to participate in the pilot program under paragraph (2)
of this subsection, the Secretary shall--
``(A) to the maximum extent practicable, ensure
that the majority of schools selected are those in
which not less than 50 percent of students are eligible
for free or reduced price meals under this Act;
``(B) solicit applications from interested schools
that include--
``(i) information pertaining to the
percentage of students enrolled in the school
submitting the application who are eligible for
free or reduced price school lunches under this
Act;
``(ii) a certification of support for
participation in the pilot program signed by
the school food manager, the school principal,
and the district superintendent (or their
equivalent positions, as determined by the
school); and
``(iii) a plan for implementation of the
pilot program that includes a partnership with
an entity or entities of the fruit and
vegetable industry, which shall contribute not
less than 15 percent, in cash or in kind, for
the acquisition, handling, promotion, and
distribution of fresh and dried fruits and
fresh vegetables provided under this program;
and
``(iv) such other information as may be
requested by the Secretary; and
``(C) for each application received, determine
whether the application is from a school in which not
less than 50 percent of students are eligible for free
or reduced price meals under this Act.
``(4) Special rule.--Schools participating in the program
described in paragraph (1) shall receive a priority in the
receipt of assistance under this subsection and shall not be
subject to the requirements of paragraph (3).''; and
(3) by amending paragraph (6) (as redesignated by this
section) to read as follows:
``(6) Authorization of appropriations.--There is authorized
to be appropriated $11,000,000 for fiscal year 2004 and such
sums as may be necessary for fiscal years 2005 through 2008, to
carry out this subsection.''.
TITLE IV--IMPROVING THE WOMEN, INFANTS, AND CHILDREN PROGRAM
SEC. 401. DEFINITION OF NUTRITION EDUCATION.
Section 17(b)(7) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(b)(7)) is amended--
(1) by inserting ``and physical activity'' after ``dietary
habits''; and
(2) by striking ``nutrition and health'' and inserting
``nutrition, health, and child development''.
SEC. 402. DEFINITION OF SUPPLEMENTAL FOODS.
Section 17(b)(14) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(b)(14)) is amended by inserting after ``children'' the following:
``and foods that promote the health of the population served by the
program authorized by this section, as indicated by relevant nutrition
science, public health concerns, and cultural eating patterns''.
SEC. 403. IMPROVING CERTIFICATION.
(a) Certification of Women Who Are Breastfeeding.--Section
17(d)(3)(A) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(d)(3)(A)) is amended by adding at the end the following: ``A State
may certify breast-feeding women for up to 1 year, or until women stop
breast-feeding, whichever is earlier.''
(b) Physical Presence Requirement.--Section 17(d)(3)(C)(ii) of the
Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)(C)(ii)) is amended--
(1) in subclause (I)(bb), by striking ``from a provider
other than the local agency; or'' and inserting a semicolon;
(2) in subclause (II)(cc), by striking the period at the
end and inserting ``; and''; and
(3) by inserting after subclause (II) the following:
``(III) an infant under 8 weeks of
age--
``(aa) who cannot be
present at certification for a
reason determined appropriate
by the local agency; and
``(bb) for whom all
necessary certification
information is provided.''.
(c) Processing Applications Under Special Circumstances.--Section
17(f)(1)(C) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(f)(1)(C)) is amended by--
(1) redesignating clauses (ix) and (x) as clauses (x) and
(xi), respectively; and
(2) inserting after clause (viii) the following:
``(ix) procedures whereby a State agency
may accept and process vendor applications
outside of the established time-frames, such as
in situations in which a previously authorized
vendor changes ownership under circumstances
that do not permit timely notification to the
State agency of such change in ownership;''.
(d) Rescheduling Policies.--Section 17(f)(19) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(f)(19)) is amended--
(1) in subparagraph (A), by striking ``; and'' and
inserting a semicolon;
(2) in subparagraph (B), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(C) require local agencies that schedule certification
appointments to permit an applicant or participant to reschedule an
appointment to apply or be recertified for the program.''.
