[House Report 114-852]
[From the U.S. Government Publishing Office]
114th Congress } { Rept. 114-852
HOUSE OF REPRESENTATIVES
2d Session } { Part 1
======================================================================
IMPROVING CHILD NUTRITION AND EDUCATION ACT OF 2016
_______
December 8, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Kline, from the Committee on Education and the Workforce, submitted
the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 5003]
[Including cost estimate of the Congressional Budget Office]
The Committee on Education and the Workforce, to whom was
referred the bill (H.R. 5003) to reauthorize child nutrition
programs, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Improving Child
Nutrition and Education Act of 2016''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
TITLE I--NATIONAL SCHOOL LUNCH ACT
Sec. 100. State agency.
Sec. 101. Apportionments to States.
Sec. 102. Repeal of nutrition promotion.
Sec. 103. Direct Federal expenditures.
Sec. 104. Nutritional and other program requirements.
Sec. 105. Miscellaneous provisions.
Sec. 106. Summer food service program for children.
Sec. 107. Commodity distribution program.
Sec. 108. Child and adult care food program.
Sec. 109. Demonstration projects.
Sec. 110. Fruit and vegetable program.
Sec. 111. Compliance and accountability.
Sec. 112. Repeal of State childhood hunger challenge grants.
Sec. 113. Duties of the Secretary relating to nonprocurement debarment.
Sec. 114. Improvements to school lunch facilities.
Sec. 115. Prohibitions.
TITLE II--CHILD NUTRITION ACT
Sec. 201. Special milk program authorization.
Sec. 202. School breakfast program.
Sec. 203. State administrative expenses.
Sec. 204. Regulations.
Sec. 205. Definition of State agency.
Sec. 206. Special supplemental nutrition program for women, infants,
and children.
Sec. 207. Team nutrition network.
TITLE III--MISCELLANEOUS
Sec. 301. Reviews.
Sec. 302. Program delivery.
Sec. 303. Product availability.
Sec. 304. Procurement.
Sec. 305. School Nutrition Advisory Committee.
Sec. 306. Paperwork reduction.
Sec. 307. Technology.
Sec. 308. Improving health and safety oversight and monitoring for the
child and adult care food program.
Sec. 309. Technical corrections.
Sec. 310. Budgetary effects.
Sec. 311. Effective date.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ``Secretary'' means the Secretary of
Agriculture.
TITLE I--NATIONAL SCHOOL LUNCH ACT
SEC. 100. STATE AGENCY.
In each of the following Acts, by striking ``State educational
agency'' and ``State educational agencies'' each place such term
appears (including any headings) and inserting ``State agency'' and
``State agencies'', respectively:
(1) The Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.).
(2) The Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
SEC. 101. APPORTIONMENTS TO STATES.
Section 4(b) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1753(b)) is amended--
(1) in paragraph (3)--
(A) in subparagraph (B), by striking ``Beginning on''
and all that follows through ``the Secretary'' and
inserting ``The Secretary'';
(B) in subparagraph (E), by striking ``Beginning on''
and all that follows through ``school food
authorities'' and inserting ``School food
authorities''; and
(C) in subparagraph (F)(iii)--
(i) in subclause (I), by inserting ``(as in
effect on the day before the date of the
enactment of the Improving Child Nutrition and
Education Act of 2016)'' after ``subparagraph
(A)(ii)''; and
(ii) by adding at the end the following:
``(III) Sunset.--The Secretary shall
return to the general fund of the
Treasury any funds that were made
available under this subparagraph but
not obligated by a State agency as of
September 30, 2016.''; and
(2) by adding at the end the following:
``(4) Announcements.--With respect to reimbursement rates
described in this subsection, the Secretary shall announce the
rates and, to the maximum extent practicable, any associated
guidance by February 15 of the school year prior to the school
year for which the rates and guidance will become effective.''.
SEC. 102. REPEAL OF NUTRITION PROMOTION.
Section 5 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1754) is repealed.
SEC. 103. DIRECT FEDERAL EXPENDITURES.
Section 6 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1755) is amended--
(1) in subsection (c)--
(A) by striking ``(c)(1)(A) The national average''
and all that follows through ``(D) Among those
commodities'' and inserting the following:
``(c) Calculation of Total Assistance.--
``(1) National average value.--
``(A) In general.--Subject to subparagraphs (B) and
(C), the national average value of donated foods, or
cash payments in lieu thereof, shall be equal to the
quotient obtained by dividing, not later than February
15 of each year for the upcoming school year--
``(i) the total funds available in the
preceding school year under section 4, this
section, and section 11; by
``(ii) the number of lunches served in the
preceding school year in all schools
participating in the school lunch program under
this Act.
``(B) Adjustment.--
``(i) In general.--The value determined under
subparagraph (A) shall be adjusted by the
annual percentage change in a 3-month average
value of the Producer Price Index for Foods
Used in Schools and Institutions of the Bureau
of Labor Statistics (in this subparagraph
referred to as the `Index') for the preceding
September, October, and November.
``(ii) Requirement.--An adjustment under
clause (i) shall be computed to the nearest \1/
4\ cent.
``(iii) Index.--
``(I) In general.--The Index shall be
computed using 5 major food components
in the Index (cereal and bakery
products, meats, poultry and fish,
dairy products, processed fruits and
vegetables, and fats and oils).
``(II) Components.--Each component
described in subclause (I) shall be
weighted using the same relative weight
as determined by the Bureau of Labor
Statistics.
``(iv) Minimum amount of commodity
assistance.--Not less than 12 percent of the
value adjusted in accordance with this
subparagraph shall be provided in the form of
commodity assistance.
``(C) Insufficient amounts.--If amounts available to
carry out section 4, this section, and section 11 are
insufficient to meet the requirements of such sections
for a school year, the Secretary shall, to the extent
necessary, use the authority provided under section
14(a) to meet the requirements for the school year.
``(D) Amount for each state.--For each school year,
the total commodity assistance or cash in lieu thereof
available to a State for the school lunch program shall
be equal to the product obtained by multiplying--
``(i) the number of lunches served in such
State in the most recent school year for which
data are available; by
``(ii) the rate determined under
subparagraphs (A) and (B).
``(E) Special emphasis.--Among those commodities'';
and
(B) in paragraph (1), by striking ``(E)
Notwithstanding'' and inserting the following:
``(F) Minimum quantity of donated foods.--
Notwithstanding'';
(2) by striking subsection (e); and
(3) by redesignating subsection (f) as subsection (e).
SEC. 104. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.
Section 9 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1758) is amended--
(1) by striking the section heading and designation and all
that follows through the end of paragraph (1) in subsection (a)
and inserting the following:
``SEC. 9. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.
``(a) Requirements.--
``(1) Technical assistance and training.--The Secretary shall
provide--
``(A) technical assistance and training to schools
participating in the school lunch program to assist the
schools in complying with the nutritional requirements
prescribed by the Secretary pursuant to subsection (f)
and in providing appropriate meals to children with
medically certified special dietary needs, including
food allergies or other special dietary needs of
individual children, including religious dietary
restrictions; and
``(B) additional technical assistance to schools that
are having difficulty maintaining compliance with the
requirements.'';
(2) in subsection (a)--
(A) in paragraph (2), by adding at the end the
following:
``(D) Fluid milk considerations.--In determining
varieties of fluid milk that shall be available with
school meals programs under this Act and section 4 of
the Child Nutrition Act of 1966 (42 U.S.C. 1773) and
outside of the school meal programs, the Secretary, not
later than 90 days after the date of enactment of the
Improving Child Nutrition and Education Act of 2016,
shall carry out the following:
``(i) Consider the critical nutrient needs of
children who may be at risk for inadequate
intake of the recommended daily servings of
milk and dairy products under the most recent
Dietary Guidelines described in subparagraph
(A)(i) and conform the applicable regulations
to such guidelines.
``(ii) Analyze milk consumption data and
trends for school-aged children, and to the
extent practicable, increase actual milk
consumption in schools in a manner consistent
with the number of servings recommended under
such Dietary Guidelines, and ensure that
schools may offer any type of milk with fat
levels that are in compliance with such Dietary
Guidelines.
``(E) Milk variety considerations.--In determining
milk varieties eligible for schools to offer with
school meal programs under this Act and section 4 of
the Child Nutrition Act of 1966 (42 U.S.C. 1773) and
outside of the school meal programs, the Secretary
shall consider the most commonly available types,
sizes, containers, and varieties of milk in local,
regional, and national commercial markets from which
local educational agencies procure milk, to promote
competition and reduce milk waste.'';
(B) by striking ``(4) Provision of information'' and
all that follows through ``(C) Procurement and
processing of food service products and commodities.--
The Secretary'' and inserting the following:
``(4) Procurement and processing of food service products and
commodities.--The Secretary'';
(C) in paragraph (4) (as so designated)--
(i) by redesignating clauses (i) through
(iii) as subparagraphs (A) through (C),
respectively, and indenting appropriately; and
(ii) by redesignating subclauses (I) and (II)
as clauses (i) and (ii), respectively, and
indenting appropriately; and
(D) by adding at the end the following:
``(6) Emergency access to potable water.--
``(A) In general.--To ensure that children have
access to potable water during meal service, the
Secretary may award funds to State agencies to assist
such agencies in providing bottled water for a period
of not more than 90 days (except as otherwise provided
under subparagraph (C)) when--
``(i) a major disaster or emergency has been
declared by the President under the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.); and
``(ii) the Secretary determines that there is
a significant risk to the health of school
children posed by the public water system (as
defined under section 1401(4) of the Safe
Drinking Water Act (42 U.S.C. 300f)).
``(B) Matching requirement.--To receive funds under
this paragraph, a State agency shall assure the
Secretary that the State will utilize donated water
supplies and State funding to supplement the funds that
the State receives under this paragraph to provide
bottled water as necessary for students.
``(C) Extension of authority.--If the risk described
in subparagraph (A)(ii) persists in a State after the
first 90-day period for which funds under this
paragraph are provided to such State, funds may be
provided under this paragraph to such State for an
additional 90-day period.
``(D) Funding.--Not more than $475,000 may be
provided under this paragraph for a fiscal year.'';
(3) in subsection (b)--
(A) in paragraph (2)(B)--
(i) in clause (i), by striking ``, and shall
contain only the family size income levels 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'';
(ii) in clause (ii), by inserting ``or
reduced price'' after ``free'';
(iii) in clause (iii)(I)--
(I) in item (aa), by striking ``and''
at the end;
(II) in item (bb), by striking the
period at the end and inserting ``;
and''; and
(III) by adding at the end the
following:
``(cc) individuals may report
alleged fraud to the Office of
the Inspector General of the
Department of Agriculture.'';
and
(iv) by adding at the end the following:
``(iv) Reporting of fraud.--The Secretary
shall ensure that the Internet website of the
Department of Agriculture prominently displays
a link to the Internet website of the Office of
the Inspector General of the Department and the
phone number of the Office of the Inspector
General through which an individual may report
any alleged fraud.
``(v) Application forms.--Not later than 120
days after the date of the enactment of the
Improving Child Nutrition and Education Act of
2016, the Secretary shall--
``(I) review a sample of application
forms, including paper and digital
forms, used to apply for participation
in the school lunch program authorized
under this Act and the school breakfast
program established by section 4 of the
Child Nutrition Act of 1966 (42 U.S.C.
1773);
``(II) provide to States guidance
relating to best practices, including a
standard application form local
educational agencies or schools may
use;
``(III) provide to States guidance
relating to how to improve the
application to ensure families
understand and can enroll in the school
lunch program and the school breakfast
program; and
``(IV) provide to States such
information as is necessary to ensure
that States understand school food
authorities may not--
``(aa) require or mandate
families apply for either
program;
``(bb) request that a family
apply for the program after the
parent or guardian has informed
the school that the family does
not want to participate in the
program or receive additional
information about the program
in that school year; or
``(cc) in the case of a
family that has not informed
the school about their choice,
request more than twice in that
school year that such family
apply for the program if such
family has not submitted an
application, except that
providing information about the
application (including how and
when the application will be
sent to parents and how to fill
out the application) shall not
count as a request to apply.'';
(B) in paragraph (3)--
(i) by striking subparagraph (D) and
inserting the following:
``(D) Verification.--
``(i) Standard verification of
applications.--
``(I) In general.--Beginning with the
second school year that begins after
the date of the enactment of the
Improving Child Nutrition and Education
Act of 2016, each school year, each
local educational agency shall verify
the eligibility of the children in a
portion of the household applications
approved for the school year by the
local educational agency, as of
November 1 of the school year, as
determined by the Secretary in
accordance with this subsection.
``(II) Sample size.--
``(aa) In general.--The
portion for a local educational
agency for a school year shall
equal the lesser of--
``(AA) 10,000; or
``(BB) 10 percent of
approved household
applications.
``(bb) Calculation.--Not
later than July 1 of each year,
the Secretary shall calculate
the sample size under this
subparagraph for each local
educational agency based on
data from the 2 most recent
school years available.
``(III) Sample selection.--
Applications shall be selected for
verification by the local educational
agency based on indications that
information relevant to eligibility is
inconsistent with the information
provided on the application, including
at a minimum the following:
``(aa) The household has
submitted information in
writing to the local
educational agency that is
inconsistent with the
information on the application.
``(bb) The information
provided on the application is
consistent with a pattern of
error or fraud detected by the
local educational agency, the
State agency, or the Secretary.
``(cc) For not more than \1/
4\ of the sample, students who
are directly certified or the
application provides a case
number (in lieu of income
information) showing
participation in--
``(AA) the
supplemental nutrition
assistance program
established under the
Food and Nutrition Act
of 2008 (7 U.S.C. 2011
et seq.); or
``(BB) a State
program funded under
the program of block
grants to States for
temporary assistance
for needy families
established under part
A of title IV of the
Social Security Act (42
U.S.C. 601 et seq.)
that the Secretary
determines complies
with standards
established by the
Secretary that ensure
that the eligibility
requirements under the
State program are
comparable to the
requirements for
participation in
accordance with this
Act and the Child
Nutrition Act of 1966
(42 U.S.C. 1771 et
seq.).
``(dd) For not more than \1/
4\ of the sample, the income
information provided on the
application is close to the
income limit for free or
reduced price meals, as
determined by the local
educational agency each year.
``(ee) Such other criteria as
is determined by the State.
``(IV) Additional verification of
applications.--If the number of
applications that match the criteria
described in subclause (III) is
insufficient to meet the number of
applications determined under subclause
(II), the local educational agency
shall select additional applications at
random.
``(ii) Verification for cause.--In addition
to conducting verification of a sample of
applications as described in clause (i), a
local educational agency may verify any
household application at any point in the
school year if the household application meets
the criteria described in item (aa), (bb), or
(cc) of clause (i)(III) or such other criteria
as is determined by the Secretary.
``(iii) Compliance.--In conducting
verification under this subparagraph, a State
agency or local educational agency shall not
select applications in a manner that violates
section 12(l)(4)(M).'';
(ii) in subparagraph (F)--
(I) in clause (i), in the matter
preceding subclause (I), by striking
``may'' and inserting ``shall''; and
(II) by striking clauses (iv) and (v)
and inserting the following:
``(iv) Direct certification.--If eligibility
for a household application is confirmed using
direct verification, each child in the
household shall be considered directly
certified.'';
(iii) in subparagraph (G)--
(I) in clause (iii), by striking ``1
attempt'' and inserting ``2 attempts'';
and
(II) by adding at the end the
following:
``(v) Validity of verification results.--
``(I) Definitions.--In this clause:
``(aa) Approved
application.--The term
`approved application' includes
each student on a paper or
electronic application approved
by the local educational agency
for free or reduced price
lunches for the school year.
``(bb) Response rate.--The
term `response rate' means the
percentage of the approved
household applications of the
local educational agency for
which verification information
was obtained after attempted
verification under this
section.
``(cc) Nonresponse rate.--The
term `nonresponse rate' means
the percentage of the approved
household applications of the
local educational agency for
which verification information
was not obtained after
attempted verification under
this section.
``(dd) Confirmation rate.--
The term `confirmation rate'
means the percentage of
approved household applications
and directly certified students
selected by the local
educational agency for
verification under this
subparagraph that had the level
of benefits confirmed as a
result of information obtained
during the verification
process.
``(II) Reductions.--
``(aa) In general.--The
sample under subparagraph
(D)(i)(II) may be reduced by
not more than the lesser of
2,500 applications or 2.5
percentage points for each of
the criteria described in
subclause (III) that are met by
the local educational agency.
``(bb) Limitation.--
Reductions under item (aa) may
result in a sample of not less
than 2.5 percent of approved
applications.
``(III) Criteria.--The criteria
referred to in subclause (II)(aa) are
as follows:
``(aa) Response rate.--For
the preceding school year the
response rate was more than 85
percent.
``(bb) Nonresponse rate
reduction.--The nonresponse
rate was at least 15 percent
below the nonresponse rate for
the second preceding school
year.
``(cc) Confirmation rate.--
The confirmation rate is 100
percent or has increased by at
least 5 percent over the two
most recent school years for
which data is available.
``(dd) Administrative burden
reduction.--
``(AA) In general.--
The local educational
agency receives a
determination from the
Secretary that
compliance with
subparagraph (D)(i)(II)
would render the local
educational agency
unable to administer
the program.
``(BB) Requirement.--
The Secretary shall
develop a system by
which to measure cost
and administrative
burden associated with
compliance with
subparagraph (D)(i)(II)
and shall consider
requests from local
educational agencies
based on that
system.'';
(iv) in subparagraph (H)(i)--
(I) in subclause (I), by striking
``November'' and inserting
``December''; and
(II) in subclause (II), by striking
``December'' and inserting ``January'';
(v) in subparagraph (K)(i), in the matter
preceding subclause (I), by striking ``data
mining'' and inserting ``analyses of data'';
(vi) by amending subparagraph (K)(ii) to read
as follows:
``(ii) Report.--Not later than two years
after the date of the enactment of the
Improving Child Nutrition and Education Act of
2016, the Secretary shall submit to the
Committee on Education and the Workforce of the
House of Representatives and Committee on
Agriculture, Nutrition, and Forestry of the
Senate a report describing--
``(I) the results of the feasibility
study conducted under this subsection;
``(II) how a computer system--
``(aa) used to reduce
verification and certification
errors can be adapted to
further reduce errors; and
``(bb) using technology
described in clause (i) could
be implemented; and
``(III) a plan to adapt or implement
such system.'';
(vii) by adding at the end the following:
``(L) Enhanced verification methods.--
``(i) Requirements.--
``(I) In general.--The Secretary
shall help local educational agencies
engage in alternative and enhanced
methods of certification and
verification to increase the
effectiveness of the process, reduce
certification errors, and produce more
meaningful management information to
facilitate local educational agency,
State, and Federal oversight with
respect to program integrity in the
school meal programs.
``(II) Best practices.--The Secretary
shall encourage local educational
agencies to adopt proven best practices
with regard to verification.
``(III) Selection for
implementation.--To the extent
necessary to refine alternative
verification methods or assess the
feasibility, impact, or efficacy of the
methods prior to recommending the
methods, the Secretary shall select
States and local educational agencies
that have requested to participate in
the development of best practices to
implement methods subject to clause
(iii).
``(ii) Requirements.--The certification and
verification methods shall--
``(I) meet such terms and conditions
as the Secretary considers appropriate;
and
``(II) except as otherwise provided
in this subparagraph, be conducted in
accordance with this subsection.
``(iii) Selection criteria.--In selecting
methods, including methods for implementation
under clause (i)(III), the Secretary shall--
``(I) consider the degree to which
the method would improve certification
accuracy and program integrity within
the school meal programs;
``(II) consider whether there is
evidence that the method could be
replicated easily by other local
educational agencies or political
subdivisions;
``(III) consider whether the method
would increase the efficiency and
effectiveness of the verification
process;
``(IV) consider whether the local
educational agency or State agency has
a demonstrated capacity to undertake
the method and to produce the data
necessary to support the evaluation;
and
``(V) ensure the methods implemented
under clause (i)(III) are implemented
across a range of geographic areas and
States, including rural and urban
areas, and, when considered as a group,
allow for an assessment of a range of
strategies regarding verification
sample selection, obtaining eligibility
documentation, and the entity
conducting verification, including
strategies that--
``(aa) use analyses of data,
particularly in large local
educational agencies to develop
algorithms to select error-
prone applications for
verification;
``(bb) use third-party data
sources to confirm eligibility
prior to conducting household
verification under subparagraph
(G);
``(cc) rely on alternative
methods, including message
testing, of communicating with
households to assess which
methods most effectively result
in household responses;
``(dd) rely on agencies or
organizations other than the
local educational agency to
conduct verification, including
at a minimum the State agency;
and
``(ee) could reduce the
administrative burden of
conducting verification for a
consortia of local educational
agencies, including shared
online applications and shared
verification procedures.
``(iv) Reduction.--Notwithstanding the
limitation in subparagraph (D)(v)(II)(bb), a
local educational agency that uses the
strategies described in clause (iii)(V) may
qualify for a reduction of additional 0.25
percentage points under such subparagraph,
creating a floor of 2.25 percent for the
verification sample size.'';
(C) in paragraph (4)--
(i) in subparagraph (B), by inserting ``,
including a child enrolled in a nonpublic
school,'' after ``under which a child'';
(ii) by striking subparagraph (E);
(iii) by redesignating subparagraphs (F) and
(G) as subparagraphs (E) and (F), respectively;
and
(iv) in subparagraph (E) (as so
redesignated)--
(I) in clause (i), by striking
``means--'' and all that follows
through ``each school year thereafter''
in subclause (III) and inserting
``means, for the school year'';
(II) in clause (ii)--
(aa) in subclause (II), by
striking ``and'' at the end;
(bb) in subclause (III), by
striking the period at the end
and inserting a semicolon; and
(cc) by adding at the end the
following:
``(IV) include in the report required
under section 4301 of the Food,
Conservation, and Energy Act of 2008
(42 U.S.C. 1758a), a description of
technical assistance provided to and
progress of States identified under
subclause (I) toward implementing the
measures and meeting the goals
established by the State as required
under clause (iii)(II); and
``(V) provide guidance to schools on
providing meals and collecting payment
for any student who is no longer able
to receive meals because the student
did not provide a response to the
verification request for the student's
school meal application.''; and
(III) in clause (iii)(II)(bb), by
inserting ``within 3 school years''
after ``those measures'';
(D) in paragraph (15)--
(i) in subparagraph (B)(i), by striking
``section 9(b)(1)(A) of this Act'' and
inserting ``paragraph (1)(A)''; and
(ii) in subparagraphs (C)(ii) and (D), by
striking ``paragraph (4)(G)'' both places it
appears and inserting ``paragraph (4)(F)'';
(4) in subsection (f)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``and''
at the end;
(ii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) meet minimum nutritional requirements
prescribed by the Secretary on the basis of tested
nutritional research specifically conducted to
understand the impact for children, except that the
minimum nutritional requirements--
``(i) may not prohibit the substitution of
foods to accommodate the medical, including
allergies, or other special dietary needs of
individual students, including religious
dietary restrictions; and
``(ii) shall, as possible in accommodating
the medical or other special dietary needs of
such students, be based on the weekly average
of the nutrient content of school lunches.'';
(B) in paragraph (3)(A)(ii), by striking ``paragraph
(3)'' and inserting ``paragraph (2)'';
(C) by striking paragraph (4) and inserting the
following:
``(4) Regulations, review, and relief.--
``(A) Review regulations.--The Secretary shall, at
least every 3 years--
``(i) review the regulations promulgated in
accordance with this Act for the school meal
programs described in paragraph (1) (in this
paragraph referred to as the `school meal
programs');
``(ii) with consultation from a parent, a
pediatrician, a dietician who conducts child
nutrition research, and stakeholders in schools
(including school leaders, school boards, local
educational agency administrators, and school
food nutrition directors), certify that the
regulations are--
``(I) appropriate for the age of
children participating in the school
meal programs, including for the health
of children;
``(II) in compliance with the
preponderance of the latest high-
quality research based on school-aged
children conducted to examine the
health and safety of children
participating in the school meal
programs;
``(III) not increasing the cost to
implement the requirements of the
school meal programs (which costs shall
be considered the total costs to
implement the regulations and not
limited to the cost of any changes to
the regulations); and
``(IV) not discouraging students from
participating in the school meal
programs;
``(iii) if necessary to meet the requirements
of clause (ii), revise the regulations to meet
such requirements;
``(iv) not later than 30 days prior to
publication under clause (v)(II) of the revised
regulations--
``(I) submit the revised regulations
for comment to the Committee on
Education and the Workforce of the
House of Representatives and the
Committee on Agriculture, Nutrition,
and Forestry of the Senate;
``(II) review any comments provided
under subclause (I), and further revise
the regulations, if necessary to ensure
the revised regulations are in
compliance with clause (i); and
``(III) provide a public notice and
comment period of not less than 60
days, review the public comments, and
further revise the regulations, if
necessary to ensure the revised
regulations are in compliance with
clause (i); and
``(v) publish in the Federal Register, and
submit to the Committee on Education and the
Workforce of the House of Representatives and
the Committee on Agriculture, Nutrition, and
Forestry of the Senate--
``(I) a notice that no changes to the
regulations are required and the
certification described in clause (ii);
or
``(II) the regulations, as revised
under clause (iv), and the
certification described in clause (ii).
``(B) First review.--The first review required under
subparagraph (A) after the date of enactment of the
Improving Child Nutrition and Education Act of 2016
shall--
``(i) be concluded not later than December
31, 2016;
``(ii) include a review of the sodium and
whole grain requirements under the regulations
for the school meal programs; and
``(iii) ensure that such requirements--
``(I) maintain the sodium target
requirements established for the school
lunch program and school breakfast
program under sections 210.10(f) and
220.8(f) of title 7, Code of Federal
Regulations, respectively (as such
regulations are in effect on the day
before the date of the enactment of the
Improving Child Nutrition and Education
Act of 2016) until such requirements
are revised in accordance with
subclause (II); and
``(II) in a case in which the sodium
target requirements are revised as a
result of the review described in this
subparagraph, ensure that such a
revision--
``(aa) is based on health
requirements for children;
``(bb) is supported by a
majority of research focused on
school-aged children that
directly establishes, through
well-controlled randomized
trials or well-designed, long-
term observational studies,
that sodium reductions are both
safe and produce beneficial
health outcomes for such
children;
``(cc) is able to support
food safety and be produced in
a manner that does not
significantly increase the cost
of food; and
``(dd) does not take effect
until 3 years after the
revision has been published in
the Federal Register.
``(C) Special rule for regulation relief for family
meal days.--
``(i) In general.--Subject to clause (ii),
the Secretary shall issue guidance, or
promulgate new rules as necessary, to ensure
each State agency provides guidance to school
food authorities with respect to the allowance
of up to 4 family meal days, as designated by a
school, which shall be exempt from the meal
pattern rules specified under the regulations
for the school meal programs, during which the
school may--
``(I) invite parents to participate
in special meals, such as a
Thanksgiving meal or a parents' day
meal; and
``(II) provide additional nutrition
education, such as recipe building or
healthy cooking classes to parents and
families on making healthy meal options
at home, which may be provided by an
entity or individual other than a
school food service director or food
service personnel.
``(ii) Clarification.--In issuing guidance or
promulgating rules under clause (i), the
Secretary shall not establish any requirements
or limitations for family meal days, except to
ensure that schools have the authority to hold
up to 4 family meal days per school year.
``(D) Regulation flexibility.--The Secretary shall
provide guidance, when there is difficulty in procuring
food to comply with the regulations, to allow a school
food authority to substitute food items across food
groups and subgroups, including in-season, locally-
produced fruits and vegetables, notwithstanding the
food-based meal patterns and menu planning requirements
of this subsection, provided that the school food
authority continues to meet applicable daily and weekly
nutrient and dietary requirements under this
subsection.''; and
(D) by adding at the end the following:
``(5) Accommodations.--The accommodation requirements
described in paragraph (1)(C)(i) shall apply to all programs
under this Act and all programs under the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.), except for section 17 of such
Act (42 U.S.C. 1786).''.
(5) by striking subsections (g) and (k);
(6) by redesignating subsections (h), (i), (j), and (l) as
subsections (g), (h), (i), and (j), respectively; and
(7) in subsection (g) (as so redesignated), by striking
``2011 through 2015'' each place it appears in paragraphs (3)
and (4) and inserting ``2017 through 2021''.
SEC. 105. MISCELLANEOUS PROVISIONS.
(a) Universal Meal Service in High Poverty Areas Threshold.--Section
11(a)(1)(F) of the Richard B. Russell National School Lunch Act (42
U.S.C. 17659a(a)(1)(F)) is amended--
(1) in clause (ii)(I), in the matter preceding item (aa), by
inserting ``(including a subset of schools within the local
educational agency if the result obtained by dividing the total
number of the identified students enrolled in such schools by
the total number of all students enrolled in such schools, is
above the threshold in clause (viii))'' after ``on behalf of
certain schools''; and
(2) by striking clause (viii) and inserting the following:
``(viii) Threshold.--
``(I) In general.--For each school year beginning on
or after July 1, 2017, the Secretary shall use a
threshold that is not less than 60 percent.
``(II) Community eligibility selection transition.--
In the case of a school that received special
assistance payments under this subparagraph during the
school year immediately prior to the school year in
which the Improving Child Nutrition and Education Act
of 2016 was enacted, such school shall, not later than
June 30, 2018--
``(aa) meet the threshold described in
subclause (I); or
``(bb) transition from receiving payments
under this subparagraph in accordance with
subclause (III).
``(III) Technical assistance.--In the case of schools
described in subclause (II)(bb), the Secretary shall
provide technical assistance to ensure that such
schools are able to effectively and efficiently
transition from receiving payments under this
subparagraph to receiving special assistance payments
otherwise made available under this paragraph,
including communicating the application process to
families in a timely manner to ensure continuity of
services for eligible families.''; and
(3) in clause (xi)--
(A) in subclause (II), by striking ``Not later than
December 31, 2013'' and inserting ``Not later than one
year after the date of enactment of the Improving Child
Nutrition and Education Act of 2016''; and
(B) in subclause (III), by striking ``If the
Secretary uses the authority provided in clause
(vii)(II)(bb) to use a different multiplier for
different schools or local educational agencies, for
each school year beginning on or after July 1, 2014,
not later than April 1, 2014'' and inserting ``If the
Secretary uses the authority provided in clause (vii),
for each school year beginning on or after July 1,
2017, not less than one year prior to the Secretary
electing to use such authority''.
(b) Reimbursement Rate.--Section 11(a)(3)(A) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 17659a(a)(3)(A)) is
amended by striking ``July 1'' and inserting ``February 15''.
(c) Definition of State Agency.--Paragraph (9) of section 12(d) of
the Richard B. Russell National School Lunch Act (42 U.S.C. 1760(d)(9))
is amended to read as follows:
``(9) State agency.--The term `State agency' means--
``(A) the chief State school officer (such as the
State superintendent of public instruction,
commissioner of education, or similar officer);
``(B) a board of education controlling the State
department of education;
``(C) the State Commissioner or individual who
administers agricultural programs in the State; or
``(D) a State official the State legislature
designates to administer the programs under this
Act.''.
(d) Procurement Training.--Section 12(m)(4) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1760) is amended by striking
``2015'' and inserting ``2021''.
(e) Price for a Paid Lunch.--Section 12 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1760) is further amended by
striking subsection (p) and redesignating subsections (q) and (r) as
subsections (p) and (q), respectively.
SEC. 106. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
Section 13 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1761) is amended--
(1) in subsection (a)--
(A) in paragraph (4), by adding at the end the
following:
``(C) Educational and enrichment activities.--In
determining participation under subparagraph (A), the
State shall prioritize applications that include an
educational or enrichment activity, or demonstrate a
partnership with an entity providing such activity.'';
(B) by amending paragraph (8) to read as follows:
``(8) Streamlining.--
``(A) Seamless summer.--Except as otherwise
determined by the Secretary, a service institution that
is a public or private nonprofit school food authority
may provide summer or school vacation food service in
accordance with applicable provisions of law governing
the school lunch program established under this Act or
the school breakfast program established under the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
``(B) Summer and cacfp at-risk streamlining.--
``(i) In general.--Notwithstanding
subsections (b)(2) and (c)(1), in order for
States and service institutions to operate more
effectively through the year, a State may elect
to streamline and simplify program operations
and requirements by reducing paperwork and
other administrative burdens, and consolidating
training, monitoring, and other requirements,
while retaining appropriate measures of program
integrity. Such State election may include the
utilization of technical assistance provided to
the State under clause (iv) and shall apply to
service institutions that--
``(I) are described in paragraphs (6)
or (7);
``(II) provide care to at-risk school
children (as defined in section
17(r)(2)), and may be eligible child
care centers or homes (as defined under
section 17(a)(2)); and
``(III) are not public schools.
``(ii) Streamlined reimbursement.--States
that demonstrate streamlined and simplified
program operations under clause (i) for service
institutions, and that are selected by the
Secretary under clause (v), shall streamline
reimbursements for such service institutions by
providing reimbursements for--
``(I) lunch and either breakfast or a
supplement served to at-risk school
children--
``(aa) during each day of
operation during the months of
May through September; and
``(bb) in the case of a
service institution that
provides meal service to such
children who are not in school
for a period during the school
year due to a natural disaster,
building repair, court order,
or similar cause, at any time
during such period in that
school year; and
``(II) up to 1 meal and 1 supplement
served to at-risk school children
during each day of operation outside of
school hours during the regular or
continuous school calendar, including
after school, weekends, and school
holidays.
``(iii) Rate of reimbursement.--The State
shall reimburse service institutions seeking
reimbursement under this subparagraph at a rate
that is consistent with section 17(r)(4)(B).
``(iv) Technical assistance.--
``(I) In general.--Not later than
December 31, 2016, the Secretary shall
develop guidance and provide technical
assistance for States and service
institutions to assist in the
implementation of this subparagraph,
including by identifying areas of
programmatic overlap in the program
under this section and the child and
adult care food program under section
17 in order for States to simplify the
administration and oversight of each
such program.
``(II) Guidance.--Such guidance shall
include information on possible ways
States may ensure participation under
this subparagraph will lead to reduced
paperwork and other administrative
burdens, including recommendations for
streamlined program applications,
reporting requirements, inspections,
and other areas of potential
duplication, while retaining
appropriate measures of program
integrity.
``(III) Other states.--Information
provided under this clause shall be
provided in such a manner that any
State may identify areas of
programmatic overlap, and reduce
paperwork and other burdens, even if
such State has not yet been selected to
provide reimbursements to service
institutions in accordance with this
subparagraph.
``(v) Successful implementation.--
``(I) In general.--A State seeking to
provide reimbursements in accordance
this subparagraph shall demonstrate to
the Secretary the ways in which the
State has used the election under
clause (i) to reduce paperwork and
other administrative burdens while
retaining appropriate measures of
program integrity, which may include
the utilization of technical assistance
provided to the State under clause
(iv).
``(II) Initial selection of states.--
``(aa) In general.--The
Secretary shall select not more
than 5 States to provide
reimbursements in accordance
with this subparagraph,
beginning in May 2017, if such
States have the capacity to
effectively implement this
subparagraph, as demonstrated
by streamlining and simplifying
program operations in
accordance with subclause (I).
``(bb) Update.--When
appropriate, but not later than
May 31, 2018, and consistent
with subclause (V)(bb), the
Secretary shall update the
information under clause (iv).
``(III) Next selection of states.--
``(aa) In general.--If the
Secretary determines that
additional States have the
capacity described in subclause
(I) and additional best
practices could be provided by
further implementation of this
subparagraph, the Secretary may
select not more than 5 such
States to provide
reimbursements in accordance
with this subparagraph
beginning in October 2018.
``(bb) Update.--Not later
than September 30, 2019, and
consistent with subclause
(V)(bb), the Secretary shall
update the information under
clause (iv) to reflect the
further implementation of this
subparagraph.
``(IV) Additional selection of
states.--The Secretary may select
additional States to provide
reimbursements in accordance with this
subparagraph beginning in May 2020, and
each year thereafter, if such States
have the capacity described in
subclause (I).
``(V) Best practices.--
``(aa) In general.--As a
condition of being selected
under this clause, a State
shall provide, in such time and
in such manner as the Secretary
may reasonably require,
information to the Secretary
regarding best practices of
successful implementation of
this subparagraph.
``(bb) Update.--The Secretary
shall continue to periodically
update the information under
clause (iv) to include the best
practices provided under item
(aa) for continued successful
implementation of this
subparagraph.'';
(C) by striking paragraphs (9), (10), and (12); and
(D) by redesignating paragraph (11) as paragraph (9);
and
(E) by adding at the end the following:
``(10) Temporary allowance for off-site consumption.--
``(A) In general.--Beginning in May 2017, the
Secretary shall grant requests made by a State to allow
children who are participating in the program but for
whom an operation under paragraph (12) is not
available, to consume meals away from a congregate
feeding site when the program is available to such
children at the site, but--
``(i) the site is closed due to extreme
weather conditions;
``(ii) violence or other public safety
concerns in the area temporarily prevent
children from traveling safely to the site; or
``(iii) other emergency circumstances, as
defined by the State, prevent access to the
site.
``(B) Limitations.--In granting a request under
subparagraph (A), the Secretary shall ensure that--
``(i) allowances are issued by a State only
between the months of May through September;
``(ii) allowances are granted in the most
efficient and effective manner to ensure
programs and States can quickly respond and
adapt to the circumstances described in clauses
(i) through (iii) of subparagraph (A); and
``(iii) once an allowance is issued, any meal
in which a component is offered but not served
is not reimbursed under subsection (b).
``(C) State plan.--As part of the management and
administration plan described in subsection (n), a
State shall describe--
``(i) the approval process, including the
timeline, the State would undertake to issue an
allowance;
``(ii) standards for what circumstances merit
an allowance, how long an allowance will last,
and when an allowance may be extended; and
``(iii) how the program would operate once an
allowance is issued.
``(11) Off-site consumption.--
``(A) In general.--Beginning in May 2017, a State may
elect for service institutions to carry out an off-site
consumption operation in the State to provide summer
food service program meals to children eligible to
participate in the program that such children may
consume away from a congregate feeding site.
``(B) Availability.--The operation described in
subparagraph (A) shall be available to a child
described in subparagraph (A) only if the child lives
in an area that is eligible to participate in the
summer food service program, but that is not currently
being served, and such area--
``(i) is rural, as defined by the State; or
``(ii) is not rural, and is an area in which
more than 80 percent of students are certified
as eligible for free or reduced price meals.
``(C) Administration.--
``(i) In general.--The following shall apply
to an operation described in subparagraph (A):
``(I) The number of meals served to
each child in a single meal service is
limited to 2 meals, and the number of
meals in a seven-day period shall be
limited to 10 meals.
``(II) Any meal served shall meet the
same standards for nutrition, safety,
and quality as a meal served at a
congregate feeding site.
``(III) Any meal in which a component
is offered but not served shall not be
reimbursed under subsection (b).
``(IV) Each State shall give priority
to children who are living where
congregate feeding sites are not
accessible.
``(V) Nothing in this section shall
be construed to allow congregate
feeding sites to cease from operating
in order to be replaced by off-site
consumption operations under this
paragraph.
``(VI) A State shall not--
``(aa) operate an off-site
consumption operation
simultaneously in the same
service area with a congregate
feeding site;
``(bb) use more than 10
percent of funds received for
administrative expenses to
carry out this paragraph; or
``(cc) implement an off-site
consumption operation in all
service areas in the State.
``(ii) State plan.--Each State choosing to
provide summer food service program meals
through an off-site consumption operation under
this paragraph shall describe how the State
plans to implement the operation in the
management and administration plan in
subsection (n), which shall include information
on how the State will--
``(I) document operation, including
implementation;
``(II) determine the method for
selecting eligible areas and eligible
service institutions to most
effectively deliver summer food service
program meals in the manner described
in this paragraph;
``(III) design mechanisms by which
households with children eligible to
participate in the program could
indicate a need for meal service
through such an operation;
``(IV) develop an appropriate
maintenance of effort requirement for
service institutions currently
operating congregate feeding sites;
``(V) develop requirements for
implementing safety and security
measures to ensure that safety and
security through such an operation is
equivalent to such measures at a
congregate feeding site; and
``(VI) periodically reevaluate the
potential for children to be served at
a congregate feeding site.'';
(2) in subsection (k)(3)--
(A) by striking ``(3) To provide'' and inserting the
following:
``(3) Nutritional and food quality monitoring.--
``(A) In general.--To provide''; and
(B) by adding at the end the following:
``(B) Insufficient funds.--
``(i) In general.--If funds provided under
subparagraph (A) are insufficient to pay for
State or local health department inspections,
and to reinspect facilities and deliveries to
test meal quality, as required under this Act
or the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.), State agencies may elect to use
funds described in paragraph (1) for those
activities.
``(ii) Limitation.--Funds described in clause
(i) shall not exceed the lesser of--
``(I) actual costs; or
``(II) 1 percent of program funds.'';
(3) by amending subsection (n) to read as follows:
``(n) State Plan.--Each State desiring to participate in the program
shall notify the Secretary by January 1 of each year of its intent to
administer the program and shall submit, by February 15, a management
and administration plan for the program for the fiscal year, which
shall include, at a minimum--
``(1) the State's administrative budget for the fiscal year;
and
``(2) the State's plans for--
``(A) use of program funds and additional State or
private funds to reach children with the greatest need,
to the maximum extent practicable;
``(B) strengthening the congregate feeding model for
program delivery, including a process for identifying
gaps in service and barriers to access;
``(C) administrative and fiscal plans for using the
allowance described in subsection (a)(10) and, if
applicable, the option described in subsection (a)(11)
to assist service institutions in reaching children
with the greatest need;
``(D) providing technical assistance and training for
eligible service institutions;
``(E) monitoring and inspecting service institutions,
feeding sites, and food service management companies
and ensuring that such companies do not enter into
contracts for more meals than they can provide
effectively and efficiently, and in compliance with the
program;
``(F) timely and effective action against program
violators; and
``(G) ensuring fiscal integrity by auditing service
institutions not subject to auditing requirements
prescribed by the Secretary.''; and
(4) in subsection (r), by striking ``2015'' and inserting
``2021''.
SEC. 107. COMMODITY DISTRIBUTION PROGRAM.
Section 14 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1762a) is amended--
(1) in subsection (f), in the third sentence--
(A) by striking ``section 9(a) of this Act'' and
inserting ``section 9(f)''; and
(B) by striking ``represent the four basic food
groups, including'' and inserting ``include''; and
(2) by striking subsection (h).
SEC. 108. CHILD AND ADULT CARE FOOD PROGRAM.
(a) In General.--Section 17 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1766) is amended--
(1) in subsection (a)--
(A) in paragraph (2)--
(i) in subparagraph (B), in the matter
preceding clause (i), by striking ``if'' and
inserting ``if, during the month preceding the
date of submission of the applicable initial
application or reapplication'';
(ii) in subparagraph (E), by striking ``and''
at the end;
(iii) in subparagraph (F), by striking the
period at the end and inserting a semicolon;
and
(iv) by adding at the end the following:
``(G) any public or licensed nonprofit private
residential child care institution (as defined in
subsection (v)(1)) that is not concurrently receiving
reimbursement under the school lunch program under this
Act or the school breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); and
``(H) any boarding school funded by the Bureau of
Indian Education that is not concurrently receiving
reimbursements under such school lunch program or
school breakfast program.''; and
(B) in paragraph (3), by striking ``subsection (r)''
and inserting ``subsections (r) and (v)''; and
(C) by adding at the end the following:
``(7) Duration of determination.--With respect to an
institution described in paragraph (2)(B), an eligibility
determination under this subsection shall remain in effect for
a period of 4 months after the date such institution is
approved by the State under subsection (d).'';
(2) in subsection (b), by striking ``For the fiscal year
ending September 30, 1979, and for each subsequent fiscal year,
the'' and inserting ``The'';
(3) in subsection (d)--
(A) in paragraph (4)--
(i) by striking ``In consultation'' and
inserting the following:
``(A) In general.--In consultation''; and
(ii) by adding at the end the following:
``(B) Reports.--Each sponsoring organization shall,
on an annual basis, submit to the applicable State
agency a report that describes, with respect to the
preceding fiscal year--
``(i) the expenditures of program funds by
the sponsoring organization; and
``(ii) the amount of meal reimbursements
retained by the sponsoring organization for
administrative costs, if applicable.''; and
(B) in paragraph (5), by adding at the end the
following:
``(F) Serious deficiency process.--
``(i) In general.--Not later than 1 year
after the date of the enactment of the
Improving Child Nutrition and Education Act of
2016, the Secretary shall review the serious
deficiency process for the program under this
section.
``(ii) Review.--In carrying out clause (i),
the Secretary shall review the processes for,
and those involved in--
``(I) a finding of serious
deficiency, including--
``(aa) what measures
automatically result in a
finding of serious deficiency;
and
``(bb) how differentiation is
being made between--
``(AA) a reasonable
margin of human error
and systematic or
intentional
noncompliance; and
``(BB) State-specific
requirements and
Federal law and
regulations, if
applicable;
``(II) appeals and mediation in any
case in which there is a finding of
serious deficiency;
``(III) determining the circumstances
under which a corrective action plan is
acceptable;
``(IV) information sharing between
Departments of Agriculture and Health
and Human Services; and
``(V) termination and
disqualification, including maintenance
of the list under subparagraph (E).
``(iii) Guidance and regulations.--
``(I) In general.--After conducting
the review under this subparagraph, the
Secretary shall use findings from such
review to assist sponsoring
organizations, State agencies, and the
Food and Nutrition Service in ensuring
a fair, uniform, and effective
administration of the serious
deficiency process, while retaining
program integrity, by issuing guidance,
and, as appropriate, regulations, on
the following:
``(aa) Clarity on the
different measures for
noncompliance.
``(bb) Parameters for an
appeals process to review a
finding of serious deficiency
or a determination that a
corrective action plan is
inadequate.
``(cc) Adequate timeframes
under a corrective action plan
for compliance that are
consistent for all types of
institutions participating in
the program, including family
or group day care homes.
``(II) Information sharing.--Within
such guidance or regulation, and as
soon as practicable, the Secretary
shall ensure information about findings
are shared with the Secretary of Health
and Human Services as to allow for
maximum health, safety, oversight, and
monitoring of participating child care
and Head Start facilities.'';
(4) in subsection (f)--
(A) in paragraph (2)(C), by adding at the end the
following:
``(iii) Carryover funds.--Not more than 10
percent of the amount reserved by sponsoring
organizations under clause (i) for
administrative expenses for a fiscal year may
remain available for obligation or expenditure
in the succeeding fiscal year for
administrative purposes.''; and
(B) in paragraph (3)--
(i) by striking subparagraph (C); and
(ii) by redesignating subparagraphs (D) and
(E) as subparagraphs (C) and (D), respectively;
(5) in subsection (g), by striking paragraph (6) and
inserting the following:
``(6) Use of donated foods.--To the maximum extent
practicable, each institution shall use in its food service
foods that are donated by the Secretary.'';
(6) in subsection (h)(1), by adding at the end the following:
``(E) Engagement with state and local agencies.--
``(i) In general.--Subject to clause (ii),
institutions participating in the program under
this section may engage with State agencies and
local educational agencies to use existing
infrastructure to enhance the use of, and
increase access to, donated commodities.
``(ii) Effect of subparagraph.--Nothing in
this subparagraph shall compel a local
educational agency unwillingly to serve any
institution participating in the program under
this section.'';
(7) in subsection (i)(2)(B)(i), by striking ``if the State
agency demonstrates'' and all that follows through the period
at the end and inserting ``if the State agency demonstrates
that the State agency can use funds to improve program
management, oversight, and integrity, including by working with
other State agencies involved with the monitoring of
institutions under this section in order to streamline and
coordinate the efforts of such State agencies.'';
(8) in subsection (r), by striking paragraphs (5) and (6);
(9) in subsection (s)(2)(C), by striking ``parents of
enrolled children at enrollment'' and inserting ``parents or
legal guardians of enrolled children in an easily accessible
manner'';
(10) in subsection (u)(3)--
(A) in subparagraph (C)(i), by inserting ``for
distribution to participants and families of
participants'' after ``nutrition education''; and
(B) in subparagraph (H), by adding at the end the
following:
``(iii) Sunset.--The Secretary shall return
to the general fund of the Treasury any funds
that were--
``(I) made available under this
subparagraph; and
``(II) not obligated as of the date
of the enactment of the Improving Child
Nutrition and Education Act of 2016.'';
and
(11) by adding at the end the following:
``(v) Participation by Residential Child Care Institutions.--
``(1) Definition of residential child care institution.--In
this subsection, the term `residential child care institution'
means any public or nonprofit private residential child care
institution, or distinct part of such an institution, that--
``(A) operates principally for the care of children;
and
``(B) if private, is licensed to provide residential
child care services under the appropriate licensing
code by the State or local agency.
``(2) Administration.--Except as otherwise provided in this
subsection, a residential child care institution shall be
considered eligible for reimbursement for meals and supplements
served to eligible children residing at the residential child
care institution, so long as the institution does not
simultaneously participate in the school lunch program under
this Act or the school breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
``(3) Meal or supplement reimbursement.--
``(A) Limitations.--A residential child care
institution may claim reimbursement under this
section--
``(i) only for a meal or supplement served to
children residing at the residential child care
institution, who are--
``(I) not more than 18 years of age;
or
``(II) children with disabilities;
and
``(ii) for not more than--
``(I) 1 breakfast, 1 lunch, and 1
supplement per child per day; or
``(II) 1 breakfast, 1 supper, and 1
supplement per child per day.
``(B) Rate.--A meal or supplement eligible for
reimbursement under this subsection shall be reimbursed
at the rate at which free, reduced price, and paid
meals and supplements, respectively, are reimbursed
under subsection (c).''.
(b) Advisory Committee.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary shall establish and
convene an advisory committee--
(A) to examine the feasibility of reducing
unnecessary or duplicative paperwork resulting from
regulations and recordkeeping requirements, including
paperwork resulting from additional State requirements,
for individuals and entities participating or seeking
to participate in the child and adult care food program
under section 17 of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766) (as amended by
subsection (a)), including (within the meaning of that
Act (42 U.S.C. 1751 et seq.))--
(i) State agencies;
(ii) family child care homes;
(iii) child care centers;
(iv) sponsoring organizations; and
(v) families.
(B) to provide recommendations to reduce unnecessary
or duplicative paperwork for those program participants
while ensuring that proper accountability and program
integrity are maintained.
(2) Representation.--The advisory committee under this
subsection shall include representation from each of the
following (within the meaning of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1751 et seq.), as
applicable):
(A) Public and private nonprofit organizations.
(B) Home-based day care providers.
(C) Head Start centers.
(D) For-profit proprietary organizations.
(E) Shelters for homeless families.
(F) Adult day care centers.
(G) State agencies.
(H) Sponsor organizations that provide administrative
support to multiple providers.
(3) Considerations.--In developing the recommendations under
this subsection, the advisory committee shall take into
consideration, as appropriate--
(A) any existing information, recommendations, and
reports from the paperwork reduction work group
convened by the Food and Nutrition Service in response
to section 119(i) of the Child Nutrition and WIC
Reauthorization Act of 2004 (42 U.S.C. 1766 note; 118
Stat. 755);
(B) the use of technology for electronic
recordkeeping to reduce paperwork burdens on program
participants and providers; and
(C) input from additional advocates and stakeholders
for a broader knowledge base, if the advisory committee
determines necessary.
(4) Secretarial action.--
(A) Guidance or regulations.--
(i) Issuance.--Not later than 1 year after
the date of the enactment of this Act, the
Secretary shall issue guidance or regulations,
as appropriate, based on the recommendations of
the advisory committee under paragraph (1)
regarding streamlined and consolidated
paperwork and recordkeeping requirements,
including applications, monitoring and auditing
requirements, and any other areas recommended
by the advisory committee intended to reduce
administrative burden.
(ii) Implementation.--Not later than 18
months after the date of the enactment of this
Act, the Secretary shall implement any changes
resulting from the guidance or regulations
described in clause (i).
(B) Report.--After issuing any guidance or
regulations under subparagraph (A), the Secretary shall
submit to the Committee on Agriculture, Nutrition, and
Forestry of the Senate and the Committee on Education
and the Workforce of the House of Representatives a
report describing any recommendations for legislative
changes to further strengthen and streamline the
application and monitoring process and reduce
administrative burden on grantees, participants, local
and State governments, and the Federal Government.
SEC. 109. DEMONSTRATION PROJECTS.
Section 18 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769) is amended--
(1) by striking subsections (g), (h), (j), and (k);
(2) by redesignating subsection (i) as subsection (g);
(3) in subsection (g)(5), as so redesignated, by striking
``2011 through 2015'' and inserting ``2017 through 2021'';
(4) by inserting after subsection (c) the following:
``(d) Access to Local Foods: Farm to School Program.--
``(1) Program.--The Secretary shall carry out a program to
assist eligible schools, State and local agencies, Indian
tribal organizations, agricultural producers or groups of
agricultural producers, and nonprofit entities through grants,
technical assistance, and research to implement farm to school
programs that improve access to local foods and improve
nutrition education in eligible schools.
``(2) Definitions.--In this subsection:
``(A) Agricultural producer.--The term `agricultural
producer' means a farmer, rancher, or fisher (including
of farm-raised fish).
``(B) Eligible school.--The term `eligible school'
means a school or institution that participates in--
``(i) a program under this Act, including the
summer food service program for children under
section 13 and the early care and afterschool
portions of the child and adult care food
program under section 17; or
``(ii) the school breakfast program
established under section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773).
``(3) Grants.--
``(A) In general.--The Secretary shall award
competitive grants under this subsection to be used for
implementing farm to school programs for the purposes
of improving access to local foods and improving
nutrition education, through--
``(i) research, training, and technical
assistance;
``(ii) supporting operations;
``(iii) planning;
``(iv) purchasing equipment;
``(v) developing school gardens; and
``(vi) developing partnerships to facilitate
nutrition education and healthy eating.
``(B) Regional balance.--In making awards under this
subsection, the Secretary shall, to the maximum extent
practicable, ensure--
``(i) geographical diversity; and
``(ii) equitable treatment of urban, rural,
and tribal communities.
``(C) Improved procurement and distribution.--Funds
provided under this subsection may be used to improve
local food procurement and distribution options between
agricultural producers and eligible schools, including
innovative approaches to aggregation, processing,
transportation, and distribution.
``(D) Awards.--
``(i) Maximum amount.--The total amount
provided to a grant recipient under this
subsection shall not exceed $150,000.
``(ii) Term.--The term of an award shall not
exceed 3 years.
``(iii) Limitation.--The Secretary shall not
award any entity more than 1 grant at any given
time.
``(iv) Purpose and scope.--In carrying out
this subsection, the Secretary shall make
awards of diverse amounts and duration so as to
best match a variety of purposes, scopes, and
needs of the project proposals.
``(E) Limitation.--The Secretary shall not award a
grant under this subsection if the majority of grant
funds would be used solely for the purpose of carrying
out a conference.
``(4) Federal share.--
``(A) In general.--The Federal share of costs for a
project funded through a grant awarded under this
subsection shall not exceed 75 percent of the total
cost of the project.
``(B) Federal matching.--As a condition of receiving
a grant under this subsection, a grant recipient shall
provide matching support in the form of cash or in-kind
contributions, including facilities, equipment, or
services provided by State and local governments,
nonprofit organizations, and private sources.
``(5) Criteria for selection.--
``(A) In general.--To the maximum extent practicable,
in providing assistance under this subsection, the
Secretary shall give priority to proposals to--
``(i) serve a high proportion of children who
are eligible for free or reduced price meals;
``(ii) incorporate nutrition education
activities that encourage the participation of
school children in farm and garden-based
agricultural education activities;
``(iii) provide families the opportunity to
participate in educational programming,
including through materials and engagement
activities, to improve nutrition outside the
school environment;
``(iv) demonstrate collaboration between
eligible schools, nongovernmental and
community-based organizations, agricultural
producer groups, and other community partners;
``(v) make local food products available on
the menu of reimbursable meals under this Act
at the eligible school;
``(vi) demonstrate the potential for long-
term program sustainability with non-Federal
funds; and
``(vii) expand the selection of local
commodities available for eligible schools.
``(B) Tribal community projects.--In the case of
projects serving tribal communities, the Secretary
shall, to the maximum extent practicable, give highest
priority to projects that propose to use products from
tribal agricultural producers, in addition to the
priorities under subparagraph (A).
``(6) Evaluation.--As a condition of receiving a grant under
this subsection, each grant recipient shall agree to cooperate
in an evaluation of the program by the Secretary.
``(7) Technical assistance and research.--
``(A) In general.--The Secretary shall provide
technical assistance, research, and information through
amounts reserved under this subsection for such
purposes, to assist schools, State and local agencies,
Indian tribal organizations, agricultural producers,
and nonprofit entities--
``(i) to facilitate the coordination and
sharing of information and resources that may
be applicable to the farm to school program;
``(ii) to collect and share information on
best practices;
``(iii) to disseminate research and data on
existing farm to school programs and the
potential for programs to begin in underserved
areas; and
``(iv) to increase awareness of, and
participation in, farm to school programs among
agricultural and aquiculture producers or
agricultural producer groups, including
beginning, veteran, and socially disadvantaged
farmers and ranchers.
``(B) Review.--Not later than 1 year after the date
of the enactment of the Improving Child Nutrition and
Education Act of 2016 and every 3 years thereafter, the
Secretary shall review and submit to the Committee on
Agriculture and the Committee on Education and the
Workforce of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of
the Senate a report that describes the regulatory and
other barriers related to including locally or
regionally produced food products in school food
programs, including any progress that has been made in
identifying and eliminating such barriers through
examining--
``(i) barriers to the development and
implementation of successful farm to school
programs;
``(ii) the direct and indirect costs
affecting the production and marketing of
locally or regionally produced agricultural
food products for school food programs;
``(iii) the costs local school food programs
incur by acquiring such local foods for school
meal programs in comparison to the costs for
other foods in such school meal programs; and
``(iv) local and regional market access for
such food products, partnerships, small-scale
production, and any barriers to and long-term
feasibility of such access.
``(8) Funding.--
``(A) In general.--On October 1, 2016, and each
October 1 thereafter, out of any funds in the Treasury
not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary to carry out
this subsection $10,000,000, 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.
``(C) Administration.--Of the funds made available to
the Secretary under subparagraph (A), not more than 5
percent may be used to pay administrative costs
incurred by the Secretary in carrying out this
subsection and evaluating the program in accordance
with paragraph (6).
``(e) Summer Meal Service Through Business Partnership.--
``(1) In general.--From the funds made available under the
summer food service program under section 13, the Secretary
shall award grants on a competitive basis to not more than 4
State agencies to improve delivery of such summer food service
program for low-income children in underserved areas during the
summer through sustainable, scalable, business-driven
solutions.
``(A) Duration.--A grant awarded under this
subsection shall be for a period of not more than 3
years.
``(B) Priority.--In awarding grants under this
subsection, the Secretary shall give priority to State
agencies that have met the application requirements
under this subsection and which demonstrate a severe
unmet need for serving children in additional eligible
areas in the State through the summer food service
program under section 13.
``(C) Limitation.--Funds under this subsection will--
``(i) be awarded for the purpose of reducing
childhood hunger and allowing parents to better
participate in the labor force or an education
or workforce development program; and
``(ii) not preempt or prevent operation of
the summer food service program under section
13.
``(2) State application.--A State seeking to improve delivery
of the summer food service program in such State in accordance
with this subsection shall submit an application at such time
and in such manner as the Secretary may reasonably require. The
application shall contain--
``(A) State plans to implement and manage the program
in accordance with other applicable Federal
requirements under this Act;
``(B) a determination of the eligible areas in the
State in which poor economic conditions exist in
accordance with the program, but where an eligible
service institution is not currently in operation,
where the State may reimburse a vendor;
``(C) identified eligible vendors which the State has
determined to be qualified to provide meals in
accordance with this subsection;
``(D) a proposed timeline for entering into contracts
with eligible vendors and strategies for effective
communication; and
``(E) an assurance that funds will be used to provide
meals to the most vulnerable, underserved, and rural
populations, as determined by the State.
``(3) Eligible vendor.--For purposes of this subsection, an
eligible vendor is a food vendor which the State determines has
the administrative capacity and proven operating performance to
provide eligible meals to children in underserved areas in
accordance with this subsection and the summer food service
program requirements on management responsibilities of sponsors
and self-preparation sites, including requirements that the
vendor--
``(A) accepts final administrative and financial
responsibility for management of an effective food
service, including auditing and reporting
responsibilities, but will not receive administrative
funding from the State to do so;
``(B) has not been determined ineligible to
participate in any other program under this Act or the
Child Nutrition Act of 1966 by reason of violation of
the requirements of that program;
``(C) will provide adequate supervisory and
operational personnel for monitoring and management of
a self-preparation site;
``(D) contracts directly with the State as a sponsor;
``(E) ensures that meals are inspected periodically
as required under existing program regulations;
``(F) participates in applicable State and Federal
reporting and auditing requirements under this Act as
appropriate, including to provide other information
determined relevant by the Secretary in accordance with
paragraph (5);
``(G) has State or local health certification for the
facilities in which meals will be prepared and
distributed for use in the program, and ensures that
State and local health and sanitation requirements are
met at all times; and
``(H) has the organizational capacity to offer meals
in underserved communities, including preparation and
delivery logistics.
``(4) State disbursement.--A State shall use the grant
awarded to the State under this subsection to reimburse an
eligible vendor for meals served to eligible children in
accordance with the summer food service program under section
13 and with this subsection, as follows:
``(A) Reimbursements shall be available for an
eligible vendor operating in an eligible area in which
poor economic conditions exist where no sponsor is
currently operating the program under section 13.
``(B) To the extent practicable, a State shall give
priority to eligible vendors that--
``(i) demonstrate partnerships with entities
providing summer enrichment activities such as
schools, local government agencies, and
nonprofit agencies; and
``(ii) provide meals at a congregate site.
``(C) A State shall follow established procedures in
entering into contracts with a vendor, such as through
a Request for Proposal, Invitation for Sealed Bid,
Small Purchase Procedure, or other common method.
``(5) Auditing.--
``(A) State reporting.--Not later than 1 year after
the end of the grant period for a grant awarded to a
State under this subsection, the State shall submit to
the Secretary a report on--
``(i) the activities carried out with such
grant; and
``(ii) the impacts of such activities on
children, families, and eligible service
institutions during the summer.
``(B) Report from secretary.--No later than 4 years
after the first grant is awarded under this subsection,
the Secretary shall provide to the Committee on
Education and the Workforce of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report on the
grant program under this subsection, which shall
include--
``(i) a review of information submitted by
States under subparagraph (A); and
``(ii) best practices on reducing childhood
hunger in the summer months.
``(6) Limitations.--The following rules shall apply with
respect to this subsection:
``(A) No commodities shall be provided to businesses
or vendors under this subsection.
``(B) Vendors shall assume all administrative costs
under this subsection.
``(C) Meals shall be provided to children eligible
for the summer food service program under section 13.
``(D) A vendor receiving reimbursements shall not
profit directly from such reimbursements under this
subsection.
``(E) The Secretary shall include payments to States
under this subsection in its calculations for
administrative costs incurred by States under
subsection (k)(1) of section 13.
``(f) Summer Electronic Benefit Transfer for Children.--
``(1) Purpose.--The purposes of the provision of electronic
benefits provided through this subsection are to assess the use
of alternate methods of providing access to food for children
during the summer months when school is not in regular session
that are intended to--
``(A) increase summer food service program
effectiveness and efficiency;
``(B) reduce or eliminate the food insecurity and
hunger of children; and
``(C) improve the nutritional status of children.
``(2) Demonstration.--
``(A) Election.--A State that, as of the date of
enactment of the Improving Child Nutrition and
Education Act of 2016, is operating, or has operated, a
summer electronic benefit transfer for children
demonstration may elect to continue operating such
demonstration in accordance with the requirements of
this subsection as an alternative to other delivery
models of providing meals to children during the summer
months when school is not in regular session.
``(B) State requirements.--As a condition of
participating in the demonstration under this
subsection, a State shall--
``(i) comply with the requirements under this
subsection; and
``(ii) agree to provide such information the
Secretary may require for the evaluation of the
demonstration as required under this
subsection.
``(3) Definitions.--In this subsection:
``(A) Eligible household.--The term `eligible
household' means a household that includes 1 or more
school-aged child determined as eligible to receive
free or reduced price school meals during the prior
school year, but such child is not participating in a
program that provides food during the summer through
the summer food service program under section 13.
``(B) State.--The term `State' includes a tribal
entity.
``(C) Summer electronic benefit transfer for children
demonstration.--The term `summer electronic benefit
transfer for children demonstration' means an
electronic benefit transfer demonstration project under
section 748(g)(1) of the Agriculture, Rural
Development, Food and Drug Administration, and Related
Appropriations Act, 2010 (Public Law 111-80; 123 Stat.
2132).
``(4) Benefit levels.--
``(A) In general.--The Secretary shall approve States
seeking to make an election under paragraph (2)(A) that
will evaluate the impact of providing a variety of
differentiated benefit levels to eligible children as a
way to reach such children to the greatest extent
practicable. The values of such benefits shall be
determined by the State, but shall be between $15 and
$30 per month for each school-aged child in an eligible
household.
``(B) Rate determination.--In determining the values
under subparagraph (A), a State may consider
differentiating rates based on the need for such
benefits, which may be determined through factors such
as--
``(i) the proportion of applicants that are
eligible for free price meals;
``(ii) total number of households and
children seeking to participate;
``(iii) food security in children across
communities in such State;
``(iv) average redemption rates of benefits;
``(v) impact of such values at improving food
security in children;
``(vi) availability of other community
programs that provide meals to children during
the summer months when school is not in regular
session where children might otherwise receive
nutrition assistance; and
``(vii) any other information a State
determines is useful for determining such
rates.
``(C) Limitations.--
``(i) Time.--No child may receive more than 3
months of benefits under this paragraph in any
12-month period.
``(ii) Amount.--No child may receive more
than $30 of benefits under this paragraph per
month.
``(D) Cost sharing.--Nothing in this paragraph shall
be construed to prohibit States or local entities from
providing additional non-Federal resources for the
purposes of this subsection.
``(5) Effective implementation.--
``(A) In general.--In administering this subsection
and providing benefits to children in accordance with
this subsection, a State shall consider previous State
experiences and best practices in implementing the
summer electronic benefit transfer for children
demonstration carried out before the date of enactment
of the Improving Child Nutrition and Education Act of
2016, including information evaluating findings of the
demonstration (including the 2013 final report
published by the Department of Agriculture).
``(B) Technical assistance.--The Secretary shall
provide, and periodically update, technical assistance
to States for purposes of this paragraph.
``(6) Use of benefits.--
``(A) In general.--Benefits issued to families
through the election under paragraph (2)(A) may be used
only for the purchase of food for consumption by
school-aged children in such family.
``(B) Timing.--Benefits issued through the election
described in this subparagraph may be redeemed only
when school is out of session for the summer period.
``(7) Administration.--In administering this subsection, the
State shall--
``(A) ensure that benefits are issued only to
eligible households that live--
``(i) in areas with high rates of poverty or
long-term poverty that are rural and have no
congregate feeding sites or access to meals
otherwise provided through the summer food
service program authorized under section 13; or
``(ii) outside an area in which poor economic
conditions exist but in an area with no access
to meals otherwise provided through the summer
food service program authorized under section
13;
``(B) issue benefits to eligible households only
after such household has made an oral or written
request to receive electronic benefit transfer benefits
under this subsection; and
``(C) document how the election will be administered
in the management and administration plan described in
subsection (n), including the process for identifying
areas in which benefits will be issued.
``(8) Evaluation.--The Secretary shall provide for an
ongoing, independent evaluation of the demonstration carried
out under this subsection, including quasi-experimental or
other methods that are capable of producing scientifically
valid information to determine effectiveness in achieving the
purposes described in paragraph (1), including examining or
assessing--
``(A) feasibility of, or barriers to, successful
implementation of this subsection;
``(B) varied approaches in State implementation of
this subsection, including different approaches,
challenges, and lessons learned;
``(C) specific levels of use and receipt of benefits;
``(D) impact on children's food security and
nutritional impacts, including by the different impacts
on children in a variety of geographical areas such as
rural, urban, and suburban areas, localities, and
States;
``(E) total cost (including administrative cost) of
implementing and operating this subsection, including
in comparison to other methods of providing summer meal
service to school-aged children;
``(F) impacts and results of such evaluation in
comparison to evaluations of the summer electronic
benefits transfer for children demonstration published
by the Secretary of Agriculture; and
``(G) the potential for benefits provided under this
subsection to improve effectiveness and efficiency of
the summer food service program in comparison to other
methods of providing summer meal service to school-aged
children.
``(9) Report.--Not later than one year after amounts are
first appropriated under paragraph (10), and each year
thereafter, the Secretary shall submit to Congress a report
that--
``(A) includes the information resulting from the
most recent evaluation under paragraph (8); and
``(B) takes into consideration evaluations of the
summer electronic benefits transfer for children
demonstration published by the Secretary of
Agriculture.
``(10) Authorization of appropriations.--
``(A) In general.--There is authorized to be
appropriated to carry out this subsection not more than
$10,000,000 for each of fiscal years 2018 through 2020,
to remain available until expended.
``(B) Limitations.--Of such appropriations, for each
fiscal year--
``(i) each State shall utilize a portion for
administrative funds that shall be equal to the
levels necessary to effectively and efficiently
administer the State's demonstration under this
subsection, as determined by the State;
``(ii) not more than 1 percent may be spent
on administrative funds by the Secretary; and
``(iii) not more than $499,999 shall be
available for the Secretary to comply with
paragraph (8).
``(11) Guidance.--Not later than December 31, 2016, the
Secretary shall provide guidance to States to implement this
subsection, including recommendations for States to
successfully continue to implement the summer electronic
benefit transfer for children demonstration while complying
with the new or additional requirements of this subsection.'';
and
(5) by adding at the end the following:
``(h) State Administration of Child Nutrition Programs.--
``(1) Purposes.--The purposes of this subsection are to
provide States flexibility to develop programs and policies to
best meet the nutritional needs of school-aged children in the
State by providing flexibility over school meal programs under
this Act and section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773) and other programs to address such needs more
effectively and efficiently with less Federal involvement,
including by--
``(A) removing duplication, redundancies, regulatory
burden, and unnecessary requirements resulting from the
Federal administration of the school meal programs;
``(B) more efficiently using Federal, State, local,
and nongovernmental resources to strengthen delivery of
the school meal programs and other programs; and
``(C) supporting healthy meals through involvement by
parents, family members, and the community, including
nonprofit organizations, health organizations, and
school officials from large and small urban, suburban,
and rural areas in the State.
``(2) Grants authorized.--
``(A) In general.--The Secretary shall award grants,
on a competitive basis, to up to 3 States to enable the
States to carry out the activities described in this
subsection.
``(B) Considerations.--In awarding grants under this
subsection, the Secretary shall--
``(i) in a case in which more than 3 States
apply for a grant under this subsection, give
priority to States by taking into consideration
regional diversity; and
``(ii) ensure each State awarded a grant
under this subsection meets the required
assurances under paragraph (3)(D), except that
the Secretary shall not approve or disapprove
an application on the basis of a State's plan
or proposed program.
``(C) Duration of grants.--A grant to a State under
this subsection--
``(i) shall be awarded to the State for a 3-
year period; and
``(ii) may be renewed by the Secretary for an
additional 3-year period if the State can
demonstrate success in meeting the nutritional
needs of the school-aged children in the State.
``(D) Amount of grants.--The amount of a grant
awarded to a State under this subsection for each year
of the grant period shall be equal to the amount
described in paragraph (3)(C).
``(E) Matching requirement.--Each State that receives
a grant under this subsection shall provide funds from
non-Federal sources (which may be provided in cash,
commodities, or in kind) to support the activities
under this subsection.
``(F) Limitations.--A State that receives a grant
under this subsection may not, during any period during
which the State receives such grant, receive funds
under any of the following:
``(i) The school lunch program under this
Act.
``(ii) The school breakfast program under
section 4 of the Child Nutrition Act of 1966
(42 U.S.C. 1773).
``(iii) The special milk program under
section 3 of the Child Nutrition Act of 1966
(42 U.S.C. 1772).
``(iv) The State administrative expenses
funding under section 7 of the Child Nutrition
Act of 1966 (42 U.S.C. 1776).
``(v) The team nutrition network under
section 19 of the Child Nutrition Act of 1966
(42 U.S.C. 1788).
``(3) Application.--To receive a grant under this subsection,
a State shall submit an application at such time and in such
manner as the Secretary may reasonably require. The application
shall contain--
``(A) an assurance that each school-aged child in the
State will have access to at least one affordable meal
service option during the school day at the school in
which the child is enrolled, and a plan for how the
State will carry out such assurance, including--
``(i) the income thresholds or other needs-
based determinations to be used for
determining--
``(I) which students are eligible for
free meals;
``(II) which students are eligible
for reduced price meals; and
``(III) which students are required
to pay the full price for meals;
``(ii) the estimated number of students in
the State eligible for the thresholds for each
meal category described in clause (i);
``(iii) the price to be charged to students
eligible for reduced price meals and the price
to be charged to students required to pay the
full price for meals;
``(iv) how the State will identify and verify
eligibility of such students, such as through
census data, application processes, or any
other State-determined method;
``(v) an identification of any non-Federal
sources, including State funds, the State will
utilize to meet the needs of school-aged
children in the State if the grant received
under this subsection is not sufficient to
cover the cost of the meals to be served during
the period in which the State receives such
grant;
``(vi) any other factors the State will use
to determine distribution of funds received
under the grant to each elementary school and
secondary school in the State to reimburse the
schools for the cost of the meals served,
including how the State will ensure a fair
distribution of such funds to address the need
for such meals at each such school; and
``(vii) the monitoring plan the State will
use to ensure the funding described in clause
(v) will be used in accordance with this
subsection;
``(B) a description of the requirements for meals
provided under this subsection that the State will
require, including requirements for meal standards and
pricing;
``(C) a request for an amount of grant funds for each
year that the State will receive a grant under this
subsection, which may not, for each such year exceed
the amount the State received for fiscal year 2016--
``(i) for free and reduced price meal
reimbursements under the programs described in
clauses (i) and (ii) of paragraph (2)(F),
excluding any additional reimbursements
received under section 4(b)(3) of this Act; and
``(ii) under the programs described in
paragraphs (iii) through (v) of paragraph
(2)(F); and
``(D) assurances that the State will--
``(i) provide healthy meals to school-aged
children in the State to ensure maximum
participation of students in the State;
``(ii) provide technical assistance to local
educational agencies and schools to ensure
maximum participation of students in the State;
``(iii) provide an annual report to the
Secretary that outlines the activities and
progress made in providing healthy meals to
students in a more cost efficient manner than
such meals were provided prior to the State
receiving such grant; and
``(iv) work with school leaders, school
nutrition providers, and health professionals
to develop and implement the plan under
subparagraph (A) and to ensure that meals
provided in schools in the State using the
grant will be healthy and provided in an
efficient and cost effective manner.
``(4) Use of funds.--
``(A) In general.--A State that receives a grant
under this subsection shall use the grant funds to--
``(i) provide meals to school-aged children
in accordance with paragraph (3);
``(ii) carry out the activities described in
subparagraph (B) of this paragraph; and
``(iii) carry out any other activities the
State determines will support the goals of this
subsection.
``(B) Additional state activities.--Each State that
receives a grant under this subsection shall, in
addition to the activities described in clauses (i) and
(ii) of subparagraph (A), provide nutritional
assistance to low-income and vulnerable children, as
determined by the State, by--
``(i) addressing specific State and community
nutritional needs;
``(ii) engaging partners to deliver the meal
programs to spur innovation in such delivery,
including local governments and school
officials, businesses, non-profit and faith-
based organizations, and other community
partners;
``(iii) developing or strengthening private
sector partnerships to support the community
and nutritional needs of school-aged children;
and
``(iv) achieving administrative and other
programmatic cost savings.
``(C) Limitation.--A State may use not more than 10
percent of the grant received under this subsection for
administrative and outreach expenses.
``(5) State reporting.--Not later than 2 years after
receiving a grant under this subsection, a State shall submit
to the Secretary a report on how the State was better able to
operate school meals and other programs to address needs more
effectively compared to how the State addressed such needs
before the grant was awarded to the State. The report shall
include--
``(A) a description of how the State used the grant
funds, the State costs of carrying out the activities
under this subsection (including food, administrative,
labor, oversight, and any other costs), and any revenue
the State received by carrying out such activities
(including Federal, non-Federal, and family
contributions);
``(B) the strategies and activities undertaken at the
State and, if applicable, local level to meet the goals
of this subsection;
``(C) financial efficiencies the State has identified
through the grant, including the extent to which
activities under the grant have led to the addition,
blending, or braiding of other Federal or private
funding, and the specific or estimated amount of cost-
savings, reduced burdens, and other efficiencies;
``(D) the impacts the State has made in meeting the
goals of this subsection;
``(E) any barriers the State has identified in
providing school meals, and ways in which to overcome
such barriers; and
``(F) other State-determined and voluntarily provided
information intended to share best practices for future
implementation of this subsection.
``(6) Limitations on federal interference.--Nothing in this
subsection shall be construed to authorize the Secretary to
establish, as a condition to receive a grant under this
subsection or as requirement to operate such a grant, any
criterion that specifies, defines, or prescribes--
``(A) nutritional guidelines, standards, or meal
requirements, including the methods that a State uses
to develop, implement, or improve such nutritional
guidelines, standards, or meal requirements;
``(B) specific aspects, parameters, or measures of
programmatic quality, including measures of compliance
or evaluation;
``(C) nutritional curriculum, programs of
instruction, or instructional content;
``(D) any aspect of meal provision criteria,
including nutritional requirements, timing, duration,
type, price, amount, or any other aspect of meals or
meal program operation;
``(E) any term under this subsection as such term
applies to activities carried out by a State, including
the terms healthy, affordable meal, school day, and
nutritional needs;
``(F) the ways in which a State identifies and
verifies eligibility for benefits, including child,
family, and provider eligibility;
``(G) differentiated payment rates a State may use;
``(H) the amount or sources of non-Federal funds that
a State must provide;
``(I) the percentages or amounts of grant funds to be
used for specific activities within or among programs;
``(J) the scope or structure of programs, including
number of meals served, timing within the day, and
length or time of year a program operates; and
``(K) any aspect or parameter of programmatic
evaluation.
``(7) Federal reporting.--Not later than 4 years after the
first grant is awarded under this subsection, the Secretary
shall provide to the Committee on Education and the Workforce
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate, and to
States, a report on the feasibility of scaling the
implementation of this subsection, including the efficiencies,
cost savings, and other benefits identified by State
implementation of the programs described in paragraph (2)(F)
under this subsection. Such determination of feasibility shall
be based on information including--
``(A) State reports submitted under paragraph (5);
``(B) a determination of the level of Federal cost-
savings achieved and the amount of future cost-saving
implications;
``(C) programmatic simplifications the Federal
Government could pursue; and
``(D) other information provided by States or private
entities that would be useful in recommendations to the
public, States, and to Congress.''.
SEC. 110. FRUIT AND VEGETABLE PROGRAM.
Section 19 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769a) is amended--
(1) in the heading, by striking ``fresh'';
(2) by striking ``fresh'' each place it appears in
subsections (a), (b), and (e); and
(3) in subsection (i)--
(A) by striking paragraphs (5) and (7);
(B) by redesignating paragraph (6) as paragraph (5);
and
(C) by adding at the end the following:
``(6) Clarification.--
``(A) Guidance.--The Secretary shall issue guidance
with respect to how funds under the program may be
used, which--
``(i) clarifies to States that such funds may
be used on all forms of fruits and vegetables,
provided the fruit or vegetable product meets
the requirements of section 210.11 of title 7,
Code of Federal Regulations (as in effect on
the date of enactment of the Improving Child
Nutrition and Education Act of 2016);
``(ii) provides the appropriate exemptions
described in such section 210.11 of the Code of
Federal Regulations; and
``(iii) encourages schools to introduce
fruits and vegetables to children in new
contexts, including by allowing schools to
offer combinations of fruits and vegetables
with tree nuts, which provide a good source of
protein per serving and meet the nutrition
standards of such section 210.11 of the Code of
Federal Regulations, except that the Secretary
shall provide exemptions from the total fat
requirements under such section 210.11 for tree
nut products.
``(B) Local decision.--Nothing in this section shall
be construed to require a school participating in the
program to select forms of fruit or vegetables other
than fresh.''.
SEC. 111. COMPLIANCE AND ACCOUNTABILITY.
Section 22 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769c) is amended--
(1) in subsection (a)--
(A) by striking ``(1) In general.--There shall be''
and inserting ``There shall be''; and
(B) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively, and indenting
appropriately;
(2) in subsection (b)--
(A) in paragraph (1)(C)(i), by striking ``3-year
cycle'' and inserting ``5-year cycle'';
(B) by redesignating paragraphs (4) through (6) as
paragraphs (5) through (7), respectively;
(C) by striking paragraph (3) and inserting the
following:
``(3) Error reduction plans.--
``(A) In general.--Each State agency shall work with
the local educational agencies that have the highest
rates of certification errors according to the
verification process under section 9(a)(D) to develop
an error reduction plan and monitor implementation of
the plan over the remainder of the review cycle.
``(B) Plan components.--Each error reduction plan
shall include--
``(i) specific measures that the local
educational agency shall take to reduce
certification errors, including at a minimum--
``(I) increasing the standard
verification sample size, except such
increase shall not result in a
verification sample size of more than
15 percent;
``(II) improvements in the
application;
``(III) the use of technology to
minimize opportunities for error; and
``(IV) enhanced training and
oversight of staff involved in the
certification and verification process;
``(ii) a timeline for the local educational
agency to implement those measures within the
review cycle;
``(iii) annual goals for reductions in
certification errors;
``(iv) technical assistance to be provided by
the State agency; and
``(v) working with an educational service
agency to help conduct the verification process
and other aspects of the program as necessary
to help reduce errors in the administration of
the program.
``(C) State agency responsibilities.--Each State
agency shall--
``(i) assist the local educational agencies
identified under subparagraph (D) with
developing an error reduction plan that
complies with subparagraph (B);
``(ii) provide technical assistance as
described in the error reduction plan under
subparagraph (B)(iv);
``(iii) conduct annual reviews focused on the
direct certification, application,
certification, verification, meal counting, and
meal claiming processes; and
``(iv) report annually to the Secretary on
the progress of the State in reducing errors.
``(D) Selection of local educational agencies.--
``(i) In general.--Each State agency shall
select up to 10 percent of the local
educational agencies in the State to develop an
error reduction plan.
``(ii) Limitation.--The percentage of local
educational agencies selected under clause (i)
shall not be comprised of more than 50 percent
of small local educational agencies, as
determined by the Secretary.
``(iii) Assessment of certification error.--
In selecting local educational agencies under
this paragraph, certification error shall be
assessed based on a measure determined by the
Secretary that considers--
``(I) the results of the reviews
conducted under paragraph (1) and
``(II) the percentage of household
applications verified under section
9(b)(3)(D)(i) that had the level of
benefits changed as a result of
information obtained during the
verification process, excluding benefit
terminations resulting from not
obtaining information during household
verification conducted under section
9(b)(3)(G).
``(4) High performance.--
``(A) In general.--If a local educational agency is
determined to be in the top 20 percent of local
educational agencies in the State, as determined by the
State under subparagraph (B), the sample size under
section 9(b)(3)(D)(i)(II) shall be a verification
sample size of 2.5 percent.
``(B) Considerations.--The State shall determine
whether a local educational agency is in the top 20
percent of local educational agencies in the State by
considering error rates, confirmation rates, non-
response rates, response rates, and other factors as
necessary to make such determination.''; and
(D) in paragraph (6) (as redesignated by subparagraph
(B)), in subparagraph (A), by striking ``paragraph
(4)'' each place it appears and inserting ``paragraph
(5)''; and
(3) in subsection (d), by striking ``2011 through 2015'' and
inserting ``2017 through 2021''.
SEC. 112. REPEAL OF STATE CHILDHOOD HUNGER CHALLENGE GRANTS.
Section 24 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769e) is repealed.
SEC. 113. DUTIES OF THE SECRETARY RELATING TO NONPROCUREMENT DEBARMENT.
Section 25 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1769f) is amended--
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following:
``(g) Fines.--
``(1) In general.--In a situation in which a contractor is
found guilty in any criminal proceeding or found liable in any
civil or administrative proceeding, of the activities listed in
paragraph (2), in connection with the supplying, providing, or
selling of goods or services to any local agency in connection
with a child nutrition program, the Secretary shall impose a
civil penalty of not more than $100,000,000, as determined by
the Secretary, to provide restitution to the program for harm
done to the program.
``(2) Included activities.--Activities include, at a
minimum--
``(A) an anticompetitive activity, including bid-
rigging, price-fixing, the allocation of customers
between competitors, or other violation of Federal or
State antitrust laws;
``(B) fraud, bribery, theft, forgery, or
embezzlement;
``(C) knowingly receiving stolen property;
``(D) making a false claim or statement; or
``(E) any other obstruction of justice.
``(3) Use of funds.--Any funds collected under this
subsection shall be credited to the child nutrition programs
appropriations account.''.
SEC. 114. IMPROVEMENTS TO SCHOOL LUNCH FACILITIES.
The Richard B. Russell National School Lunch Act is amended by
inserting after section 26 (42 U.S.C. 1769g) the following:
``SEC. 27. IMPROVEMENTS TO SCHOOL LUNCH FACILITIES.
``(a) Definitions.--In this section:
``(1) Durable equipment.--The term `durable equipment' means
durable food preparation, handling, cooking, serving, and
storage equipment greater than $500 in value.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) a local educational agency or a school food
authority administering or operating a school lunch
program under this Act;
``(B) a tribal organization; or
``(C) a consortium that includes a local educational
agency or school food authority described in
subparagraph (A), a tribal organization, or both.
``(3) Infrastructure.--The term `infrastructure' means a food
storage facility, kitchen, food service facility, cafeteria,
dining room, or food preparation facility.
``(4) Local educational agency.--The term `local educational
agency' has the meaning given the term in section 8101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
``(5) School food authority.--The term `school food
authority' has the meaning given the term in section 210.2 of
title 7, Code of Federal Regulations (or a successor
regulation).
``(6) Tribal organization.--The term `tribal organization'
has the meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(b) Loan Guarantees.--
``(1) Authority.--The Secretary shall issue a loan guarantee
to an eligible lender for purposes of financing the
construction, remodeling, or expansion of infrastructure or the
purchase of durable equipment that will assist the eligible
entity in providing healthy meals through the school lunch
program authorized under this Act.
``(2) Preference.--In issuing a loan guarantee under this
subsection, the Secretary shall give a preference to an
eligible entity that, as compared with other eligible entities
seeking a loan guarantee under this subsection, demonstrates
substantial or disproportionate--
``(A) need for infrastructure improvement or durable
equipment; or
``(B) impairment in durable equipment.
``(3) Oversight.--The Secretary, acting through the Under
Secretary for Rural Development, shall establish procedures to
oversee any project or purchase for which a loan guarantee is
issued under this subsection.
``(4) Guarantee amount.--A loan guarantee issued under this
subsection may not guarantee more than 80 percent of the
principal amount of the loan.
``(5) Fees and costs.--
``(A) In general.--The Secretary shall establish fees
for loan guarantees under this subsection that are, to
the maximum extent practicable, equal to all costs of
the loan guarantees as determined under the Federal
Credit Reform Act of 1990 (2 U.S.C. 661 et. seq.), as
determined by the Secretary.
``(B) Fee shortfall.--To the extent that the
Secretary determines that fees described in
subparagraph (A) are not sufficient to pay for all of
the costs for the loan guarantees pursuant to the
Federal Credit Reform Act of 1990 (2 U.S.C. 661 et.
seq.), the Secretary may use funds described in
paragraph (6) to pay for the costs of loan guarantees
not paid for by the fees.
``(6) Funding.--Subject to the availability of appropriations
provided in advance in an appropriations Act specifically for
the purpose of carrying out this subsection, there is
authorized to be appropriated $5,000,000 for fiscal year 2017
and each fiscal year thereafter.
``(c) Grants.--
``(1) Authority.--Beginning in fiscal year 2017 and subject
to the availability of appropriations provided in advance in an
appropriations Act specifically for the purpose of carrying out
this subsection, the Secretary shall make grants, on a
competitive basis, to eligible entities for the purchase of
durable equipment and infrastructure needed to serve healthier
meals and improve food safety.
``(2) Priority.--In awarding grants under this subsection,
the Secretary shall give priority to eligible entities that--
``(A) are located in States that have enacted
comparable statutory grant funding mechanisms or that
have otherwise appropriated funds for the purpose
described in paragraph (1); and
``(B) have identified and are reasonably expected to
meet an unmet local or community need--
``(i) through a public-private partnership or
partnership with a food pantry or other low-
income assistance agency; or
``(ii) by allowing related community
organizations to use kitchen or cafeteria
space.
``(3) Federal share.--
``(A) In general.--The Federal share of costs for
assistance funded through a grant awarded under this
subsection shall not exceed 80 percent of the total
cost of the durable equipment or infrastructure.
``(B) Matching.--To receive a grant under this
subsection, an eligible entity shall provide matching
support in the form of cash or in-kind contributions.
``(C) Waiver.--The Secretary may waive or vary the
requirements of subparagraphs (A) and (B) if the
Secretary determines that undue hardship or effective
exclusion from participation would otherwise result.
``(4) Authorization of appropriations.--
``(A) In general.--There is authorized to be
appropriated $25,000,000 to carry out this subsection
for fiscal year 2017 through fiscal year 2019.
``(B) Limit.--The Secretary may use not more than 5
percent of the funds made available under subparagraph
(A) to provide technical assistance.
``(d) Salad Bars.--Not later than 180 days after the date of the
enactment of the Improving Child Nutrition and Education Act of 2016,
the Secretary shall review or revise any guidance in existence on that
date of enactment so as to ensure that school food authorities have
flexibility in the establishment and implementation of salad bars.''.
SEC. 115. PROHIBITIONS.
The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.) is further amended by adding at the end the following:
``SEC. 30. PROHIBITIONS.
``Nothing in this Act, the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.), the Healthy, Hunger-Free Kids Act of 2010, or the
Improving Child Nutrition and Education Act of 2016 shall--
``(1) authorize the Secretary to issue or establish any
regulations or requirements not explicitly authorized under any
such Act; or
``(2) authorize the Secretary to require, as a condition of
participation in any program under any such Act--
``(A) any curriculum or education requirements for
participating schools or child care providers; or
``(B) the adoption of any specific education
standards for nutrition education.''.
TITLE II--CHILD NUTRITION ACT
SEC. 201. SPECIAL MILK PROGRAM AUTHORIZATION.
Section 3(a)(7) of the Child Nutrition Act of 1966 (42 U.S.C.
1772(a)(7)) is amended by striking ``on an annual basis each'' and
inserting ``annually by February 15 for the upcoming''.
SEC. 202. SCHOOL BREAKFAST PROGRAM.
Section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) is
amended--
(1) in subsection (b)(1), by adding at the end the following:
``(F) Increased reimbursement.--(i) For school year
2018-2019, the Secretary shall increase by 2 cents the
annually adjusted payment for each breakfast (free,
reduced price, and paid) described in subparagraph (B).
``(ii) For school year 2019-2020, the national
average payment for each breakfast referred to in
clause (i) of this subparagraph shall equal the result
obtained under such clause (i) applicable to such
breakfast, as annually adjusted for the school year in
accordance with subparagraph (B).
``(iii) For school year 2020-2021, the national
average payment for each breakfast referred to in
clause (i) of this subparagraph shall equal the
annually adjusted payment for such breakfast, as
determined under clause (ii) of this subparagraph, plus
1 cent.
``(iv) For school year 2021-2022, and each succeeding
school year, the national average payment for each
breakfast referred to in clause (i) of this
subparagraph shall equal the result obtained under
clause (iii) of this subparagraph applicable to such
breakfast, as annually adjusted for the school year in
accordance with subparagraph (B).''.
(2) in subsection (e)(1)(B), by striking ``, including
technical'' and all that follows through ``established under
this section,''.
SEC. 203. STATE ADMINISTRATIVE EXPENSES.
Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 1776) is
amended--
(1) in subsection (a)--
(A) in paragraph (3), in the second sentence, by
striking ``, except as provided in paragraph (5)'';
(B) by striking paragraph (5); and
(C) by redesignating paragraphs (6) through (9) as
paragraphs (5) through (8), respectively;
(2) in subsection (b)--
(A) by striking ``expenses, for administrative'' and
inserting the following: ``expenses for--''
``(1) administrative''; and
(B) by striking ``for support'' and all that follows
through ``for staff'' and inserting the following:
``(2) support services;
``(3) office equipment;
``(4) State-operated purchasing programs; and
``(5) staff'';
(3) in subsection (g)(2)(B), by amending clause (iii) to read
as follows:
``(iii) Minimizing disruptions.--The
Secretary shall encourage school food
authorities to consider--
``(I) providing the training required
under this subparagraph to local food
service personnel during paid, regular
hours; and
``(II) that to the extent that
training must occur during nonwork
hours, it is minimally disruptive to
employees' other work obligations if
employees are provided with sufficient
notice of training.'';
(4) in subsection (i)--
(A) in paragraph (3)--
(i) in subparagraph (A), by inserting before
the period at the end the following: ``and for
the purposes described in section 749(h) of the
Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies
Appropriations Act, 2010 (Public Law 111-80;
123 Stat. 2133)''; and
(ii) by adding at the end the following:
``(C) Priority.--In awarding funds to States under
this paragraph, the Secretary shall give priority to
States in which local educational agencies, school food
authorities, or schools submit a plan under
subparagraph (B) that includes the use of technology or
information management systems to provide assistance to
tribal organizations administering the food
distribution program on Indian reservations established
under section 4(b) of the Food and Nutrition Act of
2008 (7 U.S.C. 2013(b)) for purposes of improving the
rate of direct certification of children in households
participating in that program.''; and
(B) in paragraph (4), by striking ``2015'' and
inserting ``2021'';
(5) in subsection (j), by striking ``2015'' and inserting
``2021'';
(6) by redesignating subsection (j) as subsection (k); and
(7) by inserting after subsection (i) the following:
``(j) Centralized Exchange Network.--
``(1) Establishment.--The Secretary shall establish a
centralized exchange network to facilitate State exchange of
information and best practices, for programs authorized under
this Act or the Richard B. Russell National School Lunch Act
(42 U.S.C. 1751 et seq.).
``(2) Network topics.--State exchanges of information and
best practices described in paragraph (1) may include, at a
minimum, research methods and data related to--
``(A) improved efficiency in the delivery of
benefits;
``(B) improved compliance in the programs; and
``(C) reduction of fraud, waste, and abuse in the
programs.
``(3) Administrative funds.--The Secretary shall not use more
than $450,000 for such network.''.
SEC. 204. REGULATIONS.
Section 10(b)(1)(C) of the Child Nutrition Act of 1966 (42 U.S.C.
1779(b)(1)(C)) is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) by striking the period at the end of clause (ii) and
inserting a semicolon; and
(3) by adding at the end the following:
``(iii) ensure that the nutrition standards
under this paragraph do not apply to
fundraisers held by student groups or
organizations, and that the school and
applicable State agency are not prohibited from
determining which such fundraisers may be held;
and
``(iv) ensure that the nutrition standards
under this paragraph allow any foods that may
be served as part of a reimbursable meal served
under the school meal programs to be sold in
schools as described in subparagraph (B).''.
SEC. 205. DEFINITION OF STATE AGENCY.
Section 15 of the Child Nutrition Act of 1966 (42 U.S.C. 1784) is
amended by striking paragraph (2) and inserting the following:
``(2) State agency.--The term `State agency' means--
``(A) the chief State school officer (such as the
State superintendent of public instruction,
commissioner of education, or similar officer);
``(B) a board of education controlling the State
department of education;
``(C) the State Commissioner or individual who
administers agricultural programs in the State; or
``(D) a State official the State legislature
designates to administer the programs under this
Act.''.
SEC. 206. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS,
AND CHILDREN.
(a) In General.--Section 17 of the Child Nutrition Act of 1966 (42
U.S.C. 1786) is amended--
(1) in subsection (a), in the second sentence, by striking
``promotion'' and inserting ``counseling, promotion,'';
(2) in subsection (b)(14), by striking the paragraph
designation and all that follows through ``means those foods''
and inserting the following:
``(14) Supplemental food.--The term `supplemental food' means
any food'';
(3) in subsection (d)--
(A) in paragraph (2)--
(i) in subparagraph (B)--
(I) in the matter preceding clause
(i), by striking ``may choose to'' and
inserting ``shall'';
(II) in clause (i)(II), by striking
``and'' at the end;
(III) in clause (ii), by striking the
period at the end and inserting ``;
and''; and
(IV) by adding at the end the
following:
``(iii) any basic allowance for subsistence provided under
section 402 of title 37, United States Code, to a member of a
uniformed service.''; and
(ii) by adding at the end the following:
``(E) Child support payments.--For the purpose of
determining income eligibility under this section, a
State agency shall exclude from income any child
support payment for an applicant who is legally
obligated to pay child support for any noncustodial
child.''; and
(B) in paragraph (3), by adding at the end the
following:
``(G) Data exchange standards for improved
interoperability.--
``(i) Designation.--The Secretary, in
consultation with an interagency work group
established by the Office of Management and
Budget, and taking into consideration State
government perspectives, shall designate data
exchange standards to govern, under this
section--
``(I) necessary categories of
information that State agencies
operating related programs are required
under applicable law to electronically
exchange with another State agency; and
``(II) Federal reporting and data
exchange required under applicable law.
``(ii) Requirements.--The data exchange
standards required by clause (i) shall, to the
maximum extent practicable--
``(I) incorporate a widely accepted,
nonproprietary, searchable, computer-
readable format;
``(II) contain interoperable
standards developed and maintained by
intergovernmental partnerships, such as
the National Information Exchange
Model;
``(III) incorporate interoperable
standards developed and maintained by
Federal entities with authority
regarding contracting and financial
assistance;
``(IV) be consistent with, and
implement, applicable accounting
principles;
``(V) be implemented in a manner
that--
``(aa) is cost effective; and
``(bb) improves program
efficiency and effectiveness;
``(VI) be capable of being upgraded
as necessary; and
``(VII) protects the privacy of any
personally identifiable information
from being accessed by individuals who
do not need access to such information.
``(iii) Effect of subparagraph.--Nothing in
this subparagraph requires any change to an
existing data exchange standard for Federal
reporting that is determined to be effective
and efficient.
``(iv) Implementation.--
``(I) In general.--Not later than 2
years after the date of the enactment
of the Improving Child Nutrition and
Education Act of 2016, the Secretary
shall issue a proposed rule to
implement this subparagraph.
``(II) Requirements.--The proposed
rule under this clause shall--
``(aa) identify all federally
required data exchanges;
``(bb) include specification
and timing for the exchanges to
be standardized;
``(cc) address the factors
used in determining whether and
when to standardize data
exchanges;
``(dd) specify State
implementation options; and
``(ee) describe future
milestones.'';
(4) in subsection (e)--
(A) by striking the subsection designation and all
that follows through ``The State agency shall'' in the
first sentence of paragraph (1) and inserting the
following:
``(e) Nutrition and Drug Abuse Education.--
``(1) Education.--
``(A) In general.--A State agency shall'';
(B) in paragraph (1) (as amended by subparagraph
(A)), by adding at the end the following:
``(B) Disposal of certain infant formula.--
``(i) In general.--The State agency shall
ensure that all pregnant, postpartum, and
breastfeeding participants in the program, and
parents or caretakers of infant and child
participants in the program, are provided
education regarding proper disposal of unused
or excess infant formula obtained with food
instruments issued under the program under this
section.
``(ii) Inclusions.--The education under this
subparagraph shall include information
regarding--
``(I) the safety hazards of
purchasing infant formula from an
unauthorized vendor; and
``(II) the penalties associated with
the gifting, trading, sale, or resale
of infant formula or other supplemental
foods obtained with food instruments
issued under the program under this
section, in accordance with subsection
(o).''; and
(C) by striking paragraph (3) and inserting the
following:
``(3) Nutrition education materials.--
``(A) In general.--The Secretary, after submitting
proposed nutrition education materials to the Secretary
of Health and Human Services for comment, shall issue
the materials for use in the program under this
section.
``(B) Sharing of materials with child and adult care
food program.--A State agency may allow the local
agencies or clinics operating under the State agency to
share nutrition educational materials with institutions
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) at no cost
to that program, if a written materials-sharing
agreement exists between the relevant agencies.'';
(5) in subsection (f)--
(A) by striking ``(f)(1)(A) Each State agency'' and
all that follows through ``change in the plan.'' and
inserting the following:
``(f) Plan of Operation and Administration by State Agency.--
``(1) Requirements.--
``(A) Submission.--
``(i) In general.--Each State agency shall
submit to the Secretary a plan of operation and
administration of the program authorized under
this section.
``(ii) Deadlines.--Each State agency shall
submit--
``(I) an initial plan not later than
such date as is specified by the
Secretary; and
``(II) an update to the plan every 3
years thereafter or, if the
requirements of this section continue
to be met by current plan, an assurance
that the current plan continues to meet
such requirements.'';
(B) in paragraph (1)(B), by striking ``submitted
for'' and inserting ``submitted covering'';
(C) in paragraph (1)(C)--
(i) in clause (x), by striking ``and'' at the
end;
(ii) by redesignating clause (xi) as clause
(xiii); and
(iii) by inserting after clause (x) the
following:
``(xi) a plan to allow, during an emergency or disaster
period, for different foods to be obtained with program
benefits in lieu of, or in addition to, the supplemental foods
available to be obtained with such benefits;
``(xii) a plan detailing the methods to be used by all local
agencies to ensure compliance with subsection (d)(2); and'';
(D) in paragraph (5)--
(i) by striking ``(5) State and local'' and
inserting the following:
``(5) Accounts, records, and review.--
``(A) In general.--State and local''; and
(ii) by adding at the end the following:
``(B) Review.--The Secretary shall periodically
review State and local agency compliance with the
approved plan of operation and administration of the
applicable State.'';
(E) in paragraph (10)--
(i) by striking ``(10) The Secretary'' and
inserting the following:
``(10) Standards for administration.--
``(A) In general.--The Secretary''; and
(ii) by adding at the end the following:
``(B) Notification to state authority.--If, on
reviewing the administration by a State of the program,
the Secretary determines there is a need to temporarily
halt the State from approving new vendors to address
deficiencies in proper administration, the Secretary
may issue a moratorium on the authority of the State to
approve new vendors, subject to the condition that the
Secretary shall provide the State with reasoning behind
such determination and shall establish--
``(i) a timeframe under which the moratorium
will be issued, including any renewal or
lifting of the moratorium;
``(ii) a process to approve vendors for the
State in a manner that does not impede--
``(I) the sale of a business; or
``(II) the establishment of any new
business; and
``(iii) a review process to be conducted by
the Secretary to ensure that participants,
nonparticipants, and vendors are not adversely
impacted by the implementation of the
moratorium.'';
(F) in paragraph (11)--
(i) in subparagraph (C)--
(I) in clause (i)--
(aa) by inserting before the
semicolon at the end the
following: ``which, beginning
not later than 60 days after
the date of enactment of the
Improving Child Nutrition and
Education Act of 2016, shall
include an examination of
criteria relating to fluid milk
(in consideration of the most
recent Dietary Guidelines for
Americans published under
section 301 of the National
Nutrition Monitoring and
Related Research Act of 1990 (7
U.S.C. 5341)), and an
examination of the consumption
and redemption rates of milk
beginning on May 5, 2014''; and
(bb) by striking ``and'' at
the end;
(II) in clause (ii)--
(aa) by striking ``and
cultural eating patterns'' and
inserting ``cultural eating
patterns, commercial
availability, and participant
demand, except that any changes
made under this clause shall
not limit the overall fruit
intake of children''; and
(bb) by striking the period
at the end and inserting ``;
and''; and
(III) by adding at the end the
following:
``(iii) consider accommodations for medical,
including food allergies, or other special
dietary needs of individuals, including
religious dietary restrictions.'';
(ii) by adding at the end the following:
``(D) Product package sizes.--In promulgating or
revising regulations under this paragraph, the
Secretary shall allow a range of product package sizes
to be selected by participants.
``(E) Cash value vouchers.--In adjusting annually for
food cost inflation in the food package under this
paragraph, the Secretary shall round to the nearest
dollar increment.
``(F) Participant choice options.--The Secretary
shall maximize opportunities for State agency
flexibility to ensure adequate and appropriate
participant choice to meet participant needs and
cultural preferences in supplemental foods made
available under this section.'';
(6) in subsection (g), by striking paragraph (1)(A) and
inserting the following:
``(A) Authorization.--There are authorized to be
appropriated to carry out this section $6,350,000,000
for each of fiscal years 2017 through 2021.''; and
(7) in subsection (h)--
(A) in paragraph (8)(A)--
(i) in clause (vi)--
(I) by striking ``Effective
beginning'' and inserting the
following:
``(I) In general.--Effective
beginning''; and
(II) by adding at the end the
following:
``(II) Infant formula.--Effective
beginning on the date of the enactment
of the Improving Child Nutrition and
Education Act of 2016, a State agency
that has fully implemented electronic
benefits transfer systems throughout
the State shall have in effect a system
to ensure that infant formula rebate
invoices, under competitive bidding,
provide an actual count of the number
of units sold to participants in the
program under this section.''; and
(ii) by adding at the end the following:
``(xi) Contract duration.--The contracts
awarded under clause (iii) shall specify that--
``(I) if the income eligibility limit
under title XIX of the Social Security
Act (42 U.S.C. 1396 et seq.) for
pregnant women or infants is
substantially increased, the contractor
may terminate the existing contract
effective on the later of--
``(aa) the date that is 1
year after the date on which
the State decision to increase
the eligibility limit by
amending the State plan is made
by--
``(AA) adopting State
legislation;
``(BB) issuing a
State executive order
or administrative rule;
or
``(CC) any other
applicable State
process, as determined
by the Secretary; and
``(bb) the first day of the
month during which the increase
takes effect; and
``(II) if a contractor elects to
terminate a contract pursuant to
subclause (I), the contractor shall
notify the State agency by not later
than the date that is 1 year before the
proposed date of termination.'';
(B) in paragraph (9)--
(i) in subparagraph (B)--
(I) in clause (i)--
(aa) in subclause (I), by
striking ``and'' at the end;
and
(bb) by adding at the end the
following:
``(III) limit the term of any
contract (including any extension or
renewal period) to a maximum of 5
years, subject to the condition that
any such extension or renewal shall be
approved only on mutual consent of the
contractor and the State agency;
``(IV) agree to provide, by not later
than 180 days before exercising any
termination for convenience clause, a
written notice to each affected
contractor;
``(V) agree--
``(aa) to receive an annual
audit of infant formula rebate
invoices by a contractor; and
``(bb) to provide to each
contractor accurate monthly
redemption files; and
``(VI) agree not to provide any State
preference to any bidder in evaluating
bids;'';
(II) in clause (iii), by striking
``and'' at the end;
(III) in clause (iv)--
(aa) by striking ``30'' and
inserting ``45''; and
(bb) by striking the period
at the end and inserting a
semicolon;
(IV) by redesignating clauses (iii)
and (iv) as clauses (iv) and (v),
respectively;
(V) by inserting after clause (ii)
the following:
``(iii) for any State agency that has fully
implemented electronic benefits transfer
systems throughout the State, have a system to
ensure that rebate invoices under competitive
bidding provide an actual count of the number
of units lawfully sold to participants in the
program under this section;''; and
(VI) by adding at the end the
following:
``(vi) provide a process to negotiate the
amount of funds to be returned to the bidder by
the State agency, and the method of return, on
determining and verifying that rebates were
paid on any food, including infant formula,
sold under fraudulent means;
``(vii) open bids and enter into a contract
under paragraph (8)(A)(iii) only after making a
reasonable effort to confirm in writing, via
email or other means, that the manufacturers on
the list the State agency maintains under
paragraph (8)(A)(ix) received the initial
request for proposals or other bid solicitation
document by not later than the date that is 45
days before the date on which the bids are due;
``(viii) agree to provide to contractors
supporting documentation for monthly invoices,
subject to the participant and vendor
confidentiality protections under program
rules; and
``(ix) not later than the date that is 90
days after the date for opening bids, submit to
the Secretary a copy of the bid solicitation
and any other contract documents.''; and
(ii) by adding at the end the following:
``(D) Certain food for infants.--Before any State
agency solicits bids for a contract for infant fruits,
vegetables, cereal, or meat under a competitive bidding
system, the State agency shall--
``(i) consider--
``(I) the impact of the contract on--
``(aa) participation or
redemption rates;
``(bb) costs to the State
agency for infant fruits,
vegetables, cereal, or meat,
including product,
administrative, and procurement
costs; and
``(cc) the ability of the
State agency--
``(AA) to achieve the
purpose described in
subsection (a);
``(BB) to provide
infants with a variety
of developmentally
appropriate infant
fruits, vegetables,
cereal, or meat; and
``(CC) to serve the
nutritional needs of
program participants;
and
``(dd) consumers who are not
participants, including the
availability of alternate
brands and potential effects on
retail pricing of infant
fruits, vegetables, cereal, or
meat; and
``(II) whether the contract is
compatible with--
``(aa) the management
information and food instrument
system of the State agency;
``(bb) eligible vendors; and
``(cc) the capacity of the
manufacturer to meet technical
specifications; and
``(ii) provide to the Secretary--
``(I) a written explanation of how
the considerations described in clause
(i) affected the decision of the State
agency to solicit bids for a contract;
and
``(II) not later than 15 months after
the start of such contract, a report
that shall include--
``(aa) the net savings to
date from the contract;
``(bb) an assessment of the
impact on eligible stores, non-
participants, and retail prices
for infant fruits, vegetables,
cereal, and meat; and
``(cc) an analysis of the
costs and benefits of the
contract, including an
examination of retail prices of
infant fruits, vegetables,
cereal, and meat.'';
(C) in paragraph (11)(E)--
(i) by striking ``If a State'' and inserting
the following:
``(i) In general.--If a State''; and
(ii) by adding at the end the following:
``(ii) Requirement.--Effective not later than
120 days after the date of the enactment the
Improving Child Nutrition and Education Act of
2016, in calculating average payments per
voucher under clause (i), a State agency shall
exclude food instruments not fully redeemed,
based on an actual count or a reasonable
estimate.'';
(D) in paragraph (12)--
(i) in subparagraph (A)(i), by striking
``food delivery system that provides'' and
inserting ``method to deliver''; and
(ii) by adding at the end the following:
``(H) Regulations.--As State agencies transition to
electronic benefit transfer for the program, the
Secretary shall update regulations to account for the
fact that State agencies--
``(i) are receiving transaction pricing more
frequently than twice a year from vendors; and
``(ii) should adjust vendor reimbursement
levels more frequently to reflect program food
price changes in the marketplace.
``(I) Authorization of appropriations.--
``(i) In general.--There is authorized to be
appropriated to carry out this paragraph
$25,000,000 for each of fiscal years 2017
through 2019.
``(ii) Use.--The Secretary shall allocate the
funds made available under this subparagraph to
States for purposes of enhancing and
accelerating the implementation of electronic
benefit transfer systems.
``(J) Penalty for noncompliance.--For any State
agency that fails to comply with subparagraph (B),
including a State agency receiving an exemption under
subparagraph (C), the Secretary shall--
``(i) withhold such amounts otherwise
required to be allocated to the State agency
for nutrition services and administration as
the Secretary determines to be appropriate; and
``(ii) direct the amounts withheld for use by
the State agency solely for achieving
compliance with subparagraph (B).''; and
(E) in paragraph (13), by adding at the end the
following:
``(C) Access.--The Secretary shall make available
upon request the national universal product code
database to vendors approved for participation in the
special supplemental food program established under
this section.'';
(8) by striking subsection (k);
(9) by redesignating subsections (l) through (q) as
subsections (k) through (p), respectively;
(10) in subsection (o) (as so redesignated)--
(A) in paragraphs (1) and (2)(B), by striking
``subsection (o)(1)(A)'' each place it appears and
inserting ``subsection (n)(1)(A)'';
(B) in paragraph (5)--
(i) in subparagraph (C), by striking ``and''
at the end;
(ii) in subparagraph (D), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(E) fifth, to reimburse any WIC infant formula
manufacturer for any rebate provided to the State
agency on WIC infant formula unlawfully trafficked
under a provision of law described in paragraph (2).'';
and
(C) by adding at the end the following:
``(6) Notice of investigation.--
``(A) In general.--For any investigation into the
trafficking of WIC infant formula pursuant to this
subsection, the Secretary shall provide notice of
resolution of the disposition of an unlawful action
resulting from the investigation to all contracted
manufacturers of the trafficked infant formula.
``(B) Estimates.--Not later than 60 days after the
date on which notice is provided under subparagraph
(A), the State shall submit to the contracted
manufacturer an estimate of--
``(i) the number of units, if any, for which
rebates may have been issued as a result of the
violation; and
``(ii) the total dollar amount of the
rebates.''; and
(11) by adding at the end the following:
``(q) Fraud and Safety Review.--
``(1) In general.--Not later than 180 days after the date of
the enactment of the Improving Child Nutrition and Education
Act of 2016, the Secretary shall review current guidance,
regulations, and practices regarding fraud and safety for
purposes of this section.
``(2) Inclusions.--The review under paragraph (1) shall
include a review of issues relating to--
``(A) excess and unused infant formula;
``(B) invoices pertaining to products subject to
rebate;
``(C) the sale of infant formula by unauthorized
entities; and
``(D) the purchase of infant formula from
unauthorized entities.
``(3) Updates.--Based on the findings of the review under
paragraph (1), the Secretary shall update current regulations
and guidance and issue additional regulations and guidance, as
necessary--
``(A) to minimize fraud; and
``(B) to ensure the safety of participants.
``(r) Cooperation With Law Enforcement Agencies.--Notwithstanding any
other provision of law, State agencies and law enforcement agencies
shall share WIC vendor information relating to investigations or
prosecutions under the program under this section, as determined by the
Secretary.
``(s) Pilot Projects.--
``(1) In general.--Subject to paragraph (2), the Secretary
may conduct pilot projects to test alternative certification
and food delivery procedures under this section.
``(2) Prohibition.--In conducting pilot projects under
paragraph (1), the Secretary may not waive or modify the
application of program eligibility, supplemental foods, or cost
containment requirements.
``(3) Evaluation.--The Secretary shall evaluate each pilot
project carried out under this subsection after the pilot
project has been in operation for 3 years.''.
(b) WIC Farmer's Market.--Section 17(l)(9)(A) of the Child Nutrition
Act of 1966 (42 U.S.C. 1786(m)(9)(A)), as redesignated by section
206(a)(9), is amended to read as follows:
``(A) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection $18,548,000 for each of fiscal years 2017
through 2021.''.
(c) Review of Adjunctive Eligibility for WIC.--
(1) Definitions.--In this subsection:
(A) Adjunctively eligible.--The term ``adjunctively
eligible'' with respect to an individual, means an
individual who is eligible for WIC under section
17(d)(2)(A)(iii) of the Child Nutrition Act of 1966 (42
U.S.C. 1786(d)(2)(A)(iii)).
(B) Comptroller general.--The term ``Comptroller
General'' means the Comptroller General of the United
States.
(C) Medicaid.--The term ``Medicaid'' means the
Medicaid program under title XIX of the Social Security
Act (42 U.S.C. 1396 et seq.).
(D) Poverty line.--The term ``poverty line'' means
the most recent annual Federal Poverty Income
Guidelines published by the Department of Health and
Human Services.
(E) WIC.--The term ``WIC'' means the special
supplemental nutrition program for women, infants, and
children established by section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786).
(2) Study.--The Comptroller General shall conduct a study to
examine the impact of adjunctive eligibility on WIC
participation, including the administrative burden, number of
participants in WIC, and other impacts on the participants.
(3) Adjunctive eligibility and income of wic participants.--
(A) In general.--In conducting the study described in
paragraph (2), the Comptroller General shall examine
the extent to which individuals certified as
adjunctively eligible to receive supplemental foods and
services through WIC have income above 185 percent of
the poverty line.
(B) Data.--
(i) Data collection.--The Comptroller General
shall collect data to determine--
(I) the total number of pregnant
women, postpartum women, breastfeeding
women, infants, and children
participating in WIC;
(II) an estimate of the share of
individuals described in subclause (I)
who are certified as adjunctively
eligible under section 17(d)(2)(A)(iii)
of the Child Nutrition Act of 1966 (42
U.S.C. 1786(d)(2)(A)(iii)); and
(III) an estimate of the share of
individuals described in subclause (II)
for whom income (for purposes of
Medicaid eligibility) is above 185
percent of the poverty line, above 250
percent of the poverty line, above 300
percent of the poverty line, and above
any other demarcation thresholds as
determined by the Comptroller General.
(ii) Sources.--The Comptroller General shall
collect the information described in clause (i)
from--
(I) WIC program data for subclauses
(I) and (II) of that clause; and
(II) a review of the income of a
representative sample of WIC
participants (for purposes of Medicaid
eligibility) at the time of WIC
certification (for subclause (III) of
that clause).
(iii) Other.--The estimate developed under
clause (i)(III) shall be based on data
collected in selected States in which the
income eligibility limit for infants under 1
year of age for Medicaid is at or above 185
percent of the poverty line.
(4) Use of income data to inform medicaid adjunctive
eligibility determinations.--
(A) In general.--Following collection of the data
described in paragraph (3), the Comptroller General
shall assess the feasibility, benefits, and costs of
requiring that WIC use an automated process to document
that only applicants with income below a specified
threshold may be certified as adjunctively eligible
based solely on Medicaid receipt.
(B) Scope.--The assessment described in subparagraph
(A) shall include an evaluation of the capacity of the
management information systems for both WIC and
Medicaid, including the ability of the systems to
exchange data.
(C) WIC management information systems.--The
Comptroller General shall assess--
(i) which State agencies and tribal
organizations operating WIC use management
information systems with the capacity, via an
automated process, for local WIC clinics to
document--
(I) income as a share of the poverty
level for purposes of Medicaid
eligibility; or
(II) Medicaid enrollment and income
below a specified level;
(ii) the steps necessary to prepare all local
WIC clinics to obtain and to access that income
information as a part of the WIC application
process as well as part of the associated costs
of modifying WIC automated systems and training
staff; and
(iii) other information determined relevant
by the Comptroller General, such as the impact
of the identified steps on administrative
costs, clinical services, and waiting times for
appointments.
(D) Medicaid management information systems.--The
Comptroller General shall assess--
(i) whether State's mechanized claims
processing and information retrieval systems
under section 1903(a)(3)(A)(i) of the Social
Security Act (42 U.S.C. 1396b(a)(3)(A)(i)) have
the capacity to provide, at the time of WIC
certification and via an automated process,
data to an agency or tribal organization
operating WIC regarding--
(I) income as a share of the poverty
level for purposes of Medicaid
eligibility; or
(II) whether a Medicaid recipient has
income below a specified level;
(ii) the steps necessary to ensure that
mechanized claims processing and information
retrieval systems in States for which the
income eligibility limit for infants under 1
year of age under Medicaid is above 185 percent
of the poverty line have the capacity to
provide the information described in clause (i)
to local WIC clinics for the purpose of
documenting adjunctive eligibility under an
option that would limit that eligibility to
individuals with income below a specific
threshold; and
(iii) other information determined relevant
by the Comptroller General and the Secretary of
Health and Human Services, including the impact
of the identified steps on administrative
costs.
(5) Report.--Not later than 18 months after the date of the
enactment of this Act, the Comptroller General shall submit to
the Committee on Education and the Workforce of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report describing--
(A) the data collected under paragraph (3);
(B) the assessments made under paragraph (4); and
(C) the feasibility, costs, and benefits of a new
requirement that would only permit adjunctive
eligibility for individuals with household income below
a specified level.
SEC. 207. TEAM NUTRITION NETWORK.
Section 19 of the Child Nutrition Act of 1966 (42 U.S.C. 1788) is
amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by inserting ``evidence-based'' before
``team nutrition messages''; and
(ii) by striking ``developed by the
Secretary'';
(B) in paragraph (2), by inserting ``under this Act
and the Richard B. Russell National School Lunch Act
(42 U.S.C. 1751 et seq.)'' before the semicolon at the
end;
(C) in paragraph (4), by striking ``purposes; and''
and inserting the following: ``purposes, including if
appropriate--
``(A) State and local nutrition education programs,
health and wellness policies, nutrition and health
education resources, and other State resources; and
``(B) Federal nutrition education efforts, including
those programs under this Act and the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et
seq.);''; and
(D) in paragraph (5)--
(i) by striking ``helping children to
maintain a healthy weight by''; and
(ii) by inserting ``in and out of school''
before the period at the end;
(2) in subsection (b), by striking ``(b)'' and all that
follows through ``In this section, the term'' and inserting the
following:
``(b) Definitions.--In this section:
``(1) Nutrition education.--The term `nutrition education'
means the provision of individual or group learning
opportunities and materials for children and families that--
``(A) emphasize the relationship between nutrition,
physical activity, and health with a goal of improving
long-term dietary and physical health and increasing
food security; and
``(B) include learning about food preparation.
``(2) Team nutrition network.--The term'';
(3) in subsection (c)--
(A) by striking the subsection heading and inserting
``State Network Grants.--''; and
(B) by adding at the end the following:
``(4) Allocation.--Subject to the availability of funds for
use in carrying out this subsection, the total amount of funds
made available for a fiscal year for grants under this
subsection shall equal not more than the sum of--
``(A) the product obtained by multiplying \1/2\ cent
by the number of lunches reimbursed through food
service programs under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.) during the
second preceding fiscal year in schools, institutions,
and service institutions that participate in the food
service programs; and
``(B) the total value of funds received by the
Secretary in support of this subsection from
nongovernmental sources.
``(5) Requirements for state participation.--To be eligible
to receive a grant under this subsection, a State agency shall
submit to the Secretary a plan, at such time and in such manner
as the Secretary may require, including--
``(A) a description of the goals and proposed State
plan for addressing the nutrition of children;
``(B) a description of the means by which the State
agency will use and disseminate the team nutrition
messages and material to children and, if appropriate,
families of such children;
``(C) an explanation of the ways in which the State
agency will use the funds from the grant to work toward
the goals required under clause (i), and to promote
healthy eating in schools throughout the State;
``(D) a description of the ways in which the State
team nutrition network messages and activities will be
coordinated at the State and local level with other
community health promotion and education activities;
``(E) an annual summary of the team nutrition network
activities and their effectiveness;
``(F) a description of the ways in which school
environments might support healthy eating and physical
activity; and
``(G) a description of how all communications to
parents and legal guardians of students who are members
of a household receiving information under the program
shall be in an understandable and uniform format and,
to the maximum extent practicable, in a language that
parents and legal guardians can understand.