SEC. 404. REVIEWS OF AVAILABLE SUPPLEMENTAL FOODS.
(a) Scientific Review.--Section 17(f)(11) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(f)(11)) is amended to read as follows:
``(11)(A) The Secretary shall prescribe by regulations the
supplemental foods to be made available in the program under this
section. To the degree possible the Secretary shall assure that the
fat, sugar, and salt content of the prescribed foods is appropriate.
``(B) Beginning in 2013 and every 10 years thereafter, or more
frequently if determined by the Secretary to be necessary to reflect
current scientific knowledge, the Secretary shall conduct a scientific
review of the supplemental foods available in the program and
recommend, as necessary, changes to reflect nutrition science, current
public health concerns, and cultural eating patterns.''.
(b) Rulemaking.--The Secretary shall promulgate a final rule
updating the prescribed supplemental foods available through the
program authorized under section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786) within 18 months of receiving the review of the food
package for such program undertaken by the National Academy of
Sciences, Institute of Medicine in September 2003.
SEC. 405. NOTIFICATION OF VIOLATIONS AND INFANT FORMULA BENEFITS.
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:
``(25) Notification of violations.--If a State agency finds
that a vendor has committed a violation that requires a pattern
of occurrences in order to impose a sanction, the State agency
shall notify the vendor of the initial violation in writing
prior to documentation of another violation, unless the State
agency determines that notifying the vendor would compromise an
investigation.
``(26) Infant formula benefits.--
``(A) In general.--The State agency may round up to
the next whole can of formula to ensure that all
participants receive the full-authorized nutritional
benefit specified by regulation.
``(B) Limitation.--For formula covered by infant
formula contracts, subparagraph (A) shall take effect
as contracts are awarded under bid solicitations made
on or after October 1, 2004.''.
SEC. 406. HEALTHY PEOPLE 2010 INITIATIVE.
Section 17(h)(4) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(h)(4)) is amended--
(1) in subparagraph (D), by striking ``; and'' and
inserting a semicolon;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; and''; and
(3) by inserting after subparagraph (E) the following:
``(F) partner with communities, State and local
agencies, employers, health care professionals, and the
private sector to build a supportive breastfeeding
environment for women participating in the program
under this section to support the breastfeeding goals
of the Healthy People 2010 initiative.''.
SEC. 407. COMPETITIVE BIDDING.
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:
``(iv) Rebate invoices.--Each State agency
shall have a system to ensure that infant
formula rebate invoices, under competitive
bidding, provide a reasonable estimate or an
actual count of the number of units sold to
participants in the program under this section.
``(v) Cent-for-cent adjustments.--A bid
solicitation for infant formula under the
program made on or after October 1, 2004 shall
require the manufacturer to adjust for price
changes subsequent to the opening of the
bidding process in a manner that requires--
``(I) a cent-for-cent increase in
the rebate amounts if there is an
increase in the lowest national
wholesale price for a full truckload of
the particular infant formula; or
``(II) a cent-for-cent decrease in
the rebate amounts if there is a
decrease in the lowest national
wholesale price for a full truckload of
the particular infant formula.''.
SEC. 408. FRUIT AND VEGETABLE PROJECTS.
Section 17(h)(10)(B)(ii) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(h)(10)(B)(ii)) is amended by inserting after ``under this
section'' the following: ``, which may include demonstration projects
in up to 10 local sites, determined to be geographically and culturally
representative of local States and Indian agencies, to evaluate the
inclusion of fresh, frozen, or canned fruits and vegetables (to be made
available through private funds) as an addition to the supplemental
food provided under this section''.
SEC. 409. PRICE LEVELS OF RETAIL STORES.