``(6) State coordinator.--Each State that receives a grant
under this subsection may appoint a team nutrition network
coordinator. Such coordinator shall implement comprehensive,
coordinated nutrition education programming through the team
nutrition network, including to assist schools, school food
authorities, and other child nutrition program providers in the
State to administer and coordinate the team nutrition network
activities.
``(7) Authorized activities.--A State agency that receives a
grant under this section may use funds from the grant to--
``(A) identify the programs and services available to
meet the health and nutritional needs of children and
families in the State;
``(B) disseminate team nutrition network messages and
material that provide comprehensive, coordinated
nutrition and physical fitness awareness and obesity
prevention education;
``(C) implement demonstration projects in schools to
promote physical activity and to enhance the nutrition
education provided to students;
``(D) improve access to local foods through
coordinating with farm-to-school grant activities that
include the provision of nutrition education;
``(E) encourage schools to develop healthy eating and
lifestyle policies;
``(F) provide training and technical assistance to
teachers and school food service professionals
consistent with the purposes of this subsection; and
``(G) collaborate with public and private and faith-
based organizations, including community-based
organizations, State medical associations, and public
health groups, to provide nutrition and physical
education targeting lower income children, ethnic
minorities, and youth at a greater risk for obesity or
malnourishment.'';
(4) by striking subsections (d) through (g) and (k);
(5) by redesignating subsections (h) through (j) as
subsections (d) through (f), respectively;
(6) by redesignating subsection (l) as subsection (g);
(7) in subsection (d) (as so redesignated)--
(A) in the subsection heading, by inserting
``Education'' after ``Nutrition'';
(B) in paragraph (5)--
(i) in subparagraph (A)--
(I) in clause (i), by striking
``and'' at the end; and
(II) by adding at the end the
following:
``(iii) incorporate nutrition education into
physical and health education, and, if
appropriate, afterschool programs, including
athletics; and''; and
(ii) in subparagraph (B)--
(I) by striking clause (iv);
(II) in clause (vii), by striking ``a
variety of healthy foods'' and all that
follows through ``fruit bars'' and
inserting ``a variety of healthy foods,
including through initiatives to
creatively market such foods'';
(III) in clause (viii), by striking
``low-fat and nutrient dense'' and
inserting ``healthy''; and
(IV) by redesignating clauses (v)
through (ix) as clauses (iv) through
(viii), respectively;
(8) in subsection (e) (as so redesignated), by striking ``may
provide for technical assistance and grants'' and inserting
``shall provide for technical assistance''; and
(9) in subsection (g) (as so redesignated) by striking ``such
sums'' and all that follows through the period at the end and
inserting ``to carry out this section $17,000,000 for each
fiscal year.''.
TITLE III--MISCELLANEOUS
SEC. 301. REVIEWS.
(a) Tribal Foods.--
(1) In general.--Not later than 1 year after the date of the
enactment of this Act, the Secretary shall review--
(A) the barriers to including tribally produced,
traditional, and culturally appropriate foods in child
nutrition programs (as defined in section 25(b) of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1769f (b)) within tribal schools; and
(B) the means of encouraging and assisting enhanced
inclusion of foods described in subparagraph (A) in
child nutrition programs.
(2) Scope.--In carrying out the review described in paragraph
(1), the Secretary shall--
(A) survey and compile resources of the Department of
Agriculture on the issue described in paragraph (1)(A);
(B) if necessary, clarify relevant Federal
regulations governing schools and tribal producers,
including regulations relating to procurement,
reimbursement, and food safety;
(C) involve all relevant agencies, including the Food
and Nutrition Service and Office of Tribal Relations of
the Department of Agriculture; and
(D) submit to Congress a report describing the
results of the review.
(b) Use of Program Data.--
(1) In general.--The Secretary, jointly with the Secretary of
Education, shall--
(A) review information regarding available
alternative data sets for use in programs that are
using free and reduced price meals data; and
(B) determine the appropriateness of using such
alternative data sets in place of free and reduced
price meal program data by other programs to reduce the
burden on local school food authorities.
(2) Report to congress.--Not later than 1 year after the date
of the enactment of this Act, the Secretaries shall submit to
the Committee on Education and the Workforce of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that describes the results
of the review and any recommendations of the Secretaries.
(c) Crediting and Labeling Program.--
(1) In general.--The Secretary shall review and update the
system of crediting and the voluntary child nutrition labeling
program used in administering--
(A) the school lunch program established under the
Richard B. Russell National School Lunch Act (42 U.S.C.
1751 et seq.); and
(B) the school breakfast program established by
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773).
(2) Scope.--The review described in paragraph (1) shall
include, at a minimum--
(A) the treatment of food products within previously
established food categories and new products that have
entered the commercial marketplace since the system of
crediting and the voluntary child nutrition labeling
program were developed; and
(B) the timeliness in which applications for labels
under the voluntary child nutrition labeling program
are reviewed and are granted or denied.
(3) Report to congress.--Not later than 1 year after the date
of the enactment of this Act, the Secretary shall submit to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that describes the results
of the review and any recommendations of the Secretary.
(d) Nutritional Analysis.--The Secretary shall--
(1) review the practicability and feasibility of--
(A) conducting a nutritional analysis, using publicly
and commercially available nutritional information, of
food products that are voluntarily submitted for use in
child nutrition programs, outside of the reimbursable
school meal; and
(B) aggregating and making the information obtained
through that nutritional analysis publicly available
for use by school food authorities, food manufacturers,
and other interested parties; and
(2) if found practicable and feasible, proceed with the
analysis, aggregation, and public availability.
(e) Other.--
(1) In general.--The Secretary shall review--
(A) the cost differences between--
(i) providing meals and supplements under the
Richard B. Russell National School Act (42
U.S.C. 1751 et seq.) and section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773) in
Palau, Guam, American Samoa, the Commonwealth
of Puerto Rico, the United States Virgin
Islands, and the Commonwealth of the Northern
Mariana Islands, respectively; and
(ii) the average cost of providing meals and
supplements under those provisions of law in
the 50 States and the District of Columbia; and
(B) the relation of the cost differences determined
under subparagraph (A) to the national average payment
rates for meals and supplements prescribed under
sections 4, 11, 13, and 17 of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1753, 1759a, 1761,
1766) and section 4(b) of the Child Nutrition Act of
1966 (42 U.S.C. 1773(b)).
(2) Report to congress.--Not later than 1 year after the date
of the enactment of this Act, the Secretary shall submit to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that describes the results
of the review and any recommendations of the Secretary.
(f) Unlawful Activity.--
(1) In general.--Not later than 1 year after the date of the
enactment of this Act, the Secretary shall review--
(A) the number of instances and types of unlawful
activity that occurred in the preceding 3 years,
including, at a minimum, instances of fraud, bid-
rigging, and any other anticompetitive activities
carried out in connection with supplying, providing, or
selling goods or services for a program under the
Richard B. Russell National School Lunch Act (42 U.S.C.
1751 et seq.) or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.); and
(B) the practices and procedures currently used by
the Department of Agriculture to prevent unlawful
activity described in subparagraph (A).
(2) Secretarial response.--Following completion of the review
described in paragraph (1), the Secretary shall respond, if
appropriate, by taking action to reduce such unlawful activity,
including, at a minimum--
(A) revising any relevant guidance and regulations;
(B) issuing fines authorized under subsection (g) of
section 25 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769f) (as amended by section
115); and
(C) submitting to the appropriate committees of
Congress recommendations for any legislative changes
needed to enhance program oversight.
(3) Scope.--The actions described in paragraph (2) shall be
designed to reduce--
(A) anticompetitive activities, including bid-
rigging, price-fixing, the allocation of customers
between competitors, or other violation of Federal or
State antitrust laws;
(B) fraud, bribery, theft, forgery, or embezzlement;
(C) knowingly receiving stolen property;
(D) making a false claim or statement; or
(E) any other obstruction of justice.
(g) Infant Formula.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall--
(1) review the current regulations regarding caloric density
standards for infant formula made available in the special
supplemental nutrition program for women, infants, and children
established by section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786); and
(2) as appropriate, update the regulations based on the most
recent scientific knowledge available.
SEC. 302. PROGRAM DELIVERY.
(a) Streamlining.--The Secretary shall work with States participating
in programs authorized 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.) to encourage--
(1) streamlining of program administration, including data
collection and reporting requirements, at the State level;
(2) communication among State agencies administering the
programs;
(3) coordination of administration of Federal benefits at the
State level to ensure efficiency of program delivery and
improved access to participants, including efficiencies for
operation between the special supplemental nutrition program
for women, infants, and children under section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786) and the program under
subsection (m) of such section (42 U.S.C. 1786); and
(4) consolidation and elimination of duplicative or
unnecessary Federal and State reporting requirements.
(b) Study.--The Secretary, through an independent researcher with
expertise in economics or government efficiency, shall conduct a study
on the school meal programs under the Richard B. Russell National
School Lunch (42 U.S.C. 1751 et seq.) and section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773) to examine alternative funding
mechanisms and delivery to improve program effectiveness and efficiency
while reducing program costs, by--
(1) analyzing how businesses currently partner with schools
or institutions to operate the school meal programs, and
examining better ways to work with private sector businesses in
the programs;
(2) providing analysis and recommendations on improvements to
the programs by lowering administrative and program costs to
schools, local educational agencies, States, and the Federal
government, including analysis and recommendations with respect
to--
(A) financial impacts, including estimating potential
cost-savings of business participation for families,
schools, local educational agencies, States, and the
Federal government;
(B) regulatory and other barriers preventing business
participation, and how to remove such barriers to
encourage such business participation; and
(C) regulatory and other barriers to better utilize
donations, including donations of food products, while
still complying with food safety requirements; and
(3) considering the factors the Secretary is working on with
States under subsection (a), while carrying out the analysis
under paragraphs (1) and (2) of this subsection.
(c) Further Actions.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall--
(1) make the regulatory and guidance changes recommended
under subsections (a) and (b); and
(2) submit to the Committee on Education and the Workforce of
the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate--
(A) the findings of the study conducted under
subsection (b);
(B) a plan for legislative and regulatory action,
including--
(i) a timetable of action for regulatory
relief; and
(ii) recommendations for legislative action
required to improve program efficiency and
lower administrative costs for the school meal
programs.
(d) Spending Limitation.--Not more than a total of $475,000 shall be
used to carry out subsections (b) and (c).
SEC. 303. PRODUCT AVAILABILITY.
(a) In General.--The Secretary shall, to the extent practicable, make
available lactose-free milk with an extended shelf life for use in the
commodity distribution program authorized under section 14 of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1762a).
(b) Size and Form.--The milk described in subsection (a) shall, to
the extent practicable, be made available in a size and form acceptable
for and conducive to consumption by school-aged children.
SEC. 304. PROCUREMENT.
In administering the summer food service program for children
established under section 13 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1761) and the child and adult care food program
established under section 17 of such Act (42 U.S.C. 1766), the
Secretary shall ensure that--
(1) service institutions participating in the programs have
flexibility in determining the frequency of procurement and
food items included in each solicitation; and
(2) any procurement procedure implemented by a State agency
is cost effective and efficient in meeting the relevant meal
pattern requirements.
SEC. 305. SCHOOL NUTRITION ADVISORY COMMITTEE.
(a) Establishment.--Not later than 120 days after the date of the
enactment of this Act, the Secretary shall establish a School Nutrition
Advisory Committee (referred to in this section as the ``Committee'')
to provide input in the administration of the school lunch program
authorized under the Richard B. Russell National School Lunch Act (42
U.S.C. 1751 et seq.) and the school breakfast program established by
section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) (referred
to in this section as ``child nutrition programs'').
(b) Membership.--
(1) Composition.--Members of the Committee shall be appointed
by the Secretary from recommendations made by the chair and
ranking member of the Committee on Education and the Workforce
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate. Membership
on the Committee shall represent the following stakeholders:
(A) An organization that conducts research and
advocates on issues relating to child nutrition.
(B) An organization that advocates for cardiac
health.
(C) A professional organization representing
dietitians.
(D) A trade association representing fruit and
vegetable growers.
(E) A coalition of large urban school food
authorities.
(F) 2 representatives from State agencies that
administer the child nutrition programs.
(G) A professional organization representing school
food employees.
(H) A professional organization representing school
board members.
(I) A council representing large school districts.
(J) A professional association representing school
administrators.
(K) An entity that processes and manufactures meat
products.
(L) An entity that processes and manufactures dairy
products.
(M) An entity that processes and manufactures grain
products.
(N) An entity that assists suppliers and school food
authorities in selling and obtaining food products.
(O) A school food authority located in each of the 7
regions established for activities of the Food and
Nutrition Service, including--
(i) 3 representatives from districts located
in rural areas;
(ii) 2 representatives from districts located
in urban areas; and
(iii) 2 representatives from districts
located in urban cluster areas as defined by
census tract data.
(P) A council that represents public officials who
head departments of elementary and secondary education.
(Q) A professional organization representing
pediatricians.
(2) Terms.--The members will serve on the Committee for a 3-
year term. The chairmen of each congressional committee, under
paragraph (1) shall alternate in appointing a chair and vice
chair of the committee.
(c) Function.--The Committee shall--
(1) provide a venue for communication between stakeholders
and the Department of Agriculture regarding child nutrition
programs;
(2) give insight into child nutrition program implementation;
(3) review and make recommendations to the Secretary on
policy development involving child nutrition programs; and
(4) evaluate methods for programmatic and administrative
improvement of child nutrition programs.
(d) Meetings.--The Committee shall meet quarterly.
(e) Staffing.--The Secretary shall provide such staff personnel as
may be required to assist the Committee in carrying out the duties of
the Committee, but such staff shall not interfere in the discussions or
conclusions reached by the Committee.
(f) Termination.--The authority of the Committee shall terminate on
September 30, 2025.
SEC. 306. PAPERWORK REDUCTION.
(a) In General.--For any program authorized under the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et seq.) or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), the Secretary shall--
(1) periodically review regulations, guidance, and other
requirements to evaluate the volume of information required to
be reported to the Department of Agriculture by program
participants; and
(2) if appropriate, streamline or otherwise reduce any
unnecessary or duplicative paperwork, reporting requirements,
and other administrative burdens while maintaining program
integrity.
(b) Report.--Not later than 2 years after the date of the enactment
of this Act and every 3 years thereafter, and upon any publishing of
guidance or updated Federal requirements the Secretary shall submit to
the Committee on Education and the Workforce of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report that describes any action the Secretary
has taken under subsection (a) during the preceding 3 calendar years,
or in the case of a report submitted based on publishing updated
guidance or requirements, a report on such action, including a
determination of appropriateness under subsection (a)(2).
SEC. 307. TECHNOLOGY.
(a) Use of Technology.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall--
(1) review the current use of technology in the school lunch
program established under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.) and the school
breakfast program established by section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773);
(2) identify opportunities in which enhanced use of
technology would reduce the rate of errors in administration of
the programs by State agencies and local educational agencies;
and
(3) encourage State agencies and local educational agencies
to use technology in the areas identified under paragraph (2).
(b) Identification.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall--
(1) review the feasibility and evaluate the benefits of using
a unique student identifier in the school lunch program
established under the Richard B. Russell National School Lunch
Act (42 U.S.C. 1751 et seq.) and the school breakfast program
established by section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773);
(2) submit to the Committee on Education and the Workforce of
the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report describing the
results of the review under paragraph (1); and
(3) initiate implementation of a system for using a unique
student identifier, unless implementation is not in the best
interest of the programs described in paragraph (1), or does
not adequately protect student privacy.
SEC. 308. IMPROVING HEALTH AND SAFETY OVERSIGHT AND MONITORING FOR THE
CHILD AND ADULT CARE FOOD PROGRAM.
Not later than 1 year after the date of enactment of this Act, the
Secretary of Agriculture shall work with the Secretary of Health and
Human Services to improve health and safety oversight and monitoring
practices required under the child and adult care food program under
section 17 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1766) by issuing guidance to States to--
(1) reduce duplicative monitoring or oversight practices
among such child and adult care food program, the programs
under the Child Care and Development Block Grant Act of 1990
(42 U.S.C. 9858 et seq.) and the Head Start Act (42 U.S.C. 9831
et seq.), and other applicable programs; and
(2) provide recommendations in cases in which separate State
agencies administer such programs, including practices for
streamlining the monitoring of Federal requirements (including
compliance, operations, and financial requirements as a result
of multiple Federal programmatic regulations), in order to
reduce the burden on participants and States while enhancing
levels of health, safety, and program integrity.
SEC. 309. TECHNICAL CORRECTIONS.
(a) Richard B. Russell National School Lunch Act.--
(1) The Richard B. Russell National School Lunch Act is
amended in each of sections 4, 9, 9A, 12, 19, 23, and 25 (42
U.S.C. 1753, 1758,1758b, 1760, 1796a, 1769d, and 1769f) by
striking ``Committee on Education and Labor'' each place it
appears and inserting ``Committee on Education and the
Workforce''.
(2) Section 9 of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1758) is amended--
(A) by striking ``foster child'' each place it
appears and inserting ``foster youth''; and
(B) in subsection (b)(5)(B), by striking ``(42 U.S.C.
11434a(2))'' and inserting ``(42 U.S.C. 11434a(2)))''.
(3) Section 12 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1760) is amended in subsection (d)(3), by
striking ``U.S.C'' and inserting ``U.S.C.''.
(4) Section 14(c) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1762a(c)) is amended--
(A) by striking ``section 311(a)(4) of the Older
Americans Act of 1965 (42 U.S.C. 3030(a)(4))'' and
inserting ``section 311(c)(4) of the Older Americans
Act of 1965 (42 U.S.C. 3030a(c)(4))''; and
(B) by striking ``(42 U.S.C. 3030(b)(1))'' and
inserting ``(42 U.S.C. 3030a(b)(1))''.
(b) Child Nutrition Act of 1966.--
(1) The Child Nutrition Act of 1966 is amended in each of
sections 10 and 17 (42 U.S.C. 1779, 1786) by striking
``Committee on Education and Labor'' each place it appears and
inserting ``Committee on Education and the Workforce''.
(2) Section 7(a)(2)(B)(i) of the Child Nutrition Act of 1966
(42 U.S.C. 1776(a)(2)(B)(i)) is amended by striking ``clause
(ii)'' and inserting ``clause (ii))''.
(3) Section 17 of the Child Nutrition Act of 1966 (42 U.S.C.
1786) is amended--
(A) in subsection (h)(4)--
(i) in subparagraph (A)(vi), by striking
``and'' at the end; and
(ii) in subparagraph (C)(iv), by striking ``;
and'' at the end and inserting a period;
(B) in subsection (l)(6)(C)(iv), as redesignated by
section 206(a)(9) of this Act, by striking ``(G)(i)''
each place it appears and inserting ``(F)(i)''.
SEC. 310. BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying with
the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the chair of the Committee on the Budget of the House of
Representatives, provided that such statement has been submitted prior
to the vote on passage.
SEC. 311. EFFECTIVE DATE.
Except as otherwise specifically provided in this Act or any of the
amendments made by this Act, this Act and the amendments made by this
Act take effect on October 1, 2016.
Purpose
H.R. 5003, the Improving Child Nutrition and Education Act
of 2016 (bill), amends the Richard B. Russell National School
Lunch Act (NSLA) and the Child Nutrition Act of 1966 (CNA) to
support state and local efforts in providing nutritious food to
students; to increase accountability and transparency; to
better target assistance to those most in need; to provide
flexibility to states and service providers; to strengthen the
integrity and efficiency of the Special Supplemental Nutrition
Program for Women, Infants, and Children (WIC); to improve
service delivery in the Child and Adult Care Food Program
(CACFP); and to support nutrition education and family
engagement. The bill provides state and local leaders the
flexibility and additional support they need to ensure all
vulnerable children have access to healthy meals.
Committee Action
H.R. 5003 reflects work by the Committee on Education and
the Workforce (Committee) to reauthorize the NSLA and CNA. The
bill builds upon the Committee's ongoing efforts to improve
child nutrition programs by examining federal investments,
reducing burdensome requirements, and strengthening programs.
112TH CONGRESS
Full Committee Hearing on Examining the Costs of Federal Overreach into
School Meals
On May 13, 2011, the Committee held a hearing in
Washington, D.C., on ``Examining the Costs of Federal Overreach
into School Meals.'' The purpose of the hearing was to discuss
the impact of implementing recent changes to the child
nutrition laws and the challenges new regulations impose on the
school meal program, including greater costs and fewer options
for students. Testifying before the Committee were Ms. Sally
Spero, Food Planning Supervisor, San Diego Unified School
District, San Diego, California; Mr. Barry Sackin, Owner, B.
Sackin and Associates, Murrieta, California; Ms. Karen
Castaneda, Director for Food Services, Pennridge School
District, Perkasie, Pennsylvania; and Mr. Kenneth Hecht,
Executive Director, California Food Policy Advocates, Oakland,
California.
113TH CONGRESS
Full Committee Hearing on School Meal Regulations: Discussing the Costs
and Consequences for Schools and Students
On June 27, 2013, the Committee held a hearing in
Washington, D.C., on ``School Meal Regulations: Discussing the
Costs and Consequences for Schools and Students.'' The purpose
of the hearing was to evaluate the consequences of school meal
regulations issued by the U.S. Department of Agriculture (USDA)
under the Healthy, Hunger-Free Kids Act of 2010 (HHFKA).
Testifying before the Committee were Ms. Kay E. Brown, Director
of Education, Workforce, and Income Security Issues, U.S.
Government Accountability Office (GAO), Washington, D.C.; Ms.
Megan Schaper, Director of Food and Nutrition Services, State
College Area School District, State College, Pennsylvania; Ms.
Sandra Ford, Director of Food and Nutrition Services, Manatee
County School District, Bradenton, Florida; and Dr. Margo
Wootan, Director of Nutrition Policy, Center for Science in the
Public Interest, Washington, D.C.
114TH CONGRESS
First Session--hearings
Full Committee Hearing on Serving Students and Families through Child
Nutrition Programs
On April 15, 2015, the Committee held a hearing in
Washington, D.C., on ``Serving Students and Families through
Child Nutrition Programs.'' The purpose of the hearing was to
examine the importance of the federal governments child
nutrition programs and highlight how these programs are linked
to better educational outcomes. Testifying before the Committee
were Ms. Julia Bauscher, President, School Nutrition
Association/ Director, School and Community Nutrition Services,
Jefferson County Public Schools, Louisville, Kentucky; Mr. Duke
Storen, Senior Director, Research, Advocacy, and Partner
Development, Share Our Strength, Washington, D.C.; Dr. Kathy
Krey, Director of Research and Assistant Research Professor,
Texas Hunger Initiative, Baylor University, Waco, Texas; and
Ms. Dorothy S. McAuliffe, First Lady of Virginia, Office of the
Governor, Commonwealth of Virginia, Richmond, Virginia.
Subcommittee Hearing on Addressing Waste, Fraud, and Abuse in Federal
Child Nutrition Programs
On May 19, 2015, the Subcommittee on Early Childhood,
Elementary, and Secondary Education (Subcommittee) held a
hearing in Washington, D.C., on ``Addressing Waste, Fraud, and
Abuse in Federal Child Nutrition Programs.'' The purpose of the
hearing was to examine concerns with waste, fraud, and abuse in
federal child nutrition programs and look at ways to prevent
future fraud in the programs. Testifying before the
Subcommittee were Mr. Gil Harden, Assistant Inspector General
for Audit, Office of Inspector General, USDA, Washington, D.C.;
Ms. Kay E. Brown, Director, Education, Workforce, and Income
Security, GAO, Washington, D.C.; Ms. Jessica Lucas-Judy, Acting
Director, Forensic Audits and Investigative Service, GAO,
Washington, D.C.; and Ms. Zoe Neuberger, Senior Policy Analyst,
Center on Budget and Policy Priorities, Washington, D.C.
Full Committee Hearing on Child Nutrition Assistance: Are Federal Rules
and Regulations Serving the Best Interests of Schools and
Families?
On June 16, 2015, the Committee held a hearing in
Washington, D.C., on ``Child Nutrition Assistance: Are Federal
Rules and Regulations Serving the Best Interests of Schools and
Families?'' The purpose of the hearing was to examine rules and
regulations governing child nutrition policies and discuss
possible reforms to improve federal child nutrition programs.
Testifying before the Committee was the Honorable Tom Vilsack,
Secretary, USDA, Washington, D.C.
Subcommittee Hearing on Child Nutrition Assistance: Looking at the Cost
of Compliance For States and Schools
On June 24, 2015, the Subcommittee held a hearing in
Washington, D.C., on ``Child Nutrition Assistance: Looking at
the Cost of Compliance for States and Schools.'' The purpose of
the hearing was to examine the challenges states and schools
have faced in implementing the requirements of HHFKA and its
regulations. Testifying before the Subcommittee were Dr. Lynn
Harvey, Chief, School Nutrition Services, Safe and Healthy
Schools Support Division, North Carolina Department of Public
Instruction, Raleigh, North Carolina; Mr. John Payne,
President, Blackford School Board of Trustees, Hartford City,
Indiana; Dr. Melody Schopp, Secretary of Education, South
Dakota Department of Education, Pierre, South Dakota; and Ms.
Donna Martin, Director, School Nutrition Program, Burke County
Public Schools, Waynesboro, Georgia.
Second Session--Legislative action
On April 20, 2016, Rep. Todd Rokita (R-IN), Chairman of the
Subcommittee, introduced H.R. 5003, the Improving Child
Nutrition and Education Act of 2016. The bill reforms federal
child nutrition programs to reduce waste, fraud, and abuse, as
well as ensure states and schools have the flexibility they
need to provide children access to healthy meals.
On May 18, 2016, the Committee considered the bill in
legislative session and reported the bill favorably, as
amended, to the House of Representatives by a vote of 20-14.
There were 32 amendments offered:
Amendment in the Nature of a Substitute:
Subcommittee Chairman Rokita offered an amendment in
the nature of a substitute. The amendment (1) clarified
requirements in the fruit and vegetable program; (2)
permitted the Secretary of Agriculture (Secretary) to
provide bottled water during a state of emergency that
impacts the public water system; (3) authorized a new
demonstration project that would provide states greater
flexibility in offering healthy meals; (4) clarified
the cost for the regulations review; (5) required the
Secretary to provide a minimum of a 60-day comment
period for revised regulations on meal standards; (6)
clarified the Secretary should look at program
efficiencies within the WIC program when examining ways
to remove duplication and increase program efficiency;
and (7) included other technical and clarifying
changes. The amendment was agreed to by voice vote.
Amendment 2: Ranking Member Robert C.
``Bobby'' Scott (D-VA) offered an amendment to change
the title of the bill. The amendment was defeated by
voice vote.
Amendment 3: Ranking Member Scott offered an
amendment to provide a study on universal free meals.
The amendment was defeated by voice vote.
Amendment 4: Rep. Rick Allen (R-GA) offered
an amendment to study how utilizing private-sector
partnerships can improve child nutrition programs. The
amendment was agreed to by voice vote.
Amendment 5: Rep. Marcia L. Fudge (D-OH)
offered an amendment to strike language that set the
Community Eligibility Provision (CEP) threshold at 60
percent. The amendment was defeated by a vote of 13-22.
Amendment 6: Rep. Mark DeSaulnier (D-CA)
offered an amendment to require USDA to establish a
process to ensure state compliance with potable water
requirements. The amendment was defeated by a vote of
13-22.
Amendment 7: Ranking Member Scott offered an
amendment to provide nationwide funding for water
testing in schools and child care settings. The
amendment was defeated by a vote of 13-22.
Amendment 8: Rep. Glenn Grothman (R-WI)
offered an amendment to set the CEP threshold at 80
percent. The amendment was defeated by a vote of 8-27.
Amendment 9: Ranking Member Scott offered an
amendment to strike the three-year Secretarial review
and certification process. The amendment was defeated
by a vote of 13-22.
Amendment 10: Rep. Suzanne Bonamici (D-OR)
offered an amendment to strike the exemption to the
smart snacks rule. The amendment was defeated by a vote
of 13-22.
Amendment 11: Ranking Member Scott offered
an amendment to strike the cultural foods exemption.
The amendment was agreed to by voice vote.
Amendment 12: Rep. Mark Takano (D-CA)
offered an amendment to expand the salad bar promotion
and technical assistance provision. The amendment was
withdrawn.
Amendment 13: Rep. Mark Pocan (D-WI) offered
an amendment to require food service worker training.
The amendment was defeated by a vote of 16-19.
Amendment 14: Rep. Takano offered an
amendment to strike the increased verification
requirements. The amendment was defeated by a vote of
13-22.
Amendment 15: Rep. Elise Stefanik (R-NY)
offered an amendment to help states better monitor
CACFP in order to improve oversight and ease
administrative burdens. The amendment was agreed to by
voice vote.
Amendment 16: Rep. Susan A. Davis (D-CA)
offered an amendment to strike a provision limiting the
number of times families may be contacted during the
school meal application process. The amendment was
defeated by a vote of 16-19.
Amendment 17: Rep. Jared Polis (D-CO)
offered an amendment to require the school meal
applications to be in a language recipients understand
and to preserve free or reduced price eligibility if
the requirement was not met. The amendment was defeated
by a vote of 13-21.
Amendment 18: Rep. Polis offered an
amendment to clarify the Secretary can consult with
pediatricians, dieticians, and parents during the
nutrition standards review. The amendment was agreed to
by voice vote.
Amendment 19: Rep. Dave Brat (R-VA) offered
an amendment to provide flexible funding for child
nutrition programs. The amendment was withdrawn.
Amendment 20: Ranking Member Scott offered
an amendment to strike the demonstration project that
would provide flexible spending to three states in
administering child nutrition programs. The amendment
was defeated by a vote of 14-20.
Amendment 21: Rep. Joe Courtney (D-CT)
offered an amendment to provide schools with
flexibility in purchasing milk for students. The
amendment was agreed to by voice vote.
Amendment 22: Ranking Member Scott offered
an amendment to provide free and reduced price meals to
low-income students in higher education. The amendment
was withdrawn.
Amendment 23: Ranking Member Scott offered
an amendment to prohibit stigma-related functions
within school meal programs. The amendment was
withdrawn.
Amendment 24: Rep. Katherine M. Clark (D-MA)
offered an amendment to expand eligibility under the
WIC program. The amendment was defeated by a vote of
13-21.
Amendment 25: Rep. Bonamici offered an
amendment to expand the CACFP to include a third meal.
The amendment was defeated by a vote of 15-19.
Amendment 26: Ranking Member Scott offered
an amendment to expand the Summer Food Service Program
(SFSP) to include a third meal. The amendment was
defeated by a vote of 15-19.
Amendment 27: Rep. Grothman offered an
amendment to provide states flexibility in
administering the school meal and snack programs. The
amendment was defeated by a vote of 9-25.
Amendment 28: Reps. Davis and Bonamici
offered an amendment to amend the SFSP electronic
benefits transfer (EBT) program and increase
authorization levels. The amendment was defeated by a
vote of 13-21.
Amendment 29: Rep. Davis offered an
amendment to allow other forms of EBT, such as those in
WIC and the Supplemental Nutrition Assistance Program
(SNAP), within the SFSP EBT provision. The amendment
was agreed to by voice vote.
Amendment 30: Rep. Alma S. Adams (D-NC)
offered an amendment to change the area eligibility to
40 percent for summer programs. The amendment was
defeated by a vote of 13-21.
Amendment 31: Ranking Member Scott offered
an amendment to strike the prohibitions placed on the
Secretary. The amendment was defeated by a vote of 13-
21.
Amendment 32: Rep. Fudge offered an
amendment to prohibit the Act from taking effect until
certain conditions were met. The amendment was defeated
by a vote of 13-21.
Rep. Joe Wilson (R-SC) offered a motion to report the bill
as amended. The motion was adopted by a vote of 20-14.
Summary
NSLA and CNA authorize several nutrition programs with
mandatory spending implications, notably the school lunch and
breakfast programs and CACFP. Most recently reauthorized
through HHFKA, the authorization of many of the programs
expired on September 30, 2015.
Congress vastly expanded the federal government's role in
child nutrition through HHFKA and provided USDA broad authority
to create regulations regarding nutrition standards and meal
patterns, including specific requirements regarding whole-
grains, sodium, calories, and fruit and vegetable servings.
Since the regulations were implemented, schools, students, and
families have experienced a number of harmful consequences. For
example, participation in the school lunch program has
decreased by 1.2 million meals per day.\1\ Additionally, a
study by the National School Boards Association in 2014 found
84 percent of districts have seen an increase in plate waste;
77 percent have seen a decrease in participation; and 82
percent have experienced an increase in cost, largely due to
the implementation of these new federal meal standards.\2\
School districts have found the requirements to be burdensome,
costly, and difficult to implement, leading to greater strain
on school budgets and fewer students being served.
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\1\USDA school lunch participation data. http://www.fns.usda.gov/
sites/default/files/pd/slsummar.pdf.
\2\National School Boards Association. Pulse Poll on School Meal
Requirements. Page 1. October 2014. http://www.nsba.org/sites/default/
files/reports/NSBA_School_Nutrition_Poll.pdf.
---------------------------------------------------------------------------
Without responsible reform, schools will continue to face
these burdens and additional challenges as federal requirements
become even more stringent. For example, the current mandated
sodium levels make it difficult for schools to purchase low-
sodium food kids will eat. As sodium restrictions increase, it
will become more difficult to produce food that appeals to
kids, which will result in more food being wasted and more kids
dropping out of the school lunch program. Additionally, food
safety will be affected as certain foods expire more quickly,
further increasing costs for schools.
In order to address these issues and provide viable
solutions, Subcommittee Chairman Rokita introduced H.R. 5003.
The legislation helps address these issues by giving states,
schools, and providers the flexibility they need to ensure
children have access to healthy meals without additional or
prohibitive costs. Specifically, the legislation offers a
better way forward in the following areas:
Reviewing Nutrition Standards. The
legislation requires USDA to review and update federal
meal patterns and nutrition standards every three years
and then update the standards as necessary. The first
review is to be completed within 90 days of enactment
of the bill. In conducting these reviews, USDA is to
consult with school leaders. The Department must ensure
federal standards do not limit student participation,
are appropriate for school-age children, and do not
increase costs for schools.
Reining in the Secretarys Authority. The
legislation limits the Secretarys authority by
prohibiting the Secretary from imposing additional
requirements not included in the law or dictating
educational content around nutrition.
Reducing Administrative Burdens. Under
current law, overly prescriptive federal rules dictate
when schools may serve certain foods, and different
rules apply depending on how the meal is served. These
federal requirements have created confusion and
administrative challenges for school lunch officials.
The bill allows all foods that qualify to be served as
part of a reimbursed meal to also be served in a la
carte lines, enabling school officials to more easily
plan school meals.
Strengthening Verification. Current law
requires schools to verify the accuracy of student
participation by reviewing a
small percentage of applications, focusing on those
applications that are prone to error. To decrease fraud
and abuse, the bill raises the standard verification
sample to 10 percent of all applications. Schools that
perform well based on school district-specific metrics
will be able to reduce their verification sample by
certain amounts. Schools that perform in the top 20
percent in the state will be able to drop their sample
size to the bottom threshold, 2.5 percent, immediately.
Schools performing in the bottom 10 percent will be
required to take additional verification steps to
address their error rate.
Improving Community Eligibility. CEP allows
schools to provide free breakfasts and lunches to all
students if the school or school district is in an area
of high poverty. This option is allowed when 40 percent
or more of the student population are (among other
factors) homeless, in foster care, or in a family
eligible for other means-tested benefit programs. The
legislation would raise the CEP percentage to 60
percent in order to better target resources to those
students in need, while also ensuring all students who
are eligible for assistance continue to receive
assistance.
Repealing the Middle-Class ``Tax'' Increase.
The 2010 reauthorization of child nutrition assistance
forces schools to increase prices for students and
families who do not rely on federal assistance when
purchasing school meals (also known as ``full-paid''
students). The bill repeals this mandated increase in
the price of full-paid meals.
Repealing the Ban on Student Bake Sales.
Current law requires the Secretary to issue regulations
covering all foods sold in school, including food sold
in student-led activities such as bake sales and
fundraisers. This has undermined the ability of
students to raise funds to support academic and
extracurricular activities. The bill exempts student
group fundraisers from federal nutrition standards.
Streamlining State Audits. The bill requires
states to audit school programs once every five years,
rather than once every three years as mandated by
current law. This change will ensure states have more
time to help schools in need of assistance instead of
focusing solely on complying with burdensome paperwork
requirements imposed by the federal government.
Increasing Breakfast Reimbursement. The bill
provides the first increase for breakfast reimbursement
in over 25 years by providing schools an additional
$0.02 for breakfast without adding any additional cost
to taxpayers. For the school year beginning in 2020,
the added reimbursement amount will increase to $0.03.
Providing Flexibility in SFSP Distribution.
SFSP helps provide low-income children with access to
healthy meals when they are not in school. Food is
served at designated sites (also known as ``congregate
sites''), which can be difficult for children who live
in rural areas or lack transportation. The bill allows
states to provide summer meals away from a congregate
site in rural or low-income areas without access to
summer service. It also streamlines the process for
states to allow congregate sites to provide meals for
off-site consumption in the case of extreme or
emergency circumstances.
Reducing Burdens and Improving Access to
CACFP. CACFP supports meals and snacks served to
children and adults in home-based and center-based
daycare. To reduce administrative burdens and
paperwork, the bill lengthens eligibility
determinations from one to four months after approval.
The bill requires USDA to improve its program integrity
measures to ensure a fair, accurate, and consistent
review process. It requires the Secretary to convene
and implement recommendations from an advisory
committee that will propose ways to reduce unnecessary
or duplicative paperwork. Additionally, it allows
public or licensed nonprofit private residential child
care institutions, as well as any boarding school
funded by the Bureau of Indian Education, to
participate in the program if they are not
participating in the school lunch or breakfast
programs.
Streamlining Service Provider Applications.
Children currently may receive meals through both SFSP
and the at-risk afterschool meals component of the
CACFP. It is common for service providers to
participate in both programs, but under current law,
they must apply for and comply with the various
requirements in each of the individual programs. The
bill empowers states to streamline the programs by
simplifying administration and operations and by
reimbursing providers for year-round service at CACFP
levels.
Strengthening the Integrity of the WIC
Program. The bill authorizes the WIC program at the
current appropriation for the next five years. The bill
strengthens the integrity of the program by encouraging
states to move to EBT more quickly. Additionally, the
bill improves the process for state moratoriums on the
addition of new vendors to ensure there are clear
guidelines in place to help states control costs and
improve program integrity. The bill includes changes to
the rebate process for infant formula to provide
greater fairness and accountability. Additionally, GAO
is required to review how adjunctive eligibility
through Medicaid impacts WIC participation and costs.
Supporting innovation
Current law authorizes certain demonstration
projects to determine more effective ways to eliminate
hunger and deliver healthy food to children in and out
of school. To help spur local innovation, the bill
includes a number of reforms around demonstration
projects: Summer Electronic Benefit Transfer for
Children. Ten states are currently able to provide
benefits through the Summer Electronic Benefit Transfer
for Children (SEBTC) program.\3\ Those states can use
either SNAP or WIC EBT technology to allow families to
purchase food in the summer rather than eat at a
congregate site. The bill continues the project for
states that are currently operating with WIC or SNAP
technology but changes requirements and adds new
limitations. The bill requires a robust evaluation to
determine the effects of EBT as an alternate delivery
method during the summer months.
---------------------------------------------------------------------------
\3\Connecticut, Delaware, Michigan, Missouri, Nevada, Oregon,
Texas, Washington, Cherokee Nation and Chickasaw Nation.
---------------------------------------------------------------------------
Farm to School. The bill requires a greater
focus on nutrition education for children and families
and increases support for the program to help address
high demand.
Local Business Participation. The bill
authorizes a competitive grant program allowing local
businesses in four states to act as sponsors in SFSP in
low-income or rural areas where there currently are no
meal services in order to evaluate the benefit of
partnering with local employers to address hunger
issues.
Other notable provisions
Family Meal Days. Under the legislation,
federal nutrition standards can be waived up to four
days in a year so schools can provide Family Meal Days.
This would be a voluntary option for schools. Fruits
and Vegetables Mandates. The bill removes a federal
mandate in the fruits and vegetables snack program that
dictates the types of produce school nutrition
officials can serve. Improvements to School Lunch
Facilities. The legislation continues to provide
assistance to improve school kitchens and cafeterias,
which requires matching funds by recipients who receive
assistance. Sharing Best Practices. The bill requires
the Secretary to establish a centralized exchange
network to facilitate the sharing of information and
best practices between the states to enhance
efficiency, improve compliance, and reduce waste,
fraud, and abuse. Paperwork Reduction and Use of
Technology. The bill requires the Secretary to review
regulations, guidance, and other federal requirements
to identify ways to streamline and reduce the paperwork
burden on states and schools and to review the current
use of technology in the school lunch program.
Committee Views
Introduction
Helping children access healthy meals has long been a
national priority. With the goal of improving access while
ensuring accountability, the Committee worked with numerous
organizations--including those representing school leaders and
school nutrition professionals--to develop a legislative
proposal that will improve child nutrition programs.\4\ The
bill includes commonsense reforms to give schools the
flexibility and assistance they need to better serve their
students healthy meals. As Ms. Megan Schaper, director of Food
Service and Nutrition for the State College Area School
District in State College, Pennsylvania, said in her testimony
before the Subcommittee, ``a program that cannot remain
fiscally solvent due to decreased participation, decreased
opportunities to generate revenue, and mandated increases in
program costs is not positioned to provide high-quality,
healthful meals to students.''\5\ H.R. 5003 provides the relief
schools need, maintains healthy standards for students' meals,
and provides greater investments in other important programs
that help fight hunger while reducing waste, fraud, and abuse.
---------------------------------------------------------------------------
\4\H.R. 5003, the Improving Child Nutrition and Education Act of
2016. http://edworkforce.house.gov/uploadedfiles/
improving_child_nutrition_and_education_act_of_2016.pdf.
\5\Subcommittee hearing entitled, ``School Meal Regulations:
Discussing the Costs and Consequences for Schools and Students'' on
June 27, 2013. Testimony of Ms. Megan Schaper, Director of Food Service
and Nutrition, State College Area School District, Pennsylvania. U.S.
House of Representatives, Subcommittee on Early Childhood, Elementary,
and Secondary Education, Committee on Education and the Workforce,
Washington, DC.
---------------------------------------------------------------------------
Title I--Richard B. Russell National School Lunch Act
Title I of the bill amends NSLA. First, the definition of
``state agency'' is broadened to reflect how states have chosen
to operate these programs. While many state departments of
education run these programs, others utilize the state
departments of agriculture or other agencies and offices to run
child nutrition programs. The Committee believes states should
decide which state agency is best able to run these programs
without adding additional paperwork.
Addressing waste, fraud, and abuse
Child nutrition programs struggle with waste, fraud, and
abuse. The Office of Management and Budget (OMB) has
``designated the National School Lunch Program as 1 of 13
federal `high-error' programs due to its large estimated
improper payments--approximately $1.7 billion in fiscal year
2014.''\6\
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\6\``School-Meals Programs: Additional Verification Could Help USDA
Ensure Legitimate Access.'' GAO-15-594T. May 7, 2015. http://
www.gao.gov/assets/680/670077.pdf.
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Ms. Jessica Lucas-Judy, Acting Director, Forensic Audits
and Investigative Services at GAO, noted in her testimony
before the Subcommittee:
``USDA estimates that approximately $959 million of
its fiscal year 2014 improper payments represents
certification errors and approximately $789 million
represents school-district counting and claiming
errors. USDA estimates that the School Breakfast
Program had approximately $923 million in improper
payments in fiscal year 2014.''\7\
---------------------------------------------------------------------------
\7\``School Meals: USDA Could Improve Verification Process for
Program Access.'' GAO-15-634T, Statement of Jessica Lucas-Judy, Acting
Director, Forensic Audits and Investigative Service. May 19, 2015.
http://gao.gov/assets/680/670272.pdf.
Several instances of fraud were discovered by GAO through
an audit. GAO discovered several of its employees received
federal assistance, even though they exceeded the income
limit.\8\ That audit led to five individuals being indicted,
one of whom was also a school board member.\9\
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\8\``School-Meals Programs: USDA Has Enhanced Controls, but
Additional Verification Could Help Ensure Legitimate Program Access.''
GAO-14-262. May 15, 2014. http://www.gao.gov/assets/670/663258.pdf.
\9\``5 GAO workers charged with fraud in obtaining school lunch
subsidies.'' Lynh Bui. The Washington Post. August 11, 2015. https://
www.washingtonpost.com/local/crime/pr-georges-school-board-member-five-
others-accused-of-fraud/2015/08/11/4b9aaffc-405a-11e5-bfe3-
ff1d8549bfd2_story.html.
---------------------------------------------------------------------------
Verification is an area Secretary Vilsack pinpointed could
be reformed to increase accountability. Testifying before the
Committee, he stated it would be ``more helpful if we could get
up to 10 percent [of free and reduced price lunch applications
in each school district] reviewed.'' The Secretary further
stated that increasing the percentage would certainly send a
message and would begin to focus on the importance of making
sure we are accurate on all of this.''\10\ The Committee agrees
with the Secretary and included language in the legislation for
a new verification process. This process will require school
districts to review more applications and focus on those
schools with persistent problems. By requiring greater
interventions for poorly performing school districts, states
will be able to focus technical assistance and support on the
districts in need of the most help in improving the
verification process to ensure students are receiving the
correct level of assistance for school meals. Higher performing
school districts will be allowed to automatically drop their
verification from 10 percent of all applications to the lowest
required verification percentage of 2.5 percent. To further
ease any administrative burdens accompanying the new
verification requirements, H.R. 5003 incentivizes school
districts to adopt best practices to modernize the process.
These changes ensure the issues raised by GAO and the Secretary
are addressed, while minimizing additional burdens on school
districts.
---------------------------------------------------------------------------
\10\Full Committee hearing entitled, ``Child Nutrition Assistance:
Are Federal Rules and Regulations Serving the Best Interests of Schools
and Families?'' on June 16, 2015. Testimony of Secretary Vilsack, U.S.
Department of Agriculture, Washington, D.C. U.S. House of
Representatives, Committee on Education and the Workforce, Washington,
D.C.
---------------------------------------------------------------------------
Nutrition standards
As soon as the new regulations governing meal patterns and
nutrition standards were published, those responsible for
implementing the meal programs raised concerns about timetables
and costs. The School Nutrition Association (SNA) commented, We
are concerned that the timeframes within the rule are ambitious
given the significant changes which will have to be made to
school menus that will, at the same time, meet the rule's
requirements, while also retaining student participation.''\11\
AASA, The School Superintendents Association, also expressed
concerns about the cost of the new rule and the rules yet to be
offered, stating, Beyond the anticipated unfunded costs of
adopting the higher nutrition standards, we anticipate local
education agencies (LEAs) will face similar burdens with the
regulations relating to the training and certification
requirements, the indirect cost component, and setting a
national paid-lunch price.''\12\
---------------------------------------------------------------------------
\11\School Nutrition Association. Comment letter on the Food and
Nutrition Service Proposed Rule: Nutrition Standards in the National
School Lunch and School Breakfast Programs. March 29, 2011. https://
www.regulations.gov/contentStreamer?documentId=FNS-2007-0038-
8987&attachmentNumber=1&disposition=attachment&contentType=pdf.
\12\AASA: The School Superintendents Association. Comment letter on
the Food and Nutrition Service Proposed Rule: Nutrition Standards in
the National School Lunch and School Breakfast Programs. April 5, 2011.
https://www.regulations.gov/contentStreamer?documentId=FNS-2007-0038-
9609&attachmentNumber=1&disposition=attachment&contentType=pdf.
---------------------------------------------------------------------------
At a hearing held by the Subcommittee to examine the impact
of the new rules, witnesses described concerns about costs and
participation in the programs. Ms. Megan Schaper said:
``My school district was well on the way to meeting
the new nutrition standards when we ended the 2011/12
school year. We served an abundance of fruits and
vegetables every day, our breads were whole-grain rich,
and we knew that our meals were well within the fat and
calorie ranges as required. That said, we still had
extremely negative reactions from students and families
with the meals planned to be in compliance with the
meat and grain caps. Sandwiches and entree salads could
not be offered five days a week at our elementary
schools without respectively exceeding or not reaching
the grain limits. At secondary schools, popular entrees
had to be eliminated or substantially reduced in size
and in our customers' opinions, the larger fruits and
vegetables did not make up for this.''\13\
---------------------------------------------------------------------------
\13\Subcommittee hearing entitled, ``School Meal Regulations:
Discussing the Costs and Consequences for Schools and Students'' on
June 27, 2013. Testimony of Ms. Megan Schaper, Director of Food Service
and Nutrition, State College Area School District, Pennsylvania. U.S.
House of Representatives, Subcommittee on Early Childhood, Elementary,
and Secondary Education, Committee on Education and the Workforce,
Washington, DC.
She continued to discuss the decline in participation in
---------------------------------------------------------------------------
her district and the state overall, saying:
``Participation dropped in my schools by 34,000 meals
or 3 percent. Anticipating negative reactions to the
new standards, my district opted to utilize nonfederal
funding to justify not raising our lunch prices this
year as would have been required under Section 205, and
therefore I believe we avoided larger decreases in
participation. The lunch price equity rule required
many other districts to raise meal prices. Higher meal
prices combined with less satisfaction with the meals
in general dealt the proverbial one-two punch to the
participation levels in many districts. Statewide in
Pennsylvania participation has dropped by 5.6 percent
through March with the majority of that loss in the
paid-meal category.''\14\
---------------------------------------------------------------------------
\14\Ibid.
At the same hearing, GAO noted new rules required some
schools to replace popular items with less popular
alternatives, which led to greater food waste and students
remaining hungry because the food provided was not enough to
sustain them throughout the day.\15\
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\15\Subcommittee hearing entitled, ``School Meal Regulations:
Discussing the Costs and Consequences for Schools and Students'' on
June 27, 2013. Testimony of Ms. Kay E. Brown, Director for Education,
Workforce, and Income Security Issues, Government Accountability
Office, Washington, D.C. U.S. House of Representatives, Subcommittee on
Early Childhood, Elementary, and Secondary Education, Committee on
Education and the Workforce, Washington, DC.
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Providing all students access to healthy meals in a cost-
effective manner is a priority shared by Republicans and
Democrats. Unfortunately, the status quo has made it harder for
states and schools to serve the needs of their students and
families. The bill provides a different approach, one that
ensures federal policies (1) reflect the input of school
leaders, (2) do not increase costs for schools, (3) meet the
needs of all students, (4) are based on sound science, and (5)
lead to better participation. Further, the legislation sets up
a permanent process to ensure standards are reviewed over time
to make certain the needs of students and schools are still
being met and, when necessary, changes are considered in a
responsible way.
Key aspects of the new process for establishing nutrition
standards are increasing transparency and providing the public
adequate time to consider the policy changes. H.R. 5003
requires and supports transparency throughout the process,
including through consultation with local stakeholders when the
new rules are being developed, mandated notice to Congress on
the new requirements, and the creation of the School Nutrition
Advisory Committee, a committee created to advise the Secretary
on child nutrition programs.
Sodium targets
Schools are in dire need of additional flexibility so they
can provide food that kids will eat. Under the current
regulations, the next sodium target will take effect in the
2017-18 school year. H.R. 5003 requires the first review of the
regulations to be completed by December 31, 2016. During this
review, the Secretary will consult with local officials,
dieticians, parents, and physicians to determine what changes
should be made to the regulations, specifically addressing the
whole-grain requirements and the sodium targets to ensure
schools can provide food that kids will eat. Because of the
impending deadline, the bill requires the sodium target to be
frozen at the current level while the Secretary reviews
evidenced-based studies to determine the appropriate sodium
targets. The new target will go into effect three years from
when it is finalized. The three-year implementation is
necessary to ensure food producers have time to adapt their
food to the new targets, schools have time to purchase the
food, and students have time to adapt to changes in the food
being served.
Highlighting the need for additional flexibility, Ms.
Schaper stated, To be most effective at ending hunger and
curbing childhood obesity, schools need the flexibility to
provide healthful lunches that students actually want to
purchase and eat.''\16\
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\16\Subcommittee hearing entitled, ``School Meal Regulations:
Discussing the Costs and Consequences for Schools and Students'' on
June 27, 2013. Testimony of Ms. Megan Schaper, Director of Food Service
and Nutrition, State College Area School District, Pennsylvania. U.S.
House of Representatives, Subcommittee on Early Childhood, Elementary,
and Secondary Education, Committee on Education and the Workforce,
Washington, DC.
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Milk varieties
Nutrients in milk are important to children's growth and
development. H.R. 5003 provides schools with flexibility to
offer additional varieties of milk to encourage students to
drink milk. The Committee notes H.R. 5003 continues the
longstanding statutory requirement to offer milk with each
school lunch. The Committee expects USDA to reaffirm this
requirement through the updated manuals and guidance.
Potable water
Current law includes a requirement for schools to make
potable water available to students during meal service. In the
case of an emergency, access to clean water might not be
possible, so the bill authorizes the Secretary to provide
access to bottled water to schools that have been affected by a
nationally-declared emergency.
Special dietary needs
The legislation requires the Secretary to issue guidance to
schools on addressing food-related medical issues, including
food allergies and other special dietary needs (such as
religious accommodations) when providing school meals or food
in other programs. Guidance is needed to ensure kids are not
excluded due to special dietary needs.
Family Meal Days
H.R. 5003 requires the Secretary to allow schools or LEAs
to waive meal standards up to four days per year to facilitate
Family Meal Days.'' During the Family Meal Days, schools invite
families to share school meals, such as a Thanksgiving meal,
with their children. In implementing this provision, the
Secretary is prohibited from adding any mandates or
requirements to the provision. Schools are provided flexibility
to determine when and how best to host these days to maximize
family participation.
Community eligibility
HHFKA added the community eligibility provision'' (CEP)
that provides free meals to all students at a school when a
certain percentage of the student population is identified as
categorically or automatically eligible for free meals. This
provision of current law allows taxpayer dollars to subsidize
meals for students who are not otherwise eligible to receive
free school meals. H.R. 5003 maintains the provision but
increases the threshold to 60 percent, making this provision of
the law consistent with other policies affecting the school
lunch program. It is important to note this change will not
affect eligibility for one single student; every child who is
eligible to receive assistance today will still be eligible for
assistance under the reauthorized law. The change in the
provision, however, allows for more effective use of taxpayer
dollars and more help for those students who need it most.
Summer food service program for children
The Committee agrees with the intent of the SFSP in
addressing the needs of vulnerable children who might be at a
higher risk of hunger during the summer when they are not
receiving meals at school. Dr. Kathy Krey, director of research
at the Texas Hunger Initiative at Baylor University, testified
before the Committee on the importance of the program, stating:
``Regular access to healthy meals in the summer
months is important, not just for health but for
students' academic well-being. We know that inadequate
nutrition can intensify the learning loss that can
occur over the summer. This particularly affects low-
income students who can lose up to twice the ground of
other students during the summer months.''\17\
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\17\Full Committee hearing entitled, ``Serving Students and
Families through Child Nutrition Programs'' on April 15, 2015.
Testimony of Dr. Kathy Krey, Director of Research and Assistant
Research Professor, Texas Hunger Initiative, Baylor University, Texas.
U.S. House of Representatives, Committee on Education and the
Workforce, Washington, D.C.
While some low-income children receive meals at home or
through another care arrangement during the summer months,
others do not, and meeting the needs of these children can be
particularly challenging. H.R. 5003 continues SFSP with
fundamental improvements to give states and providers more
flexibility to provide meals, especially in rural and low-
income areas where children may be more vulnerable, and
strengthens existing programs by requiring states to prioritize
applications with an educational or enrichment activity.
Streamlining and improving efficiencies
H.R. 5003 continues the Seamless Summer Option (SSO), which
allows schools to provide summer meals in a capacity similar to
their school-year operations, while providing educational
enrichment. H.R. 5003 establishes opportunities to streamline
and improve operations of out-of-school meal programs
throughout the year. SFSP and CACFP programs work together to
provide meals to children beyond the typical school day,
whether during the summer or in afterschool programs. Some
providers operate both programs to serve children throughout
the year but in doing so must navigate through burdensome red
tape and expensive and time-consuming hurdles.
USDA has provided guidance to help states simplify and
streamline requirements between the two programs so providers
can better serve at-risk children.\18\ These are steps in the
right direction; however, the Committee has heard from numerous
providers of both SFSP and CACFP regarding the need to simplify
operations and encourage states to improve operations of these
programs. H.R. 5003 encourages states to remove expensive and
time-consuming hurdles to help community groups serve meals in
a more cost-efficient manner. The bill requires the Secretary
to provide guidance to help states reduce paperwork and
streamline applications, reporting requirements, inspections,
and other potential duplications.
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\18\``Available Flexibilities for CACFP At-risk Sponsors and
Centers Transitioning to Summer Food Service Program (SFSP).'' U.S.
Department of Agriculture. November 12, 2013. http://www.fns.usda.gov/
sites/default/files/SP%2006_CACFP%2003_SFSP%2006-2014os.pdf. See also
``Transitioning from the Summer Food Service Program to Child and Adult
Care Food Program At-risk Afterschool Meals.'' U.S. Department of
Agriculture. May 31, 2013. http://www.fns.usda.gov/sites/default/files/
CACFP12_SFSP14-2013.pdf.
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Non-congregate site flexibility
Currently, SFSP assists organizations serving meals to
children in supervised congregate settings such as summer camps
and recreational programs (referred to as the ``congregate
feeding requirement''). The program works well in many places,
helping children access healthy meals in safe, interactive
environments. However, this model can be a barrier for families
who lack transportation, live in rural areas, or do not have a
safe place for children to access help. Mr. Duke Storen, senior
director of Research, Advocacy, and Partner Development at
Share Our Strength, testified on this point, noting, ``States
and communities need more options in terms of the way that
summer benefits are delivered. Now, there is a single, sort of
uniform congregate feeding model, and that works great for some
but it doesn't work at all for most.''\19\ H.R. 5003 allows
states and providers flexibility from the congregate feeding
requirement in rural and low-income areas, or when the existing
congregate site is closed due to extreme weather conditions,
violence or other safety concerns, or other emergency
circumstances, as determined by the state.
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\19\Full Committee hearing entitled, ``Serving Students and
Families through Child Nutrition Programs'' on April 15, 2015.
Testimony of Mr. Duke Storen, Senior Director, Research, Advocacy, and
Partner Development, Share Our Strength, Washington, D.C. U.S. House of
Representatives, Committee on Education and the Workforce, Washington,
D.C.
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This flexibility should be complementary to the existing
site-based model--not a complete shift away from an approach
that is working for many students. H.R. 5003 limits this
allowance to the areas where there are barriers to successful
operation of the current program. Further, the limit of two
meals per service and 10 meals per week ensures food and
resources are not wasted. States should periodically reevaluate
the potential for children to be served at a congregate site as
a way to determine whether children might have new
opportunities at supervised locations. The approach in H.R.
5003 offers responsible flexibility to states and programs so
they may better reach children while protecting the intent of
the program.
Child and adult care food program
CACFP supports working parents by ensuring children
enrolled in participating child care centers, family child care
homes, Head Start facilities, or afterschool programs have
access to nutritious meals and important nutrition education.
The program helps improve the wellness, healthy growth, and
development of young children, older adults, and chronically
impaired or disabled persons.
H.R. 5003 extends the definition of ``institution'' to
include any (1) public residential child care institution; (2)
private residential child care institution that is licensed and
nonprofit; and (3) boarding school funded by the Bureau of
Indian Education that is not participating in the school lunch
or breakfast programs. This provides flexibility for such
institutions to participate in the program that best fits the
needs of the children in their care.
While there are many successful aspects of CACFP,
substantial hurdles prevent some providers from administering
the program effectively, including administrative burdens
caused by extensive paperwork requirements, duplicative
monitoring, and other requirements. USDA has failed to enact or
change policies to reduce the paperwork burden. A 2015 USDA
report to Congress found:
Despite broad agreement by USDA and CACFP stakeholders with
the 2007 report's priorities, the current feedback to the Work
Group suggests that concrete action to address many of the
recommendations has not been effective or fully utilized.
Although implementation of provisions of the Healthy, Hunger-
Free Kids Act offered further streamlining of application and
oversight requirements, it became increasingly clear to members
of the Work Group that additional actions would be needed.\20\
\20\``Report to Congress. Reducing Paperwork in the Child and Adult
Care Food Program.'' U.S. Department of Agriculture. Page 5. August
2015. http://www.fns.usda.gov/sites/default/files/cacfp/
CACFP_Paperwork_Report.pdf.
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H.R. 5003 includes reforms to reduce paperwork by
lengthening eligibility for private centers from one month to
four months. The bill also improves financial operations by
allowing sponsors to carry-over 10 percent of their
administrative funds for administrative purposes, while
ensuring proper oversight through accurate reporting. The
legislation further reduces administrative burdens by re-
convening a paperwork reduction task force.
Another area of improvement is the review and issuance of
guidance or regulations regarding the serious deficiency
process. This provision will help offer clarity for providers
and state agencies, and ensure oversight is fair, uniform, and
effective, while retaining program integrity. Improving
accountability and integrity will protect federal funds and
equip providers to operate more effectively. Information should
be shared with the Department of Health and Human Services
(HHS), as many facilities operating CACFP are administered by
HHS, to ensure proper oversight.
H.R. 5003 further improves oversight and monitoring for
child care providers participating in the CACFP who are, more
often than not, participating in a variety of other federal
programs with their own sets of monitoring, oversight, and
other programmatic requirements. Duplicative paperwork wastes
the time and resources of providers and state agencies. H.R.
5003 encourages reviews to be coordinated, streamlined, and
consolidated. Lastly, current law allows the Secretary to
provide additional state audit funds. H.R. 5003 ensures these
funds are used to improve program management and oversight,
including by improving practices across state agencies.
Demonstration projects
Current law authorizes demonstration projects to identify
more effective ways to eliminate hunger, deliver healthy food
to children in and out of school, and help spur local
innovation. H.R. 5003 builds on effective demonstrations and
includes promising new methods for funding and delivering child
nutrition programs. Before investing wholesale in new ideas or
widely expanding current practices, alternate delivery methods
must be tested and measured for effectiveness.
Access to local foods: Farm to school program
The existing Farm to School Program has led to more
agricultural producers being involved in child nutrition
programs, better nutrition education, and more local foods
being served in schools. The grants from this program act as
one-time capital infusions to schools so they can invest in the
infrastructure and operations needed to promote long-lasting
nutrition education and procure regional foods. Ensuring these
grants are awarded to a variety of grantees across the country
is important; therefore, H.R. 5003 limits entities to one grant
at a time. In addition, the legislation provides a grant period
of up to three years, which streamlines the process to combine
the current ``planning'' and ``implementation'' periods into
one award cycle.
Summer meal service through business partnership
Many children and families benefit from the healthy meals
supported by SFSP during the summer when school meals are not
available. The Committee includes commonsense reforms in H.R.
5003 to strengthen this program. These reforms ensure local
governments, camps, and nonprofit organizations can better
serve children in the summer. In addition, businesses are
taking initiatives to address hunger in their communities. Mr.
Storen testified:
``For decades, public-private partnerships have been
at the core of this solution, allowing community
organizations, schools, faith-based groups, and private
companies to come together to address the issue.
Through our work to end childhood hunger in all 50
states, we see the power that comes from all sectors
working together to solve this problem.''\21\
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\21\Full Committee hearing entitled, ``Serving Students and
Families through Child Nutrition Programs'' on April 15, 2015.
Testimony of Mr. Duke Storen, Senior Director, Research, Advocacy, and
Partner Development, Share Our Strength, Washington, D.C. U.S. House of
Representatives, Committee on Education and the Workforce, Washington,
D.C.
When local communities and businesses leverage resources to
develop innovative approaches, they create solutions to address
hunger in ways the government cannot. That is why H.R. 5003
authorizes a demonstration project that would allow four states
to approve businesses as sponsors to provide summer meals in
low-income or rural areas without current meal service.
The Committee views this demonstration project as a
promising approach that builds upon the work businesses are
already doing to help increase access to summer meals for
eligible children. H.R. 5003 limits the project to four states
as a way to assess the impacts these businesses can have on
addressing childhood hunger with less federal involvement while
also examining taxpayer funds are used more efficiently and
effectively than other methods.
Summer electronic benefit transfer for children
The Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2010
(P.L. 111-80) authorized and provided funding for the USDA to
implement and evaluate demonstrations to reduce summer hunger
for children. USDA developed the SEBTC demonstration to study
the use of SNAP and WIC electronic benefits transfer technology
to provide food assistance to low-income children during the
summer.
The existing project demonstrated some promise in
addressing food insecurity in the summer, but questions remain
whether this method produces the best results in the most cost-
effective manner. Participation rates, consumption rates, and
the cost of the program compared to the benefits need to be
understood before the program is expanded. For this reason,
H.R. 5003 allows states that are currently participating in
SEBTC to continue operating and evaluating this project. It is
the Committee's intent that states participating in the
demonstration, as amended through H.R. 5003, will study
additional parameters to improve the program and determine
whether it is an effective delivery method for providing access
to meals in the summer.
The Committee is concerned that ``administrative costs for
SEBTC in its early demonstration years were higher than for
most ongoing nutrition assistance programs.''\22\ States should
seek to minimize such administrative costs, so H.R. 5003 limits
these funds for participating states.
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\22\``Summer Electronic Benefit Transfer for Children (SEBTC)
Demonstration: Summary Report.'' Abt Associates Inc. May 2016. http://
www.fns.usda.gov/sites/default/files/ops/sebtcfinalreport.pdf (noting
that in 2012, when the demonstration reached the largest number of
children and families compared to other years, the total cost was $13.2
million, including $4 million in administrative costs and $9.3 million
in benefits).
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State administration of child nutrition programs
This demonstration project would provide up to three states
with the opportunity to develop programs and policies to best
meet the nutritional needs of the school-aged children in their
states, free from specific federal requirements and
regulations. States will be awarded a grant to administer this
provision for a three-year period, which will be equal to the
funds provided to the state in FY 2016 for free and reduced
price meals through the school lunch, school breakfast, special
milk, state administrative expenses, and team nutrition network
programs. Participating states will provide additional non-
federal resources to meet the needs of children in the state.
To participate, states will have to (1) provide healthy meals
to children; (2) ensure each child has access to at least one
affordable meal during the school day; (3) determine income
thresholds for such meals; (4) provide technical assistance to
ensure maximum participation; and (5) ensure all funds received
by the state are used to provide meals and carry out the
activities provided in this demonstration. It is important to
explore new ways to fund and operate existing programs to
ensure taxpayer funds are being used efficiently and
effectively. This project will help states and Congress
identify better ways to provide healthy meals to students.
Fruit and vegetable program
To help provide students access to fruits and vegetables,
H.R. 5003 opens the Fruit and Vegetable Program to all forms of
fruits and vegetables. When providing guidance on this expanded
option, the Secretary shall ensure all forms of fruits and
vegetables--fresh, frozen, canned, and dried--are treated
equally and schools will be able select the form best for their
students and schools.
Compliance and accountability
While accountability is critical for federal programs,
federal nutrition policies currently include compliance
requirements that have increased paperwork and costs for
participants with little benefit for taxpayers. Some of these
provisions have left states without time to focus on schools
and school districts that need extra support to improve
verification and prevent waste, fraud, and abuse. H.R. 5003
includes provisions that focuses on poorly performing
districts, removes unnecessary requirements that increase
costs, and reverts back to the five-year audit cycle to ensure
states have time to assist school districts in need rather than
simply check boxes on paperwork. The legislation also strikes
the requirement for a minimum price to be charged for paid
meals, because this is a decision that should be left to local
leaders.
Improvements to school lunch facilities
According to the Pew Charitable Trusts, 88 percent of
school districts are in need of at least one piece of kitchen
equipment, and 55 percent of school districts need to make
changes to their kitchen infrastructure.\23\ H.R. 5003
continues funding and guaranteed loans for schools to improve
kitchen facilities.
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\23\``Give Schools the Tools to Prepare Healthy, Delicious Meals:
The School Food Modernization Act.'' Pew Charitable Trusts. February
20, 2015. http://www.pewtrusts.org/en/research-and-analysis/fact-
sheets/2015/02/give-schools-the-tools-to-prepare-healthy-delicious-
meals.
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Prohibitions
Recent federal regulations governing child nutrition are
often far overreaching and too burdensome for schools. H.R.
5003 includes a new section that prohibits the Secretary from
placing additional burdens on schools as the reforms in the
legislation are enacted. In implementing the provisions of this
bill, the Committee expects the Secretary to follow the letter
and spirit of the law.
Title II--Child Nutrition Act
Title II of the bill amends the CNA and addresses several
major issues.
School Breakfast Program
According to the SNA, one in five children live in food
insecure households. The School Breakfast Program is critical
to helping these students receive the nutrition they need to
succeed at school.\24\ Unfortunately, the federal meal pattern
requirements updated after HHFKA added an estimated $0.27 per
breakfast served but provided no additional funding to help
schools cover those costs.\25\ As previously noted, the changes
to the meal standards will significantly curtail the additional
costs for providing school meals, yet providing a healthy
breakfast is still a cost every participating school faces.
H.R. 5003 provides the first increase in the breakfast
reimbursement rate for schools in more than 25 years. This will
mean an additional $0.03 by the end of the authorization for
schools for each breakfast served. This critical assistance to
schools is made possible through other reforms in the
legislation and at no additional cost to taxpayers.
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\24\``2016 Position Paper: 10 cents per breakfast in USDA Foods.''
School Nutrition Association. https://schoolnutrition.org/
uploadedFiles/Legislation_and_Policy/SNA_Policy_Resources/
2016PP10CentsOnePage.pdf.
\25\Federal Register. Vol. 78, No. 125. Department o fAgriculture:
Food and Nutrition Service, ``National School Lunch Program and School
Breakfast Program: Nutrition Standards for All Foods Sold in School as
Required by the Healthy, Hunger-Free Kids Act of 2010.'' June 28, 2015.
https://www.gpo.gov/fdsys/pkg/FR-2013-06-28/pdf/2013-15249.pdf.
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State administrative expenses
Some local school systems have explored alternative food
delivery models through the use of private contracts. The bill
encourages this practice by providing greater flexibility with
respect to the use of federal funds, which will help ensure
states coordinate with and reimburse entities for utilizing
cost saving strategies. The Committee recognizes the training
requirements for school food service personnel and supports
efforts to offer this training at times that are most
convenient for the staff, therefore minimally disrupting other
duties or jobs and requirements.
Smart snack rule
HHFKA required the Secretary to issue new rules covering
the sale of foods not reimbursed by the federal government,
referred to as ``competitive foods.'' The rule introduced new
requirements covering when certain foods could be served
outside of the paid meal lines. USDA did not establish the cost
of these new regulatory requirements, stating, ``The magnitude
of these effects is subject to considerable uncertainty; the
ultimate impact of the rule will be determined by the manner in
which schools implement the new standards and how students
respond.''\26\ School officials raised serious concerns about
the impact of these rules. For example, testifying before the
Subcommittee, Ms. Sandra Ford, director of Food and Nutrition
Services with Manatee County School District in Bradenton,
Florida, stated the new rule was estimated to cost the district
roughly $1 million in annual revenue.\27\ This rule was issued
as schools struggled to implement new nutrition standards,
which resulted in disrupting many school fundraisers. To
protect the ability of students to fund class trips, run career
and technical education programs involving food programs and
workforce education, and other school-based activities, the
bill requires the Secretary to improve current rules. The
Committee expects that new regulatory policies will make it
easier for schools to plan their menus and provide food kids
will eat, limit the financial impact of the rule for schools,
and ensure student-led fundraisers are allowed to operate.
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\26\Federal Register. Vol. 78, No. 125. Department of Agriculture:
Food and Nutrition Service, ``National School Lunch Program and School
Breakfast Program: Nutrition Standards for All Foods Sold in School as
Required by the Healthy, Hunger-Free Kids Act of 2010.'' June 28, 2015.
Page 39070. https://www.gpo.gov/fdsys/pkg/FR-2013-06-28/pdf/2013-
15249.pdf.
\27\Subcommittee hearing entitled, ``School meal Regulations:
Discussing the Costs and Consequences for Schools and Students'' on
June 27, 2013. Testimony of Ms. Sandra Ford, Director of Food and
Nutrition Services, Manatee County School District, Florida. U.S. House
of Representatives, Subcommittee on Early Childhood, Elementary, and
Secondary Education, Committee on Education and the Workforce,
Washington, DC.
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Special Supplemental Nutrition Program for Women, Infants, and Children
WIC provides supplemental nutritious foods, nutrition
education, and counseling at WIC clinics--as well as screening
and referrals to other health, welfare, and social services--
for income-eligible women who are pregnant or post-partum,
infants, and children up to five years of age. The bill
strengthens the program for taxpayers and vulnerable mothers
and children by improving the contracting, sole source bidding,
and anti-waste, fraud, and abuse provisions. The changes to the
moratorium process will properly balance the need to prevent
fraudulent and wasteful activity with the need to ensure local
businesses, WIC participants, and non-participants are not
unduly harmed.
As the Secretary reviews allowable foods under WIC, it is
important they do not limit access to fruits and vegetables.
H.R. 5003 includes language to ensure the Secretary does not
arbitrarily limit children's access to fruit.
H.R. 5003 includes a provision regarding certain food for
infants. This provision is intended to ensure states consider
the full range of costs and benefits associated with single-
supplier rebate contracts for infant foods. Administrative
costs and potentially higher retail prices for products offered
through single-supplier agreements reduce the ``savings''
achieved through these agreements. Higher retail prices also
negatively affect non-WIC consumers. Single-supplier contracts
reduce variety and choice for WIC participants and may
contribute to lower redemptions in this product category. Lower
redemption rates diminish the goals of increasing consumption
of fruits and vegetables. In November 2015, the Institute of
Medicine released its ``Review of WIC Food Packages: Proposed
Framework for Revisions: Interim Report,'' and stated:
``On the one hand, containing costs is essential for
maximizing program funds to serve as many WIC-eligible
individuals as possible. Yet strategies that limit cost
are often synonymous with strategies that limit choice.
Cost-containment practices that restrict participant
choice in such a way that some foods become undesirable
for purchase undermine WIC's goal to provide healthy
and nutritious foods to low-income individuals. As a
result, states attempt to balance containing cost with
promoting enough variety and choice among healthy WIC
foods that families will want to purchase those
foods.''\28\
\28\``Review of WIC Food Packages: Proposed Framework for
Revisions: Interim Report.'' Committee to Review WIC Food Packages:
Food and Nutrition Board: Institute of Medicine. The National Academies
of Sciences, Engineering, Medicine. http://www.nap.edu/read/21832/
chapter/1.
Improving the contracting provisions is a critical reform
to the WIC program in H.R. 5003. Providers of infant formula
fund just over 20 percent of the WIC program through the infant
formula rebate program. Infant formula rebates totaled
approximately $1.8 billion in FY 2015. The proposed reforms
seek to achieve a better balance in the rights and obligations
of the contracting parties when entering into WIC rebate
contracts. These reforms are necessary to ensure a fair process
during the bid solicitation and contract review process.
In addition, the bill requires GAO to study the impact of
adjunctive eligibility on the WIC program and participants.
Data used to evaluate this provision must be fair, accurate,
and examine how many states have eligibility requirements above
the WIC statutory eligibility requirement of 185 percent of
poverty. The Committee included a timeframe of 18 months for
completion of the report.
Team nutrition network
Team Nutrition is an initiative run by USDA's Food and
Nutrition Service to provide training and technical assistance
to food service workers, nutrition education to children and
their caregivers, and school and community support for healthy
eating and physical activity.\29\ The bill makes improvements
to better support nutrition education and improve coordination
of activities in this area. This will include guidance from the
Secretary for schools to coordinate work with their ``farm to
school'' grants and plans for the newly allowed Family Meal
Days. The prohibitions included in Title I of the bill are
critical to ensuring the Secretary does not overreach and does
not dictate curriculum, standards, or other activities that are
best left to state and local officials to determine and
develop.
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\29\``Team Nutrition.'' U.S. Department of Agriculture. http://
www.fns.usda.gov/tn/team-nutrition.
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Title III--Miscellaneous
Title III of the bill addresses miscellaneous provisions.
Reviews
H.R. 5003 includes many areas the Secretary shall review to
improve child nutrition programs. Of particular note is a
requirement to determine if there are more appropriate data
sources to use other than the school meal eligibility data for
other federal programs that are means tested.
Additionally, the requirement to look at crediting in
school meals is important to ensure the process is neutral in
its application and does not arbitrarily leave foods ineligible
for the program or a part of the program. The Food and
Nutrition Service should properly apply the exemptions in its
2013 regulations to nut, seed, or nut/seed butter (separate or
combined with other ingredients) on competitive foods sold in
U.S. schools. Additionally, USDA should review the allowance of
jerky products that provide significant protein in a form kids
will consume. It is important that USDA not exclude foods that
provide a good source of nutrition in a cost effective manner
that are enjoyed by students, therefore limiting food waste.
Another important review the Secretary shall conduct is an
evaluation of the number of incidences and types of unlawful
activity that have occurred over the last three years,
including a review of the agencies responses, and to take
action preventing further fraud. Finally, it is important the
Secretary review the regulations regarding infant formula and
update them appropriately to reflect the current scientific
knowledge.
Program delivery
It is important for the Secretary to continually review
federal policies and the impact they have on states, school
districts, and schools. The Secretary should also recognize
that federal rules are often in addition to rules state leaders
place on school districts and schools. The Secretary must work
with states to coordinate and streamline requirements and
reduce duplication.
School nutrition advisory committee
The Secretary must engage all stakeholders in the
implementation of child nutrition programs. As part of this
engagement, the Secretary should pay particular attention to
those who pay for and run these programs. The advisory
committee will make recommendations to the Secretary on
important issues and provide local stakeholders a role in the
decision-making process. By requiring the appropriate
congressional committees to provide recommendations for
membership, the bill will ensure that a diverse range of
thought and opinion is adequately reflected. The Secretary and
USDA staff must not inappropriately interfere in the work of
the committee. The committee's role is to provide thoughtful
and deliberative feedback and recommendations on policies, free
from influence of the Secretary and administration.
Conclusion
Helping children succeed in the classroom is a priority of
both Republicans and Democrats, and children cannot learn in
the classroom if they are hungry. That is why federal policies
have long supported states, schools, and other institutions as
they work to meet the nutritional needs of low-income children
and families in their communities. Unfortunately, federal rules
and mandates issued in recent years make serving vulnerable
children harder for state and local leaders. The current one-
size-fits-all approach has resulted in higher costs for schools
and fewer students being served. This bill provides a better
way for children and families who rely on nutrition assistance.
Through a number of positive reforms, this bill will deliver
the flexibility, accountability, and additional support
students, families, schools, and taxpayers need. The bill
reflects the Committee's ongoing effort to ensure the federal
government spends taxpayer resources responsibly and all
children have equal opportunities to achieve a lifetime
success.
Section-by-Section
Section 1--Short title; Table of contents
States the short title as ``Improving Child Nutrition and
Education Act of 2016'' and contains the table of contents for
the Act.
Section 2--Definition of Secretary
Defines the term ``Secretary'' to mean the Secretary of
Agriculture.
Title I--Richard B. Russell National School Lunch Act
Section 100--Authorized State agency
Changes ``State educational agency'' to ``State agency.''
Section 101--Apportionment to states
Returns to the Treasury any administrative funds provided
to states to implement the new school meal rules unspent by
September 30, 2016, and requires the Secretary to announce the
reimbursement rate for the upcoming school year and any
necessary guidance by February 15, 2017.
Section 102--Repeal of nutrition promotion
Repeals the nutrition promotion program.
Section 103--Direct federal expenditures
Changes the formula for commodity assistance and moves the
date forward to inform states of their share.
Section 104--Nutritional and other requirements
Requires the Secretary to provide technical assistance and
training to participating schools and to revise the milk
requirements.
Authorizes the Secretary to award funds to state agencies
to assist in providing bottled water to schools in a state of
emergency.
Strikes a provision to inform families of what the income
threshold is to qualify for reduced priced meals and requires
the inclusion of a provision on the notice to families to
clarify individuals may report alleged fraud to the USDA
Inspector General (IG) and requires the USDA to have a
prominent link to the USDA IG website and a phone number which
can be used to report alleged fraud. Also requires the
Secretary to review school meal applications and provide states
best practices and guidance to improve the application process
and clarifies school food authorities' interactions with
families regarding applications.
Makes changes to the meal application verification process
to help reduce the error rate for approved applications. Phases
in these changes after one year.
Amends the nutrition standards requirements to require a
triennial review of the standards, with the first review
occurring by December 31, 2016.
Includes an allowance for Family Meal Days. Also includes a
requirement for guidance to schools allowing school food
authorities to substitute food items, including in-season,
locally-produced fruits and vegetables when there is difficulty
in procuring food to comply with the regulations, provided the
school food authority continues to meet the nutrition
standards.
Section 105--Miscellaneous provisions
Amends the CEP, updates the procurement training
requirements from 2015 to 2021, and repeals paid meal equity
requirements.
Section 106--Summer food service program for children
Prioritizes applications with an educational or enrichment
activity and requires states to include in their administration
and management plan how they will strengthen the congregate
feeding model.
Encourages all states to streamline and simplify operations
for institutions eligible to participate in the At-Risk
Afterschool component of CACFP and allows states that have
demonstrated such streamlining to be reimbursed for meals both
in summer and throughout the school year as a way to further
streamline meal delivery and reduce burden on providers and
states. The funding in this provision is phased in by allowing
five states in May 2017, an additional five states in October
2018, and to any state in May 2020. These meals will be
reimbursed consistent with rates in CACFP.
Requires the Secretary to grant state requests to allow
children already participating in the program to consume meals
off-site when the existing congregate site is closed due to
extreme weather conditions, violence or other safety concerns,
or other emergency circumstances as determined by the state.
Permits a state to elect for service organizations to
provide summer meals to children that may be consumed away from
the congregate site. The child being served such meals must
live in a rural area or an area where more than 80 percent of
students are certified as eligible to receive free- or reduced-
price lunch.
Section 107--Commodity Distribution process
Makes technical corrections to the Commodity Distribution
program and strikes a mandate for a notice of irradiated food
products.
Section 108--Child and adult care food program
Extends the definition of ``institution'' to include any
(1) public residential child care institution; (2) private
residential child care institution that is licensed and
nonprofit; and (3) boarding school funded by the Bureau of
Indian Education, so long as the institution does not
participate in the school lunch or breakfast programs.
Lengthens eligibility for private centers from one month to
four months. Allows sponsoring organizations to carry over 10
percent of their administrative funds for any succeeding fiscal
year for administrative purposes and requires reporting on the
amount retained for administrative costs.
Requires the Secretary to review, and issue guidance or
regulations regarding, the serious deficiency process. Requires
relevant information to be shared with the HHS during the
review of the serious deficiency process as well as when
reviewing program participants. Requires the Secretary to
convene an advisory committee to examine the feasibility of
reducing unnecessary or duplicative paperwork and implement
changes resulting from recommendations. Ensures states use any
additional audit funds provided by the Secretary to improve
program management and oversight, including across state
agencies.
Section 109--Demonstration projects
Strikes outdated projects and authorizes the following four
projects:
Access to Local Foods: Farm to School
Program;
Summer Meal Service through Business
Partnership;
Summer Electronic Benefit Transfer for
Children; and
State Administration of Child Nutrition
Programs.
Section 110--Fruit and vegetable program
Removes the limitation to provide fresh fruit and
vegetables thereby opening the program to all forms, but
includes clarification that states have the option to elect
offering all forms. Encourages schools to introduce fruits and
vegetables to children in new contexts, including allowing
schools to offer combinations of fruits and vegetables with
tree nuts.
Section 111--Compliance and accountability
Reverts the required audit cycle back to five years (rather
than three years) and requires states to work with LEAs on
``Error Reduction Plans.''
Section 112--Repeal of State Childhood Hunger Challenge Grants
Repeals the State Childhood Hunger Challenge Grants.
Section 113--Duties of the Secretary relating to non-procurement
debarment
Increases fines for contractors found guilty in any
criminal proceeding or found liable in any civil or
administrative proceeding of specific activities.
Section 114--Improvements to school lunch facilities
Authorizes kitchen equipment grants and loans.
Section 115--Prohibitions
Prohibits the Secretary from overreaching or adding new
requirements not authorized under the law.
Title II--Child Nutrition Act
Section 201--Special Milk Program Authorization
Requires the date for notification of the reimbursement
rate for milk to be February 15 of the preceding school year
instead of simply on an annual basis.
Section 202--School Breakfast Program
Increases the reimbursement rate for breakfast.
Section 203--State Administrative Expenses
Clarifies the use of state administrative expenses.
Section 204--Regulations
Ensures any foods sold in the reimbursed meal program may
also be served in an a la carte line and ensures fundraisers
held by student organizations may occur at any time other than
during meal times.
Section 205--Definition of State agency
Defines a ``state agency'' as the chief state school
officer, a board of education controlling the state department
of education, the state commissioner or individual who
administers agricultural programs in the state, or a state
official the state legislature designates to administer
programs authorized in this provision.
Section 206--Special Supplemental Nutrition Program for Women, Infants,
and Children
Makes changes to the WIC program, including the bidding
process; sole source contracting; and prevention of waste,
fraud, and abuse.
Section 207--Team nutrition network
Improves Team Nutrition by requiring the program to improve
nutrition education, which includes physical activity, long-
term dietary health, food security, and food preparation.
Title III--Miscellaneous
Section 301--Reviews
Requires the Secretary to review the following:
Barriers to including tribally-produced and
cultural foods in the school meal programs;
Along with the Secretary of Education, how
free and reduced price lunch data is used and whether
there is a viable alternative to such data;
An update of the system of crediting and the
voluntary child nutrition labeling program used in
administering the programs under these laws;
The practicability and feasibility of
conducting nutritional analysis of food products
voluntarily submitted for use in the child nutrition
programs;
The cost difference between providing meals
in the outlying areas and the 50 states and Washington,
D.C.;
Unlawful activity under the program over the
past three years and to address such issues to help
prevent any unlawful activity in the future; and
The infant formula available under WIC.
Section 302--Program delivery
Requires the Secretary to work with states to improve
program administration through the use of technology, better
coordination, better communication among states, and
consolidation and elimination of duplicative or unnecessary
federal and state reporting requirements.
Section 303--Product availability
Requires the Secretary to make available, in a size and
form for school-age children, lactose-free milk with an
extended shelf life for use in the commodity distribution
program.
Section 304--Procurement
Requires the Secretary to ensure service institutions
participating in the programs have flexibility in determining
when and what food to purchase and that procurement processes
implemented in states are cost effective and efficient.
Section 305--School nutrition advisory committee
Establishes an advisory committee to provide input from
stakeholders to the Secretary on the administration of the
programs under these laws.
Section 306--Paperwork reduction
Requires the Secretary to review regulations, guidance and
other requirements in order to identify ways to streamline and
reduce paperwork requirements, and if appropriate, act on such
review to streamline or otherwise reduce the paperwork burden
on states and schools. Requires a report on the paperwork
burden to Congress after two years, and every three years
thereafter (or upon any guidance or updated federal
requirements).
Section 307--Technology
Requires the Secretary to review the current use of
technology in the school lunch program and identify
opportunities to make improvements and encourage greater use.
Section 308--Improving health and safety oversight and monitoring for
the Child and Adult Care Food Program
Requires the Secretary and the Secretary of HHS to work
together to improve health and safety oversight and monitoring
practices required under CACFP by issuing guidance to states to
reduce duplicative monitoring or oversight activities that are
a result of multiple federal regulations, including through
CACFP, the Head Start Act, and the Child Care and Development
Fund.
Section 309--Technical corrections
Makes technical and conforming corrections.
Section 310--Budgetary effects
Establishes PAYGO compliance.
Section 311--Effective date
Establishes the effective date as October 1, 2016, unless
otherwise specifically stated.
Explanation of Amendments
The amendments, including the amendment in the nature of a
substitute, are explained in the body of this report.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch. H.R. 5003 builds upon the Committee's ongoing efforts
to improve child nutrition programs by examining federal
investments, reducing burdensome requirements, and
strengthening programs.
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement of
whether the provisions of the reported bill include unfunded
mandates. This issue is addressed in the CBO letter.
Earmark Statement
H.R. 5003 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of House Rule XXI.
Roll Call Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include for
each record vote on a motion to report the measure or matter
and on any amendments offered to the measure or matter the
total number of votes for and against and the names of the
Members voting for and against.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Statement of General Performance Goals and Objectives
In accordance with clause (3)(c) of House Rule XIII, the
goal of H.R. 5003 is to improve child nutrition programs by
examining federal investments, reducing burdensome
requirements, and strengthening programs.
Duplication of Federal Programs
No provision of H.R. 5003 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The committee estimates that enacting H.R. 5003 does not
specifically direct the completion of any specific rule makings
within the meaning of 5 U.S.C. 551.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the committee's oversight findings and recommendations are
reflected in the body of this report.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the committee has received
the following estimate for H.R. 5003 from the Director of the
Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 30, 2016.
Hon. John Kline,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5003, the
Improving Child Nutrition and Education Act of 2016.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jennifer
Gray.
Sincerely,
Keith Hall.
Enclosure.
H.R. 5003--Improving Child Nutrition and Education Act of 2016
Summary: H.R. 5003 would amend and reauthorize child
nutrition programs and the Special Supplemental Nutrition
Program for Women, Infants, and Children (WIC). Those
authorizations would extend through 2021.
CBO estimates that enacting this legislation would decrease
direct spending by $128 million over the 2017-2021 period and
by $59 million over the 2017-2026 period for the child
nutrition programs. Enacting the bill would increase revenues
by $8 million over the same period.
Additionally, CBO estimates that implementing H.R. 5003
would increase discretionary costs by $29.8 billion over the
2017-2021 period, assuming appropriation of the necessary
amounts. Most of those costs would be for the reauthorization
of WIC.
Pay-as-you-go procedures apply because enacting the
legislation would affect direct spending and revenues. CBO
estimates that enacting the legislation would not increase net
direct spending or on-budget deficits by more than $5 billion
in any of the four consecutive 10-year periods beginning in
2027.
The bill would impose new requirements on states and on
school districts that implement child nutrition programs. Those
requirements would be intergovernmental mandates as defined in
the Unfunded Mandates Reform Act (UMRA). In aggregate, CBO
estimates that the costs of intergovernmental mandates in the
bill would fall below the threshold established in UMRA ($77
million in 2016, adjusted annually for inflation). The bill
contains no private-sector mandates as defined in UMRA.
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 5003 is shown in the following table.
The costs of this legislation fall within budget function 600
(income security).
TABLE 1.--BUDGETARY EFFECTS OF H.R. 5003, IMPROVING CHILD NUTRITION AND EDUCATION ACT OF 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017-2021 2017-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Estimated Budget Authority........................ 20 22 -74 -58 -42 -19 1 17 32 42 -130 -54
Estimated Outlays................................. 17 15 -62 -62 -38 -16 -2 15 28 41 -128 -59
INCREASES IN REVENUES
Estimated Revenues................................ * * 1 1 1 1 1 1 1 1 3 8
INCREASE OR DECREASE (-) IN DEFICITS FROM CHANGES IN DIRECT SPENDING AND REVENUES
Effect on Deficit................................. 17 15 -63 -63 -39 -17 -3 14 27 40 -131 -67
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level..................... 6,448 6,422 6,422 6,397 6,397 5 5 5 5 5 32,084 32,109
Estimated Outlays................................. 5,126 6,062 6,167 6,212 6,208 1,108 197 69 5 5 29,775 31,159
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding; * = between zero and $500,000.
Basis of estimate: For purposes of this estimate, CBO
assumes H.R. 5003 will be enacted late in 2016.
Background
The child nutrition programs include several programs that
benefit mainly school-age children. Schools can provide meals
to students through the National School Lunch Program (NSLP)
and the School Breakfast Program (SBP). The federal government
reimburses participating schools for at least part of the cost
of each meal served through those programs. Schools receive a
relatively small subsidy for meals served to students from
households with incomes above 185 percent of the federal
poverty level (referred to as paid meals) and larger subsidies
for meals served to students from lower income households.
Students from households with incomes below 185 percent of
the federal poverty level can apply to receive free or reduced-
price meals, depending on their level of household income.
Those students also can qualify for free meals based on
household participation in other assistance programs (the
Supplemental Nutrition Assistance Program, Temporary Assistance
to Needy Families, Food Distribution Program on Indian
Reservations, or in some cases, Medicaid) or their status as a
homeless, runaway, migrant, or foster child. State or local
agencies can directly certify that students meet those criteria
based on documentation from the appropriate agencies or
authorized individuals.
The Child and Adult Care Food Program (CACFP) provides
reimbursement for meals and snacks served to children and
adults in participating child and adult care centers, day care
homes, Head Start programs, afterschool programs in low-income
areas, and emergency shelters. Organizations participating in
the At-Risk Afterschool Meals component of CACFP can receive
reimbursement for meals and snacks served to children 18 years
of age or younger after school, on weekends and holidays, and
during school vacations during the regular school year. The
Summer Food Service Program (SFSP) provides reimbursement for
meals and snacks served to children at qualifying sites during
the summer when school is not in session.
Direct Spending
CBO estimates that enacting H.R. 5003 would, on net, reduce
direct spending by $59 million over the 2017-2026 period (see
Table 2).
Community Eligibility Provision (CEP). Under the Community
Eligibility Provision, participating schools must serve all
breakfasts and lunches free of charge. They do not collect
applications from students and reimbursements for meals are
based on a formula specified in law. Under CEP, school
districts, groups of schools within a district, or individual
schools can opt to participate in the program if the percentage
of enrolled students that are directly certified for free meals
without an application--known as the identified student
percentage (ISP)--is at least 40 percent.
The bill would increase the minimum ISP for schools or
groups of schools participating in CEP to 60 percent beginning
July 1, 2017. Schools already participating in CEP when the
provision becomes effective would have until the beginning of
school year 2018-2019 to comply with the new ISP threshold.
TABLE 2.--ESTIMATED DIRECT SPENDING UNDER H.R. 5003, THE IMPROVING CHILD NUTRITION AND EDUCATION ACT OF 2016
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------------------------------------
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017-2021 2017-2026
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Community Eligibility Provision:
Estimated Budget Authority............................ -1 -33 -171 -179 -185 -192 -198 -205 -212 -219 -569 -1,595
Estimated Outlays..................................... -1 -28 -148 -178 -184 -190 -197 -204 -211 -218 -539 -1,559
Summer and CACFP At-Risk Streamlining:
Estimated Budget Authority............................ 2 14 24 34 65 92 113 131 148 162 139 785
Estimated Outlays..................................... 2 12 23 32 60 87 109 128 145 160 129 758
Off-Site Consumption Option:
Estimated Budget Authority............................ 6 8 10 14 14 15 15 16 16 17 52 131
Estimated Outlays..................................... 6 8 10 14 14 15 15 16 16 17 52 131
Health Inspections:
Estimated Budget Authority............................ * * * * * * * * * * * *
Estimated Outlays..................................... * * * * * * * * * * * *
Breakfast Reimbursement Rates:
Estimated Budget Authority............................ 0 10 60 69 100 105 111 118 124 130 239 827
Estimated Outlays..................................... 0 8 51 67 94 104 110 116 122 129 220 801
Income Verification Procedures:
Estimated Budget Authority............................ 0 0 -18 -17 -35 -37 -38 -40 -41 -43 -70 -269
Estimated Outlays..................................... 0 0 -15 -17 -32 -36 -38 -39 -41 -43 -64 -261
Farm to School Program:
Estimated Budget Authority............................ 5 5 5 5 5 5 5 5 5 5 25 50
Estimated Outlays..................................... 4 5 5 5 5 5 5 5 5 5 24 49
Equipment Grants:
Estimated Budget Authority............................ * 3 4 5 5 5 5 5 5 5 17 42
Estimated Outlays..................................... * 3 4 5 5 5 5 5 5 5 17 42
Summer EBT Demonstration Project:
Estimated Budget Authority............................ 0 10 10 10 0 0 0 0 0 0 30 30
Estimated Outlays..................................... 0 1 5 9 9 5 1 0 0 0 24 30
Business Partnership Demonstration Project:
Estimated Budget Authority............................ 0 2 4 4 0 0 0 0 0 0 10 10
Estimated Outlays..................................... 0 2 4 4 0 0 0 0 0 0 10 10
New Institutions In CACFP:
Estimated Budget Authority............................ * -3 -5 -5 -5 -5 -5 -5 -5 -5 -18 -43
Estimated Outlays..................................... * -2 -5 -5 -5 -5 -5 -5 -5 -5 -17 -42
Eligibility For For-Profit Institutions:
Estimated Budget Authority............................ 1 1 1 1 1 1 1 1 1 1 5 10
Estimated Outlays..................................... * 1 1 1 1 1 1 1 1 1 4 9
Team Nutrition:
Estimated Budget Authority............................ * -1 -1 -2 -2 -3 -3 -4 -4 -5 -6 -25
Estimated Outlays..................................... * -1 -1 -2 -2 -2 -3 -3 -4 -4 -6 -22
Commodity Reimbursement Calculation:
Estimated Budget Authority............................ 6 6 6 6 0 0 0 0 0 0 24 24
Estimated Outlays..................................... 5 6 6 6 1 0 0 0 0 0 24 24
Other Provisions:
Estimated Budget Authority............................ 1 * * * * * * * * * 3 6
Estimated Outlays..................................... 1 * * * * * * * * * 3 6
Interaction Effects:
Estimated Budget Authority............................ * * -3 -3 -5 -5 -5 -5 -5 -6 -11 -37
Estimated Outlays..................................... * * -2 -3 -4 -5 -5 -5 -5 -6 -9 -35
Total Changes In Direct Spending:
Estimated Budget Authority............................ 20 22 -74 -58 -42 -19 1 17 32 42 -130 -54
Estimated Outlays..................................... 17 15 -62 -62 -38 -16 -2 15 28 41 -128 -59
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding; * = between -$500,000 and $500,000. CACFP = Child and Adult Care Food Program; EBT = Electronic Benefit Transfer.
Based on the characteristics of schools currently
participating in CEP, CBO estimates that this provision would
affect more than 8,500 schools. CBO estimates that about 2,000
of those schools would continue participating in CEP by forming
new groups with an ISP that would meet the 60-percent
threshold. The other 6,500 schools would no longer participate
in CEP. Those schools would revert to the system of collecting
applications for free and reduced-price meals and receiving
reimbursements based on the number of free, reduced-price, and
paid meals that the schools served. Additionally, CBO expects
that participation in the school meals programs would decline
in those schools as students eligible for reduced-price and
paid meals would no longer receive meals free of charge. CBO
estimates that enacting this provision would reduce direct
spending by about $1.6 billion over the 2017-2026 period.
Summer Food Service Program. H.R. 5003 contains several
provisions related to SFSP. In total, CBO estimates that
enacting those provisions would increase direct spending by
$889 million over the 2017-2026 period.
Summer and CACFP At-Risk Streamlining. Section 106 would
allow sites that are not schools to provide meals and snacks to
at-risk students year-round under a single program. Eligible
sites could serve lunch and either breakfast or a snack during
the summer months and up to one meal and one snack during the
school year after school, on weekends, and on school holidays.
All meals served during the year would be reimbursed at the
rates provided through the CACFP At-Risk Afterschool Program.
The year-round option would be available for up to five states
beginning in May 2017, up to five additional states beginning
in October 2018, and all states beginning in May 2020.
California currently operates a similar program that allows
nonschool SFSP sites to serve snacks after school, on weekends,
and on school holidays. Based on data from the California
program and consultation with states and policy experts, CBO
expects that ultimately one-quarter of eligible SFSP sites
would participate in the year-round program. Some of those
sites currently operate programs through both SFSP and the
CACFP at-risk afterschool program. Additionally, CBO expects
that some sites that only operate through the CACFP at-risk
afterschool program would add a SFSP site. By 2026, CBO
estimates that nearly 9,000 sites would operate a year-round
program through this option. In total, CBO estimates that by
2026, about 29 million snacks and 57 million suppers would be
served during the school year and 31 million meals and snacks
would be served during the summer months through this program.
CBO estimates that enacting this provision would increase
direct spending by $758 million over the 2017-2026 period.
Off-Site Consumption Option. Under current law, all SFSP
meals must be served in a congregate setting, where all meals
are consumed where they are served. Section 106 would allow
SFSP sites to provide off-site meals to children in rural or
high-poverty areas if the area is not served by a congregate
site. For example, a demonstration project allowed
participating sponsors to provide off-site meals through a
delivery service in selected rural areas. The bill would limit
the number of meals served to each child to two meals per
service and 10 meals per week.
Based on consultation with states and policy experts, CBO
estimates that SFSP sponsors would serve a little less than 10
percent of eligible children living in eligible areas under
this option. CBO estimates that enacting this provision would
increase direct spending by $131 million over the 2017-2026
period.
Health Inspections. Section 106 also would allow states to
use SFSP state administrative funds for health inspections.
Because states have historically obligated most of their
administrative funds, CBO expects that increased expenditures
from administrative funds would total less than $500,000 in
each year and over the 2017-2026 period.
Breakfast Reimbursement Rates. Section 202 would increase
federal reimbursements for all breakfasts served through the
SBP by 2 cents in the 2018-2019 school year and by an
additional 1 cent in the 2020-2021 school year. Those increases
would incorporate inflation each year. Breakfasts served in
child and adult care centers through the CACFP are reimbursed
at the SBP rates, so those breakfasts also would receive higher
reimbursements. CBO estimates enacting that this provision
would increase direct spending by $801 million over the 2017-
2026 period.
Income Verification Procedures. Under current law, local
educational agencies (LEAs) are required every school year to
verify the eligibility of individuals from a sample of
household applications for free and reduced-price meals that
have been approved. For most LEAs, the sample they must verify
is the lesser of 3,000 applications or 3 percent of all
approved applications. The applications are selected from among
error-prone applications, which are applications with a monthly
income that is within $100 of the income threshold to be
eligible for free or reduced-price meals. If there are not
enough error-prone applications to complete the sample, LEAs
can select applications at random.
The bill would increase the sample size to the lesser of
10,000 applications or 10 percent of approved household
applications. The bill also would expand the types of
applications and students that LEAs select for verification,
including, for example, applications with information that is
inconsistent with other information provided by the household
and directly certified students. The bill also would provide
several mechanisms to reduce the sample size to less than 10
percent. Finally, the bill would make other changes to the
verification process, such as extending the deadline for
completing verification activities from November 15 to December
15 of each year.
CBO expects that more applications would be selected for
verification under the bill than under current law. Because the
verification process uncovers more instances of households
reporting too little income than too much income, verifying
more applications would, on average, reduce the number of
students who are eligible for free and reduced-price meals. In
addition, some eligible students would lose meal benefits
because they failed to provide the necessary documents for
verification. Under the bill, CBO estimates that 12 million
fewer free lunches and breakfasts and 5 million more paid
lunches and breakfasts would be served in 2026; there would be
little change in the number of reduced-price meals served.
Those estimates are based on data from FNS on the results and
response rates from the verification process and on the number
of students in LEAs that meet the criteria for reducing the
sample size. CBO estimates that implementing the new
verification procedures would reduce direct spending by $261
million over the 2017-2026 period.
Farm to School Program. Section 109 would increase from $5
million to $10 million the annual funding for the program,
which aims to improve access to local foods in certain schools.
Thus, CBO estimates that enacting this provision would increase
direct spending by $49 million over the 2017-2026 period.
Equipment Grants. Section 114 would authorize
appropriations totaling $25 million over the 2017-2019 period
for grants to schools to build infrastructure and purchase
equipment to serve healthier meals and improve food safety. CBO
expects that some grant recipients would use those funds to
purchase equipment that would allow them to begin or expand
breakfast operations through initiatives such as grab-and-go
breakfast or breakfast in the classroom. Based on information
on the operation of similar programs, CBO estimates that a
little more than 700 schools would use grant funding for SBP
and would thus serve more breakfasts. CBO estimates that
appropriating the authorized amounts would increase direct
spending for school breakfasts by $42 million over the 2017-
2026 period.
Demonstration Projects. Section 109 would create several
new demonstration projects. In total, CBO estimates that
enacting those provisions would cost $40 million over the 2017-
2026 period.
Summer Electronic Benefit Transfer (EBT) Demonstration
Project. Under the bill, states that have operated a summer EBT
demonstration project under a previous authority could continue
operating that project. Such states would be able to provide a
summer EBT card to children in certain areas who are in
households where at least one school-aged child is eligible for
free or reduced-price meals. The bill also would require the
Secretary of Agriculture to complete an evaluation of the
demonstration project. Finally, the bill would provide $10
million per year for each of fiscal years 2018 through 2020 for
that project. CBO estimates that enacting this provision would
increase direct spending by $30 million over the 2017-2026
period.
Business Partnership Demonstration Project. Under the bill,
a maximum of four states could receive grants to reimburse for-
profit food vendors for meals they serve through the SFSP in
areas with unmet needs. The grants would be available to the
participating states for three years. Based on information from
policy experts and food vendors that currently sell meals to
SFSP sponsors, CBO estimates that this provision would increase
direct spending by $10 million.
State Administration of Child Nutrition Programs
Demonstration Project. Under the bill, up to three states could
receive a block grant with a fixed level of funding for several
child nutrition programs. The grant period would be three
years, with the possibility of an additional three-year
extension. The annual funding level for each participating
state would equal the amount the state received in fiscal year
2016 for free and reduced-price meals served through NSLP and
SBP (excluding the amounts received through the six-cent
reimbursement for schools in compliance with nutrition
standards) and the amounts the state received through the
Special Milk Program, state administrative expenses, and Team
Nutrition. The participating states would not be able to
receive additional federal funds for those programs. Under the
block grant program states would have broad flexibility in
administering those programs.
Based on consultation with state officials and policy
experts, CBO does not expect that any state would take up this
option. As a result, enacting this program would not affect
direct spending.
Child and Adult Care Food Program. H.R. 5003 contains
provisions that change the types of institutions that may
participate and the terms of participation for CACFP. In total,
CBO estimates that enacting those provisions would save $33
million over the 2017-2026 period.
New Institutions in CACFP. Section 108 would allow
residential child care institutions (RCCIs) and boarding
schools funded by the Bureau of Indian Education (BIE) to serve
meals through CACFP. Those institutions can currently serve
meals through NSLP and SBP. The bill would prohibit RCCIs and
such boarding schools from receiving reimbursements through
those programs while concurrently receiving reimbursements
through CACFP. The bill would allow RCCIs to serve meals to
children 18 years of age and younger through CACFP. Boarding
schools funded by BIE would be permitted to serve meals to
children 12 years of age and younger, except meals served
through the At-Risk Afterschool program, which has a higher age
limitation.
Institutions serving meals through CACFP comply with
different administrative and nutrition requirements than those
under NSLP and SBP. Based on information from policy experts,
CBO estimates that ultimately half of the meals and snacks
RCCIs serve through the school lunch and breakfast programs
would switch to CACFP. CBO does not expect that boarding
schools would switch to CACFP because they would not receive
reimbursement for meals served to children 13 years of age or
older.
Institutions meeting the nutrition standards in NSLP
receive an additional per-meal reimbursement for lunches
served, and institutions in high-poverty areas receive
additional per-meal reimbursements for meals served through
NSLP and SBP. Meals served through CACFP are not eligible for
these additional reimbursements. As a result, RCCIs switching
from the school lunch and breakfast programs to CACFP would
receive lower reimbursements for each meal they serve. However,
the increase in CACFP meals served would result in increased
funding for states to audit CACFP institutions. On net, CBO
estimates that this provision would decrease direct spending by
$42 million over the 2017-2026 period.
Eligibility for For-Profit Institutions. Under current law,
child care centers that operate on a for-profit basis are
eligible to receive reimbursements for meals served through
CACFP if they meet certain requirements related to the income
or program participation of children they serve. For-profit
centers must certify that they meet those eligibility
requirements each month in order to receive meal
reimbursements. Section 108 would increase the period of
eligibility to four months for those institutions. During that
four-month period, for-profit centers would be eligible to
receive reimbursements for meals served to children even if
they did not meet certain program requirements during the
certification period.
Based on data on participation patterns in the program and
information from policy experts, CBO estimates that, by 2026,
about 225 child care centers would maintain eligibility for at
least one additional month. CBO estimates that this provision
would increase direct spending by $9 million over the 2017-2026
period.
Team Nutrition. Section 207 would provide $17 million for
Team Nutrition each year. Current law authorizes such sums as
maybe necessary for the program. CBO projects the funding for
Team Nutrition by adjusting the most recent funding level for
inflation. In 2016, $17 million was provided for Team Nutrition
and CBO projects that funding will increase to $22 million by
2026. CBO estimates that the bill would lower the projected
funding level each year relative to CBO's baseline and would
reduce direct spending by $22 million over the 2017-2026
period.
Commodity Reimbursement Calculation. Under current law, the
Food and Nutrition Service (FNS) is required to spend at least
12 percent of the total cash assistance in NSLP on commodities.
Through fiscal year 2020, the value of bonus commodities can
count toward the requirement. (Bonus commodities are purchases
made by the Department of Agriculture and donated to NSLP.)
Including the value of those commodities reduces the amount of
additional commodity purchases that FNS must make to reach the
required level. Based on recent levels of donations, CBO
estimates that under current law, the program will receive $6
million per year in bonus commodities through 2020.
H.R. 5003 would change the current formula for commodity
reimbursement, but CBO estimates that the amount of commodity
spending would remain essentially the same under the new
formula. However, the value of bonus commodities would no
longer count toward total commodity spending (although schools
would still be able to receive bonus commodities). Therefore,
CBO estimates that enacting this provision would increase
direct spending for commodity purchases by $24 million over the
2017-2026 period.
Other Provisions. The bill includes several other
provisions that would increase direct spending by less than
$500,000 in any year.
Section 104 would provide $475,000 per year
to purchase bottled water during emergencies and when
public water poses a risk to the health of school
children. CBO estimates that enacting this provision
would increase direct spending by about $5 million over
the 2017-2026 period.
Section 105 would remove requirements
related to the price that schools charge for full-price
lunches. Under current law, schools charging less than
the difference between the federal reimbursement for a
free lunch and the federal reimbursement for a paid
lunch are required to increase the price they charge
for a lunch, unless the state ensures that there are
sufficient nonfederal funds to cover the gap. The bill
would remove those requirements. CBO expects that some
schools would reduce the amount they charge for a full-
price lunch, leading to an increase in participation in
NSLP. CBO estimates that this provision would increase
costs by less than $500,000 in each year and over the
2017-2026 period.
Section 203 would require the Secretary to
establish a centralized exchange network that would
allow states to exchange information about the child
nutrition programs. The bill would limit spending on
the network to $450,000.
Section 302 would require the Secretary to
conduct a study on business involvement by the private
sector in the school meal programs. The bill also would
require the Secretary to submit a report to the
Congress on the findings from that study and
recommendations for legislative action that would
improve efficiency and lower administrative costs for
the school meal programs. The bill would limit spending
on the study and report to $475,000.
Interaction Effects. The bill includes several provisions
that would interact with each other. For example, the provision
in section 105 that would increase the threshold for
participation in CEP would interact with the provision in
section 202 that would increase breakfast reimbursement rates.
CBO expects that the CEP change would decrease the number of
breakfasts served; that decrease in reimbursable breakfasts
would thus reduce the costs of increasing breakfast
reimbursement rates. In total, CBO estimates that interactions
would reduce costs by $35 million over the 2017-2026 period.
Revenues
Section 113 would require the Secretary to levy civil
monetary penalties against contractors of a child nutrition
program who are found guilty of certain criminal activities
that have harmed the program. Those activities include
undertaking anticompetitive behavior, such as price-fixing;
making false statements; committing fraud, bribery, or
embezzlement; and knowingly receiving stolen property. CBO
estimates that enacting H.R. 5003 would increase revenues by $8
million over the 2017-2026 period.
Spending subject to appropriation
The bill would make changes to discretionary programs
previously authorized by the Richard B. Russell National School
Lunch Act and the Child Nutrition Act of 1966, as amended, and
would authorize new and existing discretionary programs through
2021. CBO estimates that implementing H.R. 5003 would cost
$29.8 billion--primarily for the WIC program--over the 2017-
2021 period, assuming the appropriation of the necessary
amounts.
WIC. The WIC program is administered by the states and
provides supplemental foods, health care referrals, and
nutrition education to pregnant and post-partum women with low
income, and infants and children up to age five. The bill would
make several changes to the program, such as excluding certain
household payments when calculating income, rounding the value
of the WIC benefit to the nearest whole dollar, changing state
contracts with infant formula providers, and authorizing a
pilot project to test alternative methods for certifying the
eligibility of participants and delivering food.
The bill would:
Authorize the appropriation of $6.35 billion
per year for WIC for fiscal years 2017 through 2021.The
program was authorized through 2015 at such sums as may
be necessary; the Congress provided $6.35 billion for
WIC in 2016.
Authorize the appropriation of $18.5 million
per year for the WIC Farmers' Market Nutrition Program
for fiscal years 2017 through 2021. The program was
authorized through 2015 at such sums as may be
necessary; the Congress provided $18.5 million for that
program in 2016.
Authorize $25 million per year in grants for
three years to assist states with the transition from
paper coupons for WIC benefits to electronic benefit
transfer systems.
Require the Government Accountability Office
(GAO) to study the effects of allowing Medicaid
participants to be automatically eligible for WIC.
Based on the cost of similar studies conducted by the
GAO, CBO estimates that study would cost $1 million
over the 2017-2021 period.
In total, CBO estimates that enacting those WIC provisions
would increase discretionary outlays by $29.6 billion over the
2017-2021 period.
TABLE 3.--SPENDING SUBJECT TO APPROPRIATION
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2017 2018 2019 2020 2021 2017-2021
----------------------------------------------------------------------------------------------------------------
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Reauthorize WIC:
Authorization Level................................. 6,395 6,394 6,394 6,369 6,369 31,919
Estimated Outlays................................... 5,116 6,012 6,139 6,184 6,180 29,630
Grants and Other Activities:
Estimated Authorization Level....................... 53 28 28 28 28 165
Estimated Outlays................................... 11 51 28 28 28 145
Total Changes:
Estimated Authorization Level................... 6,448 6,422 6,422 6,397 6,397 32,084
Estimated Outlays............................... 5,126 6,062 6,167 6,212 6,208 29,775
----------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding; WIC = Special Supplemental Nutrition Program for
Women, Infants, and Children.
Grants and Other Activities. The bill would reauthorize two
existing grant programs; authorize a new grant program, a new
loan guarantee program, and two new advisory committees; and
eliminate a number of grant programs that have not received
funding in recent years. Specifically, the bill would:
Reauthorize grants to states to make
technological improvements in the administration of
most child nutrition programs, and allow states to use
those funds to improve direct certification rates. The
grants were authorized through 2015 at such sums as may
be necessary; the Congress did not provide any funds
for those grants in 2016. Based on the cost of a
similar grant program, CBO estimates that such grants
would require appropriations of $22 million annually.
Authorize a new grant program for schools to
purchase equipment to serve healthier meals and improve
food safety. The bill would authorize appropriations of
$25 million in total over three fiscal years, 2017
through 2019, for those grants. As discussed above
under the heading Direct Spending, CBO expects some of
the grants would be used for purchases that would
increase participation in SBP and thus increase direct
spending.
Permanently authorize $5 million per year
for loan guarantees for local school food authorities
to make infrastructure improvements and durable
equipment purchases.
Repeal the authorization of appropriations
for a number of grant programs, none of which received
appropriations in fiscal year 2016. Because the
authorization for most of those grant programs has
already expired, CBO estimates that repealing their
authorizations would not affect the federal budget.
(Two of the programs whose discretionary authorizations
would be repealed under the bill, the Farm to School
grant program and the Fresh Fruit and Vegetable
Program, also receive mandatory funding. Those programs
would continue to receive mandatory funding under the
bill.)
Reauthorize the appropriation of $1 million
per year through 2021 for training and technical
assistance on procurement procedures.
Authorize two new advisory committees. CBO
estimates that implementing those committees would not
have a significant effect on the federal budget.
CBO estimates that enacting those provisions would result
in discretionary outlays of $145 million over the 2017-2021
period.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays and revenues that are
subject to those pay-as-you-go procedures are shown in the
following table.
TABLE 4.--CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 5003, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON EDUCATION AND THE WORKFORCE ON MAY 18, 2016
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016-2021 2016-2026
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact................... 0 17 15 63 -63 -39 -17 -3 14 27 40 -131 -67
Memorandum:
Changes in Outlays........................... 0 17 15 -62 -62 -38 -16 -2 15 28 41 -128 -59
Changes in Revenues.......................... 0 0 0 1 1 1 1 1 1 1 1 3 8
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
Increase in long-term direct spending and deficits: CBO
estimates that enacting the legislation would not increase net
direct spending or on-budget deficits by more than $5 billion
in any of the four consecutive 10-year periods beginning in
2027.
Estimated impact on state, local, and tribal governments:
For large entitlement programs that provide $500 million or
more annually to state, local, and tribal governments, UMRA
defines an increase in the stringency of conditions as an
intergovernmental mandate if the affected entity lacks the
flexibility to offset the costs of the new conditions. The bill
would impose new requirements on states and on schools that
implement the child nutrition program. Because states and
schools have limited flexibility to amend their programmatic or
financial responsibilities in the program, the new
requirements, which are mostly administrative, would be
intergovernmental mandates. In aggregate, CBO estimates that
the costs to governmental entities would fall below the annual
threshold established in UMRA.
Unique Student Identification System. Section 307 would
require the Secretary of Agriculture to review the feasibility
of implementing a unique student identification system in the
school lunch and breakfast programs and would require the
Secretary to submit the results of the review to the Congress.
The Secretary could implement such a system unless it is
determined not to be in the best interest of the programs or
does not adequately protect student privacy.
Many states use unique student identifiers in their student
information systems to track attendance and other educational
information. Local educational agencies (LEAs) also may use
identifiers to indicate a student's qualification status for
meals in school lunch programs and for other purposes, but
those identifiers may not necessarily be linked. Simply
requiring states and LEAs to establish that they have unique
identifiers in place would yield much smaller costs than a
requirement to adopt a unified system of unique identifiers
where local identifiers are completely replaced. The broader
option would result in millions of dollars of upfront costs to
upgrade technology, change point of sale systems, and provide
additional administrative support.
The costs of the mandate would largely depend on how
broadly FNS chooses to implement a new identification system
under the new requirements, but assuming the agency does not
require major systemic changes, CBO estimates that the costs
would fall below $50 million. Most of those costs would occur
in the first or second year after implementation.
New Verification Requirements. The bill would impose
additional duties on states and LEAs when they review
applications and verify eligibility in school meal programs.
While some state agencies and LEAs may be able to offset the
costs of the additional requirements using administrative funds
or funds from school food service accounts, some smaller
districts may not be able to absorb such costs. Those districts
would likely face pressure to hire additional staff. Using
information from FNS on past LEA verification activities and
the National Center for Education Statistics on the number of
children eligible for free and reduced lunch, CBO estimates
that the incremental increase in costs for this mandate could
total less than $10 million annually.
Raising the Threshold under the Community Eligibility
Provision (CEP). Under current law school districts, groups of
schools within a district, or individual schools may serve free
meals to all students if at least 40 percent of students are
directly certified in school meals programs, and participating
schools are reimbursed for those meals based on a formula
specified in law. Schools and school districts that qualify for
such assistance also realize administrative savings because
they do not have to verify the eligibility of as many students.
The bill would increase the threshold for participation to 60
percent beginning on July 1, 2017. Schools, school districts,
and groups of schools with fewer than 60 percent of their
students directly certified would no longer be eligible for
federal reimbursements under this program, and they would face
higher administrative costs to verify more students. Using
information from FNS and industry sources, CBO estimates that
the costs for conducting verification and other activities for
the population of students that are not directly certified but
still qualify under the school meals programs would result in
costs of roughly $10 million annually; those costs would begin
after 2017.
Other Requirements. The bill would extend a number of other
requirements through 2021, including reports about food safety
inspections by state agencies and other administrative
requirements. CBO estimates that the costs of extending these
requirements would be covered with authorized funding.
Other Impacts. States and schools would benefit from other
provisions in the bill that authorize grant funds for the WIC
program. New requirements on state WIC programs would not
constitute intergovernmental mandates because they would result
from participation in a voluntary federal program.
Estimated impact on the private sector. This bill contains
no private-sector mandates as defined in UMRA.
Previous CBO estimate. On March 11, 2016, CBO transmitted a
cost estimate for the Improving Child Nutrition Integrity and
Access Act of 2016, as ordered reported by the Senate Committee
on Agriculture, Nutrition, and Forestry on January 20, 2016 and
posted on the committee's website. That bill contains
provisions similar to those in H.R. 5003. The Senate bill was
estimated relative to CBO's March 2015 baseline; H.R. 5003 was
estimated relative to CBO's March 2016 baseline. Any
differences in the estimates reflect differences in both the
language of the legislation and in the baselines used for the
estimates.
Estimate prepared by: Federal Costs: Jennifer Gray,
Kathleen FitzGerald, Elizabeth Cove Delisle; Federal Revenues:
Peter Huether; Impact on State, Local, and Tribal Governments:
J'nell Blanco Suchy; Impact on the Private Sector: Logan Smith.
Estimate approved by: H. Samuel Papenfuss; Deputy Assistant
Director for Budget Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 5003.
However, clause 3(d)(2)(B) of that rule provides that this
requirement does not apply when the committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT
* * * * * * *
APPORTIONMENTS TO STATES
Sec. 4. (a) The sums appropriated for any fiscal year
pursuant to the authorizations contained in section 3 of this
Act shall be available to the Secretary for supplying
agricultural commodities and other food for the program in
accordance with the provisions of this Act.
(b)(1) The Secretary shall make food assistance payments to
each [State educational agency] State agency each fiscal year,
at such times as the Secretary may determine, from the sums
appropriated for such purpose, in a total amount equal to the
product obtained by multiplying--
(A) the number of lunches (consisting of a
combination of foods which meet the minimum nutritional
requirements prescribed by the Secretary under section
9(a) of this Act) served during such fiscal year in
schools in such State which participate in the school
lunch program under this Act under agreements with such
[State educational agency] State agency; by
(B) the national average lunch payment prescribed in
paragraph (2) of this subsection.