Section 17(h)(11) of the Child Nutrition Act of 1966 is amended by
adding at the end the following:
``(C) Additional requirements.--
``(i) The State agency shall evaluate a
vendor applicant based on its shelf prices or
on the prices it bids for supplemental foods,
which may not exceed its shelf prices.
``(ii) The State agency shall establish
price limitations on the amount that it will
pay vendors for supplemental foods. The State
agency shall ensure that price limitations do
not result in inadequate participant access by
geographic area.
``(iii) In establishing competitive price
and price limitation requirements, the State
agency may exclude pharmacy vendors that supply
only exempt infant formula or medical foods
that are eligible under the program.
``(iv) The State agency shall establish
competitive price requirements and price
limitations for vendor peer groups, as
necessary to ensure that prices paid to vendors
are competitive. Vendor peer group competitive
price requirements and price limitations may
reflect reasonable estimates of varying costs
of acquisition of supplemental foods.
``(D) Incentive items.--The State agency shall not
authorize a retail food store that provides incentive
items or other free merchandise to program participants
if funds available under this program were used to
purchase such items or merchandise.
``(E) Rules of construction.--Nothing in this
section may be construed to authorize violation of the
Sherman Antitrust Act (15 U.S.C. 1 et seq.) or the
Robinson-Patman Act (15 U.S.C. 13 et seq.).''.
SEC. 410. MANAGEMENT INFORMATION SYSTEMS.
Section 17(h)(12) of the Child Nutrition Act of 1996 (42 U.S.C.
1786(h)(12)) is amended--
(1) by amending subparagraph (B) to read as follows:
``(B) Electronic benefit transfer systems.--
``(i) In general.--All States that receive
Federal funds for design or implementation of
electronic benefit transfer (EBT) systems for
the program under this section shall use
technical specifications or standards, as
applicable, as determined by the Secretary,
except as provided in clause (ii).
``(ii) Existing systems.--EBT systems for
the program under this section that are in
development or are issuing benefits as of the
date of enactment shall be required to submit
within 6 months after the date of enactment of
this subparagraph a plan for compliance.
``(iii) Waiver.--The Secretary may waive
compliance with this subparagraph for State EBT
systems for the program under this section that
are issuing benefits as of the date of
enactment of this subparagraph until such time
that compliance is feasible.''; and
(2) by amended subparagraph (C) to read as follows:
``(C) Universal product codes database.--The Secretary shall
implement a national Universal Product Code Database for use by all
State agencies in carrying out the program and shall make available
from appropriated funds such sums as may be required for hosting,
hardware, and software configuration, and support.''.
SEC. 411. INFANT FORMULA FRAUD PREVENTION.
Section 17(h) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(h)) is further amended by adding at the end the following:
``(13) Approved providers of infant formula.--
``(A) In general.--The State agency shall maintain a list
of infant formula manufacturers, wholesalers, distributors, and
retailers approved to provide infant formula to vendors.
``(B) List.--The list required under subparagraph (A) shall
include food manufacturers, wholesalers, distributors, and
retailers licensed in the State in accordance with State law
and regulations to distribute infant formula and food
manufacturers registered with the U.S. Food and Drug
Administration that provide infant formula.
``(C) Purchase requirement.--Vendors authorized to
participate in the program under this section shall purchase
infant formula from the list required under subparagraph
(A).''.
SEC. 412. STATE ALLIANCES.
Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) is
further amended--
(1) in subsection (b) by adding at the end the following:
``(22) `State alliance' means 2 or more State agencies that
join together for the purpose of procuring infant formula by
soliciting competitive bids.''; and
(2) in subsection (h)(8)(A) by adding at the end the
following:
``(vi) Size of state alliances.--No State
alliance may form among States whose infant
participation exceeds 200,000 based on program
participation as of October 2003, except that--
``(I) an alliance among States with
a combined 200,000 infant participants
as of October 2003 may continue, and
may expand to include more than 200,000
infants, but may not expand to include
any additional State agencies that were
not included in the alliance as of
October 1, 2003, other than as provided
in subclause (II); and
``(II) any State agency serving
fewer than 5,000 infant participants as
of October 2003, or any Indian Tribal
Organization, may request to join any
State alliance.''.