(2) The national average lunch payment for each lunch served
shall be 10.5 cents (as adjusted pursuant to section 11(a) of
this Act) except that for each lunch served in school food
authorities in which 60 percent or more of the lunches served
in the school lunch program during the second preceding school
year were served free or at a reduced price, the national
average lunch payment shall be 2 cents more.
(3) Additional reimbursement.--
(A) Regulations.--
(i) Proposed regulations.--
Notwithstanding section 9(f), not later
than 18 months after the date of
enactment of this paragraph, the
Secretary shall promulgate proposed
regulations to update the meal patterns
and nutrition standards for the school
lunch program authorized under this Act
and the school breakfast program
established by section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773)
based on recommendations made by the
Food and Nutrition Board of the
National Research Council of the
National Academy of Sciences.
(ii) Interim or final regulations.--
(I) In general.--Not later
than 18 months after
promulgation of the proposed
regulations under clause (i),
the Secretary shall promulgate
interim or final regulations.
(II) Date of required
compliance.--The Secretary
shall establish in the interim
or final regulations a date by
which all school food
authorities participating in
the school lunch program
authorized under this Act and
the school breakfast program
established by section 4 of the
Child Nutrition Act of 1966 (42
U.S.C. 1773) are required to
comply with the meal pattern
and nutrition standards
established in the interim or
final regulations.
(iii) Report to congress.--Not later
than 90 days after the date of
enactment of this paragraph, and each
90 days thereafter until the Secretary
has promulgated interim or final
regulations under clause (ii), the
Secretary shall submit to the
[Committee on Education and Labor]
Committee on Education and the
Workforce of the House of
Representatives and the Committee on
Agriculture, Nutrition, and Forestry of
the Senate a quarterly report on
progress made toward promulgation of
the regulations described in this
subparagraph.
(B) Performance-based reimbursement rate
increase.--[Beginning on the later of the date
of promulgation of the implementing regulations
described in subparagraph (A)(ii), the date of
enactment of this paragraph, or October 1,
2012, the Secretary] The Secretary shall
provide additional reimbursement for each lunch
served in school food authorities determined to
be eligible under subparagraph (D).
(C) Additional reimbursement.--
(i) In general.--Each lunch served in
school food authorities determined to
be eligible under subparagraph (D)
shall receive an additional 6 cents,
adjusted in accordance with section
11(a)(3), to the national lunch average
payment for each lunch served.
(ii) Disbursement.--The State agency
shall disburse funds made available
under this paragraph to school food
authorities eligible to receive
additional reimbursement.
(D) Eligible school food authority.--To be
eligible to receive an additional reimbursement
described in this paragraph, a school food
authority shall be certified by the State to be
in compliance with the interim or final
regulations described in subparagraph (A)(ii).
(E) Failure to comply.--[Beginning on the
later of the date described in subparagraph
(A)(ii)(II), the date of enactment of this
paragraph, or October 1, 2012, school food
authorities] School food authorities found to
be out of compliance with the meal patterns or
nutrition standards established by the
implementing regulations shall not receive the
additional reimbursement for each lunch served
described in this paragraph.
(F) Administrative costs.--
(i) In general.--Subject to clauses
(ii) and (iii), the Secretary shall
make funds available to States for
State activities related to training,
technical assistance, certification,
and oversight activities of this
paragraph.
(ii) Provision of funds.--The
Secretary shall provide funds described
in clause (i) to States administering a
school lunch program in a manner
proportional to the administrative
expense allocation of each State during
the preceding fiscal year.
(iii) Funding.--
(I) In general.--In the later
of the fiscal year in which the
implementing regulations
described in subparagraph
(A)(ii) (as in effect on the
day before the date of the
enactment of the ``Improving
Child Nutrition and Education
Act of 2016'') are promulgated
or the fiscal year in which
this paragraph is enacted, and
in the subsequent fiscal year,
the Secretary shall use not
more than $50,000,000 of funds
made available under section 3
to make payments to States
described in clause (i).
(II) Reservation.--In
providing funds to States under
clause (i), the Secretary may
reserve not more than
$3,000,000 per fiscal year to
support Federal administrative
activities to carry out this
paragraph.
(III) Sunset.--The Secretary
shall return to the general
fund of the Treasury any funds
that were made available under
this subparagraph but not
obligated by a State agency as
of September 30, 2016.
(4) Announcements.--With respect to reimbursement
rates described in this subsection, the Secretary shall
announce the rates and, to the maximum extent
practicable, any associated guidance by February 15 of
the school year prior to the school year for which the
rates and guidance will become effective.
[SEC. 5. NUTRITION PROMOTION.
[(a) In General.--Subject to the availability of funds made
available under subsection (g), the Secretary shall make
payments to State agencies for each fiscal year, in accordance
with this section, to promote nutrition in food service
programs under this Act and the school breakfast program
established under the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.).
[(b) Total Amount for Each Fiscal Year.--The total amount of
funds available for a fiscal year for payments under this
section shall equal not more than the product obtained by
multiplying--
[(1) \1/2\ cent; by
[(2) the number of lunches reimbursed through food
service programs under this Act during the second
preceding fiscal year in schools, institutions, and
service institutions that participate in the food
service programs.
[(c) Payments to States.--
[(1) Allocation.--Subject to paragraph (2), from the
amount of funds available under subsection (g) for a
fiscal year, the Secretary shall allocate to each State
agency an amount equal to the greater of--
[(A) a uniform base amount established by the
Secretary; or
[(B) an amount determined by the Secretary,
based on the ratio that--
[(i) the number of lunches reimbursed
through food service programs under
this Act in schools, institutions, and
service institutions in the State that
participate in the food service
programs; bears to
[(ii) the number of lunches
reimbursed through the food service
programs in schools, institutions, and
service institutions in all States that
participate in the food service
programs.
[(2) Reductions.--The Secretary shall reduce
allocations to State agencies qualifying for an
allocation under paragraph (1)(B), in a manner
determined by the Secretary, to the extent necessary to
ensure that the total amount of funds allocated under
paragraph (1) is not greater than the amount
appropriated under subsection (g).
[(d) Use of Payments.--
[(1) Use by state agencies.--A State agency may
reserve, to support dissemination and use of nutrition
messages and material developed by the Secretary, up
to--
[(A) 5 percent of the payment received by the
State for a fiscal year under subsection (c);
or
[(B) in the case of a small State (as
determined by the Secretary), a higher
percentage (as determined by the Secretary) of
the payment.
[(2) Disbursement to schools and institutions.--
Subject to paragraph (3), the State agency shall
disburse any remaining amount of the payment to school
food authorities and institutions participating in food
service programs described in subsection (a) to
disseminate and use nutrition messages and material
developed by the Secretary.
[(3) Summer food service program for children.--In
addition to any amounts reserved under paragraph (1),
in the case of the summer food service program for
children established under section 13, the State agency
may--
[(A) retain a portion of the funds made
available under subsection (c) (as determined
by the Secretary); and
[(B) use the funds, in connection with the
program, to disseminate and use nutrition
messages and material developed by the
Secretary.
[(e) Documentation.--A State agency, school food authority,
and institution receiving funds under this section shall
maintain documentation of nutrition promotion activities
conducted under this section.
[(f) Reallocation.--The Secretary may reallocate, to carry
out this section, any amounts made available to carry out this
section that are not obligated or expended, as determined by
the Secretary.
[(g) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section, to remain available until expended.]
DIRECT FEDERAL EXPENDITURES
Sec. 6. (a) The funds provided by appropriation or transfer
from other accounts for any fiscal year for carrying out the
provisions of this Act, and for carrying out the provisions of
the Child Nutrition Act of 1966, other than section 3 thereof,
less
(1) not to exceed 3\1/2\ per centum thereof which per
centum is hereby made available to the Secretary for
the Secretary's administrative expenses under this Act
and under the Child Nutrition Act of 1966;
(2) the amount apportioned by the Secretary pursuant
to section 4 of this Act and the amount appropriated
pursuant to sections 11 and 13 of this Act and sections
4 and 7 of the Child Nutrition Act of 1966; and
(3) not to exceed 1 per centum of the funds provided
for carrying out the programs under this Act and the
programs under the Child Nutrition Act of 1966, other
than section 3, which per centum is hereby made
available to the Secretary to supplement the
nutritional benefits of these programs through grants
to States and other means for nutritional training and
education for workers, cooperators, and participants in
these programs, for pilot projects and the cash-in-lieu
of commodities study required to be carried out under
section 18 of this Act, and for necessary surveys and
studies of requirements for food service programs in
furtherance of the purposes expressed in section 2 of
this Act and section 2 of the Child Nutrition Act of
1966,
shall be available to the Secretary during such year for direct
expenditure by the Secretary for agricultural commodities and
other foods to be distributed among the States and schools and
service institutions participating in the food service programs
under this Act and under the Child Nutrition Act of 1966 in
accordance with the needs as determined by the local school and
service institution authorities. Except as provided in the next
2 sentences, any school participating in food service programs
under this Act may refuse to accept delivery of not more than
20 percent of the total value of agricultural commodities and
other foods tendered to it in any school year; and if a school
so refuses, that school may receive, in lieu of the refused
commodities, other commodities to the extent that other
commodities are available to the State during that year. Any
school food authority may refuse some or all of the fresh
fruits and vegetables offered to the school food authority in
any school year and shall receive, in lieu of the offered
fruits and vegetables, other more desirable fresh fruits and
vegetables that are at least equal in value to the fresh fruits
and vegetables refused by the school food authority. The value
of any fresh fruits and vegetables refused by a school under
the preceding sentence for a school year shall not be used to
determine the 20 percent of the total value of agricultural
commodities and other foods tendered to the school food
authority in the school year under the second sentence. The
provisions of law contained in the proviso of the Act of June
28, 1937, facilitating operations with respect to the purchase
and disposition of surplus agricultural commodities under
section 32 of the Act approved August 24, 1935, shall, to the
extent not inconsistent with the provisions of this Act, also
be applicable to expenditures of funds by the Secretary under
this Act. In making purchases of such agricultural commodities
and other foods, the Secretary shall not issue specifications
which restrict participation of local producers unless such
specifications will result in significant advantages to the
food service programs authorized by this Act and the Child
Nutrition Act of 1966.
(b) The Secretary shall deliver, to each State participating
in the school lunch program under this Act, commodities valued
at the total level of assistance authorized under subsection
(c) for each school year for the school lunch program in the
State, not later than September 30 of the following school
year.
[(c)(1)(A) The national average value of donated foods, or
cash payments in lieu thereof, shall be 11 cents, adjusted on
July 1, 1982, and each July 1 thereafter to reflect changes in
the Price Index for Food Used in Schools and Institutions. The
Index shall be computed using 5 major food components in the
Bureau of Labor Statistics' Producer Price Index (cereal and
bakery products, meats, poultry and fish, dairy products,
processed fruits and vegetables, and fats and oils). Each
component shall be weighed using the same relative weight as
determined by the Bureau of Labor Statistics.
[(B) The value of food assistance for each meal shall be
adjusted each July 1 by the annual percentage change in a 3-
month average value of the Price Index for Foods Used in
Schools and Institutions for March, April, and May each year.
Such adjustment shall be computed to the nearest \1/4\ cent.
[(C) For each school year, the total commodity assistance or
cash in lieu thereof available to a State for the school lunch
program shall be calculated by multiplying the number of
lunches served in the preceding school year by the rate
established by subparagraph (B). After the end of each school
year, the Secretary shall reconcile the number of lunches
served by schools in each State with the number of lunches
served by schools in each State during the preceding school
year and increase or reduce subsequent commodity assistance or
cash in lieu thereof provided to each State based on such
reconciliation.
[(D) Among those commodities]
(c) Calculation of Total Assistance.--
(1) National average value.--
(A) In general Subject to subparagraphs (B)
and (C), the national average value of donated
foods, or cash payments in lieu thereof, shall
be equal to the quotient obtained by dividing,
not later than February 15 of each year for the
upcoming school year--
(i) the total funds available in the
preceding school year under section 4,
this section, and section 11; by
(ii) the number of lunches served in
the preceding school year in all
schools participating in the school
lunch program under this Act.
(B) Adjustment.--
(i) In general.--The value determined
under subparagraph (A) shall be
adjusted by the annual percentage
change in a 3-month average value of
the Producer Price Index for Foods Used
in Schools and Institutions of the
Bureau of Labor Statistics (in this
subparagraph referred to as the
``Index'') for the preceding September,
October, and November.
(ii) Requirement.--An adjustment
under clause (i) shall be computed to
the nearest \1/4\ cent.
(iii) Index.--
(I) In general.--The Index
shall be computed using 5 major
food components in the Index
(cereal and bakery products,
meats, poultry and fish, dairy
products, processed fruits and
vegetables, and fats and oils).
(II) Components.--Each
component described in
subclause (I) shall be weighted
using the same relative weight
as determined by the Bureau of
Labor Statistics.
(iv) Minimum amount of commodity
assistance.--Not less than 12 percent
of the value adjusted in accordance
with this subparagraph shall be
provided in the form of commodity
assistance.
(C) Insufficient amounts.--If amounts
available to carry out section 4, this section,
and section 11 are insufficient to meet the
requirements of such sections for a school
year, the Secretary shall, to the extent
necessary, use the authority provided under
section 14(a) to meet the requirements for the
school year.
(D) Amount for each state.--For each school
year, the total commodity assistance or cash in
lieu thereof available to a State for the
school lunch program shall be equal to the
product obtained by multiplying--
(i) the number of lunches served in
such State in the most recent school
year for which data are available; by
(ii) the rate determined under
subparagraphs (A) and (B).
(E) Special emphasis.--Among those
commodities delivered under this section, the
Secretary shall give special emphasis to high
protein foods, meat, and meat alternates (which
may include domestic seafood commodities and
their products).
[(E) Notwithstanding]
(F) Minimum quantity of donated foods._
Notwithstanding any other provision of this section,
not less than 75 percent of the assistance provided
under this subsection shall be in the form of donated
foods for the school lunch program.
(2) To the maximum extent feasible, each State agency shall
offer to each school food authority under its jurisdiction that
participates in the school lunch program and receives
commodities, agricultural commodities and their products, the
per meal value of which is not less than the national average
value of donated foods established under paragraph (1). Each
such offer shall include the full range of such commodities and
products that are available from the Secretary to the extent
that quantities requested are sufficient to allow efficient
delivery to and within the State.
(d) Beginning with the school year ending June 30, 1981, the
Secretary shall not offer commodity assistance based upon the
number of breakfasts served to children under section 4 of the
Child Nutrition Act of 1966.
[(e)(1) Subject to paragraph (2), in each school year the
Secretary shall ensure that not less than 12 percent of the
assistance provided under section 4, this section, and section
11 shall be in the form of--
[(A) commodity assistance provided under this
section, including cash in lieu of commodities and
administrative costs for procurement of commodities
under this section; or
[(B) during the period beginning October 1, 2003, and
ending September 30, 2020, commodities provided by the
Secretary under any provision of law.
[(2) If amounts available to carry out the requirements of
the sections described in paragraph (1) are insufficient to
meet the requirement contained in paragraph (1) for a school
year, the Secretary shall, to the extent necessary, use the
authority provided under section 14(a) to meet the requirement
for the school year.]
[(f)] (e) Pilot Project for Procurement of Unprocessed Fruits
and Vegetables.--
(1) In general.--The Secretary shall conduct a pilot
project under which the Secretary shall facilitate the
procurement of unprocessed fruits and vegetables in not
more than 8 States receiving funds under this Act.
(2) Purpose.--The purpose of the pilot project
required by this subsection is to provide selected
States flexibility for the procurement of unprocessed
fruits and vegetables by permitting each State--
(A) to utilize multiple suppliers and
products established and qualified by the
Secretary; and
(B) to allow geographic preference, if
desired, in the procurement of the products
under the pilot project.
(3) Selection and participation.--
(A) In general.--The Secretary shall select
States for participation in the pilot project
in accordance with criteria established by the
Secretary and terms and conditions established
for participation.
(B) Requirement.--The Secretary shall ensure
that at least 1 project is located in a State
in each of--
(i) the Pacific Northwest Region;
(ii) the Northeast Region;
(iii) the Western Region;
(iv) the Midwest Region; and
(v) the Southern Region.
(4) Priority.--In selecting States for participation
in the pilot project, the Secretary shall prioritize
applications based on--
(A) the quantity and variety of growers of
local fruits and vegetables in the States on a
per capita basis;
(B) the demonstrated commitment of the States
to farm-to-school efforts, as evidenced by
prior efforts to increase and promote farm-to-
school programs in the States; and
(C) whether the States contain a sufficient
quantity of local educational agencies, various
population sizes, and geographical locations.
(5) Recordkeeping and reporting requirements.--
(A) Recordkeeping requirement.--States
selected to participate in the pilot project,
and participating school food authorities
within those States, shall keep records of the
fruits and vegetables received under the pilot
project in such manner and form as requested by
the Secretary.
(B) Reporting requirement.--Each
participating State shall submit to the
Secretary a report on the success of the pilot
project in the State, including information
on--
(i) the quantity and cost of each
type of fruit and vegetable received by
the State under the pilot project; and
(ii) the benefit provided by those
procurements in conducting school food
service in the State, including meeting
school meal requirements.
PAYMENTS TO STATES
Sec. 7. (a)(1) Funds appropriated to carry out section 4 of
this Act during any fiscal year shall be available for payment
to the States for disbursement by [State educational agencies]
State agencies in accordance with such agreements, not
inconsistent with the provisions of this Act, as may be entered
into by the Secretary and such [State educational agencies]
State agencies for the purpose of assisting schools within the
States in obtaining agricultural commodities and other foods
for consumption by children in furtherance of the school lunch
program authorized under this Act. For any school year, such
payments shall be made to a State only if, during such school
year, the amount of the State revenues (excluding State
revenues derived from the operation of the program)
appropriated or used specifically for program purposes (other
than any State revenues expended for salaries and
administrative expenses of the program at the State level) is
not less than 30 percent of the funds made available to such
State under section 4 of this Act for the school year beginning
July 1, 1980.
(2) If, for any school year, the per capita income of a State
is less than the average per capita income of all the States,
the amount required to be expended by a State under paragraph
(1) for such year shall be an amount bearing the same ratio to
the amount equal to 30 percent of the funds made available to
such State under section 4 of this Act for the school year
beginning July 1, 1980, as the per capita income of such State
bears to the average per capita income of all the States.
(b) The State revenues provided by any State to meet the
requirement of subsection (a) shall, to the extent the State
deems practicable, be disbursed to schools participating in the
school lunch program under this Act. No State in which the
[State educational agency] State agency is prohibited by law
from disbursing State appropriated funds to private schools
shall be required to match Federal funds made available for
meals served in such schools, or to disburse, to such schools,
any of the State revenues required to meet the requirements of
subsection (a).
(c) The Secretary shall certify to the Secretary of the
Treasury, from time to time, the amounts to be paid to any
State under this section and shall specify when such payments
are to be made. The Secretary of the Treasury shall pay to the
State, at the time or times fixed by the Secretary, the amounts
so certified.
(d) Notwithstanding any other provision of law, the Secretary
may enter into an agreement with a State agency, acting on the
request of a school food service authority, under which funds
payable to the State under section 4 or 11 may be used by the
Secretary for the purpose of purchasing commodities for use by
the school food service authority in meals served under the
school lunch program under this Act.
STATE DISBURSEMENT TO SCHOOLS
Sec. 8. (a) Funds paid to any State during any fiscal year
pursuant to section 4 shall be disbursed by the [State
educational agency] State agency, in accordance with such
agreements approved by the Secretary as may be entered into by
such State agency and the schools in the State, to those
schools in the State which the [State educational agency] State
agency, taking into account need and attendance, determines are
eligible to participate in the school lunch program.
(b) The agreements described in subsection (a) shall be
permanent agreements that may be amended as necessary.
(c) The [State educational agency] State agency may suspend
or terminate any such agreement in accordance with regulations
prescribed by the Secretary.
(d) Use of funds paid to States may include, in addition to
the purchase price of agricultural commodities and other foods,
the cost of processing, distributing, transporting, storing, or
handling thereof.
(e) In no event shall such disbursement for food to any
school for any fiscal year exceed an amount determined by
multiplying the number of lunches served in the school in the
school lunch program under this Act during such year by the
maximum per meal reimbursement rate for the State, for the type
of lunch served, as prescribed by the Secretary.
(f) In any fiscal year in which the national average payment
per lunch determined under section 4 is increased above the
amount prescribed in the previous fiscal year, the maximum per
meal reimbursement rate for the type of lunch served, shall be
increased by a like amount.
(g) Lunch assistance disbursements to schools under this
section and under section 11 of this Act may be made in advance
or by way of reimbursement in accordance with procedures
prescribed by the Secretary.
[NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS
[Sec. 9. (a)(1)(A) Lunches served by schools participating in
the school lunch program under this Act shall meet minimum
nutritional requirements prescribed by the Secretary on the
basis of tested nutritional research, except that the minimum
nutritional requirements--
[(i) shall not be construed to prohibit the
substitution of foods to accommodate the medical or
other special dietary needs of individual students; and
[(ii) shall, at a minimum, be based on the weekly
average of the nutrient content of school lunches.
[(B) The Secretary shall provide technical assistance and
training, including technical assistance and training in the
preparation of lower-fat versions of foods commonly used in the
school lunch program under this Act, to schools participating
in the school lunch program to assist the schools in complying
with the nutritional requirements prescribed by the Secretary
pursuant to subparagraph (A) and in providing appropriate meals
to children with medically certified special dietary needs. The
Secretary shall provide additional technical assistance to
schools that are having difficulty maintaining compliance with
the requirements.]
SEC. 9. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.
(a) Requirements.--
(1) Technical assistance and training.--The Secretary
shall provide--
(A) technical assistance and training to
schools participating in the school lunch
program to assist the schools in complying with
the nutritional requirements prescribed by the
Secretary pursuant to subsection (f) and in
providing appropriate meals to children with
medically certified special dietary needs,
including food allergies or other special
dietary needs of individual children, including
religious dietary restrictions; and
(B) additional technical assistance to
schools that are having difficulty maintaining
compliance with the requirements.
(2) Fluid milk.--
(A) In general.--Lunches served by schools
participating in the school lunch program under
this Act--
(i) shall offer students a variety of
fluid milk. Such milk shall be
consistent with the most recent Dietary
Guidelines for Americans published
under section 301 of the National
Nutrition Monitoring and Related
Research Act of 1990 (7 U.S.C. 5341);
(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, on
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.--A
school may substitute for the fluid
milk provided under subparagraph (A), a
nondairy beverage that is nutritionally
equivalent to fluid milk and meets
nutritional standards 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.--The substitutions may
be made if the school notifies the
State agency that the school is
implementing a variation allowed under
this subparagraph, and if the
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, except that the school
shall not be required to provide
beverages other than beverages the
school has identified as acceptable
substitutes.
(iii) Excess expenses borne by school
food authority.--Expenses incurred in
providing substitutions under this
subparagraph that are in excess of
expenses covered by reimbursements
under this Act shall be paid by the
school food authority.
(C) Restrictions on sale of milk
prohibited.--A school 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.
(D) Fluid milk considerations.--In
determining varieties of fluid milk that shall
be available with school meals programs under
this Act and section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773) and outside of the
school meal programs, the Secretary, not later
than 90 days after the date of enactment of the
Improving Child Nutrition and Education Act of
2016, shall carry out the following:
(i) Consider the critical nutrient
needs of children who may be at risk
for inadequate intake of the
recommended daily servings of milk and
dairy products under the most recent
Dietary Guidelines described in
subparagraph (A)(i) and conform the
applicable regulations to such
guidelines.
(ii) Analyze milk consumption data
and trends for school-aged children,
and to the extent practicable, increase
actual milk consumption in schools in a
manner consistent with the number of
servings recommended under such Dietary
Guidelines, and ensure that schools may
offer any type of milk with fat levels
that are in compliance with such
Dietary Guidelines.
(E) Milk variety considerations.--In
determining milk varieties eligible for schools
to offer with school meal programs under this
Act and section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773) and outside of the school
meal programs, the Secretary shall consider the
most commonly available types, sizes,
containers, and varieties of milk in local,
regional, and national commercial markets from
which local educational agencies procure milk,
to promote competition and reduce milk waste.
(3) Students in senior high schools that participate in the
school lunch program under this Act (and, when approved by the
local school district or nonprofit private schools, students in
any other grade level) shall not be required to accept offered
foods they do not intend to consume, and any such failure to
accept offered foods shall not affect the full charge to the
student for a lunch meeting the requirements of this subsection
or the amount of payments made under this Act to any such
school for such lunch.
[(4) Provision of information.--
[(A) Guidance.--Prior to the beginning of the
school year beginning July 2004, the Secretary
shall issue guidance to States and school food
authorities to increase the consumption of
foods and food ingredients that are recommended
for increased serving consumption in the most
recent Dietary Guidelines for Americans
published under section 301 of the National
Nutrition Monitoring and Related Research Act
of 1990 (7 U.S.C. 5341).
[(B) Rules.--Not later than 2 years after the
date of enactment of this paragraph, the
Secretary shall promulgate rules, based on the
most recent Dietary Guidelines for Americans,
that reflect specific recommendations,
expressed in serving recommendations, for
increased consumption of foods and food
ingredients offered in school nutrition
programs under this Act and the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.).
[(C) Procurement and processing of food
service products and commodities.--The
Secretary]
(4) Procurement and processing of food service
products and commodities.--The Secretary shall--
[(i)] (A) identify, develop, and disseminate
to State departments of agriculture and
education, school food authorities, local
educational agencies, and local processing
entities, model product specifications and
practices for foods offered in school nutrition
programs under this Act and the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.) to ensure
that the foods reflect the most recent Dietary
Guidelines for Americans published under
section 301 of the National Nutrition
Monitoring and Related Research Act of 1990 (7
U.S.C. 5341);
[(ii)] (B) not later than 1 year after the
date of enactment of this subparagraph--
[(I)] (i) carry out a study to
analyze the quantity and quality of
nutritional information available to
school food authorities about food
service products and commodities; and
[(II)] (ii) submit to Congress a
report on the results of the study that
contains such legislative
recommendations as the Secretary
considers necessary to ensure that
school food authorities have access to
the nutritional information needed for
menu planning and compliance
assessments; and
[(iii)] (C) to the maximum extent
practicable, in purchasing and processing
commodities for use in school nutrition
programs under this Act and the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.), purchase
the widest variety of healthful foods that
reflect the most recent Dietary Guidelines for
Americans.
(5) Water.--Schools participating in the school lunch
program under this Act shall make available to children
free of charge, as nutritionally appropriate, potable
water for consumption in the place where meals are
served during meal service.
(6) Emergency access to potable water.--
(A) In general.--To ensure that children have
access to potable water during meal service,
the Secretary may award funds to State agencies
to assist such agencies in providing bottled
water for a period of not more than 90 days
(except as otherwise provided under
subparagraph (C)) when--
(i) a major disaster or emergency has
been declared by the President under
the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C.
5121 et seq.); and
(ii) the Secretary determines that
there is a significant risk to the
health of school children posed by the
public water system (as defined under
section 1401(4) of the Safe Drinking
Water Act (42 U.S.C. 300f)).
(B) Matching requirement.--To receive funds
under this paragraph, a State agency shall
assure the Secretary that the State will
utilize donated water supplies and State
funding to supplement the funds that the State
receives under this paragraph to provide
bottled water as necessary for students.
(C) Extension of authority.--If the risk
described in subparagraph (A)(ii) persists in a
State after the first 90-day period for which
funds under this paragraph are provided to such
State, funds may be provided under this
paragraph to such State for an additional 90-
day period.
(D) Funding.--Not more than $475,000 may be
provided under this paragraph for a fiscal
year.
(b)(1)(A) 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 prescribed by the Office of
Management and Budget, 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 prescribed
by the Office of Management and Budget, as adjusted annually in
accordance with subparagraph (B). The Office of Management and
Budget guidelines shall be revised at annual intervals, or at
any shorter interval deemed feasible and desirable.
(B) The revision required by subparagraph (A) of this
paragraph shall be made by multiplying--
(i) the official poverty line (as defined by the
Office of Management and Budget); 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)(A) 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] State 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 school authorities shall, each year,
publicly announce the income eligibility guidelines for free
and reduced price lunches on or before the opening of school.
(B) Applications and descriptive material.--
(i) In general.--Applications for free and
reduced price lunches, in such form as the
Secretary may prescribe or approve, and any
descriptive material, shall be distributed to
the parents or guardians of children in
attendance at the school[, and shall contain
only the family size income levels 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].
(ii) Income eligibility guidelines.--Forms
and descriptive material distributed in
accordance with clause (i) may not contain the
income eligibility guidelines for free or
reduced price lunches.
(iii) Contents of descriptive material.--
(I) In general.--Descriptive material
distributed in accordance with clause
(i) shall contain a notification that--
(aa) participants in the
programs listed in subclause
(II) may be eligible for free
or reduced price meals; [and]
(bb) documentation may be
requested for verification of
eligibility for free or reduced
price meals[.]; and
(cc) individuals may report
alleged fraud to the Office of
the Inspector General of the
Department of Agriculture.
(II) Programs.--The programs referred
to in subclause (I)(aa) are--
(aa) the special supplemental
nutrition program for women,
infants, and children
established by section 17 of
the Child Nutrition Act of 1966
(42 U.S.C. 1786);
(bb) the supplemental
nutrition assistance program
established under the Food and
Nutrition Act of 2008 (7 U.S.C.
2011 et seq.);
(cc) the food distribution
program on Indian reservations
established under section 4(b)
of the Food and Nutrition Act
of 2008 (7 U.S.C. 2013(b)); and
(dd) a State program funded
under the program of block
grants to States for temporary
assistance for needy families
established under part A of
title IV of the Social Security
Act (42 U.S.C. 601 et seq.).
(iv) Reporting of fraud.--The Secretary shall
ensure that the Internet website of the
Department of Agriculture prominently displays
a link to the Internet website of the Office of
the Inspector General of the Department and the
phone number of the Office of the Inspector
General through which an individual may report
any alleged fraud.
(v) Application forms.--Not later than 120
days after the date of the enactment of the
Improving Child Nutrition and Education Act of
2016, the Secretary shall--
(I) review a sample of application
forms, including paper and digital
forms, used to apply for participation
in the school lunch program authorized
under this Act and the school breakfast
program established by section 4 of the
Child Nutrition Act of 1966 (42 U.S.C.
1773);
(II) provide to States guidance
relating to best practices, including a
standard application form local
educational agencies or schools may
use;
(III) provide to States guidance
relating to how to improve the
application to ensure families
understand and can enroll in the school
lunch program and the school breakfast
program; and
(IV) provide to States such
information as is necessary to ensure
that States understand school food
authorities may not--
(aa) require or mandate
families apply for either
program;
(bb) request that a family
apply for the program after the
parent or guardian has informed
the school that the family does
not want to participate in the
program or receive additional
information about the program
in that school year; or
(cc) in the case of a family
that has not informed the
school about their choice,
request more than twice in that
school year that such family
apply for the program if such
family has not submitted an
application, except that
providing information about the
application (including how and
when the application will be
sent to parents and how to fill
out the application) shall not
count as a request to apply.
(3) Household applications.--
(A) Definition of household application.--In
this paragraph, the term ``household
application'' means an application for a child
of a household to receive free or reduced price
school lunches under this Act, or free or
reduced price school breakfasts under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
for which an eligibility determination is made
other than under paragraph (4) or (5).
(B) Eligibility determination.--
(i) In general.--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
guidance issued by the Secretary.
(ii) Electronic signatures and
applications.--A household application
may be executed using an electronic
signature if--
(I) the application is
submitted electronically; and
(II) the electronic
application filing system meets
confidentiality standards
established by the Secretary.
(C) Children in household.--
(i) In general.--The household
application shall identify the names of
each child in the household for whom
meal benefits are requested.
(ii) Separate applications.--A [State
educational agency] State agency or
local educational agency may not
request a separate application for each
child in the household that attends
schools under the same local
educational agency.
[(D) Verification of sample.--
[(i) Definitions.--In this
subparagraph:
[(I) Error prone
application.--The term ``error
prone application'' means an
approved household application
that--
[(aa) indicates
monthly income that is
within $100, or an
annual income that is
within $1,200, of the
income eligibility
limitation for free or
reduced price meals; or
[(bb) in lieu of the
criteria established
under item (aa), meets
criteria established by
the Secretary.
[(II) Non-response rate.--The
term ``non-response rate''
means (in accordance with
guidelines established by the
Secretary) the percentage of
approved household applications
for which verification
information has not been
obtained by a local educational
agency after attempted
verification under
subparagraphs (F) and (G).
[(ii) Verification of sample.--Each
school year, a local educational agency
shall verify eligibility of the
children in a sample of household
applications approved for the school
year by the local educational agency,
as determined by the Secretary in
accordance with this subsection.
[(iii) Sample size.--Except as
otherwise provided in this paragraph,
the sample for a local educational
agency for a school year shall equal
the lesser of--
[(I) 3 percent of all
applications approved by the
local educational agency for
the school year, as of October
1 of the school year, selected
from error prone applications;
or
[(II) 3,000 error prone
applications approved by the
local educational agency for
the school year, as of October
1 of the school year.
[(iv) Alternative sample size.--
[(I) In general.--If the
conditions described in
subclause (IV) are met, the
verification sample size for a
local educational agency shall
be the sample size described in
subclause (II) or (III), as
determined by the local
educational agency.
[(II) 3,000/3 percent
option.--The sample size
described in this subclause
shall be the lesser of 3,000,
or 3 percent of, applications
selected at random from
applications approved by the
local educational agency for
the school year, as of October
1 of the school year.
[(III) 1,000/1 percent plus
option.--
[(aa) In general.--
The sample size
described in this
subclause shall be the
sum of--
[(AA) the
lesser of
1,000, or 1
percent of, all
applications
approved by the
local
educational
agency for the
school year, as
of October 1 of
the school
year, selected
from error
prone
applications;
and
[(BB) the
lesser of 500,
or \1/2\ of 1
percent of,
applications
approved by the
local
educational
agency for the
school year, as
of October 1 of
the school
year, that
provide a case
number (in lieu
of income
information)
showing
participation
in a program
described in
item (bb)
selected from
those approved
applications
that provide a
case number (in
lieu of income
information)
verifying the
participation.
[(bb) Programs.--The
programs described in
this item are--
[(AA) the
supplemental
nutrition
assistance
program
established
under the Food
and Nutrition
Act of 2008 (7
U.S.C. 2011 et
seq.);
[(BB) the
food
distribution
program on
Indian
reservations
established
under section
4(b) of the
Food and
Nutrition Act
of 2008 (7
U.S.C.
2013(b)); and
[(CC) a State
program funded
under the
program of
block grants to
States for
temporary
assistance for
needy families
established
under part A of
title IV of the
Social Security
Act (42 U.S.C.
601 et seq.)
that the
Secretary
determines
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) Conditions.--The
conditions referred to in
subclause (I) shall be met for
a local educational agency for
a school year if--
[(aa) the nonresponse
rate for the local
educational agency for
the preceding school
year is less than 20
percent; or
[(bb) the local
educational agency has
more than 20,000
children approved by
application by the
local educational
agency as eligible for
free or reduced price
meals for the school
year, as of October 1
of the school year,
and--
[(AA) the
nonresponse
rate for the
preceding
school year is
at least 10
percent below
the nonresponse
rate for the
second
preceding
school year; or
[(BB) in the
case of the
school year
beginning July
2005, the local
educational
agency attempts
to verify all
approved
household
applications
selected for
verification
through use of
public agency
records from at
least 2 of the
programs or
sources of
information
described in
subparagraph
(F)(i).
[(v) Additional selected
applications.--A sample for a local
educational agency for a school year
under clauses (iii) and (iv)(III)(AA)
shall include the number of additional
randomly selected approved household
applications that are required to
comply with the sample size
requirements in those clauses.]
(D) Verification.--
(i) Standard verification of
applications.--
(I) In general.--Beginning
with the second school year
that begins after the date of
the enactment of the Improving
Child Nutrition and Education
Act of 2016, each school year,
each local educational agency
shall verify the eligibility of
the children in a portion of
the household applications
approved for the school year by
the local educational agency,
as of November 1 of the school
year, as determined by the
Secretary in accordance with
this subsection.
(II) Sample size.--
(aa) In general.--The
portion for a local
educational agency for
a school year shall
equal the lesser of--
(AA) 10,000;
or
(BB) 10
percent of
approved
household
applications.
(bb) Calculation.--
Not later than July 1
of each year, the
Secretary shall
calculate the sample
size under this
subparagraph for each
local educational
agency based on data
from the 2 most recent
school years available.
(III) Sample selection.--
Applications shall be selected
for verification by the local
educational agency based on
indications that information
relevant to eligibility is
inconsistent with the
information provided on the
application, including at a
minimum the following:
(aa) The household
has submitted
information in writing
to the local
educational agency that
is inconsistent with
the information on the
application.
(bb) The information
provided on the
application is
consistent with a
pattern of error or
fraud detected by the
local educational
agency, the State
agency, or the
Secretary.
(cc) For not more
than \1/4\ of the
sample, students who
are directly certified
or the application
provides a case number
(in lieu of income
information) showing
participation in--
(AA) the
supplemental
nutrition
assistance
program
established
under the Food
and Nutrition
Act of 2008 (7
U.S.C. 2011 et
seq.); or
(BB) a State
program funded
under the
program of
block grants to
States for
temporary
assistance for
needy families
established
under part A of
title IV of the
Social Security
Act (42 U.S.C.
601 et seq.)
that the
Secretary
determines
complies with
standards
established by
the Secretary
that ensure
that the
eligibility
requirements
under the State
program are
comparable to
the
requirements
for
participation
in accordance
with this Act
and the Child
Nutrition Act
of 1966 (42
U.S.C. 1771 et
seq.).
(dd) For not more
than \1/4\ of the
sample, the income
information provided on
the application is
close to the income
limit for free or
reduced price meals, as
determined by the local
educational agency each
year.
(ee) Such other
criteria as is
determined by the
State.
(IV) Additional verification
of applications.--If the number
of applications that match the
criteria described in subclause
(III) is insufficient to meet
the number of applications
determined under subclause
(II), the local educational
agency shall select additional
applications at random.
(ii) Verification for cause.--In
addition to conducting verification of
a sample of applications as described
in clause (i), a local educational
agency may verify any household
application at any point in the school
year if the household application meets
the criteria described in item (aa),
(bb), or (cc) of clause (i)(III) or
such other criteria as is determined by
the Secretary.
(iii) Compliance.--In conducting
verification under this subparagraph, a
State agency or local educational
agency shall not select applications in
a manner that violates section
12(l)(4)(M).
(E) Preliminary review.--
(i) Review for accuracy.--
(I) In general.--Prior to
conducting any other
verification activity for
approved household applications
selected for verification, the
local educational agency shall
ensure that the initial
eligibility determination for
each approved household
application is reviewed for
accuracy by an individual other
than the individual making the
initial eligibility
determination, unless otherwise
determined by the Secretary.
(II) Waiver.--The
requirements of subclause (I)
shall be waived for a local
educational agency if the local
educational agency is using a
technology-based solution that
demonstrates a high level of
accuracy, to the satisfaction
of the Secretary, in processing
an initial eligibility
determination in accordance
with the income eligibility
guidelines of the school lunch
program.
(ii) Correct eligibility
determination.--If the review indicates
that the initial eligibility
determination is correct, the local
educational agency shall verify the
approved household application.
(iii) Incorrect eligibility
determination.--If the review indicates
that the initial eligibility
determination is incorrect, the local
educational agency shall (as determined
by the Secretary)--
(I) correct the eligibility
status of the household;
(II) notify the household of
the change;
(III) in any case in which
the review indicates that the
household is not eligible for
free or reduced-price meals,
notify the household of the
reason for the ineligibility
and that the household may
reapply with income
documentation for free or
reduced-price meals; and
(IV) in any case in which the
review indicates that the
household is eligible for free
or reduced-price meals, verify
the approved household
application.
(F) Direct verification.--
(i) In general.--Subject to clauses
(ii) and (iii), to verify eligibility
for free or reduced price meals for
approved household applications
selected for verification, the local
educational agency [may] shall (in
accordance with criteria established by
the Secretary) first obtain and use
income and program participation
information from a public agency
administering--
(I) the supplemental
nutrition assistance program
established under the Food and
Nutrition Act of 2008 (7 U.S.C.
2011 et seq.);
(II) the food distribution
program on Indian reservations
established under section 4(b)
of the Food and Nutrition Act
of 2008 (7 U.S.C. 2013(b));
(III) the temporary
assistance for needy families
program funded under part A of
title IV of the Social Security
Act (42 U.S.C. 601 et seq.);
(IV) the State medicaid
program under title XIX of the
Social Security Act (42 U.S.C.
1396 et seq.); or
(V) a similar income-tested
program or other source of
information, as determined by
the Secretary.
(ii) Free meals.--Public agency
records that may be obtained and used
under clause (i) to verify eligibility
for free meals for approved household
applications selected for verification
shall include the most recent available
information (other than information
reflecting program participation or
income before the 180-day period ending
on the date of application for free
meals) that is relied on to
administer--
(I) a program or source of
information described in clause
(i) (other than clause
(i)(IV)); or
(II) the State plan for
medical assistance under title
XIX of the Social Security Act
(42 U.S.C. 1396 et seq.) in--
(aa) a State in which
the income eligibility
limit applied under
section 1902(l)(2)(C)
of that Act (42 U.S.C.
1396a(l)(2)(C)) is not
more than 133 percent
of the official poverty
line described in
section 1902(l)(2)(A)
of that Act (42 U.S.C.
1396a(l)(2)(A)); or
(bb) a State that
otherwise identifies
households that have
income that is not more
than 133 percent of the
official poverty line
described in section
1902(l)(2)(A) of that
Act (42 U.S.C.
1396a(l)(2)(A)).
(iii) Reduced price meals.--Public
agency records that may be obtained and
used under clause (i) to verify
eligibility for reduced price meals for
approved household applications
selected for verification shall include
the most recent available information
(other than information reflecting
program participation or income before
the 180-day period ending on the date
of application for reduced price meals)
that is relied on to administer--
(I) a program or source of
information described in clause
(i) (other than clause
(i)(IV)); or
(II) the State plan for
medical assistance under title
XIX of the Social Security Act
(42 U.S.C. 1396 et seq.) in--
(aa) a State in which
the income eligibility
limit applied under
section 1902(l)(2)(C)
of that Act (42 U.S.C.
1396a(l)(2)(C)) is not
more than 185 percent
of the official poverty
line described in
section 1902(l)(2)(A)
of that Act (42 U.S.C.
1396a(l)(2)(A)); or
(bb) a State that
otherwise identifies
households that have
income that is not more
than 185 percent of the
official poverty line
described in section
1902(l)(2)(A) of that
Act (42 U.S.C.
1396a(l)(2)(A)).
[(iv) Evaluation.--Not later than 3
years after the date of enactment of
this subparagraph, the Secretary shall
complete an evaluation of--
[(I) the effectiveness of
direct verification carried out
under this subparagraph in
decreasing the portion of the
verification sample that must
be verified under subparagraph
(G) while ensuring that
adequate verification
information is obtained; and
[(II) the feasibility of
direct verification by State
agencies and local educational
agencies.
[(v) Expanded use of direct
verification.--If the Secretary
determines that direct verification
significantly decreases the portion of
the verification sample that must be
verified under subparagraph (G), while
ensuring that adequate verification
information is obtained, and can be
conducted by most State agencies and
local educational agencies, the
Secretary may require a State agency or
local educational agency to implement
direct verification through 1 or more
of the programs described in clause
(i), as determined by the Secretary,
unless the State agency or local
educational agency demonstrates (under
criteria established by the Secretary)
that the State agency or local
educational agency lacks the capacity
to conduct, or is unable to implement,
direct verification.]
(iv) Direct certification.--If
eligibility for a household application
is confirmed using direct verification,
each child in the household shall be
considered directly certified.
(G) Household verification.--
(i) In general.--If an approved
household application is not verified
through the use of public agency
records, a local educational agency
shall provide to the household written
notice that--
(I) the approved household
application has been selected
for verification; and
(II) the household is
required to submit verification
information to confirm
eligibility for free or reduced
price meals.
(ii) Phone number.--The written
notice in clause (i) shall include a
toll-free phone number that parents and
legal guardians in households selected
for verification can call for
assistance with the verification
process.
(iii) Followup activities.--If a
household does not respond to a
verification request, a local
educational agency shall make at least
[1 attempt] 2 attempts to obtain the
necessary verification from the
household in accordance with guidelines
and regulations promulgated by the
Secretary.
(iv) Contract authority for school
food authorities.--A local educational
agency may contract (under standards
established by the Secretary) with a
third party to assist the local
educational agency in carrying out
clause (iii).
(v) Validity of verification
results.--
(I) Definitions.--In this
clause:
(aa) Approved
application.--The term
``approved
application'' includes
each student on a paper
or electronic
application approved by
the local educational
agency for free or
reduced price lunches
for the school year.
(bb) Response rate.--
The term ``response
rate'' means the
percentage of the
approved household
applications of the
local educational
agency for which
verification
information was
obtained after
attempted verification
under this section.
(cc) Nonresponse
rate.--The term
``nonresponse rate''
means the percentage of
the approved household
applications of the
local educational
agency for which
verification
information was not
obtained after
attempted verification
under this section.
(dd) Confirmation
rate.-- The term
``confirmation rate''
means the percentage of
approved household
applications and
directly certified
students selected by
the local educational
agency for verification
under this subparagraph
that had the level of
benefits confirmed as a
result of information
obtained during the
verification process.
(II) Reductions.--
(aa) In general.--The
sample under
subparagraph (D)(i)(II)
may be reduced by not
more than the lesser of
2,500 applications or
2.5 percentage points
for each of the
criteria described in
subclause (III) that
are met by the local
educational agency.
(bb) Limitation.--
Reductions under item
(aa) may result in a
sample of not less than
2.5 percent of approved
applications.
(III) Criteria.--The criteria
referred to in subclause
(II)(aa) are as follows:
(aa) Response rate.--
For the preceding
school year the
response rate was more
than 85 percent.
(bb) Nonresponse rate
reduction.--The
nonresponse rate was at
least 15 percent below
the nonresponse rate
for the second
preceding school year.
(cc) Confirmation
rate.--The confirmation
rate is 100 percent or
has increased by at
least 5 percent over
the two most recent
school years for which
data is available.
(dd) Administrative
burden reduction.--
(AA) In
general.--The
local
educational
agency receives
a determination
from the
Secretary that
compliance with
subparagraph
(D)(i)(II)
would render
the local
educational
agency unable
to administer
the program.
(BB)
Requirement.--
The Secretary
shall develop a
system by which
to measure cost
and
administrative
burden
associated with
compliance with
subparagraph
(D)(i)(II) and
shall consider
requests from
local
educational
agencies based
on that system.
(H) Verification deadline.--
(i) General deadline.--
(I) In general.--Subject to
subclause (II), not later than
[November] December 15 of each
school year, a local
educational agency shall
complete the verification
activities required for the
school year (including followup
activities).
(II) Extension.--Under
criteria established by the
Secretary, a State may extend
the deadline established under
subclause (I) for a school year
for a local educational agency
to [December] January 15 of the
school year.
(ii) Eligibility changes.--Based on
the verification activities, the local
educational agency shall make
appropriate modifications to the
eligibility determinations made for
household applications in accordance
with criteria established by the
Secretary.
(I) Local conditions.--In the case of a
natural disaster, civil disorder, strike, or
other local condition (as determined by the
Secretary), the Secretary may substitute
alternatives for--
(i) the sample size and sample
selection criteria established under
subparagraph (D); and
(ii) the verification deadline
established under subparagraph (H).
(J) Individual review.--In accordance with
criteria established by the Secretary, the
local educational agency may, on individual
review--
(i) decline to verify no more than 5
percent of approved household
applications selected under
subparagraph (D); and
(ii) replace the approved household
applications with other approved
household applications to be verified.
(K) Feasibility study.--
(i) In general.--The Secretary shall
conduct a study of the feasibility of
using computer technology (including
[data mining] analyses of data) to
reduce--
(I) overcertification errors
in the school lunch program
under this Act;
(II) waste, fraud, and abuse
in connection with this
paragraph; and
(III) errors, waste, fraud,
and abuse in other nutrition
programs, as determined to be
appropriate by the Secretary.
[(ii) Report.--Not later than 180
days after the date of enactment of
this paragraph, the Secretary shall
submit to the Committee on Education
and the Workforce of the House of
Representatives and the Committee on
Agriculture, Nutrition, and Forestry of
the Senate a report describing--
[(I) the results of the
feasibility study conducted
under this subsection;
[(II) how a computer system
using technology described in
clause (i) could be
implemented;
[(III) a plan for
implementation; and
[(IV) proposed legislation,
if necessary, to implement the
system.]
(ii) Report.--Not later than two
years after the date of the enactment
of the Improving Child Nutrition and
Education Act of 2016, the Secretary
shall submit to the Committee on
Education and the Workforce of the
House of Representatives and Committee
on Agriculture, Nutrition, and Forestry
of the Senate a report describing--
(I) the results of the
feasibility study conducted
under this subsection;
(II) how a computer system--
(aa) used to reduce
verification and
certification errors
can be adapted to
further reduce errors;
and
(bb) using technology
described in clause (i)
could be implemented;
and
(III) a plan to adapt or
implement such system.
(L) Enhanced verification methods.--
(i) Requirements.--
(I) In general.--The
Secretary shall help local
educational agencies engage in
alternative and enhanced
methods of certification and
verification to increase the
effectiveness of the process,
reduce certification errors,
and produce more meaningful
management information to
facilitate local educational
agency, State, and Federal
oversight with respect to
program integrity in the school
meal programs.
(II) Best practices.--The
Secretary shall encourage local
educational agencies to adopt
proven best practices with
regard to verification.
(III) Selection for
implementation.--To the extent
necessary to refine alternative
verification methods or assess
the feasibility, impact, or
efficacy of the methods prior
to recommending the methods,
the Secretary shall select
States and local educational
agencies that have requested to
participate in the development
of best practices to implement
methods subject to clause
(iii).
(ii) Requirements.--The certification
and verification methods shall--
(I) meet such terms and
conditions as the Secretary
considers appropriate; and
(II) except as otherwise
provided in this subparagraph,
be conducted in accordance with
this subsection.
(iii) Selection criteria.--In
selecting methods, including methods
for implementation under clause
(i)(III), the Secretary shall--
(I) consider the degree to
which the method would improve
certification accuracy and
program integrity within the
school meal programs;
(II) consider whether there
is evidence that the method
could be replicated easily by
other local educational
agencies or political
subdivisions;
(III) consider whether the
method would increase the
efficiency and effectiveness of
the verification process;
(IV) consider whether the
local educational agency or
State agency has a demonstrated
capacity to undertake the
method and to produce the data
necessary to support the
evaluation; and
(V) ensure the methods
implemented under clause
(i)(III) are implemented across
a range of geographic areas and
States, including rural and
urban areas, and, when
considered as a group, allow
for an assessment of a range of
strategies regarding
verification sample selection,
obtaining eligibility
documentation, and the entity
conducting verification,
including strategies that--
(aa) use analyses of
data, particularly in
large local educational
agencies to develop
algorithms to select
error-prone
applications for
verification;
(bb) use third-party
data sources to confirm
eligibility prior to
conducting household
verification under
subparagraph (G);
(cc) rely on
alternative methods,
including message
testing, of
communicating with
households to assess
which methods most
effectively result in
household responses;
(dd) rely on agencies
or organizations other
than the local
educational agency to
conduct verification,
including at a minimum
the State agency; and
(ee) could reduce the
administrative burden
of conducting
verification for a
consortia of local
educational agencies,
including shared online
applications and shared
verification
procedures.
(iv) Reduction.--Notwithstanding the
limitation in subparagraph
(D)(v)(II)(bb), a local educational
agency that uses the strategies
described in clause (iii)(V) may
qualify for a reduction of additional
0.25 percentage points under such
subparagraph, creating a floor of 2.25
percent for the verification sample
size.
(4) Direct certification for children in supplemental
nutrition assistance program households.--
(A) In general.--Subject to subparagraph (D),
each State agency shall enter into an agreement
with the State agency conducting eligibility
determinations for the supplemental nutrition
assistance program established under the Food
and Nutrition Act of 2008 (7 U.S.C. 2011 et
seq.).
(B) Procedures.--Subject to paragraph (6),
the agreement shall establish procedures under
which a child, including a child enrolled in a
nonpublic school, who is a member of a
household receiving assistance under the
supplemental nutrition assistance program shall
be certified as eligible for free lunches under
this Act and free breakfasts under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
without further application.
(C) Certification.--Subject to paragraph (6),
under the agreement, the local educational
agency conducting eligibility determinations
for a school lunch program under this Act and a
school breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.)
shall certify a child who is a member of a
household receiving assistance under the
supplemental nutrition assistance program as
eligible for free lunches under this Act and
free breakfasts under the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.), without
further application.
(D) Applicability.--This paragraph applies
to--
(i) in the case of the school year
beginning July 2006, a school district
that had an enrollment of 25,000
students or more in the preceding
school year;
(ii) in the case of the school year
beginning July 2007, a school district
that had an enrollment of 10,000
students or more in the preceding
school year; and
(iii) in the case of the school year
beginning July 2008 and each subsequent
school year, each local educational
agency.
[(E) Performance awards.--
[(i) In general.--Effective for each
of the school years beginning July 1,
2011, July 1, 2012, and July 1, 2013,
the Secretary shall offer performance
awards to States to encourage the
States to ensure that all children
eligible for direct certification under
this paragraph are certified in
accordance with this paragraph.
[(ii) Requirements.--For each school
year described in clause (i), the
Secretary shall--
[(I) consider State data from
the prior school year,
including estimates contained
in the report required under
section 4301 of the Food,
Conservation, and Energy Act of
2008 (42 U.S.C. 1758a); and
[(II) make performance awards
to not more than 15 States that
demonstrate, as determined by
the Secretary--
[(aa) outstanding
performance; and
[(bb) substantial
improvement.
[(iii) Use of funds.--A State agency
that receives a performance award under
clause (i)--
[(I) shall treat the funds as
program income; and
[(II) may transfer the funds
to school food authorities for
use in carrying out the
program.
[(iv) Funding.--
[(I) In general.--On October
1, 2011, and each subsequent
October 1 through October 1,
2013, out of any funds in the
Treasury not otherwise
appropriated, the Secretary of
the Treasury shall transfer to
the Secretary--
[(aa) $2,000,000 to
carry out clause
(ii)(II)(aa); and
[(bb) $2,000,000 to
carry out clause
(ii)(II)(bb).
[(II) Receipt and
acceptance.--The Secretary
shall be entitled to receive,
shall accept, and shall use to
carry out this clause the funds
transferred under subclause
(I), without further
appropriation.
[(v) Payments not subject to judicial
review.--A determination by the
Secretary whether, and in what amount,
to make a performance award under this
subparagraph shall not be subject to
administrative or judicial review.]
[(F)] (E) Continuous improvement plans.--
(i) Definition of required
percentage.--In this subparagraph, the
term ``required percentage'' [means--]
[(I) for the school year
beginning July 1, 2011, 80
percent;
[(II) for the school year
beginning July 1, 2012, 90
percent; and
[(III) for the school year
beginning July 1, 2013, and
each school year thereafter]
means, for the school year, 95
percent.
(ii) Requirements.--Each school year,
the Secretary shall--
(I) identify, using data from
the prior year, including
estimates contained in the
report required under section
4301 of the Food, Conservation,
and Energy Act of 2008 (42
U.S.C. 1758a), States that
directly certify less than the
required percentage of the
total number of children in the
State who are eligible for
direct certification under this
paragraph;
(II) require the States
identified under subclause (I)
to implement a continuous
improvement plan to fully meet
the requirements of this
paragraph, which shall include
a plan to improve direct
certification for the following
school year; [and]
(III) assist the States
identified under subclause (I)
to develop and implement a
continuous improvement plan in
accordance with subclause
(II)[.];
(IV) include in the report
required under section 4301 of
the Food, Conservation, and
Energy Act of 2008 (42 U.S.C.
1758a), a description of
technical assistance provided
to and progress of States
identified under subclause (I)
toward implementing the
measures and meeting the goals
established by the State as
required under clause
(iii)(II); and
(V) provide guidance to
schools on providing meals and
collecting payment for any
student who is no longer able
to receive meals because the
student did not provide a
response to the verification
request for the student's
school meal application.
(iii) Failure to meet performance
standard.--
(I) In general.--A State that
is required to develop and
implement a continuous
improvement plan under clause
(ii)(II) shall be required to
submit the continuous
improvement plan to the
Secretary, for the approval of
the Secretary.
(II) Requirements.--At a
minimum, a continuous
improvement plan under
subclause (I) shall include--
(aa) specific
measures that the State
will use to identify
more children who are
eligible for direct
certification,
including improvements
or modifications to
technology, information
systems, or databases;
(bb) a timeline for
the State to implement
those measures within 3
school years; and
(cc) goals for the
State to improve direct
certification results.
[(G)] (F) Without further application.--
(i) In general.--In this paragraph,
the term ``without further
application'' means that no action is
required by the household of the child.
(ii) Clarification.--A requirement
that a household return a letter
notifying the household of eligibility
for direct certification or eligibility
for free school meals does not meet the
requirements of clause (i).
(5) Discretionary certification.--Subject to
paragraph (6), 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 the status of the child as--
(A) a member of a family that is receiving
assistance under the temporary assistance for
needy families program funded under part A of
title IV of the Social Security Act (42 U.S.C.
601 et seq.) that the Secretary determines
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;
(B) a homeless child or youth (defined as 1
of the individuals described in section 725(2)
of the McKinney-Vento Homeless Assistance Act
[(42 U.S.C. 11434a(2))] (42 U.S.C. 11434a(2)));
(C) served by the runaway and homeless youth
grant program established under the Runaway and
Homeless Youth Act (42 U.S.C. 5701 et seq.);
(D) a migratory child (as defined in section
1309 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6399)); or
(E)(i) a [foster child] foster youth whose
care and placement is the responsibility of an
agency that administers a State plan under part
B or E of title IV of the Social Security Act
(42 U.S.C. 621 et seq.); or
(ii) a [foster child] foster youth who a
court has placed with a caretaker household.
(6) Use or disclosure of information.--
(A) In general.--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 paragraph (3)(F),
(4), or (5), 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.)
(including a regulation promulgated
under either Act);
(ii) a person directly connected with
the administration or enforcement of--
(I) a Federal education
program;
(II) a State health or
education program administered
by the State or local
educational agency (other than
a program carried out under
title XIX or XXI of the Social
Security Act (42 U.S.C. 1396 et
seq.; 42 U.S.C. 1397aa et
seq.)); or
(III) a Federal, State, or
local means-tested nutrition
program with eligibility
standards comparable to the
school lunch program under this
Act;
(iii)(I) the Comptroller General of
the United States for audit and
examination authorized by any other
provision of law; and
(II) 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 covered by
this paragraph or paragraph (3)(F),
(4), or (5);
(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 purposes of--
(I) identifying children
eligible for benefits under,
and enrolling children in,
those programs, except that
this subclause shall apply only
to the extent that the State
and the local educational
agency or school food authority
so elect; and
(II) verifying the
eligibility of children for
programs under this Act or the
Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.); and
(v) a third party contractor
described in paragraph (3)(G)(iv).
(B) Limitation on information provided.--
Information provided under clause (ii) or (v)
of subparagraph (A) shall be limited to the
income eligibility status of the child for whom
application for free or reduced price meal
benefits is made or for whom eligibility
information is provided under paragraph (3)(F),
(4), or (5), unless the consent of the parent
or guardian of the child for whom application
for benefits was made is obtained.
(C) Criminal penalty.--A person described in
subparagraph (A) 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.
(D) Requirements for waiver of
confidentiality.--A State that elects to
exercise the option described in subparagraph
(A)(iv)(I) shall ensure that any local
educational agency or school food authority
acting in accordance with that option--
(i) has a written agreement with 1 or
more State or local agencies
administering health 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 subparagraph
(A) to seek to enroll children in those
health programs; and
(ii)(I) notifies each household, the
information of which shall be disclosed
under subparagraph (A), that the
information disclosed will be used only
to enroll children in health programs
referred to in subparagraph (A)(iv);
and
(II) provides each parent or guardian
of a child in the household with an
opportunity to elect not to have the
information disclosed.
(E) Use of disclosed information.--A person
to which information is disclosed under
subparagraph (A)(iv)(I) shall use or disclose
the information only as necessary for the
purpose of enrolling children in health
programs referred to in subparagraph (A)(iv).
(7) Free and reduced price policy statement.--
(A) In general.--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] State agency under this Act unless
there is a substantive change in the free and
reduced price policy of the local educational
agency.
(B) Routine change.--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.
(8) Communications.--
(A) In general.--Any communication with a
household under this subsection or subsection
(d) shall be in an understandable and uniform
format and, to the maximum extent practicable,
in a language that parents and legal guardians
can understand.
(B) Electronic availability.--In addition to
the distribution of applications and
descriptive material in paper form as provided
for in this paragraph, the applications and
material may be made available electronically
via the Internet.