SEC. 413. LIMITS ON EXPENDITURES.
Section 17(i)(3)(A)(ii)(I) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(i)(3)(A)(ii)(I)) is amended by striking ``1 percent'' and
inserting ``3 percent''.
SEC. 414. MIGRANT AND COMMUNITY HEALTH CENTERS INITIATIVE.
Section 17(j) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(j)) is amended by striking paragraph (4) and redesignating
paragraph (5) as paragraph (4).
SEC. 415. DEMONSTRATION PROJECTS.
(a) Child Nutrition Act of 1966.--Section 17 of the Child Nutrition
Act of 1966 (42 U.S.C. 1786) is amended by striking subsection (r).
(b) National School Lunch Act.--Section 12 of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1760) is amended by
striking subsection (p).
SEC. 416. AUTHORIZATION OF APPROPRIATIONS.
(a) Reauthorization of Program.--Section 17(g) of the Child
Nutrition Act of 1966 (42 U.S.C. 1786(g)) is amended by striking
``(g)(1) There are authorized'' and all that follows through ``through
2003.'' in paragraph (1) and inserting the following:
``(g) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to carry out this section such sums as are necessary for each
of fiscal years 2004 through 2008.''.
(b) Nutrition Services and Administration Funds.--Section 17(h) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended--
(1) in paragraph (2)(A), by striking ``1995 through 2003''
and inserting ``2004 through 2008''; and
(2) in paragraph (10)(A), by striking ``1995 through 2003''
and inserting ``2004 through 2008''.
(c) Farmers' Market Nutrition Program.--Section 17(m)(9)(A)(i) of
the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)) is amended to
read as follows:
``(i) Authorization of appropriations.--
There is authorized to be appropriated to carry
out this subsection such sums as are necessary
for each of fiscal years 2004 through 2008.''.
TITLE V--REAUTHORIZATION, MISCELLANEOUS PROVISIONS, AND EFFECTIVE DATE
SEC. 501. TRAINING, TECHNICAL, AND OTHER ASSISTANCE.
Section 21(a) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1769b-1(a)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) subject to the availability of and from amounts
appropriated pursuant to subsection (g)(1), shall provide--
``(A) training and technical assistance to improve
the skills of individuals employed in food service
programs carried out under this Act, section 4 of the
Child Nutrition Act of 1966 (42 U.S.C. 1773), and, as
appropriate, other federally assisted feeding programs;
``(B) training and technical assistance to States,
State agencies, schools, and school food authorities in
the procurement of goods and services for programs
under this Act and the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.), including training and technical
assistance to ensure compliance with section 12(n) of
this Act (42 U.S.C. 1760(n));
``(C) assistance, on a competitive basis, to State
agencies for the purpose of aiding schools and school
food authorities with at least 50 percent of enrolled
children certified to receive free or reduced price
meals, and, if there are any remaining funds, other
schools and school food authorities in meeting the cost
of acquiring or upgrading technology and information
management systems for use in food service programs
carried out under this Act and section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773) if the school or
school food authority submits to the State agency an
infrastructure development plan that addresses the cost
savings and improvements in program integrity and
operations that would result from the use of new or
upgraded technology in--
``(i) methods to ensure that there shall
not be any overt identification of any such
child by special tokens or tickets, announced
or published list of names, or by any other
means;
``(ii) processing and verifying
applications for free and reduced price school
meals;
``(iii) integrating menu planning,
production, and serving data to monitor
compliance with section 9(f)(1); and
``(iv) establishing compatibility with
statewide reporting systems;
``(D) assistance, on a competitive basis, to State
agencies with low proportions of schools or students
that participate in the school breakfast program under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773) and that demonstrate the greatest need, for the
purpose of aiding schools in meeting costs associated
with initiating or expanding a school breakfast program
under section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773), including outreach and informational
activities; and''; and
(2) in paragraph (2), by striking ``subsection (e)(2)'' and
inserting ``subsection (g)(2).''
SEC. 502. NOTICE OF IRRADIATED FOOD.
Section 14 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1762a) is amended by adding at the end the following:
``(h) Notice of Irradiated Food.--The Secretary shall develop
policy and establish procedures for the purchase and distribution of
irradiated food products in Federal school meals programs. The policies
and procedures shall ensure at a minimum that--
``(1) irradiated food products are made available only at
the request of States and school food authorities;
``(2) reimbursements to schools for irradiated food
products are equal to reimbursements to schools for non-
irradiated products;
``(3) States and school food service authorities are
provided factual information on the science and evidence
regarding irradiation technology, including notice that
irradiation is not a substitute for safe food handling
techniques and any such other information necessary to promote
food safety in school meal programs;
``(4) States and school food service authorities are
provided model procedures for providing factual information on
the science and evidence regarding irradiation technology and
any such other information necessary to promote food safety in
school meals to school food service authorities, parents, and
students regarding irradiation technology;
``(5) irradiated food products distributed to the Federal
school meals program are labeled with a symbol or other printed
notice indicating that the product was treated with irradiation
and is prominently displayed in a clear and understandable
format on the container;
``(6) irradiated products are not commingled with non-
irradiated products in containers; and
``(7) encourages schools that offer irradiated foods to
offer alternatives to irradiated food products as part of the
meal plan used by schools.''.
SEC. 503. SENSE OF CONGRESS.
Section 12 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1760) is further amended by adding at the end the following:
``(p) Sense of Congress.--It is the sense of Congress that Federal
resources provided under this Act and the Child Nutrition Act of 1966
dedicated to child nutrition should support the most effective programs
within the Federal agency that is most capable of assisting children in
nutritional need. Congress encourages the elimination of initiatives
that are duplicative of other Federal efforts, particularly those that
are duplicative of programs conducted under this Act and the Child
Nutrition Act of 1966.''.
SEC. 504. REAUTHORIZATION OF PROGRAMS.
(a) State Administrative Expenses.--Section 7(i) of the Child
Nutrition Act of 1966 (42 U.S.C. 1776(g)) (as amended by this Act) is
amended by striking ``2003'' and inserting ``2008''.
(b) Commodity Distribution Program.--
(1) Section 14(a) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1762a(a)) is amended by striking ``March
31, 2004'' and inserting ``September 30, 2008''.
(2) Section 15(e) of the Commodity Distribution Reform Act
and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-
237) is amended by striking ``April 1, 2004'' and inserting
``October 1, 2008''.
(c) Purchases of Locally Produced Foods.--Section 9(j)(2)(A) of the
Richard B. Russell National School Lunch Act (42 U.S.C. 758(j)(2)(A))
is amended by striking ``2007'' and inserting ``2008''.
(d) Training, Technical Assistance, and Food Service Management
Institute.--Section 21(g)(1) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769b-1(e)(1)) (as amended by this Act) is further
amended by striking ``for each of fiscal years 1992 through 2003'' and
inserting ``for fiscal year 2004, and such sums as may be necessary for
fiscal years 2005 through 2008''.
(e) Compliance and Accountability.--Section 22(d) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1769c(d)) is amended by
striking ``2003'' and inserting ``2008''.
SEC. 505. EFFECTIVE DATES.
The amendments made by sections 101, 104, 105(a), 202, 410, 416,
and 504 shall take effect on the date of enactment of this Act. The
amendments made by sections 201 and 208(c) shall take effect on July 1,
2005. All other amendments made by this Act shall take effect October
1, 2004.
Passed the House of Representatives March 24, 2004.
Attest:
JEFF TRANDAHL,
Clerk.