(9) 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 paragraph (3)(E), (3)(H)(ii), and section
11(a), 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 a date during the
subsequent school year determined by
the Secretary.
(10) No physical segregation of or other discrimination
against any child eligible for a free lunch or a reduced price
lunch under this subsection shall be made by the school nor
shall there be any overt identification of any child by special
tokens or tickets, announced or published list of names, or by
other means.
(11) Any child who has a parent or guardian who (A) is
responsible for the principal support of such child and (B) is
unemployed shall be served a free or reduced price lunch,
respectively, during any period (i) in which such child's
parent or guardian continues to be unemployed and (ii) the
income of the child's parents or guardians during such period
of unemployment falls within the income eligibility criteria
for free lunches or reduced price lunches, respectively, based
on the current rate of income of such parents or guardians.
Local educational agencies shall publicly announce that such
children are eligible for free or reduced price lunch, and
shall make determinations with respect to the status of any
parent or guardian of any child under clauses (A) and (B) of
the preceding sentence on the basis of a statement executed in
such form as the Secretary may prescribe by such parent or
guardian. No physical segregation of, or other discrimination
against, any child eligible for a free or reduced price lunch
under this paragraph shall be made by the school nor shall
there be any overt identification of any such child by special
tokens or tickets, announced or published lists of names, or by
any other means.
(12)(A) A child shall be considered automatically eligible
for a free lunch and breakfast under this Act and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), respectively,
without further application or eligibility determination, if
the child is--
(i) a member of a household receiving assistance
under the supplemental nutrition assistance program
authorized under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.);
(ii) a member of a family (under the State program
funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.)) that the Secretary
determines 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;
(iii) enrolled as a participant in a Head Start
program authorized under the Head Start Act (42 U.S.C.
9831 et seq.), on the basis of a determination that the
child meets the eligibility criteria prescribed under
section 645(a)(1)(B) of the Head Start Act (42 U.S.C.
9840(a)(1)(B));
(iv) a homeless child or youth (defined as 1
of the individuals described in section 725(2)
of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11434a(2)));
(v) served by the runaway and homeless youth
grant program established under the Runaway and
Homeless Youth Act (42 U.S.C. 5701 et seq.);
(vi) a migratory child (as defined in section
1309 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6399)); or
(vii)(I) a [foster child] foster youth whose
care and placement is the responsibility of an
agency that administers a State plan under part
B or E of title IV of the Social Security Act
(42 U.S.C. 621 et seq.); or
(II) a [foster child] foster youth
who a court has placed with a caretaker
household.
(B) Proof of receipt of supplemental nutrition assistance
program benefits or assistance under the State program funded
under part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.) that the Secretary determines 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, or of
enrollment or participation in a Head Start program on the
basis described in subparagraph (A)(iii), shall be sufficient
to satisfy any verification requirement imposed under this
subsection.
(13) Exclusion of certain military housing
allowances.--The amount of a basic allowance provided
under section 403 of title 37, United States Code, on
behalf of a member of a uniformed service for housing
that is acquired or constructed under subchapter IV of
chapter 169 of title 10, United States Code, or any
related provision of law, shall not be considered to be
income for the purpose of determining the eligibility
of a child who is a member of the household of the
member of a uniformed service for free or reduced price
lunches under this Act.
(14) Combat pay.--
(A) Definition of combat pay.--In this
paragraph, the term ``combat pay'' means any
additional payment under chapter 5 of title 37,
United States Code, or otherwise designated by
the Secretary to be appropriate for exclusion
under this paragraph, that is received by or
from a member of the United States Armed Forces
deployed to a designated combat zone, if the
additional pay--
(i) is the result of deployment to or
service in a combat zone; and
(ii) was not received immediately
prior to serving in a combat zone.
(B) Exclusion.--Combat pay shall not be
considered to be income for the purpose of
determining the eligibility for free or reduced
price meals of a child who is a member of the
household of a member of the United States
Armed Forces.
(15) Direct certification for children receiving
medicaid benefits.--
(A) Definitions.--In this paragraph:
(i) Eligible child.--The term
``eligible child'' means a child--
(I)(aa) who is eligible for
and receiving medical
assistance under the Medicaid
program; and
(bb) who is a member of a
family with an income as
measured by the Medicaid
program before the application
of any expense, block, or other
income disregard, that does not
exceed 133 percent of the
poverty line (as defined in
section 673(2) of the Community
Services Block Grant Act (42
U.S.C. 9902(2), including any
revision required by such
section)) applicable to a
family of the size used for
purposes of determining
eligibility for the Medicaid
program; or
(II) who is a member of a
household (as that term is
defined in section 245.2 of
title 7, Code of Federal
Regulations (or successor
regulations) with a child
described in subclause (I).
(ii) Medicaid program.--The term
``Medicaid program'' means the program
of medical assistance established under
title XIX of the Social Security Act
(42 U.S.C. 1396 et seq.).
(B) Demonstration project.--
(i) In general.--The Secretary,
acting through the Administrator of the
Food and Nutrition Service and in
cooperation with selected State
agencies, shall conduct a demonstration
project in selected local educational
agencies to determine whether direct
certification of eligible children is
an effective method of certifying
children for free lunches and
breakfasts under [section 9(b)(1)(A) of
this Act] paragraph (1)(A) and section
4(e)(1)(A) of the Child Nutrition Act
of 1966 (42 U.S.C. 1773(e)(1)(A)).
(ii) Scope of project.--The Secretary
shall carry out the demonstration
project under this subparagraph--
(I) for the school year
beginning July 1, 2012, in
selected local educational
agencies that collectively
serve 2.5 percent of students
certified for free and reduced
price meals nationwide, based
on the most recent available
data;
(II) for the school year
beginning July 1, 2013, in
selected local educational
agencies that collectively
serve 5 percent of students
certified for free and reduced
price meals nationwide, based
on the most recent available
data; and
(III) for the school year
beginning July 1, 2014, and
each subsequent school year, in
selected local educational
agencies that collectively
serve 10 percent of students
certified for free and reduced
price meals nationwide, based
on the most recent available
data.
(iii) Purposes of the project.--At a
minimum, the purposes of the
demonstration project shall be--
(I) to determine the
potential of direct
certification with the Medicaid
program to reach children who
are eligible for free meals but
not certified to receive the
meals;
(II) to determine the
potential of direct
certification with the Medicaid
program to directly certify
children who are enrolled for
free meals based on a household
application; and
(III) to provide an estimate
of the effect on Federal costs
and on participation in the
school lunch program under this
Act and the school breakfast
program established by section
4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773) of direct
certification with the Medicaid
program.
(iv) Cost estimate.--For each of 2
school years of the demonstration
project, the Secretary shall estimate
the cost of the direct certification of
eligible children for free school meals
through data derived from--
(I) the school meal programs
authorized under this Act and
the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.);
(II) the Medicaid program;
and
(III) interviews with a
statistically representative
sample of households.
(C) Agreement.--
(i) In general.--Not later than July
1 of the first school year during which
a State agency will participate in the
demonstration project, the State agency
shall enter into an agreement with the
1 or more State agencies conducting
eligibility determinations for the
Medicaid program.
(ii) Without further application.--
Subject to paragraph (6), the agreement
described in subparagraph (D) shall
establish procedures under which an
eligible child shall be certified for
free lunches under this Act and free
breakfasts under section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773),
without further application (as defined
in [paragraph (4)(G)] paragraph
(4)(F)).
(D) Certification.--For the school year
beginning on July 1, 2012, and each subsequent
school year, subject to paragraph (6), the
local educational agencies participating in the
demonstration project shall certify an eligible
child as eligible for free lunches under this
Act and free breakfasts under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
without further application (as defined in
[paragraph (4)(G)] paragraph (4)(F)).
(E) Site selection.--
(i) In general.--To be eligible to
participate in the demonstration
project under this subsection, a State
agency shall submit to the Secretary an
application at such time, in such
manner, and containing such information
as the Secretary may require.
(ii) Considerations.--In selecting
States and local educational agencies
for participation in the demonstration
project, the Secretary may take into
consideration such factors as the
Secretary considers to be appropriate,
which may include--
(I) the rate of direct
certification;
(II) the share of individuals
who are eligible for benefits
under the supplemental
nutrition assistance program
established under the Food and
Nutrition Act of 2008 (7 U.S.C.
2011 et seq.) who participate
in the program, as determined
by the Secretary;
(III) the income eligibility
limit for the Medicaid program;
(IV) the feasibility of
matching data between local
educational agencies and the
Medicaid program;
(V) the socioeconomic profile
of the State or local
educational agencies; and
(VI) the willingness of the
State and local educational
agencies to comply with the
requirements of the
demonstration project.
(F) Access to data.--For purposes of
conducting the demonstration project under this
paragraph, the Secretary shall have access to--
(i) educational and other records of
State and local educational and other
agencies and institutions receiving
funding or providing benefits for 1 or
more programs authorized under this Act
or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.); and
(ii) income and program participation
information from public agencies
administering the Medicaid program.
(G) Report to congress.--
(i) In general.--Not later than
October 1, 2014, the Secretary shall
submit to the [Committee on Education
and Labor] Committee on Education and
the Workforce of the House of
Representatives and the Committee on
Agriculture, Nutrition, and Forestry of
the Senate, an interim report that
describes the results of the
demonstration project required under
this paragraph.
(ii) Final report.--Not later than
October 1, 2015, the Secretary shall
submit a final report to the committees
described in clause (i).
(H) Funding.--
(i) In general.--On October 1, 2010,
out of any funds in the Treasury not
otherwise appropriated, the Secretary
of the Treasury shall transfer to the
Secretary to carry out subparagraph (G)
$5,000,000, to remain available until
expended.
(ii) Receipt and acceptance.--The
Secretary shall be entitled to receive,
shall accept, and shall use to carry
out subparagraph (G) the funds
transferred under clause (i), without
further appropriation.
(c) School lunch programs under this Act shall be operated on
a nonprofit basis. Commodities purchased under the authority of
section 32 of the Act of August 24, 1935, may be donated by the
Secretary to schools, in accordance with the needs as
determined by local school authorities, for utilization in the
school lunch program under this Act as well as to other schools
carrying out nonprofit school lunch programs and institutions
authorized to receive such commodities. The requirements of
this section relating to the service of meals without cost or
at a reduced cost shall apply to the lunch program of any
school utilizing commodities donated under any provision of
law.
(d)(1) The Secretary shall require as a condition of
eligibility for receipt of free or reduced price lunches that
the member of the household who executes the application
furnish the last 4 digits of the social security account number
of the parent or guardian who is the primary wage earner
responsible for the care of the child for whom the application
is made, or that of another appropriate adult member of the
child's household, as determined by the Secretary.
(2) No member of a household may be provided a free or
reduced price lunch under this Act unless--
(A) appropriate documentation relating to the income
of such household (as prescribed by the Secretary) has
been provided to the appropriate local educational
agency so that the local educational agency may
calculate the total income of such household;
(B) documentation showing that the household is
participating in the supplemental nutrition assistance
program under the Food and Nutrition Act of 2008 has
been provided to the appropriate local educational
agency;
(C) documentation has been provided to the
appropriate local educational agency showing that the
family is receiving assistance under the State program
funded under part A of title IV of the Social Security
Act that the Secretary determines 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;
(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)(12)(A);
(E) documentation has been provided to the
appropriate local educational agency showing the status
of the child as a migratory child (as defined in
section 1309 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6399));
(F)(i) documentation has been provided to the
appropriate local educational agency showing the status
of the child as a [foster child] foster youth whose
care and placement is the responsibility of an agency
that administers a State plan under part B or E of
title IV of the Social Security Act (42 U.S.C. 621 et
seq.); or
(ii) documentation has been provided to the
appropriate local educational agency showing
the status of the child as a [foster child]
foster youth who a court has placed with a
caretaker household; or
(G) documentation has been provided to the
appropriate local educational agency showing the status
of the child as an eligible child (as defined in
subsection (b)(15)(A)).
(e) A school or school food authority participating in a
program under this Act may not contract with a food service
company to provide a la carte food service unless the company
agrees to offer free, reduced price, and full-price
reimbursable meals to all eligible children.
(f) Nutritional Requirements.--
(1) In general.--Schools that are participating in
the school lunch program or school breakfast program
shall serve lunches and breakfasts that--
(A) are consistent with the goals of the most
recent Dietary Guidelines for Americans
published under section 301 of the National
Nutrition Monitoring and Related Research Act
of 1990 (7 U.S.C. 5341); [and]
(B) consider the nutrient needs of children
who may be at risk for inadequate food intake
and food insecurity[.]; and
(C) meet minimum nutritional requirements
prescribed by the Secretary on the basis of
tested nutritional research specifically
conducted to understand the impact for
children, except that the minimum nutritional
requirements--
(i) may not prohibit the substitution
of foods to accommodate the medical,
including allergies, or other special
dietary needs of individual students,
including religious dietary
restrictions; and
(ii) shall, as possible in
accommodating the medical or other
special dietary needs of such students,
be based on the weekly average of the
nutrient content of school lunches.
(2) To assist schools in meeting the requirements of this
subsection, the Secretary--
(A) shall--
(i) develop, and provide to schools,
standardized recipes, menu cycles, and food
product specification and preparation
techniques; and
(ii) provide to schools information regarding
nutrient standard menu planning, assisted
nutrient standard menu planning, and food-based
menu systems; and
(B) may provide to schools information regarding
other approaches, as determined by the Secretary.
(3) Use of any reasonable approach.--
(A) In general.--A school food service authority may
use any reasonable approach, within guidelines
established by the Secretary in a timely manner, to
meet the requirements of this subsection, including--
(i) using the school nutrition meal pattern
in effect for the 1994-1995 school year; and
(ii) using any of the approaches described in
[paragraph (3)] paragraph (2).
(B) Nutrient analysis.--The Secretary may not require
a school to conduct or use a nutrient analysis to meet
the requirements of this subsection.
[(4) Waiver of requirement for weighted averages for
nutrient analysis.--During the period ending on
September 30, 2010, the Secretary shall not require the
use of 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).]
(4) Regulations, review, and relief.--
(A) Review regulations.--The Secretary shall,
at least every 3 years--
(i) review the regulations
promulgated in accordance with this Act
for the school meal programs described
in paragraph (1) (in this paragraph
referred to as the ``school meal
programs'');
(ii) with consultation from a parent,
a pediatrician, a dietician who
conducts child nutrition research, and
stakeholders in schools (including
school leaders, school boards, local
educational agency administrators, and
school food nutrition directors),
certify that the regulations are--
(I) appropriate for the age
of children participating in
the school meal programs,
including for the health of
children;
(II) in compliance with the
preponderance of the latest
high-quality research based on
school-aged children conducted
to examine the health and
safety of children
participating in the school
meal programs;
(III) not increasing the cost
to implement the requirements
of the school meal programs
(which costs shall be
considered the total costs to
implement the regulations and
not limited to the cost of any
changes to the regulations);
and
(IV) not discouraging
students from participating in
the school meal programs;
(iii) if necessary to meet the
requirements of clause (ii), revise the
regulations to meet such requirements;
(iv) not later than 30 days prior to
publication under clause (v)(II) of the
revised regulations--
(I) submit the revised
regulations for comment to the
Committee on Education and the
Workforce of the House of
Representatives and the
Committee on Agriculture,
Nutrition, and Forestry of the
Senate;
(II) review any comments
provided under subclause (I),
and further revise the
regulations, if necessary to
ensure the revised regulations
are in compliance with clause
(i); and
(III) provide a public notice
and comment period of not less
than 60 days, review the public
comments, and further revise
the regulations, if necessary
to ensure the revised
regulations are in compliance
with clause (i); and
(v) publish in the Federal Register,
and submit to the Committee on
Education and the Workforce of the
House of Representatives and the
Committee on Agriculture, Nutrition,
and Forestry of the Senate--
(I) a notice that no changes
to the regulations are required
and the certification described
in clause (ii); or
(II) the regulations, as
revised under clause (iv), and
the certification described in
clause (ii).
(B) First review.--The first review required
under subparagraph (A) after the date of
enactment of the Improving Child Nutrition and
Education Act of 2016 shall--
(i) be concluded not later than
December 31, 2016;
(ii) include a review of the sodium
and whole grain requirements under the
regulations for the school meal
programs; and
(iii) ensure that such requirements--
(I) maintain the sodium
target requirements established
for the school lunch program
and school breakfast program
under sections 210.10(f) and
220.8(f) of title 7, Code of
Federal Regulations,
respectively (as such
regulations are in effect on
the day before the date of the
enactment of the Improving
Child Nutrition and Education
Act of 2016) until such
requirements are revised in
accordance with subclause (II);
and
(II) in a case in which the
sodium target requirements are
revised as a result of the
review described in this
subparagraph, ensure that such
a revision--
(aa) is based on
health requirements for
children;
(bb) is supported by
a majority of research
focused on school-aged
children that directly
establishes, through
well-controlled
randomized trials or
well-designed, long-
term observational
studies, that sodium
reductions are both
safe and produce
beneficial health
outcomes for such
children;
(cc) is able to
support food safety and
be produced in a manner
that does not
significantly increase
the cost of food; and
(dd) does not take
effect until 3 years
after the revision has
been published in the
Federal Register.
(C) Special rule for regulation relief for
family meal days.--
(i) In general.--Subject to clause
(ii), the Secretary shall issue
guidance, or promulgate new rules as
necessary, to ensure each State agency
provides guidance to school food
authorities with respect to the
allowance of up to 4 family meal days,
as designated by a school, which shall
be exempt from the meal pattern rules
specified under the regulations for the
school meal programs, during which the
school may--
(I) invite parents to
participate in special meals,
such as a Thanksgiving meal or
a parents' day meal; and
(II) provide additional
nutrition education, such as
recipe building or healthy
cooking classes to parents and
families on making healthy meal
options at home, which may be
provided by an entity or
individual other than a school
food service director or food
service personnel.
(ii) Clarification.--In issuing
guidance or promulgating rules under
clause (i), the Secretary shall not
establish any requirements or
limitations for family meal days,
except to ensure that schools have the
authority to hold up to 4 family meal
days per school year.
(D) Regulation flexibility.--The Secretary
shall provide guidance, when there is
difficulty in procuring food to comply with the
regulations, to allow a school food authority
to substitute food items across food groups and
subgroups, including in-season, locally-
produced fruits and vegetables, notwithstanding
the food-based meal patterns and menu planning
requirements of this subsection, provided that
the school food authority continues to meet
applicable daily and weekly nutrient and
dietary requirements under this subsection.
(5) Accommodations.--The accommodation requirements
described in paragraph (1)(C)(i) shall apply to all
programs under this Act and all programs under the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
except for section 17 of such Act (42 U.S.C. 1786).
[(g) Not later than 1 year after the date of enactment of
this subsection, the Secretary shall provide a notification to
Congress that justifies the need for production records
required under section 210.10(b) of title 7, Code of Federal
Regulations, and describes how the Secretary has reduced
paperwork relating to the school lunch and school breakfast
programs.]
[(h)] (g) Food Safety.--
(1) In general.--A school participating in 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) shall--
(A) at least twice during each school year,
obtain a food safety inspection conducted by a
State or local governmental agency responsible
for food safety inspections;
(B) post in a publicly visible location a
report on the most recent inspection conducted
under subparagraph (A); and
(C) on request, provide a copy of the report
to a member of the public.
(2) State and local government inspections.--Nothing
in paragraph (1) prevents any State or local government
from adopting or enforcing any requirement for more
frequent food safety inspections of schools.
(3) Audits and reports by states.--For each of fiscal
years [2011 through 2015] 2017 through 2021, each State
shall annually--
(A) audit food safety inspections of schools
conducted under paragraphs (1) and (2); and
(B) submit to the Secretary a report of the
results of the audit.
(4) Audit by the secretary.--For each of fiscal years
[2011 through 2015] 2017 through 2021, the Secretary
shall annually audit State reports of food safety
inspections of schools submitted under paragraph (3).
(5) School food safety program.--
(A) In general.--Each school food authority
shall implement a school food safety program,
in the preparation and service of each meal
served to children, that complies with any
hazard analysis and critical control point
system established by the Secretary.
(B) Applicability.--Subparagraph (A) shall
apply to any facility or part of a facility in
which food is stored, prepared, or served for
the purposes of the school nutrition programs
under this Act or section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773).
[(i)] (h) Single Permanent Agreement Between State Agency and
School Food Authority; Common Claims Form.--
(1) In general.--If a single State agency administers
any combination of the school lunch program under this
Act, the school breakfast program under section 4 of
the Child Nutrition Act of 1966 (42 U.S.C. 1773), the
summer food service program for children under section
13 of this Act, or the child and adult care food
program under section 17 of this Act, the agency
shall--
(A) require each school food authority to
submit to the State agency a single agreement
with respect to the operation by the authority
of the programs administered by the State
agency; and
(B) use a common claims form with respect to
meals and supplements served under the programs
administered by the State agency.
(2) Additional requirement.--The agreement described
in paragraph (1)(A) shall be a permanent agreement that
may be amended as necessary.
[(j)] (i) Purchases of Locally Produced Foods.--The Secretary
shall--
(1) encourage institutions receiving funds under this
Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771
et seq.) to purchase unprocessed agricultural products,
both locally grown and locally raised, to the maximum
extent practicable and appropriate;
(2) advise institutions participating in a program
described in paragraph (1) of the policy described in
that paragraph and paragraph (3) and post information
concerning the policy on the website maintained by the
Secretary; and
(3) allow institutions receiving funds under this Act
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.), including the Department of Defense Fresh Fruit
and Vegetable Program, to use a geographic preference
for the procurement of unprocessed agricultural
products, both locally grown and locally raised.
[(k) Information on the School Nutrition Environment.--
[(1) In general.--The Secretary shall--
[(A) establish requirements for local
educational agencies participating in the
school lunch program under this Act and the
school breakfast program established by section
4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773) to report information about the school
nutrition environment, for all schools under
the jurisdiction of the local educational
agencies, to the Secretary and to the public in
the State on a periodic basis; and
[(B) provide training and technical
assistance to States and local educational
agencies on the assessment and reporting of the
school nutrition environment, including the use
of any assessment materials developed by the
Secretary.
[(2) Requirements.--In establishing the requirements
for reporting on the school nutrition environment under
paragraph (1), the Secretary shall--
[(A) include information pertaining to food
safety inspections, local wellness policies,
meal program participation, the nutritional
quality of program meals, and other information
as determined by the Secretary; and
[(B) ensure that information is made
available to the public by local educational
agencies in an accessible, easily understood
manner in accordance with guidelines
established by the Secretary.
[(3) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection such sums as are necessary for each of
fiscal years 2011 through 2015.]
[(l)] (j) Food Donation Program.--
(1) In general.--Each school and local educational
agency participating in the school lunch program under
this Act may donate any food not consumed under such
program to eligible local food banks or charitable
organizations.
(2) Guidance.--
(A) In general.--Not later than 180 days
after the date of the enactment of this
subsection, the Secretary shall develop and
publish guidance to schools and local
educational agencies participating in the
school lunch program under this Act to assist
such schools and local educational agencies in
donating food under this subsection.
(B) Updates.--The Secretary shall update such
guidance as necessary.
(3) Liability.--Any school or local educational
agency making donations pursuant to this subsection
shall be exempt from civil and criminal liability to
the extent provided under the Bill Emerson Good
Samaritan Food Donation Act (42 U.S.C. 1791).
(4) Definition.--In this subsection, the term
``eligible local food banks or charitable
organizations'' means any food bank or charitable
organization which is exempt from tax under section
501(c)(3) of the Internal Revenue Code of 1986 (26
U.S.C. 501(c)(3)).
SEC. 9A. LOCAL SCHOOL WELLNESS POLICY.
(a) In General.--Each local educational agency participating
in a program authorized by this Act or the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.) shall establish a local school
wellness policy for all schools under the jurisdiction of the
local educational agency.
(b) Guidelines.--The Secretary shall promulgate regulations
that provide the framework and guidelines for local educational
agencies to establish local school wellness policies,
including, at a minimum,--
(1) goals for nutrition promotion and education,
physical activity, and other school-based activities
that promote student wellness;
(2) for all foods available on each school campus
under the jurisdiction of the local educational agency
during the school day, nutrition guidelines that--
(A) are consistent with sections 9 and 17 of
this Act, and sections 4 and 10 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773, 1779);
and
(B) promote student health and reduce
childhood obesity;
(3) a requirement that the local educational agency
permit parents, students, representatives of the school
food authority, teachers of physical education, school
health professionals, the school board, school
administrators, and the general public to participate
in the development, implementation, and periodic review
and update of the local school wellness policy;
(4) a requirement that the local educational agency
inform and update the public (including parents,
students, and others in the community) about the
content and implementation of the local school wellness
policy; and
(5) a requirement that the local educational agency--
(A) periodically measure and make available
to the public an assessment on the
implementation of the local school wellness
policy, including--
(i) the extent to which schools under
the jurisdiction of the local
educational agency are in compliance
with the local school wellness policy;
(ii) the extent to which the local
school wellness policy of the local
educational agency compares to model
local school wellness policies; and
(iii) a description of the progress
made in attaining the goals of the
local school wellness policy; and
(B) designate 1 or more local educational
agency officials or school officials, as
appropriate, to ensure that each school
complies with the local school wellness policy.
(c) Local Discretion.--The local educational agency shall use
the guidelines promulgated by the Secretary under subsection
(b) to determine specific policies appropriate for the schools
under the jurisdiction of the local educational agency.
(d) Technical Assistance and Best Practices.--
(1) In general.--The Secretary, in consultation with
the Secretary of Education and the Secretary of Health
and Human Services, acting through the Centers for
Disease Control and Prevention, shall provide
information and technical assistance to local
educational agencies, school food authorities, and
[State educational agencies] State agencies for use in
establishing healthy school environments that are
intended to promote student health and wellness.
(2) Content.--The Secretary shall provide technical
assistance that--
(A) includes resources and training on
designing, implementing, promoting,
disseminating, and evaluating local school
wellness policies and overcoming barriers to
the adoption of local school wellness policies;
(B) includes model local school wellness
policies and best practices recommended by
Federal agencies, State agencies, and
nongovernmental organizations;
(C) includes such other technical assistance
as is required to promote sound nutrition and
establish healthy school nutrition
environments; and
(D) is consistent with the specific needs and
requirements of local educational agencies.
(3) Study and report.--
(A) In general.--Subject to the availability
of appropriations, the Secretary, in
conjunction with the Director of the Centers
for Disease Control and Prevention, shall
prepare a report on the implementation,
strength, and effectiveness of the local school
wellness policies carried out in accordance
with this section.
(B) Study of local school wellness
policies.--The study described in subparagraph
(A) shall include----
(i) an analysis of the strength and
weaknesses of local school wellness
policies and how the policies compare
with model local wellness policies
recommended under paragraph (2)(B); and
(ii) an assessment of the impact of
the local school wellness policies in
addressing the requirements of
subsection (b).
(C) Report.--Not later than January 1, 2014,
the Secretary shall submit to the [Committee on
Education and Labor] Committee on Education and
the Workforce of the House of Representatives
and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that
describes the findings of the study.
(D) Authorization of appropriations.--There
are authorized to be appropriated to carry out
this paragraph $3,000,000 for fiscal year 2011,
to remain available until expended.
DISBURSEMENT TO SCHOOLS BY THE SECRETARY
Sec. 10. (a) The Secretary shall withhold funds payable to a
State under this Act and disburse the funds directly to
schools, institutions, or service institutions within the State
for the purposes authorized by this Act to the extent that the
Secretary has so withheld and disbursed such funds continuously
since October 1, 1980, but only to such extent (except as
otherwise required by subsection (b)). Any funds so withheld
and disbursed by the Secretary shall be used for the same
purposes, and shall be subject to the same conditions, as
applicable to a State disbursing funds made available under
this Act. If the Secretary is administering (in whole or in
part) any program authorized under this Act, the State in which
the Secretary is administering the program may, upon request to
the Secretary, assume administration of that program.
(b) If a [State educational agency] State agency is not
permitted by law to disburse the funds paid to it under this
Act to any of the nonpublic schools in the State, the Secretary
shall disburse the funds directly to such schools within the
State for the same purposes and subject to the same conditions
as are authorized or required with respect to the disbursements
to public schools within the State by the [State educational
agency] State agency.
SPECIAL ASSISTANCE
Sec. 11. (a)(1)(A) Except as provided in section 10 of this
Act, in each fiscal year each [State educational agency] State
agency shall receive special assistance payments in an amount
equal to the sum of the product obtained by multiplying the
number of lunches (consisting of a combination of foods which
meet the minimum nutritional requirements prescribed by the
Secretary pursuant to subsection 9(a) of this Act) served free
to children eligible for such lunches in schools within that
State during such fiscal year by the special assistance factor
for free lunches prescribed by the Secretary for such fiscal
year and the product obtained by multiplying the number of
lunches served at a reduced price to children eligible for such
reduced price lunches in schools within that State during such
fiscal year by the special assistance factor for reduced price
lunches prescribed by the Secretary for such fiscal year.
(B) Except as provided in subparagraph (C), (D), (E), or (F),
in the case of any school which determines that at least 80
percent of the children in attendance during a school year
(hereinafter in this sentence referred to as the ``first school
year'') are eligible for free lunches or reduced price lunches,
special assistance payments shall be paid to the [State
educational agency] State agency with respect to that school,
if that school so requests for the school year following the
first school year, on the basis of the number of free lunches
or reduced priced lunches, as the case may be, that are served
by that school during the school year for which the request is
made, to those children who were determined to be so eligible
in the first school year and the number of free lunches and
reduced price lunches served during that year to other children
determined for that year to be eligible for such lunches.
(C)(i) Except as provided in subparagraph (D), in the case of
any school or school district that--
(I) elects to serve all children in the school or
school district free lunches under the school lunch
program during any period of 4 successive school years,
or in the case of a school or school district that
serves both lunches and breakfasts, elects to serve all
children in the school or school district free lunches
and free breakfasts under the school lunch program and
the school breakfast program established under section
4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773)
during any period of 4 successive school years; and
(II) pays, from sources other than Federal funds, for
the costs of serving the lunches or breakfasts that are
in excess of the value of assistance received under
this Act and the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) with respect to the number of lunches or
breakfasts served during the period;
special assistance payments shall be paid to the [State
educational agency] State agency with respect to the school or
school district during the period on the basis of the number of
lunches or breakfasts determined under clause (ii) or (iii).
(ii) For purposes of making special assistance payments under
clause (i), except as provided in clause (iii), the number of
lunches or breakfasts served by a school or school district to
children who are eligible for free lunches or breakfasts or
reduced price lunches or breakfasts during each school year of
the 4-school-year period shall be considered to be equal to the
number of lunches or breakfasts served by the school or school
district to children eligible for free lunches or breakfasts or
reduced price lunches or breakfasts during the first school
year of the period.
(iii) For purposes of computing the amount of the payments, a
school or school district may elect to determine on a more
frequent basis the number of children who are eligible for free
or reduced price lunches or breakfasts who are served lunches
or breakfasts during the 4-school-year period.
(D)(i) In the case of any school or school district that is
receiving special assistance payments under this paragraph for
a 4-school-year period described in subparagraph (C), the State
may grant, at the end of the 4-school-year period, an extension
of the period for an additional 4 school years, if the State
determines, through available socioeconomic data approved by
the Secretary, that the income level of the population of the
school or school district has remained stable.
(ii) A school or school district described in clause (i) may
reapply to the State at the end of the 4-school-year period,
and at the end of each 4-school-year period thereafter for
which the school or school district receives special assistance
payments under this paragraph, for the purpose of continuing to
receive the payments for a subsequent 4-school-year period.
(iii) If the Secretary determines after considering the best
available socioeconomic data that the income level of families
of children enrolled in a school or school district has not
remained stable, the Secretary may require the submission of
applications for free and reduced price lunches, or for free
and reduced price lunches and breakfasts, in the first school
year of any 4-school-year period for which the school or school
district receives special assistance payments under this
paragraph, for the purpose of calculating the special
assistance payments.
(iv) For the purpose of updating information and
reimbursement levels, a school or school district described in
clause (i) that carries out a school lunch or school breakfast
program may at any time require submission of applications for
free and reduced price lunches or for free and reduced price
lunches and breakfasts.
(E)(i) In the case of any school or school district that--
(I) elects to serve all children in the school or
school district free lunches under the school lunch
program during any period of 4 successive school years,
or in the case of a school or school district that
serves both lunches and breakfasts, elects to serve all
children in the school or school district free lunches
and free breakfasts under the school lunch program and
the school breakfast program during any period of 4
successive school years; and
(II) pays, from sources other than Federal funds, for
the costs of serving the lunches or breakfasts that are
in excess of the value of assistance received under
this Act and the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) with respect to the number of lunches or
breakfasts served during the period;
total Federal cash reimbursements and total commodity
assistance shall be provided to the [State educational agency]
State agency with respect to the school or school district at a
level that is equal to the total Federal cash reimbursements
and total commodity assistance received by the school or school
district in the last school year for which the school or school
district accepted applications under the school lunch or school
breakfast program, adjusted annually for inflation in
accordance with paragraph (3)(B) and for changes in enrollment,
to carry out the school lunch or school breakfast program.
(ii) A school or school district described in clause (i) may
reapply to the State at the end of the 4-school-year period
described in clause (i), and at the end of each 4-school-year
period thereafter for which the school or school district
receives reimbursements and assistance under this subparagraph,
for the purpose of continuing to receive the reimbursements and
assistance for a subsequent 4-school-year period. The State may
approve an application under this clause if the State
determines, through available socioeconomic data approved by
the Secretary, that the income level of the population of the
school or school district has remained consistent with the
income level of the population of the school or school district
in the last school year for which the school or school district
accepted the applications described in clause (i).
(F) Universal meal service in high poverty
areas.--
(i) Definition of identified
students.--The term ``identified
students'' means students certified
based on documentation of benefit
receipt or categorical eligibility as
described in section 245.6a(c)(2) of
title 7, Code of Federal Regulations
(or successor regulations).
(ii) Election of special assistance
payments.--
(I) In general.--A local
educational agency may, for all
schools in the district or on
behalf of certain schools
(including a subset of schools
within the local educational
agency if the result obtained
by dividing the total number of
the identified students
enrolled in such schools by the
total number of all students
enrolled in such schools, is
above the threshold in clause
(viii)) in the district, elect
to receive special assistance
payments under this
subparagraph in lieu of special
assistance payments otherwise
made available under this
paragraph based on applications
for free and reduced price
lunches if--
(aa) during a period
of 4 successive school
years, the local
educational agency
elects to serve all
children in the
applicable schools free
lunches and breakfasts
under the school lunch
program under this Act
and the school
breakfast program
established under
section 4 of the Child
Nutrition Act of 1966
(42 U.S.C. 1773);
(bb) the local
educational agency
pays, from sources
other than Federal
funds, the costs of
serving the lunches or
breakfasts that are in
excess of the value of
assistance received
under this Act and the
Child Nutrition Act of
1966 (42 U.S.C. 1771 et
seq.);
(cc) the local
educational agency is
not a residential child
care institution (as
that term is used in
section 210.2 of title
7, Code of Federal
Regulations (or
successor
regulations)); and
(dd) during the
school year prior to
the first year of the
period for which the
local educational
agency elects to
receive special
assistance payments
under this
subparagraph, the local
educational agency or
school had a percentage
of enrolled students
who were identified
students that meets or
exceeds the threshold
described in clause
(viii).
(II) Election to stop
receiving payments.--A local
educational agency may, for all
schools in the district or on
behalf of certain schools in
the district, elect to stop
receiving special assistance
payments under this
subparagraph for the following
school year by notifying the
State agency not later than
June 30 of the current school
year of the intention to stop
receiving special assistance
payments under this
subparagraph.
(iii) First year of option.--
(I) Special assistance
payment.--For each month of the
first school year of the 4-year
period during which a school or
local educational agency elects
to receive payments under this
subparagraph, special
assistance payments at the rate
for free meals shall be made
under this subparagraph for a
percentage of all reimbursable
meals served in an amount equal
to the product obtained by
multiplying--
(aa) the multiplier
described in clause
(vii); by
(bb) the percentage
of identified students
at the school or local
educational agency as
of April 1 of the prior
school year, up to a
maximum of 100 percent.
(II) Payment for other
meals.--The percentage of meals
served that is not described in
subclause (I) shall be
reimbursed at the rate provided
under section 4.
(iv) Second, third, or fourth year of
option.--
(I) Special assistance
payment.--For each month of the
second, third, or fourth school
year of the 4-year period
during which a school or local
educational agency elects to
receive payments under this
subparagraph, special
assistance payments at the rate
for free meals shall be made
under this subparagraph for a
percentage of all reimbursable
meals served in an amount equal
to the product obtained by
multiplying--
(aa) the multiplier
described in clause
(vii); by
(bb) the higher of
the percentage of
identified students at
the school or local
educational agency as
of April 1 of the prior
school year or the
percentage of
identified students at
the school or local
educational agency as
of April 1 of the
school year prior to
the first year that the
school or local
educational agency
elected to receive
special assistance
payments under this
subparagraph, up to a
maximum of 100 percent.
(II) Payment for other
meals.--The percentage of meals
served that is not described in
subclause (I) shall be
reimbursed at the rate provided
under section 4.
(v) Grace year.--
(I) In general.--If, not
later than April 1 of the
fourth year of a 4-year period
described in clause (ii)(I), a
school or local educational
agency has a percentage of
enrolled students who are
identified students that meets
or exceeds a percentage that is
10 percentage points lower than
the threshold described in
clause (viii), the school or
local educational agency may
elect to receive special
assistance payments under
subclause (II) for an
additional grace year.
(II) Special assistance
payment.--For each month of a
grace year, special assistance
payments at the rate for free
meals shall be made under this
subparagraph for a percentage
of all reimbursable meals
served in an amount equal to
the product obtained by
multiplying--
(aa) the multiplier
described in clause
(vii); by
(bb) the percentage
of identified students
at the school or local
educational agency as
of April 1 of the prior
school year, up to a
maximum of 100 percent.
(III) Payment for other
meals.--The percentage of meals
served that is not described in
subclause (II) shall be
reimbursed at the rate provided
under section 4.
(vi) Applications.--A school or local
educational agency that receives
special assistance payments under this
subparagraph may not be required to
collect applications for free and
reduced price lunches.
(vii) Multiplier.--
(I) Phase-in.--For each
school year beginning on or
before July 1, 2013, the
multiplier shall be 1.6.
(II) Full implementation.--
For each school year beginning
on or after July 1, 2014, the
Secretary may use, as
determined by the Secretary--
(aa) a multiplier
between 1.3 and 1.6;
and
(bb) subject to item
(aa), a different
multiplier for
different schools or
local educational
agencies.
[(viii) Threshold.--
[(I) Phase-in.--For each
school year beginning on or
before July 1, 2013, the
threshold shall be 40 percent.
[(II) Full implementation.--
For each school year beginning
on or after July 1, 2014, the
Secretary may use a threshold
that is less than 40 percent.]
(viii) Threshold.--
(I) In general.--For each school year
beginning on or after July 1, 2017, the
Secretary shall use a threshold that is
not less than 60 percent.
(II) Community eligibility selection
transition.--In the case of a school
that received special assistance
payments under this subparagraph during
the school year immediately prior to
the school year in which the Improving
Child Nutrition and Education Act of
2016 was enacted, such school shall,
not later than June 30, 2018--
(aa) meet the threshold
described in subclause (I); or
(bb) transition from
receiving payments under this
subparagraph in accordance with
subclause (III).
(III) Technical assistance.--In the
case of schools described in subclause
(II)(bb), the Secretary shall provide
technical assistance to ensure that
such schools are able to effectively
and efficiently transition from
receiving payments under this
subparagraph to receiving special
assistance payments otherwise made
available under this paragraph,
including communicating the application
process to families in a timely manner
to ensure continuity of services for
eligible families.
(ix) Phase-in.--
(I) In general.--In selecting
States for participation during
the phase-in period, the
Secretary shall select States
with an adequate number and
variety of schools and local
educational agencies that could
benefit from the option under
this subparagraph, as
determined by the Secretary.
(II) Limitation.--The
Secretary may not approve
additional schools and local
educational agencies to receive
special assistance payments
under this subparagraph after
the Secretary has approved
schools and local educational
agencies in--
(aa) for the school
year beginning on July
1, 2011, 3 States; and
(bb) for each of the
school years beginning
July 1, 2012 and July
1, 2013, an additional
4 States per school
year.
(x) Election of option.--
(I) In general.--For each
school year beginning on or
after July 1, 2014, any local
educational agency eligible to
make the election described in
clause (ii) for all schools in
the district or on behalf of
certain schools in the district
may elect to receive special
assistance payments under
clause (iii) for the next
school year if, not later than
June 30 of the current school
year, the local educational
agency submits to the State
agency the percentage of
identified students at the
school or local educational
agency.
(II) State agency
notification.--Not later than
May 1 of each school year
beginning on or after July 1,
2011, each State agency with
schools or local educational
agencies that may be eligible
to elect to receive special
assistance payments under this
subparagraph shall notify--
(aa) each local
educational agency that
meets or exceeds the
threshold described in
clause (viii) that the
local educational
agency is eligible to
elect to receive
special assistance
payments under clause
(iii) for the next 4
school years, of the
blended reimbursement
rate the local
educational agency
would receive under
clause (iii), and of
the procedures for the
local educational
agency to make the
election;
(bb) each local
educational agency that
receives special
assistance payments
under clause (iii) of
the blended
reimbursement rate the
local educational
agency would receive
under clause (iv);
(cc) each local
educational agency in
the fourth year of
electing to receive
special assistance
payments under this
subparagraph that meets
or exceeds a percentage
that is 10 percentage
points lower than the
threshold described in
clause (viii) and that
receives special
assistance payments
under clause (iv), that
the local educational
agency may continue to
receive such payments
for the next school
year, of the blended
reimbursement rate the
local educational
agency would receive
under clause (v), and
of the procedures for
the local educational
agency to make the
election; and
(dd) each local
educational agency that
meets or exceeds a
percentage that is 10
percentage points lower
than the threshold
described in clause
(viii) that the local
educational agency may
be eligible to elect to
receive special
assistance payments
under clause (iii) if
the threshold described
in clause (viii) is met
by April 1 of the
school year or if the
threshold is met for a
subsequent school year.
(III) Public notification of
local educational agencies.--
Not later than May 1 of each
school year beginning on or
after July 1, 2011, each State
agency with 1 or more schools
or local educational agencies
eligible to elect to receive
special assistance payments
under clause (iii) shall submit
to the Secretary, and the
Secretary shall publish, lists
of the local educational
agencies receiving notices
under subclause (II).
(IV) Public notification of
schools.--Not later than May 1
of each school year beginning
on or after July 1, 2011, each
local educational agency in a
State with 1 or more schools
eligible to elect to receive
special assistance payments
under clause (iii) shall submit
to the State agency, and the
State agency shall publish--
(aa) a list of the
schools that meet or
exceed the threshold
described in clause
(viii);
(bb) a list of the
schools that meet or
exceed a percentage
that is 10 percentage
points lower than the
threshold described in
clause (viii) and that
are in the fourth year
of receiving special
assistance payments
under clause (iv); and
(cc) a list of the
schools that meet or
exceed a percentage
that is 10 percentage
points lower than the
threshold described in
clause (viii).
(xi) Implementation.--
(I) Guidance.--Not later than
90 days after the date of
enactment of this subparagraph,
the Secretary shall issue
guidance to implement this
subparagraph.
(II) Regulations.--[Not later
than December 31, 2013] Not
later than one year after the
date of enactment of the
Improving Child Nutrition and
Education Act of 2016, the
Secretary shall promulgate
regulations that establish
procedures for State agencies,
local educational agencies, and
schools to meet the
requirements of this
subparagraph, including
exercising the option described
in this subparagraph.
(III) Publication.--[If the
Secretary uses the authority
provided in clause
(vii)(II)(bb) to use a
different multiplier for
different schools or local
educational agencies, for each
school year beginning on or
after July 1, 2014, not later
than April 1, 2014] If the
Secretary uses the authority
provided in clause (vii), for
each school year beginning on
or after July 1, 2017, not less
than one year prior to the
Secretary electing to use such
authority,, the Secretary shall
publish on the website of the
Secretary a table that
indicates--
(aa) each local
educational agency that
may elect to receive
special assistance
payments under clause
(ii);
(bb) the blended
reimbursement rate that
each local educational
agency would receive;
and
(cc) an explanation
of the methodology used
to calculate the
multiplier or threshold
for each school or
local educational
agency.
(xii) Report.--Not later than
December 31, 2013, the Secretary shall
publish a report that describes--
(I) an estimate of the number
of schools and local
educational agencies eligible
to elect to receive special
assistance payments under this
subparagraph that do not elect
to receive the payments;
(II) for schools and local
educational agencies described
in subclause (I)--
(aa) barriers to
participation in the
special assistance
option under this
subparagraph, as
described by the
nonparticipating
schools and local
educational agencies;
and
(bb) changes to the
special assistance
option under this
subparagraph that would
make eligible schools
and local educational
agencies more likely to
elect to receive
special assistance
payments;
(III) for schools and local
educational agencies that elect
to receive special assistance
payments under this
subparagraph--
(aa) the number of
schools and local
educational agencies;
(bb) an estimate of
the percentage of
identified students and
the percentage of
enrolled students who
were certified to
receive free or reduced
price meals in the
school year prior to
the election to receive
special assistance
payments under this
subparagraph, and a
description of how the
ratio between those
percentages compares to
1.6;
(cc) an estimate of
the number and share of
schools and local
educational agencies in
which more than 80
percent of students are
certified for free or
reduced price meals
that elect to receive
special assistance
payments under that
clause; and
(dd) whether any of
the schools or local
educational agencies
stopped electing to
receive special
assistance payments
under this
subparagraph;
(IV) the impact of electing
to receive special assistance
payments under this
subparagraph on--
(aa) program
integrity;
(bb) whether a
breakfast program is
offered;
(cc) the type of
breakfast program
offered;
(dd) the nutritional
quality of school
meals; and
(ee) program
participation; and
(V) the multiplier and
threshold, as described in
clauses (vii) and (viii)
respectively, that the
Secretary will use for each
school year beginning on or
after July 1, 2014 and the
rationale for any change in the
multiplier or threshold.
(xiii) Funding.--
(I) In general.--On October
1, 2010, out of any funds in
the Treasury not otherwise
appropriated, the Secretary of
the Treasury shall transfer to
the Secretary to carry out
clause (xii) $5,000,000, to
remain available until
September 30, 2014.
(II) Receipt and
acceptance.--The Secretary
shall be entitled to receive,
shall accept, and shall use to
carry out clause (xii) the
funds transferred under
subclause (I), without further
appropriation.
(2) The special assistance factor prescribed by the Secretary
for free lunches shall be 98.75 cents and the special
assistance factor for reduced price lunches shall be 40 cents
less than the special assistance factor for free lunches.
(3)(A) The Secretary shall prescribe on [July 1] February 15,
1982, and on each subsequent July 1, an annual adjustment in
the following:
(i) The national average payment rates for lunches
(as established under section 4 of this Act).
(ii) the special assistance factor for lunches (as
established under paragraph (2) of this subsection).
(iii) The national average payment rates for
breakfasts (as established under section 4(b) of the
Child Nutrition Act of 1966 ).
(iv) The national average payment rates for
supplements (as established under section 17(c) of this
Act).
(B) Computation of adjustment.--
(i) In general.--The annual adjustment under
this paragraph shall reflect changes in the
cost of operating meal programs under this Act
and the Child Nutrition Act of 1966, as
indicated by the change in the series for food
away from home of the Consumer Price Index for
all Urban Consumers, published by the Bureau of
Labor Statistics of the Department of Labor.
(ii) Basis.--Each annual adjustment shall
reflect the changes in the series for food away
from home for the most recent 12-month period
for which such data are available.
(iii) Rounding.--On July 1, 1999, and on each
subsequent July 1, the national average payment
rates for meals and supplements shall be
adjusted to the nearest lower cent increment
and shall be based on the unrounded amounts for
the preceding 12-month period.
(b) Except as provided in section 10 of the Child Nutrition
Act of 1966, the special assistance payments made to each State
agency during each fiscal year under the provisions of this
section shall be used by such State agency to assist schools of
that State in providing free and reduced price lunches served
to children pursuant to subsection 9(b) of this Act. The amount
of such special assistance funds that a school shall from time
to time receive, within a maximum per lunch amount established
by the Secretary for all States, shall be based on the need of
the school for such special assistance. Such maximum per lunch
amount established by the Secretary shall not be less than 60
cents.
(c) Special assistance payments to any State under this
section shall be made as provided in the last sentence of
section 7 of this Act.
(d)(1) The Secretary, when appropriate, may request each
school participating in the school lunch program under this Act
to report monthly to the [State educational agency] State
agency the average number of children in the school who
received free lunches and the average number of children who
received reduced price lunches during the immediately preceding
month.
(2) On request of the Secretary, the [State educational
agency] State agency of each State shall report to the
Secretary the average number of children in the State who
received free lunches and the average number of children in the
State who received reduced price lunches during the immediately
preceding month.
(e) Commodity only schools shall also be eligible for special
assistance payments under this section. Such schools shall
serve meals free to children who meet the eligibility
requirements for free meals under section 9(b) of this Act, and
shall serve meals at a reduced price, not exceeding the price
specified in section 9(b)(9) of this Act, to children meeting
the eligibility requirements for reduced price meals under such
section. No physical segregation of, or other discrimination
against, any child eligible for a free or reduced priced lunch
shall be made by the school, nor shall there by any overt
identification of any such child by any means.
(g) Universal Meal Service Through Census Data.--
(1) In general.--To the maximum extent practicable,
the Secretary shall identify alternatives to--
(A) the daily counting by category of meals
provided by school lunch programs under this
Act and the school breakfast program
established by section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773); and
(B) the use of annual applications as the
basis for eligibility to receive free meals or
reduced price meals under this Act.
(2) Recommendations.--
(A) Considerations.--
(i) In general.--In identifying
alternatives under paragraph (1), the
Secretary shall consider the
recommendations of the Committee on
National Statistics of the National
Academy of Sciences relating to use of
the American Community Survey of the
Bureau of the Census and other data
sources.
(ii) Socioeconomic survey.--The
Secretary shall consider use of a
periodic socioeconomic survey of
households of children attending school
in the school food authority in not
more than 3 school food authorities
participating in the school lunch
program under this Act.
(iii) Survey parameters.--The
Secretary shall establish requirements
for the use of a socioeconomic survey
under clause (ii), which shall--
(I) include criteria for
survey design, sample frame
validity, minimum level of
statistical precision, minimum
survey response rates,
frequency of data collection,
and other criteria as
determined by the Secretary;
(II) be consistent with the
Standards and Guidelines for
Statistical Surveys, as
published by the Office of
Management and Budget;
(III) be consistent with
standards and requirements that
ensure proper use of Federal
funds; and
(IV) specify that the
socioeconomic survey be
conducted at least once every 4
years.
(B) Use of alternatives.--Alternatives
described in subparagraph (A) that provide
accurate and effective means of providing meal
reimbursement consistent with the eligibility
status of students may be--
(i) implemented for use in schools or
by school food authorities that agree--
(I) to serve all breakfasts
and lunches to students at no
cost in accordance with
regulations issued by the
Secretary; and
(II) to pay, from sources
other than Federal funds, the
costs of serving any lunches
and breakfasts that are in
excess of the value of
assistance received under this
Act or the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et
seq.) with respect to the
number of lunches and
breakfasts served during the
applicable period; or
(ii) further tested through
demonstration projects carried out by
the Secretary in accordance with
subparagraph (C).
(C) Demonstration projects.--
(i) In general.--For the purpose of
carrying out demonstration projects
described in subparagraph (B), the
Secretary may waive any requirement of
this Act relating to--
(I) counting of meals
provided by school lunch or
breakfast programs;
(II) applications for
eligibility for free or reduced
priced meals; or
(III) required direct
certification under section
9(b)(4).
(ii) Number of projects.--The
Secretary shall carry out demonstration
projects under this paragraph in not
more than 5 local educational agencies
for each alternative model that is
being tested.
(iii) Limitation.--A demonstration
project carried out under this
paragraph shall have a duration of not
more than 3 years.
(iv) Evaluation.--The Secretary shall
evaluate each demonstration project
carried out under this paragraph in
accordance with procedures established
by the Secretary.
(v) Requirement.--In carrying out
evaluations under clause (iv), the
Secretary shall evaluate, using
comparisons with local educational
agencies with similar demographic
characteristics--
(I) the accuracy of the 1 or
more methodologies adopted as
compared to the daily counting
by category of meals provided
by school meal programs under
this Act or the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et
seq.) and the use of annual
applications as the basis for
eligibility to receive free or
reduced price meals under those
Acts;
(II) the effect of the 1 or
more methodologies adopted on
participation in programs under
those Acts;
(III) the effect of the 1 or
more methodologies adopted on
administration of programs
under those Acts; and
(IV) such other matters as
the Secretary determines to be
appropriate.
MISCELLANEOUS PROVISIONS AND DEFINITIONS
Sec. 12. (a) States, [State educational agencies] State
agencies, and schools participating in the school lunch program
under this Act shall keep such accounts and records as may be
necessary to enable the Secretary to determine whether the
provisions of this Act are being complied with. Such accounts
and records shall be available at any reasonable time for
inspection and audit by representatives of the Secretary and
shall be preserved for such period of time, not in excess of
five years, as the Secretary determines is necessary.
(b) Agreements.--
(1) In general.--The Secretary shall incorporate, in
the agreement of the Secretary with the State agencies
administering programs authorized under this Act or the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.),
the express requirements with respect to the operation
of the programs to the extent applicable and such other
provisions as in the opinion of the Secretary are
reasonably necessary or appropriate to effectuate the
purposes of this Act and the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.).
(2) Expectations for use of funds.--Agreements
described in paragraph (1) shall include a provision
that--
(A) supports full use of Federal funds
provided to State agencies for the
administration of programs authorized under
this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.); and
(B) excludes the Federal funds from State
budget restrictions or limitations including,
at a minimum--
(i) hiring freezes;
(ii) work furloughs; and
(iii) travel restrictions.
(c) In carrying out the provisions of this Act, the Secretary
shall not impose any requirement with respect to teaching
personnel, curriculum, instruction, methods of instruction, and
materials of instruction in any school.
(d) For the purposes of this Act--
(1) Child.--
(A) In general.--The term ``child'' includes
an individual, regardless of age, who--
(i) is determined by a [State
educational agency] State agency, in
accordance with regulations prescribed
by the Secretary, to have one or more
disabilities; and
(ii) is attending any institution, as
defined in section 17(a), or any
nonresidential public or nonprofit
private school of high school grade or
under, for the purpose of participating
in a school program established for
individuals with disabilities.
(B) Relationship to child and adult care food
program.--No institution that is not otherwise
eligible to participate in the program under
section 17 shall be considered eligible because
of this paragraph.
(2) ``Commodity only schools'' means schools that do
not participate in the school lunch program under this
Act, but which receive commodities made available by
the Secretary for use by such schools in nonprofit
lunch programs.
(3) Disability.--The term ``disability'' has the
meaning given the term in the Rehabilitation Act of
1973 for purposes of title II of that Act (29 [U.S.C]
U.S.C. 760 et seq.).
(4) Local educational agency.--
(A) In general.--The term ``local educational
agency'' has the meaning given the term in
section 8101 of the Elementary and Secondary
Education Act of 1965.
(B) Inclusion.--The term ``local educational
agency'' includes, in the case of a private
nonprofit school, an appropriate entity
determined by the Secretary.
(5) ``School'' means (A) any public or nonprofit
private school of high school grade or under, and (B)
any public or licensed nonprofit private residential
child care institution (including, but not limited to,
orphanages and homes for the mentally retarded, but
excluding Job Corps Centers funded by the Department of
Labor). For purposes of this paragraph, the term
``nonprofit'', when applied to any such private school
or institution, means any such school or institution
which is exempt from tax under section 501(c)(3) of the
Internal Revenue Code of 1986.
(6) ``School year'' means the annual period from July
1 through June 30.
(7) ``Secretary'' means the Secretary of Agriculture.
(8) ``State'' means any of the fifty States, the
District of Columbia, the Commonwealth of Puerto Rico,
the Virgin Islands, Guam, American Samoa, or the
Commonwealth of the Northern Mariana Islands.
[(9) `` State educational agency '' means, as the
State legislature may determine, (A) the chief State
school officer (such as the State superintendent of
public instruction, commissioner of education, or
similar officer), or (B) a board of education
controlling the State department of education.]
(9) State agency.--The term ``State agency'' means--
(A) the chief State school officer (such as
the State superintendent of public instruction,
commissioner of education, or similar officer);
(B) a board of education controlling the
State department of education;
(C) the State Commissioner or individual who
administers agricultural programs in the State;
or
(D) a State official the State legislature
designates to administer the programs under
this Act.
(e) The value of assistance to children under this Act shall
not be considered to be income or resources for any purposes
under any Federal or State laws, including laws relating to
taxation and welfare and public assistance programs.
(f) In providing assistance for breakfasts, lunches, suppers,
and supplements served in Alaska, Hawaii, Guam, American Samoa,
Puerto Rico, the Virgin Islands of the United States, and the
Commonwealth of the Northern Mariana Islands, the Secretary may
establish appropriate adjustments for each such State to the
national average payment rates prescribed under sections 4, 11,
13, and 17 of this Act and section 4 of the Child Nutrition Act
of 1966, to reflect the differences between the costs of
providing meals and supplements in those States and the costs
of providing meals and supplements in all other States.
(g) Whoever embezzles, willfully misapplies, steals, or
obtains by fraud any funds, assets, or property that are the
subject of a grant or other form of assistance under this Act
or the Child Nutrition Act of 1966, whether received directly
or indirectly from the United States Department of Agriculture,
or whoever receives, conceals, or retains such funds, assets,
or property to personal use or gain, knowing such funds,
assets, or property have been embezzled, willfully misapplied,
stolen, or obtained by fraud shall, if such funds, assets, or
property are of the value of $100 or more, be fined not more
than $25,000 or imprisoned not more than five years, or both,
or, if such funds, assets, or property are of a value of less
than $100, shall be fined not more than $1,000 or imprisoned
for not more than one year, or both.
(h) No provision of this Act or of the Child Nutrition Act of
1966 shall require any school receiving funds under this Act
and the Child Nutrition Act of 1966 to account separately for
the cost incurred in the school lunch and school breakfast
programs.
(i) Facilities, equipment, and personnel provided to a school
food authority for a program authorized under this Act or the
Child Nutrition Act of 1966 may be used, as determined by a
local educational agency, to support a nonprofit nutrition
program for the elderly, including a program funded under the
Older Americans Act of 1965.
(j)(1) Except as provided in paragraph (2), the Secretary may
provide reimbursements for final claims for service of meals,
supplements, and milk submitted to State agencies by eligible
schools, summer camps, family day care homes, institutions, and
service institutions only if--
(A) the claims have been submitted to the State
agencies not later than 60 days after the last day of
the month for which the reimbursement is claimed; and
(B) the final program operations report for the month
is submitted to the Secretary not later than 90 days
after the last day of the month.
(2) The Secretary may waive the requirements of paragraph (1)
at the discretion of the Secretary.
(l)(1)(A) Except as provided in paragraph (4), the Secretary
may waive any requirement under this Act or the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.), or any regulation issued
under either such Act, for a State or eligible service provider
that requests a waiver if--
(i) the Secretary determines that the waiver of the
requirement would facilitate the ability of the State
or eligible service provider to carry out the purpose
of the program;
(ii) the State or eligible service provider has
provided notice and information to the public regarding
the proposed waiver; and
(iii) the State or eligible service provider
demonstrates to the satisfaction of the Secretary that
the waiver will not increase the overall cost of the
program to the Federal Government, and, if the waiver
does increase the overall cost to the Federal
Government, the cost will be paid from non-Federal
funds.
(B) The notice and information referred to in subparagraph
(A)(ii) shall be provided in the same manner in which the State
or eligible service provider customarily provides similar
notices and information to the public.
(2)(A) To request a waiver under paragraph (1), a State or
eligible service provider (through the appropriate
administering State agency) shall submit an application to the
Secretary that--
(i) identifies the statutory or regulatory
requirements that are requested to be waived;
(ii) in the case of a State requesting a waiver,
describes actions, if any, that the State has
undertaken to remove State statutory or regulatory
barriers;
(iii) describes the goal of the waiver to improve
services under the program and the expected outcomes if
the waiver is granted; and
(iv) includes a description of the impediments to the
efficient operation and administration of the program.
(B) An application described in subparagraph (A) shall be
developed by the State or eligible service provider and shall
be submitted to the Secretary by the State.
(3) The Secretary shall act promptly on a waiver request
contained in an application submitted under paragraph (2) and
shall either grant or deny the request. The Secretary shall
state in writing the reasons for granting or denying the
request.
(4) The Secretary may not grant a waiver under this
subsection that increases Federal costs or that relates to--
(A) the nutritional content of meals served;
(B) Federal reimbursement rates;
(C) the provision of free and reduced price meals;
(D) limits on the price charged for a reduced price
meal;
(E) maintenance of effort;
(F) equitable participation of children in private
schools;
(G) distribution of funds to State and local school
food service authorities and service institutions
participating in a program under this Act and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);
(H) the disclosure of information relating to
students receiving free or reduced price meals and
other recipients of benefits;
(I) prohibiting the operation of a profit producing
program;
(J) the sale of competitive foods;
(K) the commodity distribution program under section
14;
(L) the special supplemental nutrition program
authorized under section 17 of the Child Nutrition Act
of 1966 (42 U.S.C. 1786); or
(M) enforcement of any constitutional or statutory
right of an individual, including any right under--
(i) title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.);
(ii) section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794);
(iii) title IX of the Education Amendments of
1972 (20 U.S.C. 1681 et seq.);
(iv) the Age Discrimination Act of 1975 (42
U.S.C. 6101 et seq.);
(v) the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.); and
(vi) the Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.).
(5) The Secretary shall periodically review the performance
of any State or eligible service provider for which the
Secretary has granted a waiver under this subsection and shall
terminate the waiver if the performance of the State or service
provider has been inadequate to justify a continuation of the
waiver. The Secretary shall terminate the waiver if, after
periodic review, the Secretary determines that the waiver has
resulted in an increase in the overall cost of the program to
the Federal Government and the increase has not been paid for
in accordance with paragraph (1)(A)(iii).
(6) The Secretary shall annually submit to the [Committee on
Education and Labor] Committee on Education and the Workforce
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate, a report--
(A) summarizing the use of waivers by the State and
eligible service providers;
(B) describing whether the waivers resulted in
improved services to children;
(C) describing the impact of the waivers on providing
nutritional meals to participants; and
(D) describing how the waivers reduced the quantity
of paperwork necessary to administer the program.
(7) As used in this subsection, the term ``eligible service
provider'' means--
(A) a local school food service authority;
(B) a service institution or private nonprofit
organization described in section 13; or
(C) a family or group day care home sponsoring
organization described in section 17.
(m) Procurement Training.--
(1) In general.--Subject to the availability of funds
made available under paragraph (4), the Secretary shall
provide technical assistance and training to States,
State agencies, schools, and school food authorities in
the procurement of goods and services for programs
under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.) (other than section 17 of that Act
(42 U.S.C. 1786)).
(2) Buy american training.--Activities carried out
under paragraph (1) shall include technical assistance
and training to ensure compliance with subsection (n).
(3) Procuring safe foods.--Activities carried out
under paragraph (1) shall include technical assistance
and training on procuring safe foods, including the use
of model specifications for procuring safe foods.
(4) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $1,000,000 for each of fiscal years 2010
through [2015] 2021, to remain available until
expended.
(n) Buy American.--
(1) Definition of domestic commodity or product.--In
this subsection, the term ``domestic commodity or
product'' means--
(A) an agricultural commodity that is
produced in the United States; and
(B) a food product that is processed in the
United States substantially using agricultural
commodities that are produced in the United
States.
(2) Requirement.--
(A) In general.--Subject to subparagraph (B),
the Secretary shall require that a school food
authority purchase, to the maximum extent
practicable, domestic commodities or products.
(B) Limitations.--Subparagraph (A) shall
apply
only to--
(i) a school food authority located
in the
contiguous United States; and
(ii) a purchase of a domestic
commodity or product for 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).
(3) Applicability to hawaii.--Paragraph (2)(A) shall
apply to a school food authority in Hawaii with respect
to domestic commodities or products that are produced
in Hawaii in sufficient quantities to meet the needs of
meals provided 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).
(4) Applicability to puerto rico.--Paragraph (2)(A)
shall apply to a school food authority in the
Commonwealth of Puerto Rico with respect to domestic
commodities or products that are produced in the
Commonwealth of Puerto Rico in sufficient quantities to
meet the needs of meals provided 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).
(o) Procurement Contracts.--In acquiring a good or service
for programs under this Act or the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.) (other than section 17 of that Act (42
U.S.C. 1786)), a State, State agency, school, or school food
authority may enter into a contract with a person that has
provided specification information to the State, State agency,
school, or school food authority for use in developing contract
specifications for acquiring such good or service.
[(p) Price for a Paid Lunch.--
[(1) Definition of paid lunch.--In this subsection,
the term ``paid lunch'' means a reimbursable lunch
served to students who are not certified to receive
free or reduced price meals.
[(2) Requirement.--
[(A) In general.--For each school year
beginning July 1, 2011, each school food
authority shall establish a price for paid
lunches in accordance with this subsection.
[(B) Lower price.--
[(i) In general.--In the case of a
school food authority that established
a price for a paid lunch in the
previous school year that was less than
the difference between the total
Federal reimbursement for a free lunch
and the total Federal reimbursement for
a paid lunch, the school food authority
shall establish an average price for a
paid lunch that is not less than the
price charged in the previous school
year, as adjusted by a percentage equal
to the sum obtained by adding--
[(I) 2 percent; and
[(II) the percentage change
in the Consumer Price Index for
All Urban Consumers (food away
from home index) used to
increase the Federal
reimbursement rate under
section 11 for the most recent
school year for which data are
available, as published in the
Federal Register.
[(ii) Rounding.--A school food
authority may round the adjusted price
for a paid lunch under clause (i) down
to the nearest 5 cents.
[(iii) Maximum required price
increase.--
[(I) In general.--The maximum
annual average price increase
required to meet the
requirements of this
subparagraph shall not exceed
10 cents for any school food
authority.
[(II) Discretionary
increase.--A school food
authority may increase the
average price for a paid lunch
for a school year by more than
10 cents.
[(C) Equal or greater price.--
[(i) In general.--In the case of a
school food authority that established
an average price for a paid lunch in
the previous school year that was equal
to or greater than the difference
between the total Federal reimbursement
for a free lunch and the total Federal
reimbursement for a paid lunch, the
school food authority shall establish
an average price for a paid lunch that
is not less than the difference between
the total Federal reimbursement for a
free lunch and the total Federal
reimbursement for a paid lunch.
[(ii) Rounding.--A school food
authority may round the adjusted price
for a paid lunch under clause (i) down
to the nearest 5 cents.
[(3) Exceptions.--
[(A) Reduction in price.--A school food
authority may reduce the average price of a
paid lunch established under this subsection if
the State agency ensures that funding from non-
Federal sources (other than in-kind
contributions) is added to the nonprofit school
food service account of the school food
authority in an amount estimated to be equal to
at least the difference between--
[(i) the average price required of
the school food authority for the paid
lunches under paragraph (2); and
[(ii) the average price charged by
the school food authority for the paid
lunches.
[(B) Non-federal sources.--For the purposes
of subparagraph (A), non-Federal sources does
not include revenue from the sale of foods sold
in competition with meals served under the
school lunch program authorized under this Act
or the school breakfast program established by
section 4 of the Child Nutrition Act of 1966
(42 U.S.C. 1773).
[(C) Other programs.--This subsection shall
not apply to lunches provided under section 17
of this Act.
[(4) Regulations.--The Secretary shall establish
procedures to carry out this subsection, including
collecting and publishing the prices that school food
authorities charge for paid meals on an annual basis
and procedures that allow school food authorities to
average the pricing of paid lunches at schools
throughout the jurisdiction of the school food
authority.]
[(q)] (p) Nonprogram Food Sales.--
(1) Definition of nonprogram food.--In this
subsection:
(A) In general.--The term ``nonprogram food''
means food that is--
(i) sold in a participating school
other than a reimbursable meal provided
under this Act or the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.);
and
(ii) purchased using funds from the
nonprofit school food service account
of the school food authority of the
school.
(B) Inclusion.--The term ``nonprogram food''
includes food that is sold in competition with
a program established under this Act or the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.).
(2) Revenues.--
(A) In general.--The proportion of total
school food service revenue provided by the
sale of nonprogram foods to the total revenue
of the school food service account shall be
equal to or greater than the proportion of
total food costs associated with obtaining
nonprogram foods to the total costs associated
with obtaining program and nonprogram foods
from the account.
(B) Accrual.--All revenue from the sale of
nonprogram foods shall accrue to the nonprofit
school food service account of a participating
school food authority.
(C) Effective date.--This subsection shall be
effective beginning on July 1, 2011.
[(r)] (q) Disqualified Schools, Institutions, and
Individuals.--Any school, institution, service institution,
facility, or individual that has been terminated from any
program authorized under this Act or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.) and is on a list of disqualified
institutions and individuals under section 13 or section
17(d)(5)(E) of this Act may not be approved to participate in
or administer any program authorized under this Act or the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
SEC. 13. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
(a) In General.--
(1) Definitions.--In this section:
(A) Area in which poor economic conditions
exist.--
(i) In general.--Subject to clause
(ii), the term ``area in which poor
economic conditions exist'', as the
term relates to an area in which a
program food service site is located,
means--
(I) the attendance area of a
school in which at least 50
percent of the enrolled
children have been determined
eligible for free or reduced
price school meals under this
Act and the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et
seq.);
(II) a geographic area, as
defined by the Secretary based
on the most recent census data
available, in which at least 50
percent of the children
residing in that area are
eligible for free or reduced
price school meals under this
Act and the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et
seq.);
(III) an area--
(aa) for which the
program food service
site documents the
eligibility of enrolled
children through the
collection of income
eligibility statements
from the families of
enrolled children or
other means; and
(bb) at least 50
percent of the children
enrolled at the program
food service site meet
the income standards
for free or reduced
price school meals
under this Act and the
Child Nutrition Act of
1966 (42 U.S.C. 1771 et
seq.);
(IV) a geographic area, as
defined by the Secretary based
on information provided from a
department of welfare or zoning
commission, in which at least
50 percent of the children
residing in that area are
eligible for free or reduced
price school meals under this
Act and the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et
seq.); or
(V) an area for which the
program food service site
demonstrates through other
means approved by the Secretary
that at least 50 percent of the
children enrolled at the
program food service site are
eligible for free or reduced
price school meals under this
Act and the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et
seq.).
(ii) Duration of determination.--A
determination that an area is an ``area
in which poor economic conditions
exist'' under clause (i) shall be in
effect for--
(I) in the case of an area
described in clause (i)(I), 5
years;
(II) in the case of an area
described in clause (i)(II),
until more recent census data
are available;
(III) in the case of an area
described in clause (i)(III), 1
year; and
(IV) in the case of an area
described in subclause (IV) or
(V) of clause (i), a period of
time to be determined by the
Secretary, but not less than 1
year.
(B) Children.--The term ``children'' means--
(i) individuals who are 18 years of
age and under; and
(ii) individuals who are older than
18 years of age who are--
(I) determined by a [State
educational agency] State
agency or a local public
educational agency of a State,
in accordance with regulations
promulgated by the Secretary,
to have a disability, and
(II) participating in a
public or nonprofit private
school program established for
individuals who have a
disability.
(C) Program.--The term ``program'' means the
summer food service program for children
authorized by this section.
(D) Service institution.--The term ``service
institution'' means a public or private
nonprofit school food authority, local,
municipal, or county government, public or
private nonprofit higher education institution
participating in the National Youth Sports
Program, or residential public or private
nonprofit summer camp, that develops special
summer or school vacation programs providing
food service similar to food service made
available to children during the school year
under the school lunch program under this Act
or the school breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
(E) State.--The term ``State'' means--
(i) each of the several States of the
United States;
(ii) the District of Columbia;
(iii) the Commonwealth of Puerto
Rico;
(iv) Guam;
(v) American Samoa;
(vi) the Commonwealth of the Northern
Mariana Islands; and
(vii) the United States Virgin
Islands.
(2) Program authorization.--
(A) In general.--The Secretary may carry out
a program to assist States, through grants-in-
aid and other means, to initiate and maintain
nonprofit summer food service programs for
children in service institutions.
(B) Preparation of food.--
(i) In general.--To the maximum
extent feasible, consistent with the
purposes of this section, any food
service under the program shall use
meals prepared at the facilities of the
service institution or at the food
service facilities of public and
nonprofit private schools.
(ii) Information and technical
assistance.--The Secretary shall assist
States in the development of
information and technical assistance to
encourage increased service of meals
prepared at the facilities of service
institutions and at public and
nonprofit private schools.
(3) Eligible service institutions.--Eligible service
institutions entitled to participate in the program
shall be limited to those that--
(A) demonstrate adequate administrative and
financial responsibility to manage an effective
food service;
(B) have not been seriously deficient in
operating under the program;
(C)(i) conduct a regularly scheduled food
service for children from areas in which poor
economic conditions exist; or
(ii) qualify as camps; and
(D) provide an ongoing year-round service to
the community to be served under the program
(except that an otherwise eligible service
institution shall not be disqualified for
failure to meet this requirement for ongoing
year-round service if the State determines that
its disqualification would result in an area in
which poor economic conditions exist not being
served or in a significant number of needy
children not having reasonable access to a
summer food service program).
(4) Priority.--
(A) In general.--The following order of
priority shall be used by the State in
determining participation where more than one
eligible service institution proposes to serve
the same area:
(i) Local schools.
(ii) All other service institutions
and private nonprofit organizations
eligible under paragraph (7) that have
demonstrated successful program
performance in a prior year.
(iii) New public institutions.
(iv) New private nonprofit
organizations eligible under paragraph
(7).
(B) Rural areas.--The Secretary and the
States, in carrying out their respective
functions under this section, shall actively
seek eligible service institutions located in
rural areas, for the purpose of assisting such
service institutions in applying to participate
in the program.
(C) Educational and enrichment activities.--
In determining participation under subparagraph
(A), the State shall prioritize applications
that include an educational or enrichment
activity, or demonstrate a partnership with an
entity providing such activity.
(5) Camps.--Camps that satisfy all other eligibility
requirements of this section shall receive
reimbursement only for meals served to children who
meet the eligibility requirements for free or reduced
price meals, as determined under this Act and the Child
Nutrition Act of 1966.
(6) Government institutions.--Service institutions
that are local, municipal, or county governments shall
be eligible for reimbursement for meals served in
programs under this section only if such programs are
operated directly by such governments.
(7) Private nonprofit organizations.--
(A) Definition of private nonprofit
organization.--In this paragraph, the term
``private nonprofit organization'' means an
organization that--
(i) exercises full control and
authority over the operation of the
program at all sites under the
sponsorship of the organization;
(ii) provides ongoing year-round
activities for children or families;
(iii) demonstrates that the
organization has adequate management
and the fiscal capacity to operate a
program under this section;
(iv) is an organization described in
section 501(c) of the Internal Revenue
Code of 1986 and exempt from taxation
under 501(a) of that Code; and
(v) meets applicable State and local
health, safety, and sanitation
standards.
(B) Eligibility.--Private nonprofit
organizations (other than organizations
eligible under paragraph (1)) shall be eligible
for the program under the same terms and
conditions as other service institutions.
[(8) Seamless summer option.--Except as otherwise
determined by the Secretary, a service institution that
is a public or private nonprofit school food authority
may provide summer or school vacation food service in
accordance with applicable provisions of law governing
the school lunch program established under this Act or
the school breakfast program established under the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
[(9) Exemption.--
[(A) In general.--For each of calendar years
2005 and 2006 in rural areas of the State of
Pennsylvania (as determined by the Secretary),
the threshold for determining ``areas in which
poor economic conditions exist'' under
paragraph (1)(C) shall be 40 percent.
[(B) Evaluation.--
[(i) In general.--The Secretary,
acting through the Administrator of the
Food and Nutrition Service, shall
evaluate the impact of the eligibility
criteria described in subparagraph (A)
as compared to the eligibility criteria
described in paragraph (1)(C).
[(ii) Impact.--The evaluation shall
assess the impact of the threshold in
subparagraph (A) on--
[(I) the number of sponsors
offering meals through the
summer food service program;
[(II) the number of sites
offering meals through the
summer food service program;
[(III) the geographic
location of the sites;
[(IV) services provided to
eligible children; and
[(V) other factors determined
by the Secretary.
[(iii) Report.--Not later than
January 1, 2008, the Secretary shall
submit to the Committee on Education
and the Workforce of the House of
Representatives and the Committee on
Agriculture, Nutrition, and Forestry of
the Senate a report describing the
results of the evaluation under this
subparagraph.
[(iv) Funding.--
[(I) In general.--On January
1, 2005, 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 subparagraph
$400,000, to remain available
until expended.
[(II) Receipt and
acceptance.--The Secretary
shall be entitled to receive,
shall accept, and shall use to
carry out this subparagraph the
funds transferred under
subclause (I), without further
appropriation.
[(10) Summer food service rural transportation.--
[(A) In general.--The Secretary shall provide
grants, through not more than 5 eligible State
agencies selected by the Secretary, to not more
than 60 eligible service institutions selected
by the Secretary to increase participation at
congregate feeding sites in the summer food
service program for children authorized by this
section through innovative approaches to
limited transportation in rural areas.
[(B) Eligibility.--To be eligible to receive
a grant under this paragraph--
[(i) a State agency shall submit an
application to the Secretary, in such
manner as the Secretary shall
establish, and meet criteria
established by the Secretary; and
[(ii) a service institution shall
agree to the terms and conditions of
the grant, as established by the
Secretary.
[(C) Duration.--A service institution that
receives a grant under this paragraph may use
the grant funds during the 3-fiscal year period
beginning in fiscal year 2006.
[(D) Reports.--The Secretary shall submit to
the Committee on Education and the Workforce of
the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the
Senate--
[(i) not later than January 1, 2008,
an interim report that describes--
[(I) the use of funds made
available under this paragraph;
and
[(II) any progress made by
using funds from each grant
provided under this paragraph;
and
[(ii) not later than January 1, 2009,
a final report that describes--
[(I) the use of funds made
available under this paragraph;
[(II) any progress made by
using funds from each grant
provided under this paragraph;
[(III) the impact of this
paragraph on participation in
the summer food service program
for children authorized by this
section; and
[(IV) any recommendations by
the Secretary concerning the
activities of the service
institutions receiving grants
under this paragraph.
[(E) Funding.--
[(i) 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 paragraph--
[(I) on October 1, 2005,
$2,000,000; and
[(II) on October 1, 2006, and
October 1, 2007, $1,000,000.
[(ii) Receipt and acceptance.--The
Secretary shall be entitled to receive,
shall accept, and shall use to carry
out this paragraph the funds
transferred under clause (i), without
further appropriation.
[(iii) Availability of funds.--Funds
transferred under clause (i) shall
remain available until expended.
[(iv) Reallocation.--The Secretary
may reallocate any amounts made
available to carry out this paragraph
that are not obligated or expended, as
determined by the Secretary.]
(8) Streamlining.--
(A) Seamless summer.--Except as otherwise
determined by the Secretary, a service
institution that is a public or private
nonprofit school food authority may provide
summer or school vacation food service in
accordance with applicable provisions of law
governing the school lunch program established
under this Act or the school breakfast program
established under the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.).
(B) Summer and cacfp at-risk streamlining.--
(i) In general.--Notwithstanding
subsections (b)(2) and (c)(1), in order
for States and service institutions to
operate more effectively through the
year, a State may elect to streamline
and simplify program operations and
requirements by reducing paperwork and
other administrative burdens, and
consolidating training, monitoring, and
other requirements, while retaining
appropriate measures of program
integrity. Such State election may
include the utilization of technical
assistance provided to the State under
clause (iv) and shall apply to service
institutions that--
(I) are described in
paragraphs (6) or (7);
(II) provide care to at-risk
school children (as defined in
section 17(r)(2)), and may be
eligible child care centers or
homes (as defined under section
17(a)(2)); and
(III) are not public schools.
(ii) Streamlined reimbursement.--
States that demonstrate streamlined and
simplified program operations under
clause (i) for service institutions,
and that are selected by the Secretary
under clause (v), shall streamline
reimbursements for such service
institutions by providing
reimbursements for--
(I) lunch and either
breakfast or a supplement
served to at-risk school
children--
(aa) during each day
of operation during the
months of May through
September; and
(bb) in the case of a
service institution
that provides meal
service to such
children who are not in
school for a period
during the school year
due to a natural
disaster, building
repair, court order, or
similar cause, at any
time during such period
in that school year;
and
(II) up to 1 meal and 1
supplement served to at-risk
school children during each day
of operation outside of school
hours during the regular or
continuous school calendar,
including after school,
weekends, and school holidays.
(iii) Rate of reimbursement.--The
State shall reimburse service
institutions seeking reimbursement
under this subparagraph at a rate that
is consistent with section 17(r)(4)(B).
(iv) Technical assistance.--
(I) In general.--Not later
than December 31, 2016, the
Secretary shall develop
guidance and provide technical
assistance for States and
service institutions to assist
in the implementation of this
subparagraph, including by
identifying areas of
programmatic overlap in the
program under this section and
the child and adult care food
program under section 17 in
order for States to simplify
the administration and
oversight of each such program.
(II) Guidance.--Such guidance
shall include information on
possible ways States may ensure
participation under this
subparagraph will lead to
reduced paperwork and other
administrative burdens,
including recommendations for
streamlined program
applications, reporting
requirements, inspections, and
other areas of potential
duplication, while retaining
appropriate measures of program
integrity.
(III) Other states.--
Information provided under this
clause shall be provided in
such a manner that any State
may identify areas of
programmatic overlap, and
reduce paperwork and other
burdens, even if such State has
not yet been selected to
provide reimbursements to
service institutions in
accordance with this
subparagraph.
(v) Successful implementation.--
(I) In general.--A State
seeking to provide
reimbursements in accordance
this subparagraph shall
demonstrate to the Secretary
the ways in which the State has
used the election under clause
(i) to reduce paperwork and
other administrative burdens
while retaining appropriate
measures of program integrity,
which may include the
utilization of technical
assistance provided to the
State under clause (iv).
(II) Initial selection of
states.--
(aa) In general.--The
Secretary shall select
not more than 5 States
to provide
reimbursements in
accordance with this
subparagraph, beginning
in May 2017, if such
States have the
capacity to effectively
implement this
subparagraph, as
demonstrated by
streamlining and
simplifying program
operations in
accordance with
subclause (I).
(bb) Update.--When
appropriate, but not
later than May 31,
2018, and consistent
with subclause (V)(bb),
the Secretary shall
update the information
under clause (iv).
(III) Next selection of
states.--
(aa) In general.--If
the Secretary
determines that
additional States have
the capacity described
in subclause (I) and
additional best
practices could be
provided by further
implementation of this
subparagraph, the
Secretary may select
not more than 5 such
States to provide
reimbursements in
accordance with this
subparagraph beginning
in October 2018.
(bb) Update.--Not
later than September
30, 2019, and
consistent with
subclause (V)(bb), the
Secretary shall update
the information under
clause (iv) to reflect
the further
implementation of this
subparagraph.
(IV) Additional selection of
states.--The Secretary may
select additional States to
provide reimbursements in
accordance with this
subparagraph beginning in May
2020, and each year thereafter,
if such States have the
capacity described in subclause
(I).
(V) Best practices.--
(aa) In general.--As
a condition of being
selected under this
clause, a State shall
provide, in such time
and in such manner as
the Secretary may
reasonably require,
information to the
Secretary regarding
best practices of
successful
implementation of this
subparagraph.
(bb) Update.--The
Secretary shall
continue to
periodically update the
information under
clause (iv) to include
the best practices
provided under item
(aa) for continued
successful
implementation of this
subparagraph.
[(11)] (9) Outreach to eligible families.--
(A) In general.--The Secretary shall require
each State agency that administers the national
school lunch program under this Act to ensure
that, to the maximum extent practicable, school
food authorities participating in the school
lunch program under this Act cooperate with
participating service institutions to
distribute materials to inform families of--
(i) the availability and location of
summer food service program meals; and
(ii) the availability of reimbursable
breakfasts served under the school
breakfast program established by
section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773).
(B) Inclusions.--Informational activities
carried out under subparagraph (A) may
include--
(i) the development or dissemination
of printed materials, to be distributed
to all school children or the families
of school children prior to the end of
the school year, that inform families
of the availability and location of
summer food service program meals;
(ii) the development or dissemination
of materials, to be distributed using
electronic means to all school children
or the families of school children
prior to the end of the school year,
that inform families of the
availability and location of summer
food service program meals; and
(iii) such other activities as are
approved by the applicable State agency
to promote the availability and
location of summer food service program
meals to school children and the
families of school children.
(C) Multiple state agencies.--If the State
agency administering the program under this
section is not the same State agency that
administers the school lunch program under this
Act, the 2 State agencies shall work
cooperatively to implement this paragraph.
[(12) Summer food service support grants.--
[(A) In general.--The Secretary shall use
funds made available to carry out this
paragraph to award grants on a competitive
basis to State agencies to provide to eligible
service institutions--
[(i) technical assistance;
[(ii) assistance with site
improvement costs; or
[(iii) other innovative activities
that improve and encourage sponsor
retention.
[(B) Eligibility.--To be eligible to receive
a grant under this paragraph, a State agency
shall submit an application to the Secretary in
such manner, at such time, and containing such
information as the Secretary may require.
[(C) Priority.--In making grants under this
paragraph, the Secretary shall give priority
to--
[(i) applications from States with
significant low-income child
populations; and
[(ii) State plans that demonstrate
innovative approaches to retain and
support summer food service programs
after the expiration of the start-up
funding grants.
[(D) Use of funds.--A State and eligible
service institution may use funds made
available under this paragraph to pay for such
costs as the Secretary determines are necessary
to establish and maintain summer food service
programs.
[(E) Reallocation.--The Secretary may
reallocate any amounts made available to carry
out this paragraph that are not obligated or
expended, as determined by the Secretary.
[(F) Authorization of appropriations.--There
is authorized to be appropriated to carry out
this paragraph $20,000,000 for fiscal years
2011 through 2015.]
(10) Temporary allowance for off-site consumption.--
(A) In general.--Beginning in May 2017, the
Secretary shall grant requests made by a State
to allow children who are participating in the
program but for whom an operation under
paragraph (12) is not available, to consume
meals away from a congregate feeding site when
the program is available to such children at
the site, but--
(i) the site is closed due to extreme
weather conditions;
(ii) violence or other public safety
concerns in the area temporarily
prevent children from traveling safely
to the site; or
(iii) other emergency circumstances,
as defined by the State, prevent access
to the site.
(B) Limitations.--In granting a request under
subparagraph (A), the Secretary shall ensure
that--
(i) allowances are issued by a State
only between the months of May through
September;
(ii) allowances are granted in the
most efficient and effective manner to
ensure programs and States can quickly
respond and adapt to the circumstances
described in clauses (i) through (iii)
of subparagraph (A); and
(iii) once an allowance is issued,
any meal in which a component is
offered but not served is not
reimbursed under subsection (b).
(C) State plan.--As part of the management
and administration plan described in subsection
(n), a State shall describe--
(i) the approval process, including
the timeline, the State would undertake
to issue an allowance;
(ii) standards for what circumstances
merit an allowance, how long an
allowance will last, and when an
allowance may be extended; and
(iii) how the program would operate
once an allowance is issued.
(11) Off-site consumption.--
(A) In general.--Beginning in May 2017, a
State may elect for service institutions to
carry out an off-site consumption operation in
the State to provide summer food service
program meals to children eligible to
participate in the program that such children
may consume away from a congregate feeding
site.
(B) Availability.--The operation described in
subparagraph (A) shall be available to a child
described in subparagraph (A) only if the child
lives in an area that is eligible to
participate in the summer food service program,
but that is not currently being served, and
such area--
(i) is rural, as defined by the
State; or
(ii) is not rural, and is an area in
which more than 80 percent of students
are certified as eligible for free or
reduced price meals.
(C) Administration.--
(i) In general.--The following shall
apply to an operation described in
subparagraph (A):
(I) The number of meals
served to each child in a
single meal service is limited
to 2 meals, and the number of
meals in a seven-day period
shall be limited to 10 meals.
(II) Any meal served shall
meet the same standards for
nutrition, safety, and quality
as a meal served at a
congregate feeding site.
(III) Any meal in which a
component is offered but not
served shall not be reimbursed
under subsection (b).
(IV) Each State shall give
priority to children who are
living where congregate feeding
sites are not accessible.
(V) Nothing in this section
shall be construed to allow
congregate feeding sites to
cease from operating in order
to be replaced by off-site
consumption operations under
this paragraph.
(VI) A State shall not--
(aa) operate an off-
site consumption
operation
simultaneously in the
same service area with
a congregate feeding
site;
(bb) use more than 10
percent of funds
received for
administrative expenses
to carry out this
paragraph; or
(cc) implement an
off-site consumption
operation in all
service areas in the
State.
(ii) State plan.--Each State choosing
to provide summer food service program
meals through an off-site consumption
operation under this paragraph shall
describe how the State plans to
implement the operation in the
management and administration plan in
subsection (n), which shall include
information on how the State will--
(I) document operation,
including implementation;
(II) determine the method for
selecting eligible areas and
eligible service institutions
to most effectively deliver
summer food service program
meals in the manner described
in this paragraph;
(III) design mechanisms by
which households with children
eligible to participate in the
program could indicate a need
for meal service through such
an operation;
(IV) develop an appropriate
maintenance of effort
requirement for service
institutions currently
operating congregate feeding
sites;
(V) develop requirements for
implementing safety and
security measures to ensure
that safety and security
through such an operation is
equivalent to such measures at
a congregate feeding site; and
(VI) periodically reevaluate
the potential for children to
be served at a congregate
feeding site.
(b) Service Institutions.--
(1) Payments.--
(A) In general.--Subject to subparagraph (B)
and in addition to amounts made available under
paragraph (3), payments to service institutions
shall be--
(i) $1.97 for each lunch and supper
served;
(ii) $1.13 for each breakfast served;
and
(iii) 46 cents for each meal
supplement served.
(B) Adjustments.--Amounts specified in
subparagraph (A) shall be adjusted on January
1, 1997, and each January 1 thereafter, to the
nearest lower cent increment to reflect changes
for the 12-month period ending the preceding
November 30 in the series for food away from
home of the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor
Statistics of the Department of Labor. Each
adjustment shall be based on the unrounded
adjustment for the prior 12-month period.
(C) Seamless summer reimbursements.--A
service institution described in subsection
(a)(8) shall be reimbursed for meals and meal
supplements in accordance with the applicable
provisions under this Act (other than
subparagraphs (A) and (B) of this paragraph and
paragraph (4)) and the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.), as determined by
the Secretary.
(2) Any service institution may only serve lunch and either
breakfast or a meal supplement during each day of operation,
except that any service institution that is a camp or that
serves meals primarily to migrant children may serve up to 3
meals, or 2 meals and 1 supplement, during each day of
operation, if (A) the service institution has the
administrative capability and the food preparation and food
holding capabilities (where applicable) to serve more than one
meal per day, and (B) the service period of different meals
does not coincide or overlap.
(3) Permanent operating agreements and budget for
administrative costs.--
(A) Permanent operating agreements.--
(i) In general.--Subject to clauses
(ii) and (iii), to participate in the
program, a service institution that
meets the conditions of eligibility
described in this section and in
regulations promulgated by the
Secretary, shall be required to enter
into a permanent agreement with the
applicable State agency.
(ii) Amendments.--A permanent
agreement described in clause (i) may
be amended as necessary to ensure that
the service institution is in
compliance with all requirements
established in this section or by the
Secretary.
(iii) Termination.--A permanent
agreement described in clause (i)--
(I) may be terminated for
convenience by the service
institution and State agency
that is a party to the
permanent agreement; and
(II) shall be terminated--
(aa) for cause by the
applicable State agency
in accordance with
subsection (q) and with
regulations promulgated
by the Secretary; or
(bb) on termination
of participation of the
service institution in
the program.
(B) Budget for administrative costs.--
(i) In general.--When applying for
participation in the program, and not
less frequently than annually
thereafter, each service institution
shall submit a complete budget for
administrative costs related to the
program, which shall be subject to
approval by the State.
(ii) Amount.--Payment to service
institutions for administrative costs
shall equal the levels determined by
the Secretary pursuant to the study
required in paragraph (4).
(4)(A) The Secretary shall conduct a study of the food
service operations carried out under the program. Such study
shall include, but shall not be limited to--
(i) an evaluation of meal quality as related to
costs; and
(ii) a determination whether adjustments in the
maximum reimbursement levels for food service operation
costs prescribed in paragraph (1) of this subsection
should be made, including whether different
reimbursement levels should be established for self-
prepared meals and vendored meals and which site-
related costs, if any, should be considered as part of
administrative costs.
(B) The Secretary shall also study the administrative costs
of service institutions participating in the program and shall
thereafter prescribe maximum allowable levels for
administrative payments that reflect the costs of such service
institutions, taking into account the number of sites and
children served, and such other factors as the Secretary
determines appropriate to further the goals of efficient and
effective administration of the program.
(C) The Secretary shall report the results of such studies to
Congress not later than December 1, 1977.
(c)(1) Payments shall be made to service institutions only
for meals served during the months of May through September,
except in the case of service institutions that operate food
service programs for children on school vacation at any time
under a continuous school calendar or that provide meal service
at non-school sites to children who are not in school for a
period during the months of October through April due to a
natural disaster, building repair, court order, or similar
cause.
(2) Children participating in National Youth Sports Programs
operated by higher education institutions shall be eligible to
participate in the program under this paragraph on showing
residence in areas in which poor economic conditions exist or
on the basis of income eligibility statements for children
enrolled in the program.
(d) Not later than April 15, May 15, and July 1 of each year,
the Secretary shall forward to each State a letter of credit
(advance program payment) that shall be available to each State
for the payment of meals to be served in the month for which
the letter of credit is issued. The amount of the advance
program payment shall be an amount which the State
demonstrates, to the satisfaction of the Secretary, to be
necessary for advance program payments to service institutions
in accordance with subsection (e) of this section. The
Secretary shall also forward such advance program payments, by
the first day of the month prior to the month in which the
program will be conducted, to States that operate the program
in months other than May through September. The Secretary shall
forward any remaining payments due pursuant to subsection (b)
of this section not later than sixty days following receipt of
valid claims therefor.
(e)(1) Not later than June 1, July 15, and August 15 of each
year, or, in the case of service institutions that operate
under a continuous school calendar, the first day of each month
of operation, the State shall forward advance program payments
to each service institution. The State shall not release the
second month's advance program payment to any service
institution (excluding a school) that has not certified that it
has held training sessions for its own personnel and the site
personnel with regard to program duties and responsibilities.
No advance program payment may be made for any month in which
the service institution will operate under the program for less
than ten days.
(2) The amount of the advance program payment for any month
in the case of any service institution shall be an amount equal
to (A) the total program payment for meals served by such
service institution in the same calendar month of the preceding
calendar year, (B) 50 percent of the amount established by the
State to be needed by such service institution for meals if
such service institution contracts with a food service
management company, or (C) 65 percent of the amount established
by the State to be needed by such service institution for meals
if such service institution prepares its own meals, whichever
amount is greatest: Provided, That the advance program payment
may not exceed the total amount estimated by the State to be
needed by such service institution for meals to be served in
the month for which such advance program payment is made or
$40,000, whichever is less, except that a State may make a
larger advance program payment to such service institution
where the State determines that such larger payment is
necessary for the operation of the program by such service
institution and sufficient administrative and management
capability to justify a larger payment is demonstrated. The
State shall forward any remaining payment due a service
institution not later than seventy-five days following receipt
of valid claims. If the State has reason to believe that a
service institution will not be able to submit a valid claim
for reimbursement covering the period for which an advance
program payment has been made, the subsequent month's advance
program payment shall be withheld until such time as the State
has received a valid claim. Program payments advanced to
service institutions that are not subsequently deducted from a
valid claim for reimbursement shall be repaid upon demand by
the State. Any prior payment that is under dispute may be
subtracted from an advance program payment.
(f)(1) Service institutions receiving funds under this
section shall serve meals consisting of a combination of foods
and meeting minimum nutritional standards prescribed by the
Secretary on the basis of tested nutritional research.
(2) The Secretary shall provide technical assistance to
service institutions and private nonprofit organizations
participating in the program to assist the institutions and
organizations in complying with the nutritional requirements
prescribed by the Secretary pursuant to this subsection.
(3) Meals described in paragraph (1) shall be served without
cost to children attending service institutions approved for
operation under this section, except that, in the case of
camps, charges may be made for meals served to children other
than those who meet the eligibility requirements for free or
reduced price meals in accordance with subsection (a)(5) of
this section.
(4) To assure meal quality, States shall, with the assistance
of the Secretary, prescribe model meal specifications and model
food quality standards, and ensure that all service
institutions contracting for the preparation of meals with food
service management companies include in their contracts menu
cycles, local food safety standards, and food quality standards
approved by the State.
(5) Such contracts shall require (A) periodic inspections, by
an independent agency or the local health department for the
locality in which the meals are served, of meals prepared in
accordance with the contract in order to determine bacteria
levels present in such meals, and (B) conformance with
standards set by local health authorities.
(6) Such inspections and any testing resulting therefrom
shall be in accordance with the practices employed by such
local health authority.
(7) Offer versus serve.--A school food authority
participating as a service institution may permit a
child to refuse one or more items of a meal that the
child does not intend to consume, under rules that the
school uses for school meals programs. A refusal of an
offered food item shall not affect the amount of
payments made under this section to a school for the
meal.
(g) The Secretary shall publish proposed regulations relating
to the implementation of the program by November 1 of each
fiscal year, final regulations by January 1 of each fiscal
year, and guidelines, applications and handbooks by February 1
of each fiscal year. In order to improve program planning, the
Secretary may provide that service institutions be paid as
startup costs not to exceed 20 percent of the administrative
funds provided for in the administrative budget approved by the
State under subsection (b)(3) of this section. Any payments
made for startup costs shall be subtracted from amounts
otherwise payable for administrative costs subsequently made to
service institutions under subsection (b)(3) of this section.
(h) Each service institution shall, insofar as practicable,
use in its food service under the program foods designated from
time to time by the Secretary as being in abundance. The
Secretary is authorized to donate to States, for distribution
to service institutions, food available under section 416 of
the Agricultural Act of 1949, or purchased under section 32 of
the Act of August 24, 1935 or section 709 of the Food and
Agriculture Act of 1965. Donated foods may be distributed only
to service institutions that can use commodities efficiently
and effectively, as determined by the Secretary.
(j) Expenditures of funds from State and local sources for
the maintenance of food programs for children shall not be
diminished as a result of funds received under this section.
(k)(1) The Secretary shall pay to each State for its
administrative costs incurred under this section in any fiscal
year an amount equal to (A) 20 percent of the first $50,000 in
funds distributed to that State for the program in the
preceding fiscal year; (B) 10 percent of the next $100,000
distributed to that State for the program in the preceding
fiscal year; (C) 5 percent of the next $250,000 in funds
distributed to that State for the program in the preceding
fiscal year, and (D) 2\1/2\ percent of any remaining funds
distributed to that State for the program in the preceding
fiscal year: Provided, That such amounts may be adjusted by the
Secretary to reflect changes in the size of that State's
program since the preceding fiscal year.
(2) The Secretary shall establish standards and effective
dates for the proper, efficient, and effective administration
of the program by the State. If the Secretary finds that the
State has failed without good cause to meet any of the
Secretary's standards or has failed without good cause to carry
out the approved State management and administration plan under
subsection (n) of this section, the Secretary may withhold from
the State such funds authorized under this subsection as the
Secretary determines to be appropriate.
[(3) To provide]
(3) Nutritional and food quality monitoring._
(A) In general._To provide for adequate nutritional
and food quality monitoring, and to further the
implementation of the program, an additional amount,
not to exceed the lesser of actual costs or 1 percent
of program funds, shall be made available by the
Secretary to States to pay for State or local health
department inspections, and to reinspect facilities and
deliveries to test meal quality.
(B) Insufficient funds.--
(i) In general.--If funds provided under
subparagraph (A) are insufficient to pay for
State or local health department inspections,
and to reinspect facilities and deliveries to
test meal quality, as required under this Act
or the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.), State agencies may elect to use
funds described in paragraph (1) for those
activities.
(ii) Limitation.--Funds described in clause
(i) shall not exceed the lesser of--
(I) actual costs; or
(II) 1 percent of program funds.
(l)(1) Service institutions may contract on a competitive
basis with food service management companies for the furnishing
of meals or management of the entire food service under the
program, except that a food service management company entering
into a contract with a service institution under this section
may not subcontract with a single company for the total meal,
with or without milk, or for the assembly of the meal. The
Secretary shall prescribe additional conditions and limitations
governing assignment of all or any part of a contract entered
into by a food service management company under this section.
Any food service management company shall, in its bid, provide
the service institution information as to its meal capacity.
(2) Each State may provide for the registration of food
service management companies.
(3) In accordance with regulations issued by the Secretary,
positive efforts shall be made by service institutions to use
small businesses and minority-owned businesses as sources of
supplies and services. Such efforts shall afford those sources
the maximum feasible opportunity to compete for contracts using
program funds.
(4) Each State, with the assistance of the Secretary, shall
establish a standard form of contract for use by service
institutions and food service management companies. The
Secretary shall prescribe requirements governing bid and
contract procedures for acquisition of the services of food
service management companies, including, but not limited to,
bonding requirements (which may provide exemptions applicable
to contracts of $100,000 or less), procedures for review of
contracts by States, and safeguards to prevent collusive
bidding activities between service institutions and food
service management companies.
(m) States and service institutions participating in programs
under this section shall keep such accounts and records as may
be necessary to enable the Secretary to determine whether there
has been compliance with this section and the regulations
issued hereunder. Such accounts and records shall be available
at any reasonable time for inspection and audit by
representatives of the Secretary and shall be preserved for
such period of time, not in excess of five years, as the
Secretary determines necessary.
[(n) Each State desiring to participate in the program shall
notify the Secretary by January 1 of each year of its intent to
administer the program and shall submit for approval by
February 15 a management and administration plan for the
program for the fiscal year, which shall include, but not be
limited to, (1) the State's administrative budget for the
fiscal year, and the State's plans to comply with any standards
prescribed by the Secretary under subsection (k) of this
section; (2) the State's plans for use of program funds and
funds from within the State to the maximum extent practicable
to reach needy children; (3) the State's plans for providing
technical assistance and training eligible service
institutions; (4) the State's plans for monitoring and
inspecting service institutions, feeding sites, and food
service management companies and for ensuring that such
companies do not enter into contracts for more meals than they
can provide effectively and efficiently; (5) the State's plan
for timely and effective action against program violators; and
(6) the State's plan for ensuring fiscal integrity by auditing
service institutions not subject to auditing requirements
prescribed by the Secretary.]
(n) State Plan.--Each State desiring to participate in the
program shall notify the Secretary by January 1 of each year of
its intent to administer the program and shall submit, by
February 15, a management and administration plan for the
program for the fiscal year, which shall include, at a
minimum--
(1) the State's administrative budget for the fiscal
year; and
(2) the State's plans for--
(A) use of program funds and additional State
or private funds to reach children with the
greatest need, to the maximum extent
practicable;
(B) strengthening the congregate feeding
model for program delivery, including a process
for identifying gaps in service and barriers to
access;
(C) administrative and fiscal plans for using
the allowance described in subsection (a)(10)
and, if applicable, the option described in
subsection (a)(11) to assist service
institutions in reaching children with the
greatest need;
(D) providing technical assistance and
training for eligible service institutions;
(E) monitoring and inspecting service
institutions, feeding sites, and food service
management companies and ensuring that such
companies do not enter into contracts for more
meals than they can provide effectively and
efficiently, and in compliance with the
program;
(F) timely and effective action against
program violators; and
(G) ensuring fiscal integrity by auditing
service institutions not subject to auditing
requirements prescribed by the Secretary.
(o)(1) Whoever, in connection with any application,
procurement, recordkeeping entry, claim for reimbursement, or
other document or statement made in connection with the
program, knowingly and willfully falsifies, conceals, or covers
up by any trick, scheme, or device a material fact, or makes
any false, fictitious, or fraudulent statements or
representations, or makes or uses any false writing or document
knowing the same to contain any false, fictitious, or
fraudulent statement or entry, or whoever, in connection with
the program, knowingly makes an opportunity for any person to
defraud the United States, or does or omits to do any act with
intent to enable any person to defraud the United States, shall
be fined not more than $10,000 or imprisoned not more than five
years, or both.
(2) Whoever being a partner, officer, director, or managing
agent connected in any capacity with any partnership,
association, corporation, business, or organization, either
public or private, that receives benefits under the program,
knowingly or willfully embezzles, misapplies, steals, or
obtains by fraud, false statement, or forgery, any benefits
provided by this section or any money, funds, assets, or
property derived from benefits provided by this section, shall
be fined not more than $10,000 or imprisoned for not more than
five years, or both (but, if the benefits, money, funds,
assets, or property involved is not over $200, then the penalty
shall be a fine or not more than $1,000 or imprisonment for not
more than one year, or both).
(3) If two or more persons conspire or collude to accomplish
any act made unlawful under this subsection, and one or more of
such persons to any act to effect the object of the conspiracy
or collusion, each shall be fined not more than $10,000 or
imprisoned for not more than five years, or both.
(p)(1) In addition to the normal monitoring of organizations
receiving assistance under this section, the Secretary shall
establish a system under which the Secretary and the States
shall monitor the compliance of private nonprofit organizations
with the requirements of this section and with regulations
issued to implement this section.
(2) In the fiscal year 1990 and each succeeding fiscal year,
the Secretary may reserve for purposes of carrying out
paragraph (1) not more than \1/2\ of 1 percent of amounts
appropriated for purposes of carrying out this section.
(q) Termination and Disqualification of Participating
Organizations.--
(1) In general.--Each State agency shall follow the
procedures established by the Secretary for the
termination of participation of institutions under the
program.
(2) Fair hearing.--The procedures described in
paragraph (1) shall include provision for a fair
hearing and prompt determination for any service
institution aggrieved by any action of the State agency
that affects--
(A) the participation of the service
institution in the program; or
(B) the claim of the service institution for
reimbursement under this section.
(3) List of disqualified institutions and
individuals.--
(A) In general.--The Secretary shall maintain
a list of service institutions and individuals
that have been terminated or otherwise
disqualified from participation in the program
under the procedures established pursuant to
paragraph (1).
(B) Availability.--The Secretary shall make
the list available to States for use in
approving or renewing applications by service
institutions for participation in the program.
(r) For the period beginning October 1, 1977, and ending
September 30, [2015] 2021, there are hereby authorized to be
appropriated such sums as are necessary to carry out the
purposes of this section.
COMMODITY DISTRIBUTION PROGRAM
Sec. 14. (a) Notwithstanding any other provision of law, the
Secretary shall--
(1) use funds available to carry out the provisions
of section 32 of the Act of August 24, 1935 (7 U.S.C.
612c) which are not expended or needed to carry out
such provisions, to purchase (without regard to the
provisions of existing law governing the expenditure of
public funds) agricultural commodities and their
products of the types customarily purchased under such
section (which may include domestic seafood commodities
and their products), for donation to maintain the
annually programmed level of assistance for programs
carried on under this Act, the Child Nutrition Act of
1966, and title III of the Older Americans Act of 1965;
and
(2) if stocks of the Commodity Credit Corporation are
not available, use the funds of such Corporation to
purchase agricultural commodities and their products of
the types customarily available under section 416 of
the Agricultural Act of 1949 (7 U.S.C. 1431), for such
donation.
(b)(1) The Secretary shall maintain and continue to improve
the overall nutritional quality of entitlement commodities
provided to schools to assist the schools in improving the
nutritional content of meals.
(2) The Secretary shall--
(A) require that nutritional content information
labels be placed on packages or shipments of
entitlement commodities provided to the schools; or
(B) otherwise provide nutritional content information
regarding the commodities provided to the schools.
(c) The Secretary may use funds appropriated from the general
fund of the Treasury to purchase agricultural commodities and
their products of the types customarily purchased for donation
under [section 311(a)(4) of the Older Americans Act of 1965 (42
U.S.C. 3030(a)(4))] section 311(c)(4) of the Older Americans
Act of 1965 (42 U.S.C. 3030a(c)(4)) or for cash payments in
lieu of such donations under section 311(b)(1) of such Act [(42
U.S.C. 3030(b)(1))] (42 U.S.C. 3030a(b)(1)). There are hereby
authorized to be appropriated such sums as are necessary to
carry out the purposes of this subsection.
(d) In providing assistance under this Act and the Child
Nutrition Act of 1966 for school lunch and breakfast programs,
the Secretary shall establish procedures which will--
(1) ensure that the views of local school districts
and private nonprofit schools with respect to the type
of commodity assistance needed in schools are fully and
accurately reflected in reports to the Secretary by the
State with respect to State commodity preferences and
that such views are considered by the Secretary in the
purchase and distribution of commodities and by the
States in the allocation of such commodities among
schools within the States;
(2) solicit the views of States with respect to the
acceptability of commodities;
(3) ensure that the timing of commodity deliveries to
States is consistent with State school year calendars
and that such deliveries occur with sufficient advance
notice;
(4) provide for systematic review of the costs and
benefits of providing commodities of the kind and
quantity that are suitable to the needs of local school
districts and private nonprofit schools; and
(5) make available technical assistance on the use of
commodities available under this Act and the Child
Nutrition Act of 1966.
(e) Each State agency that receives food assistance payments
under this section for any school year shall consult with
representatives of schools in the State that participate in the
school lunch program with respect to the needs of such schools
relating to the manner of selection and distribution of
commodity assistance for such program.
(f) Commodity only schools shall be eligible to receive
donated commodities equal in value to the sum of the national
average value of donated foods established under section 6(c)
of this Act and the national average payment established under
section 4 of this Act. Such schools shall be eligible to
receive up to 5 cents per meal of such value in cash for
processing and handling expenses related to the use of such
commodities. Lunches served in such schools shall consist of a
combination of foods which meet the minimum nutritional
requirements prescribed by the Secretary under [section 9(a) of
this Act] section 9(f), and shall [represent the four basic
food groups, including] include a serving of fluid milk.
(g)(1) As used in this subsection, the term ``eligible school
district'' has the same meaning given such term in section
1581(a) of the Food Security Act of 1985.
(2) In accordance with the terms and conditions of section
1581 of such Act, the Secretary shall permit an eligible school
district to continue to receive assistance in the form of cash
or commodity letters of credit assistance, in lieu of
commodities, to carry out the school lunch program operated in
the district.
[(h) Notice of Irradiated Food Products.--
[(1) In general.--The Secretary shall develop a
policy and establish procedures for the purchase and
distribution of irradiated food products in school
meals programs under this Act and the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.).
[(2) Minimum requirements.--The policy and procedures
shall ensure, at a minimum, that--
[(A) irradiated food products are made
available only at the request of States and
school food authorities;
[(B) reimbursements to schools for irradiated
food products are equal to reimbursements to
schools for food products that are not
irradiated;
[(C) States and school food authorities are
provided factual information on the science and
evidence regarding irradiation technology,
including--
[(i) notice that irradiation is not a
substitute for safe food handling
techniques; and
[(ii) any other similar information
determined by the Secretary to be
necessary to promote food safety in
school meals programs;
[(D) States and school food authorities are
provided model procedures for providing to
school food authorities, parents, and
students--
[(i) factual information on the
science and evidence regarding
irradiation technology; and
[(ii) any other similar information
determined by the Secretary to be
necessary to promote food safety in
school meals;
[(E) irradiated food products distributed to
the Federal school meals program under this Act
and the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) are labeled with a symbol or
other printed notice that--
[(i) indicates that the product was
irradiated; and
[(ii) is prominently displayed in a
clear and understandable format on the
container;
[(F) irradiated food products are not
commingled in containers with food products
that are not irradiated; and
[(G) schools that offer irradiated food
products are encouraged to offer alternatives
to irradiated food products as part of the meal
plan used by the schools.]
* * * * * * *
ELECTION TO RECEIVE CASH PAYMENTS
Sec. 16. (a) Notwithstanding any other provision of law,
where a State phased out its commodity distribution facilities
prior to June 30, 1974, such State may, for purposes of the
programs authorized by this Act and the Child Nutrition Act of
1966, elect to receive cash payments in lieu of donated foods.
Where such an election is made, the Secretary shall make cash
payments to such State in an amount equivalent in value to the
donated foods that the State would otherwise have received if
it had retained its commodity distribution facilities. The
amount of cash payments in the case of lunches shall be
governed by section 6(c) of this Act.
(b) When such payments are made, the [State educational
agency] State agency shall promptly and equitably disburse any
cash it receives in lieu of commodities to eligible schools and
institutions, and such disbursements shall be used by such
schools and institutions to purchase United States agricultural
commodities and other foods for their food service programs.
SEC. 17. CHILD AND ADULT CARE FOOD PROGRAM.
(a) Program Purpose, Grant Authority and Institution
Eligibility.--
(1) In general.--
(A) Program purpose.--
(i) Findings.--Congress finds that--
(I) eating habits and other
wellness-related behavior
habits are established early in
life; and
(II) good nutrition and
wellness are important
contributors to the overall
health of young children and
essential to cognitive
development.
(ii) Purpose.--The purpose of the
program authorized by this section is
to provide aid to child and adult care
institutions and family or group day
care homes for the provision of
nutritious foods that contribute to the
wellness, healthy growth, and
development of young children, and the
health and wellness of older adults and
chronically impaired disabled persons.
(B) Grant authority.--The Secretary may carry
out a program to assist States through grants-
in-aid and other means to initiate and maintain
nonprofit food service programs for children in
institutions providing child care.
(2) Definition of institution.--In this section, the
term ``institution'' means--
(A) any public or private nonprofit
organization providing nonresidential child
care or day care outside school hours for
school children, including any child care
center, settlement house, recreational center,
Head Start center, and institution providing
child care facilities for children with
disabilities;
(B) any other private organization providing
nonresidential child care or day care outside
school hours for school children, [if] if,
during the month preceding the date of
submission of the applicable initial
application or reapplication--
(i) at least 25 percent of the
children served by the organization
meet the income eligibility criteria
established under section 9(b) for free
or reduced price meals; or
(ii) the organization receives
compensation from amounts granted to
the States under title XX of the Social
Security Act (42 U.S.C. 1397 et seq.)
(but only if the organization receives
compensation under that title for at
least 25 percent of its enrolled
children or 25 percent of its licensed
capacity, whichever is less);
(C) any public or private nonprofit
organization acting as a sponsoring
organization for one or more of the
organizations described in subparagraph (A) or
(B) or for an adult day care center (as defined
in subsection (o)(2));
(D) any other private organization acting as
a sponsoring organization for, and that is part
of the same legal entity as, one or more
organizations that are--
(i) described in subparagraph (B); or
(ii) proprietary title XIX or title
XX centers (as defined in subsection
(o)(2));
(E) any public or private nonprofit
organization acting as a sponsoring
organization for one or more family or group
day care homes; [and]
(F) any emergency shelter (as defined in
subsection (t))[.];
(G) any public or licensed nonprofit private
residential child care institution (as defined
in subsection (v)(1)) that is not concurrently
receiving reimbursement under the school lunch
program under this Act or the school breakfast
program under the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.); and
(H) any boarding school funded by the Bureau
of Indian Education that is not concurrently
receiving reimbursements under such school
lunch program or school breakfast program.
(3) Age limit.--Except as provided in [subsection
(r)] subsections (r) and (v), reimbursement may be
provided under this section only for meals or
supplements served to children not over 12 years of age
(except that such age limitation shall not be
applicable for children of migrant workers if 15 years
of age or less or for children with disabilities).
(4) Additional guidelines.--The Secretary may
establish separate guidelines for institutions that
provide care to school children outside of school
hours.
(5) Licensing.--In order to be eligible, an
institution (except a school or family or group day
care home sponsoring organization) or family or group
day care home shall--
(A)(i) be licensed, or otherwise have
approval, by the appropriate Federal, State, or
local licensing authority; or
(ii) be in compliance with appropriate
procedures for renewing participation in the
program, as prescribed by the Secretary, and
not be the subject of information possessed by
the State indicating that the license of the
institution or home will not be renewed;
(B) if Federal, State, or local licensing or
approval is not available--
(i) meet any alternate approval
standards established by the
appropriate State or local governmental
agency; or
(ii) meet any alternate approval
standards established by the Secretary
after consultation with the Secretary
of Health and Human Services; or
(C) if the institution provides care to
school children outside of school hours and
Federal, State, or local licensing or approval
is not required for the institution, meet State
or local health and safety standards.
(6) Eligibility criteria.--No institution shall be
eligible to participate in the program unless it
satisfies the following criteria:
(A) accepts final administrative and
financial responsibility for management of an
effective food service;
(B) has not been seriously deficient in its
operation of the child and adult care food
program, or any other program under this Act or
the Child Nutrition Act of 1966, or has not
been determined to be ineligible to participate
in any other publicly funded program by reason
of violation of the requirements of the
program, for a period of time specified by the
Secretary;
(C)(i) will provide adequate supervisory and
operational personnel for overall monitoring
and management of the child care food program;
and
(ii) in the case of a sponsoring
organization, the organization shall employ an
appropriate number of monitoring personnel
based on the number and characteristics of
child care centers and family or group day care
homes sponsored by the organization, as
approved by the State (in accordance with
regulations promulgated by the Secretary), to
ensure effective oversight of the operations of
the child care centers and family or group day
care homes;
(D) in the case of a family or group day care
home sponsoring organization that employs more
than one employee, the organization does not
base payments to an employee of the
organization on the number of family or group
day care homes recruited;
(E) in the case of a sponsoring organization,
the organization has in effect a policy that
restricts other employment by employees that
interferes with the responsibilities and duties
of the employees of the organization with
respect to the program; and
(F) in the case of a sponsoring organization
that applies for initial participation in the
program on or after the date of the enactment
of this subparagraph and that operates in a
State that requires such institutions to be
bonded under State law, regulation, or policy,
the institution is bonded in accordance with
such law, regulation, or policy.
(7) Duration of determination.--With respect to an
institution described in paragraph (2)(B), an
eligibility determination under this subsection shall
remain in effect for a period of 4 months after the
date such institution is approved by the State under
subsection (d).
(b) [For the fiscal year ending September 30, 1979, and for
each subsequent fiscal year, the] The Secretary shall provide
cash assistance to States for meals as provided in subsection
(f) of this section, except that, in any fiscal year, the
aggregate amount of assistance provided to a State by the
Secretary under this section shall not exceed the sum of (1)
the Federal funds provided by the State to participating
institutions within the State for that fiscal year and (2) any
funds used by the State under section 10 of the Child Nutrition
Act of 1966.
(c)(1) For purposes of this section, except as provided in
subsection (f)(3), the national average payment rate for free
lunches and suppers, the national average payment rate for
reduced price lunches and suppers, and the national average
payment rate for paid lunches and suppers shall be the same as
the national average payment rates for free lunches, reduced
price lunches, and paid lunches, respectively, under sections 4
and 11 of this Act as appropriate (as adjusted pursuant to
section 11(a) of this Act).
(2) For purposes of this section, except as provided in
subsection (f)(3), the national average payment rate for free
breakfasts, the national average payment rate for reduced price
breakfasts, and the national average payment rate for paid
breakfasts shall be the same as the national average payment
rates for free breakfasts, reduced price breakfasts, and paid
breakfasts, respectively, under section 4(b) of the Child
Nutrition Act of 1966 (as adjusted pursuant to section 11(a) of
this Act).
(3) For purposes of this section, except as provided in
subsection (f)(3), the national average payment rate for free
supplements shall be 30 cents, the national average payment
rate for reduced price supplements shall be one-half the rate
for free supplements, and the national average payment rate for
paid supplements shall be 2.75 cents (as adjusted pursuant to
section 11(a) of this Act).
(4) Determinations with regard to eligibility for free and
reduced price meals and supplements shall be made in accordance
with the income eligibility guidelines for free lunches and
reduced price lunches, respectively, under section 9 of this
Act.
(5) A child shall be considered automatically eligible for
benefits under this section without further application or
eligibility determination, if the child is enrolled as a
participant in a Head Start program authorized under the Head
Start Act (42 U.S.C. 9831 et seq.), on the basis of a
determination that the child meets the eligibility criteria
prescribed under section 645(a)(1)(B) of the Head Start Act (42
U.S.C. 9840(a)(1)(B)).
(6) A child who has not yet entered kindergarten shall be
considered automatically eligible for benefits under this
section without further application or eligibility
determination if the child is enrolled as a participant in the
Even Start program under part B of chapter 1 of title I of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 2741
et seq.).
(d) Institution Approval and Applications.--
(1) Institution approval.--
(A) Administrative capability.--Subject to
subparagraph (B) and except as provided in
subparagraph (C), the State agency shall
approve an institution that meets the
requirements of this section for participation
in the child and adult care food program if the
State agency determines that the institution--
(i) is financially viable;
(ii) is administratively capable of
operating the program (including
whether the sponsoring organization has
business experience and management
plans appropriate to operate the
program) described in the application
of the institution; and
(iii) has internal controls in effect
to ensure program accountability.
(B) Approval of private institutions.--
(i) In general.--In addition to the
requirements established by
subparagraph (A) and subject to clause
(ii), the State agency shall approve a
private institution that meets the
requirements of this section for
participation in the child and adult
care food program only if--
(I) the State agency conducts
a satisfactory visit to the
institution before approving
the participation of the
institution in the program; and
(II) the institution--
(aa) has tax exempt
status under the
Internal Revenue Code
of 1986;
(bb) is operating a
Federal program
requiring nonprofit
status to participate
in the program; or
(cc) is described in
subsection (a)(2)(B).
(ii) Exception for family or group
day care homes.--Clause (i) shall not
apply to a family or group day care
home.
(C) Exception for certain sponsoring
organizations.--
(i) In general.--The State agency may
approve an eligible institution acting
as a sponsoring organization for one or
more family or group day care homes or
centers that, at the time of
application, is not participating in
the child and adult care food program
only if the State agency determines
that--
(I) the institution meets the
requirements established by
subparagraphs (A) and (B); and
(II) the participation of the
institution will help to ensure
the delivery of benefits to
otherwise unserved family or
group day care homes or centers
or to unserved children in an
area.
(ii) Criteria for selection.--The
State agency shall establish criteria
for approving an eligible institution
acting as a sponsoring organization for
one or more family or group day care
homes or centers that, at the time of
application, is not participating in
the child and adult care food program
for the purpose of determining if the
participation of the institution will
help ensure the delivery of benefits to
otherwise unserved family or group day
care homes or centers or to unserved
children in an area.
(D) Notification to applicants.--Not later
than 30 days after the date on which an
applicant institution files a completed
application with the State agency, the State
agency shall notify the applicant institution
whether the institution has been approved or
disapproved to participate in the child and
adult care food program.
(E) Permanent operating agreements.--
(i) In general.--Subject to clauses
(ii) and (iii), to participate in the
child and adult care food program, an
institution that meets the conditions
of eligibility described in this
subsection shall be required to enter
into a permanent agreement with the
applicable State agency.
(ii) Amendments.--A permanent
agreement described in clause (i) may
be amended as necessary to ensure that
the institution is in compliance with
all requirements established in this
section or by the Secretary.
(iii) Termination.--A permanent
agreement described in clause (i)--
(I) may be terminated for
convenience by the institution
or State agency that is a party
to the permanent agreement; and
(II) shall be terminated--
(aa) for cause by the
applicable State agency
in accordance with
paragraph (5); or
(bb) on termination
of participation of the
institution in the
child and adult care
food program.
(2) Program applications.--
(A) In general.--The Secretary shall develop
a policy under which each institution providing
child care that participates in the program
under this section shall--
(i) submit to the State agency an
initial application to participate in
the program that meets all requirements
established by the Secretary by
regulation;
(ii) annually confirm to the State
agency that the institution, and any
facilities of the institution in which
the program is operated by a sponsoring
organization, is in compliance with
subsection (a)(5); and
(iii) annually submit to the State
agency any additional information
necessary to confirm that the
institution is in compliance with all
other requirements to participate in
the program, as established in this Act
and by the Secretary by regulation.
(B) Required reviews of sponsored
facilities.--
(i) In general.--The Secretary shall
develop a policy under which each
sponsoring organization participating
in the program under this section shall
conduct--
(I) periodic unannounced site
visits at not less than 3-year
intervals to sponsored child
and adult care centers and
family or group day care homes
to identify and prevent
management deficiencies and
fraud and abuse under the
program; and
(II) at least 1 scheduled
site visit each year to
sponsored child and adult care
centers and family or group day
care homes to identify and
prevent management deficiencies
and fraud and abuse under the
program and to improve program
operations.
(ii) Varied timing.--Sponsoring
organizations shall vary the timing of
unannounced reviews under clause (i)(I)
in a manner that makes the reviews
unpredictable to sponsored facilities.
(C) Required reviews of institutions.--The
Secretary shall develop a policy under which
each State agency shall conduct--
(i) at least 1 scheduled site visit
at not less than 3-year intervals to
each institution under the State agency
participating in the program under this
section--
(I) to identify and prevent
management deficiencies and
fraud and abuse under the
program; and
(II) to improve program
operations; and
(ii) more frequent reviews of any
institution that--
(I) sponsors a significant
share of the facilities
participating in the program;
(II) conducts activities
other than the program
authorized under this section;
(III) has serious management
problems, as identified in a
prior review, or is at risk of
having serious management
problems; or
(IV) meets such other
criteria as are defined by the
Secretary.
(D) Detection and deterrence of erroneous
payments and false claims.--
(i) In general.--The Secretary may
develop a policy to detect and deter,
and recover erroneous payments to, and
false claims submitted by,
institutions, sponsored child and adult
care centers, and family or group day
care homes participating in the program
under this section.
(ii) Block claims.--
(I) Definition of block
claim.--In this clause, the
term ``block claim'' has the
meaning given the term in
section 226.2 of title 7, Code
of Federal Regulations (or
successor regulations).
(II) Program edit checks.--
The Secretary may not require
any State agency, sponsoring
organization, or other
institution to perform edit
checks or on-site reviews
relating to the detection of
block claims by any child care
facility.
(III) Allowance.--
Notwithstanding subclause (II),
the Secretary may require any
State agency, sponsoring
organization, or other
institution to collect, store,
and transmit to the appropriate
entity information necessary to
develop any other policy
developed under clause (i).
(3) Program information.--
(A) In general.--On enrollment of a child in
a sponsored child care center or family or
group day care home participating in the
program, the center or home (or its sponsoring
organization) shall provide to the child's
parents or guardians--
(i) information that describes the
program and its benefits; and
(ii) the name and telephone number of
the sponsoring organization of the
center or home and the State agency
involved in the operation of the
program.
(B) Form.--The information described in
subparagraph (A) shall be in a form and, to the
maximum extent practicable, language easily
understandable by the child's parents or
guardians.
(4) Allowable administrative expenses for sponsoring
organizations.--[In consultation]
(A) In general._In consultation with State
agencies and sponsoring organizations, the
Secretary shall develop, and provide for the
dissemination to State agencies and sponsoring
organizations of, a list of allowable
reimbursable administrative expenses for
sponsoring organizations under the program.
(B) Reports.--Each sponsoring organization
shall, on an annual basis, submit to the
applicable State agency a report that
describes, with respect to the preceding fiscal
year--
(i) the expenditures of program funds
by the sponsoring organization; and
(ii) the amount of meal
reimbursements retained by the
sponsoring organization for
administrative costs, if applicable.
(5) Termination or suspension of participating
organizations.--
(A) In general.--The Secretary shall
establish procedures for the termination of
participation by institutions and family or
group day care homes under the program.
(B) Standards.--Procedures established
pursuant to subparagraph (A) shall include
standards for terminating the participation of
an institution or family or group day care home
that--
(i) engages in unlawful practices,
falsifies information provided to the
State agency, or conceals a criminal
background; or
(ii) substantially fails to fulfill
the terms of its agreement with the
State agency.
(C) Corrective action.--Procedures
established pursuant to subparagraph (A)--
(i) shall require an entity described
in subparagraph (B) to undertake
corrective action; and
(ii) may require the immediate
suspension of operation of the program
by an entity described in subparagraph
(B), without the opportunity for
corrective action, if the State agency
determines that there is imminent
threat to the health or safety of a
participant at the entity or the entity
engages in any activity that poses a
threat to public health or safety.
(D) Hearing.--
(i) In general.--Except as provided
in clause (ii), an institution or
family or group day care home shall be
provided a fair hearing in accordance
with subsection (e)(1) prior to any
determination to terminate
participation by the institution or
family or group day care home under the
program.
(ii) Exception for false or
fraudulent claims.--
(I) In general.--If a State
agency determines that an
institution has knowingly
submitted a false or fraudulent
claim for reimbursement, the
State agency may suspend the
participation of the
institution in the program in
accordance with this clause.
(II) Requirement for
review.--Prior to any
determination to suspend
participation of an institution
under subclause (I), the State
agency shall provide for an
independent review of the
proposed suspension in
accordance with subclause
(III).
(III) Review procedure.--The
review shall--
(aa) be conducted by
an independent and
impartial official
other than, and not
accountable to, any
person involved in the
determination to
suspend the
institution;
(bb) provide the
State agency and the
institution the right
to submit written
documentation relating
to the suspension,
including State agency
documentation of the
alleged false or
fraudulent claim for
reimbursement and the
response of the
institution to the
documentation;
(cc) require the
reviewing official to
determine, based on the
review, whether the
State agency has
established, based on a
preponderance of the
evidence, that the
institution has
knowingly submitted a
false or fraudulent
claim for
reimbursement;
(dd) require the
suspension to be in
effect for not more
than 120 calendar days
after the institution
has received
notification of a
determination of
suspension in
accordance with this
clause; and
(ee) require the
State agency during the
suspension to ensure
that payments continue
to be made to sponsored
centers and family and
group day care homes
meeting the
requirements of the
program.
(IV) Hearing.--A State agency
shall provide an institution
that has been suspended from
participation in the program
under this clause an
opportunity for a fair hearing
on the suspension conducted in
accordance with subsection
(e)(1).
(E) List of disqualified institutions and
individuals.--
(i) In general.--The Secretary shall
maintain a list of institutions,
sponsored family or group day care
homes, and individuals that have been
terminated or otherwise disqualified
from participation in the program.
(ii) Availability.--The Secretary
shall make the list available to State
agencies for use in approving or
renewing applications by institutions,
sponsored family or group day care
homes, and individuals for
participation in the program.
(F) Serious deficiency process.--
(i) In general.--Not later than 1
year after the date of the enactment of
the Improving Child Nutrition and
Education Act of 2016, the Secretary
shall review the serious deficiency
process for the program under this
section.
(ii) Review.--In carrying out clause
(i), the Secretary shall review the
processes for, and those involved in--
(I) a finding of serious
deficiency, including--
(aa) what measures
automatically result in
a finding of serious
deficiency; and
(bb) how
differentiation is
being made between--
(AA) a
reasonable
margin of human
error and
systematic or
intentional
noncompliance;
and
(BB) State-
specific
requirements
and Federal law
and
regulations, if
applicable;
(II) appeals and mediation in
any case in which there is a
finding of serious deficiency;
(III) determining the
circumstances under which a
corrective action plan is
acceptable;
(IV) information sharing
between Departments of
Agriculture and Health and
Human Services; and
(V) termination and
disqualification, including
maintenance of the list under
subparagraph (E).
(iii) Guidance and regulations.--
(I) In general.--After
conducting the review under
this subparagraph, the
Secretary shall use findings
from such review to assist
sponsoring organizations, State
agencies, and the Food and
Nutrition Service in ensuring a
fair, uniform, and effective
administration of the serious
deficiency process, while
retaining program integrity, by
issuing guidance, and, as
appropriate, regulations, on
the following:
(aa) Clarity on the
different measures for
noncompliance.
(bb) Parameters for
an appeals process to
review a finding of
serious deficiency or a
determination that a
corrective action plan
is inadequate.
(cc) Adequate
timeframes under a
corrective action plan
for compliance that are
consistent for all
types of institutions
participating in the
program, including
family or group day
care homes.
(II) Information sharing.--
Within such guidance or
regulation, and as soon as
practicable, the Secretary
shall ensure information about
findings are shared with the
Secretary of Health and Human
Services as to allow for
maximum health, safety,
oversight, and monitoring of
participating child care and
Head Start facilities.
(e) Hearings.--
(1) In general.--Except as provided in paragraph (4),
each State agency shall provide, in accordance with
regulations promulgated by the Secretary, an
opportunity for a fair hearing and a prompt
determination to any institution aggrieved by any
action of the State agency that affects--
(A) the participation of the institution in
the program authorized by this section; or
(B) the claim of the institution for
reimbursement under this section.
(2) Reimbursement.--In accordance with paragraph (3),
a State agency that fails to meet timeframes for
providing an opportunity for a fair hearing and a
prompt determination to any institution under paragraph
(1) in accordance with regulations promulgated by the
Secretary, shall pay, from non-Federal sources, all
valid claims for reimbursement to the institution and
the facilities of the institution during the period
beginning on the day after the end of any regulatory
deadline for providing the opportunity and making the
determination and ending on the date on which a hearing
determination is made.
(3) Notice to state agency.--The Secretary shall
provide written notice to a State agency at least 30
days prior to imposing any liability for reimbursement
under paragraph (2).
(4) Federal audit determination.--A State is not
required to provide a hearing to an institution
concerning a State action taken on the basis of a
Federal audit determination.
(5) Secretarial hearing.--If a State does not provide
a hearing to an institution concerning a State action
taken on the basis of a Federal audit determination,
the Secretary, on request, shall afford a hearing to
the institution concerning the action.
(f) State Disbursements to Institutions.--
(1) In general.--
(A) Requirement.--Funds paid to any State
under this section shall be disbursed to
eligible institutions by the State under
agreements approved by the Secretary.
Disbursements to any institution shall be made
only for the purpose of assisting in providing
meals to children attending institutions, or in
family or group day care homes. Disbursement to
any institution shall not be dependent upon the
collection of moneys from participating
children. All valid claims from such
institutions shall be paid within forty-five
days of receipt by the State. The State shall
notify the institution within fifteen days of
receipt of a claim if the claim as submitted is
not valid because it is incomplete or
incorrect.
(B) Fraud or abuse.--
(i) In general.--The State may
recover funds disbursed under
subparagraph (A) to an institution if
the State determines that the
institution has engaged in fraud or
abuse with respect to the program or
has submitted an invalid claim for
reimbursement.
(ii) Payment.--Amounts recovered
under clause (i)--
(I) may be paid by the
institution to the State over a
period of one or more years;
and
(II) shall not be paid from
funds used to provide meals and
supplements.
(iii) Hearing.--An institution shall
be provided a fair hearing in
accordance with subsection (e)(1) prior
to any determination to recover funds
under this subparagraph.
(2)(A) Subject to subparagraph (B) of this paragraph, the
disbursement for any fiscal year to any State for disbursement
to institutions, other than family or group day care home
sponsoring organizations, for meals provided under this section
shall be equal to the sum of the products obtained by
multiplying the total number of each type of meal (breakfast,
lunch, or supper, or supplement) served in such institution in
that fiscal year by the applicable national average payment
rate for each such type of meal, as determined under subsection
(c).
(B) No reimbursement may be made to any institution under
this paragraph, or to family or group day care home sponsoring
organizations under paragraph (3) of this subsection, for more
than two meals and one supplement per day per child, or in the
case of an institution (but not in the case of a family or
group day care home sponsoring organization), 2 meals and 1
supplement per day per child, for children that are maintained
in a child care setting for eight or more hours per day.
(C) Limitation on administrative expenses for certain
sponsoring organizations.--
(i) In general.--Except as provided in clause
(ii), a sponsoring organization of a day care
center may reserve not more than 15 percent of
the funds provided under paragraph (1) for the
administrative expenses of the organization.
(ii) Waiver.--A State may waive the
requirement in clause (i) with respect to a
sponsoring organization if the organization
provides justification to the State that the
organization requires funds in excess of 15
percent of the funds provided under paragraph
(1) to pay the administrative expenses of the
organization.
(iii) Carryover funds.--Not more than 10
percent of the amount reserved by sponsoring
organizations under clause (i) for
administrative expenses for a fiscal year may
remain available for obligation or expenditure
in the succeeding fiscal year for
administrative purposes.
(3) Reimbursement of family or group day care home
sponsoring organizations.--
(A) Reimbursement factor.--
(i) In general.--An institution that
participates in the program under this
section as a family or group day care
home sponsoring organization shall be
provided, for payment to a home
sponsored by the organization,
reimbursement factors in accordance
with this subparagraph for the cost of
obtaining and preparing food and
prescribed labor costs involved in
providing meals under this section.
(ii) Tier i family or group day care
homes.--
(I) Definition of tier i
family or group day care
home.--In this paragraph, the
term ``tier I family or group
day care home'' means--
(aa) a family or
group day care home
that is located in a
geographic area, as
defined by the
Secretary based on
census data, in which
at least 50 percent of
the children residing
in the area are members
of households whose
incomes meet the income
eligibility guidelines
for free or reduced
price meals under
section 9;
(bb) a family or
group day care home
that is located in an
area served by a school
enrolling students in
which at least 50
percent of the total
number of children
enrolled are certified
eligible to receive
free or reduced price
school meals under this
Act or the Child
Nutrition Act of 1966
(42 U.S.C. 1771 et
seq.); or
(cc) a family or
group day care home
that is operated by a
provider whose
household meets the
income eligibility
guidelines for free or
reduced price meals
under section 9 and
whose income is
verified by the
sponsoring organization
of the home under
regulations established
by the Secretary.
(II) Reimbursement.--Except
as provided in subclause (III),
a tier I family or group day
care home shall be provided
reimbursement factors under
this clause without a
requirement for documentation
of the costs described in
clause (i), except that
reimbursement shall not be
provided under this subclause
for meals or supplements served
to the children of a person
acting as a family or group day
care home provider unless the
children meet the income
eligibility guidelines for free
or reduced price meals under
section 9.
(III) Factors.--Except as
provided in subclause (IV), the
reimbursement factors applied
to a home referred to in
subclause (II) shall be the
factors in effect on July 1,
1996.
(IV) Adjustments.--The
reimbursement factors under
this subparagraph shall be
adjusted on July 1, 1997, and
each July 1 thereafter, to
reflect changes in the Consumer
Price Index for food at home
for the most recent 12-month
period for which the data are
available. The reimbursement
factors under this subparagraph
shall be rounded to the nearest
lower cent increment and based
on the unrounded adjustment in
effect on June 30 of the
preceding school year.
(iii) Tier ii family or group day
care homes.--
(I) In general.--
(aa) Factors.--Except
as provided in
subclause (II), with
respect to meals or
supplements served
under this clause by a
family or group day
care home that does not
meet the criteria set
forth in clause
(ii)(I), the
reimbursement factors
shall be 95 cents for
lunches and suppers, 27
cents for breakfasts,
and 13 cents for
supplements.
(bb) Adjustments.--
The factors shall be
adjusted on July 1,
1997, and each July 1
thereafter, to reflect
changes in the Consumer
Price Index for food at
home for the most
recent 12-month period
for which the data are
available. The
reimbursement factors
under this item shall
be rounded down to the
nearest lower cent
increment and based on
the unrounded
adjustment for the
preceding 12-month
period.
(cc) Reimbursement.--
A family or group day
care home shall be
provided reimbursement
factors under this
subclause without a
requirement for
documentation of the
costs described in
clause (i), except that
reimbursement shall not
be provided under this
subclause for meals or
supplements served to
the children of a
person acting as a
family or group day
care home provider
unless
the children meet the
income eligibility
guidelines for free or
reduced price meals
under section 9.
(II) Other factors.--A family
or group day care home that
does not meet the criteria set
forth in clause (ii)(I) may
elect to be provided
reimbursement factors
determined in accordance with
the following requirements:
(aa) Children
eligible for free or
reduced price meals.--
In the case of meals or
supplements served
under this subsection
to children who are
members of households
whose incomes meet the
income eligibility
guidelines for free or
reduced price meals
under section 9, the
family or group day
care home shall be
provided reimbursement
factors set by the
Secretary in accordance
with clause (ii)(III).
(bb) Ineligible
children.--In the case
of meals or supplements
served under this
subsection to children
who are members of
households whose
incomes do not meet the
income eligibility
guidelines, the family
or group day care home
shall be provided
reimbursement factors
in accordance with
subclause (I).
(III) Information and
determinations.--
(aa) In general.--If
a family or group day
care home elects to
claim the factors
described in subclause
(II), the family or
group day care home
sponsoring organization
serving the home shall
collect the necessary
income information, as
determined by the
Secretary, from any
parent or other
caretaker to make the
determinations
specified in subclause
(II) and shall make the
determinations in
accordance with rules
prescribed by the
Secretary.
(bb) Categorical
eligibility.--In making
a determination under
item (aa), a family or
group day care home
sponsoring organization
may consider a child
participating in or
subsidized under, or a
child with a parent
participating in or
subsidized under, a
federally or State
supported child care or
other benefit program
with an income
eligibility limit that
does not exceed the
eligibility standard
for free or reduced
price meals under
section 9 to be a child
who is a member of a
household whose income
meets the income
eligibility guidelines
under section 9.
(cc) Factors for
children only.--A
family or group day
care home may elect to
receive the
reimbursement factors
prescribed under clause
(ii)(III) solely for
the children
participating in a
program referred to in
item (bb) if the home
elects not to have
income statements
collected from parents
or other caretakers.
(dd) Transmission of
income information by
sponsored family or
group day care homes.--
If a family or group
day care home elects to
be provided
reimbursement factors
described in subclause
(II), the family or
group day care home may
assist in the
transmission of
necessary household
income information to
the family or group day
care home sponsoring
organization in
accordance with the
policy described in
item (ee).
(ee) Policy.--The
Secretary shall develop
a policy under which a
sponsored family or
group day care home
described in item (dd)
may, under terms and
conditions specified by
the Secretary and with
the written consent of
the parents or
guardians of a child in
a family or group day
care home participating
in the program, assist
in the transmission of
the income information
of the family to the
family or group day
care home sponsoring
organization.
(IV) Simplified meal counting
and reporting procedures.--The
Secretary shall prescribe
simplified meal counting and
reporting procedures for use by
a family or group day care home
that elects to claim the
factors under subclause (II)
and by a family or group day
care home sponsoring
organization that sponsors the
home. The procedures the
Secretary prescribes may
include 1 or more of the
following:
(aa) Setting an
annual percentage for
each home of the number
of meals served that
are to be reimbursed in
accordance with the
reimbursement factors
prescribed under clause
(ii)(III) and an annual
percentage of the
number of meals served
that are to be
reimbursed in
accordance with the
reimbursement factors
prescribed under
subclause (I), based on
the family income of
children enrolled in
the home in a specified
month or other period.
(bb) Placing a home
into 1 of 2 or more
reimbursement
categories annually
based on the percentage
of children in the home
whose households have
incomes that meet the
income eligibility
guidelines under
section 9, with each
such reimbursement
category carrying a set
of reimbursement
factors such as the
factors prescribed
under clause (ii)(III)
or subclause (I) or
factors established
within the range of
factors prescribed
under clause (ii)(III)
and subclause (I).
(cc) Such other
simplified procedures
as the Secretary may
prescribe.
(V) Minimum verification
requirements.--The Secretary
may establish any minimum
verification requirements that
are necessary to carry out this
clause.
(B) Administrative funds.--
(i) In general.--In addition to
reimbursement factors described in
subparagraph (A), a family or group day
care home sponsoring organization shall
receive reimbursement for the
administrative expenses of the
sponsoring organization in an amount
that is not less than the product
obtained each month by multiplying--
(I) the number of family and
group day care homes of the
sponsoring organization
submitting a claim for
reimbursement during the month;
by
(II) the appropriate
administrative rate determined
by the Secretary.
(ii) Annual adjustment.--The
administrative reimbursement levels
specified in clause (i) shall be
adjusted July 1 of each year to reflect
changes in the Consumer Price Index for
All Urban Consumers published by the
Bureau of Labor Statistics of the
Department of Labor for the most recent
12-month period for which such data are
available.
(iii) Carryover funds.--The Secretary
shall develop procedures under which
not more than 10 percent of the amount
made available to sponsoring
organizations under this section for
administrative expenses for a fiscal
year may remain available for
obligation or expenditure in the
succeeding fiscal year.
[(C)(i) Reimbursement for administrative expenses shall also
include start-up funds to finance the administrative expenses
for such institutions to initiate successful operation under
the program and expansion funds to finance the administrative
expenses for such institutions to expand into low-income or
rural areas. Institutions that have received start-up funds may
also apply at a later date for expansion funds. Such start-up
funds and expansion funds shall be in addition to other
reimbursement to such institutions for administrative expenses.
Start-up funds and expansion funds shall be payable to enable
institutions satisfying the criteria of subsection (d) of this
section, and any other standards prescribed by the Secretary,
to develop an application for participation in the program as a
family or group day care home sponsoring organization or to
implement the program upon approval of the application. Such
start-up funds and expansion funds shall be payable in
accordance with the procedures prescribed by the Secretary. The
amount of start-up funds and expansion funds payable to an
institution shall be not less than the institution's
anticipated reimbursement for administrative expenses under the
program for one month and not more than the institution's
anticipated reimbursement for administrative expenses under the
program for two months.
[(ii) Funds for administrative expenses may be used by family
or group day care home sponsoring organizations assist
unlicensed family or group day care homes in becoming
licensed.]
[(D)] (C) Limitations on ability of family or
group day care homes to transfer sponsoring
organizations.--
(i) In general.--Subject to clause
(ii), a State agency shall limit the
ability of a family or group day care
home to transfer from a sponsoring
organization to another sponsoring
organization more frequently than once
a year.
(ii) Good cause.--The State agency
may permit or require a family or group
day care home to transfer from a
sponsoring organization to another
sponsoring organization more frequently
than once a year for good cause (as
determined by the State agency),
including circumstances in which the
sponsoring organization of the family
or group day care home ceases to
participate in the child and adult care
food program.
[(E)] (D) Provision of data to family or
group day care home sponsoring organizations.--
(i) Census data.--The Secretary shall
provide to each State agency
administering a child and adult care
food program under this section data
from the most recent decennial census
survey or other appropriate census
survey for which the data are available
showing which areas in the State meet
the requirements of subparagraph
(A)(ii)(I)(aa). The State agency shall
provide the data to family or group day
care home sponsoring organizations
located in the State.
(ii) School data.--
(I) In general.--A State
agency administering the school
lunch program under this Act or
the school breakfast program
under the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et
seq.) shall provide to approved
family or group day care home
sponsoring organizations a list
of schools serving elementary
school children in the State in
which not less than \1/2\ of
the children enrolled are
certified to receive free or
reduced price meals. The State
agency shall collect the data
necessary to create the list
annually and provide the list
on a timely basis to any
approved family or group day
care home sponsoring
organization that requests the
list.
(II) Use of data from
preceding school year.--In
determining for a fiscal year
or other annual period whether
a home qualifies as a tier I
family or group day care home
under subparagraph (A)(ii)(I),
the State agency administering
the program under this section,
and a family or group day care
home sponsoring organization,
shall use the most current
available data at the time of
the determination.
(iii) Duration of determination.--For
purposes of this section, a
determination that a family or group
day care home is located in an area
that qualifies the home as a tier I
family or group day care home (as the
term is defined in subparagraph
(A)(ii)(I)), shall be in effect for 5
years (unless the determination is made
on the basis of census data, in which
case the determination shall remain in
effect until more recent census data
are available) unless the State agency
determines that the area in which the
home is located no longer qualifies the
home as a tier I family or group day
care home.
(4) By the first day of each month of operation, the State
may provide advance payments for the month to each approved
institution in an amount that reflects the full level of valid
claims customarily received from such institution for one
month's operation. In the case of a newly participating
institution, the amount of the advance shall reflect the
State's best estimate of the level of valid claims such
institutions will submit. If the State has reason to believe
that an institution will not be able to submit a valid claim
covering the period for which such an advance has been made,
the subsequent month's advance payment shall be withheld until
the State receives a valid claim. Payments advanced to
institutions that are not subsequently deducted from a valid
claim for reimbursement shall be repaid upon demand by the
State. Any prior payment that is under dispute may be
subtracted from an advance payment.
(g) Nutritional Requirements for Meals and Snacks Served in
Institutions and Family or Group Day Care Homes.--
(1) Definition of dietary guidelines.--In this
subsection, the term ``Dietary Guidelines'' means the
Dietary Guidelines for Americans published under
section 301 of the National Nutrition Monitoring and
Related Research Act of 1990 (7 U.S.C. 5341).
(2) Nutritional requirements.--
(A) In general.--Except as provided in
subparagraph (C), reimbursable meals and snacks
served by institutions, family or group day
care homes, and sponsored centers participating
in the program under this section shall consist
of a combination of foods that meet minimum
nutritional requirements prescribed by the
Secretary on the basis of tested nutritional
research.
(B) Conformity with the dietary guidelines
and authoritative science.--
(i) In general.--Not less frequently
than once every 10 years, the Secretary
shall review and, as appropriate,
update requirements for meals served
under the program under this section to
ensure that the meals--
(I) are consistent with the
goals of the most recent
Dietary Guidelines; and
(II) promote the health of
the population served by the
program authorized under this
section, as indicated by the
most recent relevant nutrition
science and appropriate
authoritative scientific agency
and organization
recommendations.
(ii) Cost review.--The review
required under clause (i) shall include
a review of the cost to child care
centers and group or family day care
homes resulting from updated
requirements for meals and snacks
served under the program under this
section.
(iii) Regulations.--Not later than 18
months after the completion of the
review of the meal pattern under clause
(i), the Secretary shall promulgate
proposed regulations to update the meal
patterns for meals and snacks served
under the program under this section.
(C) Exceptions.--
(i) Special dietary needs.--The
minimum nutritional requirements
prescribed under subparagraph (A) shall
not prohibit institutions, family or
group day care homes, and sponsored
centers from substituting foods to
accommodate the medical or other
special dietary needs of individual
participants.
(ii) Exempt institutions.--The
Secretary may elect to waive all or
part of the requirements of this
subsection for emergency shelters
participating in the program under this
section.
(3) Meal service.--Institutions, family or group day
care homes, and sponsored centers shall ensure that
reimbursable meal service contributes to the
development and socialization of enrolled children by
providing that food is not used as a punishment or
reward.
(4) Fluid milk.--
(A) In general.--If an institution, family or
group day care home, or sponsored center
provides fluid milk as part of a reimbursable
meal or supplement, the institution, family or
group day care home, or sponsored center shall
provide the milk in accordance with the most
recent version of the Dietary Guidelines.
(B) Milk substitutes.--In the case of
children who cannot consume fluid milk due to
medical or other special dietary needs other
than a disability, an institution, family or
group day care home, or sponsored center may
substitute for the fluid milk required in meals
served, a nondairy beverage that--
(i) is nutritionally equivalent to
fluid milk; and
(ii) meets nutritional standards
established by the Secretary,
including, among other requirements
established by the Secretary,
fortification of calcium, protein,
vitamin A, and vitamin D to levels
found in cow's milk.
(C) Approval.--
(i) In general.--A substitution
authorized under subparagraph (B) may
be made--
(I) at the discretion of and
on approval by the
participating day care
institution; and
(II) if the substitution is
requested by written statement
of a medical authority, or by
the parent or legal guardian of
the child, that identifies the
medical or other special
dietary need that restricts the
diet of the child.
(ii) Exception.--An institution,
family or group day care home, or
sponsored center that elects to make a
substitution authorized under this
paragraph shall not be required to
provide beverages other than beverages
the State has identified as acceptable
substitutes.
(D) Excess expenses borne by institution.--A
participating institution, family or group day
care home, or sponsored center shall be
responsible for any expenses that--
(i) are incurred by the institution,
family or group day care home, or
sponsored center to provide
substitutions under this paragraph; and
(ii) are in excess of expenses
covered under reimbursements under this
Act.
(5) Nondiscrimination policy.--No physical
segregation or other discrimination against any person
shall be made because of the inability of the person to
pay, nor shall there be any overt identification of any
such person by special tokens or tickets, different
meals or meal service, announced or published lists of
names, or other means.
[(6) Use of abundant and donated foods.--To the
maximum extent practicable, each institution shall use
in its food service foods that are--
[(A) designated from time to time by the
Secretary as being in abundance, either
nationally or in the food service area; or
[(B) donated by the Secretary.]
(6) Use of donated foods.--To the maximum extent
practicable, each institution shall use in its food
service foods that are donated by the Secretary.
(h)(1)(A) The Secretary shall donate agricultural commodities
produced in the United States for use in institutions
participating in the child care food program under this
section.
(B) The value of the commodities donated under subparagraph
(A) (or cash in lieu of commodities) to each State for each
school year shall be, at a minimum, the amount obtained by
multiplying the number of lunches and suppers served in
participating institutions in that State during the preceding
school year by the rate for commodities or cash in lieu of
commodities established under section 6(c) for the school year
concerned.
(C) After the end of each school year, the Secretary shall--
(i) reconcile the number of lunches and suppers
served in participating institutions in each State
during such school year with the number of lunches and
suppers served by participating institutions in each
State during the preceding school year; and
(ii) based on such reconciliation, increase or reduce
subsequent commodity assistance or cash in lieu of
commodities provided to each State.
(D) Any State receiving assistance under this section for
institutions participating in the child care food program may,
upon application to the Secretary, receive cash in lieu of some
or all of the commodities to which it would otherwise be
entitled under this subsection. In determining whether to
request cash in lieu of commodities, the State shall base its
decision on the preferences of individual participating
institutions within the State, unless this proves impracticable
due to the small number of institutions preferring donated
commodities.
(E) Engagement with state and local
agencies.--
(i) In general.--Subject to clause
(ii), institutions participating in the
program under this section may engage
with State agencies and local
educational agencies to use existing
infrastructure to enhance the use of,
and increase access to, donated
commodities.
(ii) Effect of subparagraph.--Nothing
in this subparagraph shall compel a
local educational agency unwillingly to
serve any institution participating in
the program under this section.
(2) The Secretary is authorized to provide agricultural
commodities obtained by the Secretary under the provisions of
the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) and
donated under the provisions of section 416 of such Act, to the
Department of Defense for use by its institutions providing
child care services, when such commodities are in excess of the
quantities needed to meet the needs of all other child
nutrition programs, domestic and foreign food assistance and
export enhancement programs. The Secretary shall require
reimbursement from the Department of Defense for the costs, or
some portion thereof, of delivering such commodities to
overseas locations, unless the Secretary determines that it is
in the best interest of the program that the Department of
Agriculture shall assume such costs.
(i) Audits.--
(1) Disregards.--
(A) In general.--Subject to subparagraph (B),
in conducting management evaluations, reviews,
or audits under this section, the Secretary or
a State agency may disregard any overpayment to
an institution for a fiscal year if the total
overpayment to the institution for the fiscal
year does not exceed an amount that is
consistent with the disregards allowed in other
programs under this Act and recognizes the cost
of collecting small claims, as determined by
the Secretary.
(B) Criminal or fraud violations.--In
carrying out this paragraph, 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.
(2) Funding.--
(A) In general.--The Secretary shall make
available for each fiscal year to each State
agency administering the child and adult care
food program, for the purpose of conducting
audits of participating institutions, an amount
of up to 1.5 percent of the funds used by each
State in the program under this section, during
the second preceding fiscal year.
(B) Additional funding.--
(i) In general.--Subject to clause
(ii), for fiscal year 2016 and each
fiscal year thereafter, the Secretary
may increase the amount of funds made
available to any State agency under
subparagraph (A), [if the State agency
demonstrates that the State agency can
effectively use the funds to improve
program management under criteria
established by the Secretary.] if the
State agency demonstrates that the
State agency can use funds to improve
program management, oversight, and
integrity, including by working with
other State agencies involved with the
monitoring of institutions under this
section in order to streamline and
coordinate the efforts of such State
agencies.
(ii) Limitation.--The total amount of
funds made available to any State
agency under this paragraph shall not
exceed 2 percent of the funds used by
each State agency in the program under
this section, during the second
preceding fiscal year.
(j) Agreements.--
(1) In general.--The Secretary shall issue
regulations directing States to develop and provide for
the use of a standard form of agreement between each
sponsoring organization and the family or group day
care homes or sponsored day care centers 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.
(k) Training and Technical Assistance.--A State participating
in the program established under this section shall provide
sufficient training, technical assistance, and monitoring to
facilitate effective operation of the program. The Secretary
shall assist the State in developing plans to fulfill the
requirements of this subsection.
(l) Expenditures of funds from State and local sources for
the maintenance of food programs for children shall not be
diminished as a result of funds received under this section.
(m) States and institutions participating in the program
under this section shall keep such accounts and records as may
be necessary to enable the Secretary to determine whether there
has been compliance with the requirements of this section. Such
accounts and records shall be available at any reasonable time
for inspection and audit by representatives of the Secretary,
the Comptroller General of the United States, and appropriate
State representatives and shall be preserved for such period of
time, not in excess of five years, as the Secretary determines
necessary.
(n) There are hereby authorized to be appropriated for each
fiscal year such funds as are necessary to carry out the
purposes of this section.
(o)(1) For purposes of this section, adult day care centers
shall be considered eligible institutions for reimbursement for
meals or supplements served to persons 60 years of age or older
or to chronically impaired disabled persons, including victims
of Alzheimer's disease and related disorders with neurological
and organic brain dysfunction. Reimbursement provided to such
institutions for such purposes shall improve the quality of
meals or level of services provided or increase participation
in the program. Lunches served by each such institution for
which reimbursement is claimed under this section shall
provide, on the average, approximately \1/3\ of the daily
recommended dietary allowance established by the Food and
Nutrition Board of the National Research Council of the
National Academy of Sciences. Such institutions shall make
reasonable efforts to serve meals that meet the special dietary
requirements of participants, including efforts to serve foods
in forms palatable to participants.
(2) For purposes of this subsection--
(A) the term ``adult day care center'' means any
public agency or private nonprofit organization, or any
proprietary title XIX or title XX center, which--
(i) is licensed or approved by Federal,
State, or local authorities to provide adult
day care services to chronically impaired
disabled adults or persons 60 years of age or
older in a group setting outside their homes,
or a group living arrangement, on a less than
24-hour basis; and
(ii) provides for such care and services
directly or under arrangements made by the
agency or organization whereby the agency or
organization maintains professional management
responsibility for all such services; and
(B) the term ``proprietary title XIX or title XX
center'' means any private, for-profit center providing
adult day care services for which it receives
compensation from amounts granted to the States under
title XIX or XX of the Social Security Act and which
title XIX or title XX beneficiaries were not less than
25 percent of enrolled eligible participants in a
calendar month preceding initial application or annual
reapplication for program participation.
(3)(A) The Secretary, in consulation with the Assistant
Secretary for Aging, shall establish, within 6 months of
enactment, separate guidelines for reimbursement of
institutions described in this subsection. Such reimbursement
shall take into account the nutritional requirements of
eligible persons, as determined by the Secretary on the basis
of tested nutritional research, except that such reimbursement
shall not be less than would otherwise be required under this
section.
(B) The guidelines shall contain provisions designed to
assure that reimbursement under this subsection shall not
duplicate reimbursement under part C of title III of the Older
Americans Act of 1965, for the same meal served.
(4) For the purpose of establishing eligibility for free or
reduced price meals or supplements under this subsection,
income shall include only the income of an eligible person and,
if any, the spouse and dependents with whom the eligible person
resides.
(5) A person described in paragraph (1) shall be considered
automatically eligible for free meals or supplements under this
subsection, without further application or eligibility
determination, if the person is--
(A) a member of a household receiving assistance
under the Food and Nutrition Act of 2008 (7 U.S.C. 2011
et seq.); or
(B) a recipient of assistance under title XVI or XIX
of the Social Security Act (42 U.S.C. 1381 et seq.).
(6) The Governor of any State may designate to administer the
program under this subsection a State agency other than the
agency that administers the child care food program under this
section.
(q) Management Support.--
(1) Technical and training assistance.--In addition
to the training and technical assistance that is
provided to State agencies under other provisions of
this Act and the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.), the Secretary shall provide training and
technical assistance in order to assist the State
agencies in improving their program management and
oversight under this section.
(2) Technical and training assistance for
identification and prevention of fraud and abuse.--As
part of training and technical assistance provided
under paragraph (1), the Secretary shall provide
training on a continuous basis to State agencies, and
shall ensure that such training is provided to
sponsoring organizations, for the identification and
prevention of fraud and abuse under the program and to
improve management of the program.
(r) Program for At-Risk School Children.--
(1) Definition of at-risk school child.--In this
subsection, the term ``at-risk school child'' means a
school child who--
(A) is not more than 18 years of age, except
that the age limitation provided by this
subparagraph shall not apply to a child
described in section 12(d)(1)(A); and
(B) participates in a program authorized
under this section operated at a site located
in a geographical area served by a school in
which at least 50 percent of the children
enrolled are certified as eligible to receive
free or reduced price school meals under this
Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
(2) Participation in child and adult care food
program.--An institution may participate in the program
authorized under this section only if the institution
provides meals or supplements under a program--
(A) organized primarily to provide care to
at-risk school children during after-school
hours, weekends, or holidays during the regular
school year; and
(B) with an educational or enrichment
purpose.
(3) Administration.--Except as otherwise provided in
this subsection, the other provisions of this section
apply to an institution described in paragraph (2).
(4) Meal and supplement reimbursement.--
(A) Limitations.--An institution may claim
reimbursement under this subsection only for
one meal per child per day and one supplement
per child per day served under a program
organized primarily to provide care to at-risk
school children during after-school hours,
weekends, or holidays during the regular school
year.
(B) Rates.--
(i) Meals.--A meal shall be
reimbursed under this subsection at the
rate established for free meals under
subsection (c).
(ii) Supplements.--A supplement shall
be reimbursed under this subsection at
the rate established for a free
supplement under subsection (c)(3).
(C) No charge.--A meal or supplement claimed
for reimbursement under this subsection shall
be served without charge.
[(5) Limitation.--An institution participating in the
program under this subsection may not claim
reimbursement for meals and snacks that are served
under section 18(h) on the same day.
[(6) Handbook.--
[(A) In general.--Not later than 180 days
after the date of enactment of the Healthy,
Hunger-Free Kids Act of 2010, the Secretary
shall--
[(i) issue guidelines for afterschool
meals for at-risk school children; and
[(ii) publish a handbook reflecting
those guidelines.
[(B) Review.--Each year after the issuance of
guidelines under subparagraph (A), the
Secretary shall--
[(i) review the guidelines; and
[(ii) issue a revised handbook
reflecting changes made to the
guidelines.]
(s) Information Concerning the Special Supplemental Nutrition
Program for Women, Infants, and Children.--
(1) In general.--The Secretary shall provide each
State agency administering a child and adult care food
program under this section with information concerning
the special supplemental nutrition program for women,
infants, and children authorized under section 17 of
the Child Nutrition Act of 1966 (42 U.S.C. 1786).
(2) Requirements for state agencies.--Each State
agency shall ensure that each participating family and
group day care home and child care center (other than
an institution providing care to school children
outside school hours)--
(A) receives materials that include--
(i) a basic explanation of the
importance and benefits of the special
supplemental nutrition program for
women, infants, and children;
(ii) the maximum State income
eligibility standards, according to
family size, for the program; and
(iii) information concerning how
benefits under the program may be
obtained;
(B) receives periodic updates of the
information described in subparagraph (A); and
(C) provides the information described in
subparagraph (A) to [parents of enrolled
children at enrollment] parents or legal
guardians of enrolled children in an easily
accessible manner.
(t) Participation by Emergency Shelters.--
(1) Definition of emergency shelter.--In this
subsection, the term ``emergency shelter'' means--
(A) an emergency shelter (as defined in
section 321 of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11351)); or
(B) a site operated by the shelter.
(2) Administration.--Except as otherwise provided in
this subsection, an emergency shelter shall be eligible
to participate in the program authorized under this
section in accordance with the terms and conditions
applicable to eligible institutions described in
subsection (a).
(3) Licensing requirements.--The licensing
requirements contained in subsection (a)(5) shall not
apply to an emergency shelter.
(4) Health and safety standards.--To be eligible to
participate in the program authorized under this
section, an emergency shelter shall comply with
applicable State or local health and safety standards.
(5) Meal or supplement reimbursement.--
(A) Limitations.--An emergency shelter may
claim reimbursement under this subsection--
(i) only for a meal or supplement
served to children residing at an
emergency shelter, if the children
are--
(I) not more than 18 years of
age; or
(II) children with
disabilities; and
(ii) for not more than 3 meals, or 2
meals and a supplement, per child per
day.
(B) Rate.--A meal or supplement eligible for
reimbursement shall be reimbursed at the rate
at which free meals and supplements are
reimbursed under subsection (c).
(C) No charge.--A meal or supplement claimed
for reimbursement shall be served without
charge.
(u) Promoting Health and Wellness in Child Care.--
(1) Physical activity and electronic media use.--The
Secretary shall encourage participating child care
centers and family or group day care homes--
(A) to provide to all children under the
supervision of the participating child care
centers and family or group day care homes
daily opportunities for structured and
unstructured age-appropriate physical activity;
and
(B) to limit among children under the
supervision of the participating child care
centers and family or group day care homes the
use of electronic media to an appropriate
level.
(2) Water consumption.--Participating child care
centers and family or group day care homes shall make
available to children, as nutritionally appropriate,
potable water as an acceptable fluid for consumption
throughout the day, including at meal times.
(3) Technical assistance and guidance.--
(A) In general.--The Secretary shall provide
technical assistance to institutions
participating in the program under this section
to assist participating child care centers and
family or group day care homes in complying
with the nutritional requirements and wellness
recommendations prescribed by the Secretary in
accordance with this subsection and subsection
(g).
(B) Guidance.--Not later than January 1,
2012, the Secretary shall issue guidance to
States and institutions to encourage
participating child care centers and family or
group day care homes serving meals and snacks
under this section to--
(i) include foods that are
recommended for increased serving
consumption in amounts recommended by
the most recent Dietary Guidelines for
Americans published under section 301
of the National Nutrition Monitoring
and Related Research Act of 1990 (7
U.S.C. 5341), including fresh, canned,
dried, or frozen fruits and vegetables,
whole grain products, lean meat
products, and low-fat and non-fat dairy
products; and
(ii) reduce sedentary activities and
provide opportunities for regular
physical activity in quantities
recommended by the most recent Dietary
Guidelines for Americans described in
clause (i).
(C) Nutrition.--Technical assistance relating
to the nutritional requirements of this
subsection and subsection (g) shall include--
(i) nutrition education for
distribution to participants and
families of participants, including
education that emphasizes the
relationship between nutrition,
physical activity, and health;
(ii) menu planning;
(iii) interpretation of nutrition
labels; and
(iv) food preparation and purchasing
guidance to produce meals and snacks
that are--
(I) consistent with the goals
of the most recent Dietary
Guidelines; and
(II) promote the health of
the population served by the
program under this section, as
recommended by authoritative
scientific organizations.
(D) Physical activity.--Technical assistance
relating to the physical activity requirements
of this subsection shall include--
(i) education on the importance of
regular physical activity to overall
health and well being; and
(ii) sharing of best practices for
physical activity plans in child care
centers and homes as recommended by
authoritative scientific organizations.
(E) Electronic media use.--Technical
assistance relating to the electronic media use
requirements of this subsection shall include--
(i) education on the benefits of
limiting exposure to electronic media
by children; and
(ii) sharing of best practices for
the development of daily activity plans
that limit use of electronic media.
(F) Minimum assistance.--At a minimum, the
technical assistance required under this
paragraph shall include a handbook, developed
by the Secretary in coordination with the
Secretary for Health and Human Services, that
includes recommendations, guidelines, and best
practices for participating institutions and
family or group day care homes that are
consistent with the nutrition, physical
activity, and wellness requirements and
recommendations of this subsection.
(G) Additional assistance.--In addition to
the requirements of this paragraph, the
Secretary shall develop and provide such
appropriate training and education materials,
guidance, and technical assistance as the
Secretary considers to be necessary to comply
with the nutritional and wellness requirements
of this subsection and subsection (g).
(H) Funding.--
(i) In general.--On October 1, 2010,
out of any funds in the Treasury not
otherwise appropriated, the Secretary
of the Treasury shall transfer to the
Secretary to provide technical
assistance under this subsection
$10,000,000, to remain available until
expended.
(ii) Receipt and acceptance.--The
Secretary shall be entitled to receive,
shall accept, and shall use to carry
out this subsection the funds
transferred under clause (i), without
further appropriation.
(iii) Sunset.--The Secretary shall
return to the general fund of the
Treasury any funds that were--
(I) made available under this
subparagraph; and
(II) not obligated as of the
date of the enactment of the
Improving Child Nutrition and
Education Act of 2016.
(v) Participation by Residential Child Care Institutions.--
(1) Definition of residential child care
institution.--In this subsection, the term
``residential child care institution'' means any public
or nonprofit private residential child care
institution, or distinct part of such an institution,
that--
(A) operates principally for the care of
children; and
(B) if private, is licensed to provide
residential child care services under the
appropriate licensing code by the State or
local agency.
(2) Administration.--Except as otherwise provided in
this subsection, a residential child care institution
shall be considered eligible for reimbursement for
meals and supplements served to eligible children
residing at the residential child care institution, so
long as the institution does not simultaneously
participate in the school lunch program under this Act
or the school breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
(3) Meal or supplement reimbursement.--
(A) Limitations.--A residential child care
institution may claim reimbursement under this
section--
(i) only for a meal or supplement
served to children residing at the
residential child care institution, who
are--
(I) not more than 18 years of
age; or
(II) children with
disabilities; and
(ii) for not more than--
(I) 1 breakfast, 1 lunch, and
1 supplement per child per day;
or
(II) 1 breakfast, 1 supper,
and 1 supplement per child per
day.
(B) Rate.--A meal or supplement eligible for
reimbursement under this subsection shall be
reimbursed at the rate at which free, reduced
price, and paid meals and supplements,
respectively, are reimbursed under subsection
(c).
* * * * * * *
PILOT PROJECTS
Sec. 18.
(b)(1) Upon request to the Secretary, any school district
that on January 1, 1987, was receiving all cash payments or all
commodity letters of credit in lieu of entitlement commodities
for its school lunch program shall receive all cash payments or
all commodity letters of credit in lieu of entitlement
commodities for its school lunch program beginning July 1,
1987. The Secretary, directly or through contract, shall
administer the project under this subsection.
(2) Any school district that elects under paragraph (1) to
receive all cash payments or all commodity letters of credit in
lieu of entitlement commodities for its school lunch program
shall receive bonus commodities in the same manner as if such
school district was receiving all entitlement commodities for
its school lunch program.
(c)(1) The Secretary may conduct pilot projects to test
alternative counting and claiming procedures.
(2) Each pilot program carried out under this subsection
shall be evaluated by the Secretary after it has been in
operation for 3 years.
[(g) Access to Local Foods: Farm to School Program.--
[(1) Definition of eligible school.--In this
subsection, the term ``eligible school'' means a school
or institution that participates in a program under
this Act or the school breakfast program established
under section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773).
[(2) Program.--The Secretary shall carry out a
program to assist eligible schools, State and local
agencies, Indian tribal organizations, agricultural
producers or groups of agricultural producers, and
nonprofit entities through grants and technical
assistance to implement farm to school programs that
improve access to local foods in eligible schools.
[(3) Grants.--
[(A) In general.--The Secretary shall award
competitive grants under this subsection to be
used for--
[(i) training;
[(ii) supporting operations;
[(iii) planning;
[(iv) purchasing equipment;
[(v) developing school gardens;
[(vi) developing partnerships; and
[(vii) implementing farm to school
programs.
[(B) Regional balance.--In making awards
under this subsection, the Secretary shall, to
the maximum extent practicable, ensure--
[(i) geographical diversity; and
[(ii) equitable treatment of urban,
rural, and tribal communities.
[(C) Maximum amount.--The total amount
provided to a grant recipient under this
subsection shall not exceed $100,000.
[(4) Federal share.--
[(A) In general.--The Federal share of costs
for a project funded through a grant awarded
under this subsection shall not exceed 75
percent of the total cost of the project.
[(B) Federal matching.--As a condition of
receiving a grant under this subsection, a
grant recipient shall provide matching support
in the form of cash or in-kind contributions,
including facilities, equipment, or services
provided by State and local governments,
nonprofit organizations, and private sources.
[(5) Criteria for selection.--To the maximum extent
practicable, in providing assistance under this
subsection, the Secretary shall give the highest
priority to funding projects that, as determined by the
Secretary--
[(A) make local food products available on
the menu of the eligible school;
[(B) serve a high proportion of children who
are eligible for free or reduced price lunches;
[(C) incorporate experiential nutrition
education activities in curriculum planning
that encourage the participation of school
children in farm and garden-based agricultural
education activities;
[(D) demonstrate collaboration between
eligible schools, nongovernmental and
community-based organizations, agricultural
producer groups, and other community partners;
[(E) include adequate and participatory
evaluation plans;
[(F) demonstrate the potential for long-term
program sustainability; and
[(G) meet any other criteria that the
Secretary determines appropriate.
[(6) Evaluation.--As a condition of receiving a grant
under this subsection, each grant recipient shall agree
to cooperate in an evaluation by the Secretary of the
program carried out using grant funds.
[(7) Technical assistance.--The Secretary shall
provide technical assistance and information to assist
eligible schools, State and local agencies, Indian
tribal organizations, and nonprofit entities--
[(A) to facilitate the coordination and
sharing of information and resources in the
Department that may be applicable to the farm
to school program;
[(B) to collect and share information on best
practices; and
[(C) to disseminate research and data on
existing farm to school programs and the
potential for programs in underserved areas.
[(8) Funding.--
[(A) In general.--On October 1, 2012, and
each October 1 thereafter, out of any funds in
the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the
Secretary to carry out this subsection
$5,000,000, 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.
[(9) Authorization of appropriations.--In addition to
the amounts made available under paragraph (8), there
are authorized to be appropriated to carry out this
subsection such sums as are necessary for each of
fiscal years 2011 through 2015.
[(h) Pilot Program for High-Poverty Schools.--
[(1) In general.--
[(A) Definitions.--In this paragraph:
[(i) Eligible program.--The term
``eligible program'' means--
[(I) a school-based program
with hands-on vegetable
gardening and nutrition
education that is incorporated
into the curriculum for 1 or
more grades at 2 or more
eligible schools; or
[(II) a community-based
summer program with hands-on
vegetable gardening and
nutrition education that is
part of, or coordinated with, a
summer enrichment program at 2
or more eligible schools.
[(ii) Eligible school.--The term
``eligible school'' means a public
school, at least 50 percent of the
students of which are eligible for free
or reduced price meals under this Act.
[(B) Establishment.--The Secretary shall
carry out a pilot program under which the
Secretary shall provide to nonprofit
organizations or public entities in not more
than 5 States grants to develop and run,
through eligible programs, community gardens at
eligible schools in the States that would--
[(i) be planted, cared for, and
harvested by students at the eligible
schools; and
[(ii) teach the students
participating in the community gardens
about agriculture production practices
and diet.
[(C) Priority states.--Of the States in which
grantees under this paragraph are located--
[(i) at least 1 State shall be among
the 15 largest States, as determined by
the Secretary;
[(ii) at least 1 State shall be among
the 16th to 30th largest States, as
determined by the Secretary; and
[(iii) at least 1 State shall be a
State that is not described in clause
(i) or (ii).
[(D) Use of produce.--Produce from a
community garden provided a grant under this
paragraph may be--
[(i) used to supplement food provided
at the eligible school;
[(ii) distributed to students to
bring home to the families of the
students; or
[(iii) donated to a local food bank
or senior center nutrition program.
[(E) No cost-sharing requirement.--A
nonprofit organization or public entity that
receives a grant under this paragraph shall not
be required to share the cost of carrying out
the activities assisted under this paragraph.
[(F) Evaluation.--A nonprofit organization or
public entity that receives a grant under this
paragraph shall be required to cooperate in an
evaluation carried out by the Secretary.
[(2) Authorization of appropriations.--There are
authorized to be appropriated such sums as are
necessary to carry out this subsection for each of
fiscal years 2004 through 2015.]
(d) Access to Local Foods: Farm to School Program.--
(1) Program.--The Secretary shall carry out a program
to assist eligible schools, State and local agencies,
Indian tribal organizations, agricultural producers or
groups of agricultural producers, and nonprofit
entities through grants, technical assistance, and
research to implement farm to school programs that
improve access to local foods and improve nutrition
education in eligible schools.
(2) Definitions.--In this subsection:
(A) Agricultural producer.--The term
``agricultural producer'' means a farmer,
rancher, or fisher (including of farm-raised
fish).
(B) Eligible school.--The term ``eligible
school'' means a school or institution that
participates in--
(i) a program under this Act,
including the summer food service
program for children under section 13
and the early care and afterschool
portions of the child and adult care
food program under section 17; or
(ii) the school breakfast program
established under section 4 of the
Child Nutrition Act of 1966 (42 U.S.C.
1773).
(3) Grants.--
(A) In general.--The Secretary shall award
competitive grants under this subsection to be
used for implementing farm to school programs
for the purposes of improving access to local
foods and improving nutrition education,
through--
(i) research, training, and technical
assistance;
(ii) supporting operations;
(iii) planning;
(iv) purchasing equipment;
(v) developing school gardens; and
(vi) developing partnerships to
facilitate nutrition education and
healthy eating.
(B) Regional balance.--In making awards under
this subsection, the Secretary shall, to the
maximum extent practicable, ensure--
(i) geographical diversity; and
(ii) equitable treatment of urban,
rural, and tribal communities.
(C) Improved procurement and distribution.--
Funds provided under this subsection may be
used to improve local food procurement and
distribution options between agricultural
producers and eligible schools, including
innovative approaches to aggregation,
processing, transportation, and distribution.
(D) Awards.--
(i) Maximum amount.--The total amount
provided to a grant recipient under
this subsection shall not exceed
$150,000.
(ii) Term.--The term of an award
shall not exceed 3 years.
(iii) Limitation.--The Secretary
shall not award any entity more than 1
grant at any given time.
(iv) Purpose and scope.--In carrying
out this subsection, the Secretary
shall make awards of diverse amounts
and duration so as to best match a
variety of purposes, scopes, and needs
of the project proposals.
(E) Limitation.--The Secretary shall not
award a grant under this subsection if the
majority of grant funds would be used solely
for the purpose of carrying out a conference.
(4) Federal share.--
(A) In general.--The Federal share of costs
for a project funded through a grant awarded
under this subsection shall not exceed 75
percent of the total cost of the project.
(B) Federal matching.--As a condition of
receiving a grant under this subsection, a
grant recipient shall provide matching support
in the form of cash or in-kind contributions,
including facilities, equipment, or services
provided by State and local governments,
nonprofit organizations, and private sources.
(5) Criteria for selection.--
(A) In general.--To the maximum extent
practicable, in providing assistance under this
subsection, the Secretary shall give priority
to proposals to--
(i) serve a high proportion of
children who are eligible for free or
reduced price meals;
(ii) incorporate nutrition education
activities that encourage the
participation of school children in
farm and garden-based agricultural
education activities;
(iii) provide families the
opportunity to participate in
educational programming, including
through materials and engagement
activities, to improve nutrition
outside the school environment;
(iv) demonstrate collaboration
between eligible schools,
nongovernmental and community-based
organizations, agricultural producer
groups, and other community partners;
(v) make local food products
available on the menu of reimbursable
meals under this Act at the eligible
school;
(vi) demonstrate the potential for
long-term program sustainability with
non-Federal funds; and
(vii) expand the selection of local
commodities available for eligible
schools.
(B) Tribal community projects.--In the case
of projects serving tribal communities, the
Secretary shall, to the maximum extent
practicable, give highest priority to projects
that propose to use products from tribal
agricultural producers, in addition to the
priorities under subparagraph (A).
(6) Evaluation.--As a condition of receiving a grant
under this subsection, each grant recipient shall agree
to cooperate in an evaluation of the program by the
Secretary.
(7) Technical assistance and research.--
(A) In general.--The Secretary shall provide
technical assistance, research, and information
through amounts reserved under this subsection
for such purposes, to assist schools, State and
local agencies, Indian tribal organizations,
agricultural producers, and nonprofit
entities--
(i) to facilitate the coordination
and sharing of information and
resources that may be applicable to the
farm to school program;
(ii) to collect and share information
on best practices;
(iii) to disseminate research and
data on existing farm to school
programs and the potential for programs
to begin in underserved areas; and
(iv) to increase awareness of, and
participation in, farm to school
programs among agricultural and
aquiculture producers or agricultural
producer groups, including beginning,
veteran, and socially disadvantaged
farmers and ranchers.
(B) Review.--Not later than 1 year after the
date of the enactment of the Improving Child
Nutrition and Education Act of 2016 and every 3
years thereafter, the Secretary shall review
and submit to the Committee on Agriculture and
the Committee on Education and the Workforce of
the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the
Senate a report that describes the regulatory
and other barriers related to including locally
or regionally produced food products in school
food programs, including any progress that has
been made in identifying and eliminating such
barriers through examining--
(i) barriers to the development and
implementation of successful farm to
school programs;
(ii) the direct and indirect costs
affecting the production and marketing
of locally or regionally produced
agricultural food products for school
food programs;
(iii) the costs local school food
programs incur by acquiring such local
foods for school meal programs in
comparison to the costs for other foods
in such school meal programs; and
(iv) local and regional market access
for such food products, partnerships,
small-scale production, and any
barriers to and long-term feasibility
of such access.
(8) Funding.--
(A) In general.--On October 1, 2016, and each
October 1 thereafter, out of any funds in the
Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the
Secretary to carry out this subsection
$10,000,000, 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.
(C) Administration.--Of the funds made
available to the Secretary under subparagraph
(A), not more than 5 percent may be used to pay
administrative costs incurred by the Secretary
in carrying out this subsection and evaluating
the program in accordance with paragraph (6).
(e) Summer Meal Service Through Business Partnership.--
(1) In general.--From the funds made available under
the summer food service program under section 13, the
Secretary shall award grants on a competitive basis to
not more than 4 State agencies to improve delivery of
such summer food service program for low-income
children in underserved areas during the summer through
sustainable, scalable, business-driven solutions.
(A) Duration.--A grant awarded under this
subsection shall be for a period of not more
than 3 years.
(B) Priority.--In awarding grants under this
subsection, the Secretary shall give priority
to State agencies that have met the application
requirements under this subsection and which
demonstrate a severe unmet need for serving
children in additional eligible areas in the
State through the summer food service program
under section 13.
(C) Limitation.--Funds under this subsection
will--
(i) be awarded for the purpose of
reducing childhood hunger and allowing
parents to better participate in the
labor force or an education or
workforce development program; and
(ii) not preempt or prevent operation
of the summer food service program
under section 13.
(2) State application.--A State seeking to improve
delivery of the summer food service program in such
State in accordance with this subsection shall submit
an application at such time and in such manner as the
Secretary may reasonably require. The application shall
contain--
(A) State plans to implement and manage the
program in accordance with other applicable
Federal requirements under this Act;
(B) a determination of the eligible areas in
the State in which poor economic conditions
exist in accordance with the program, but where
an eligible service institution is not
currently in operation, where the State may
reimburse a vendor;
(C) identified eligible vendors which the
State has determined to be qualified to provide
meals in accordance with this subsection;
(D) a proposed timeline for entering into
contracts with eligible vendors and strategies
for effective communication; and
(E) an assurance that funds will be used to
provide meals to the most vulnerable,
underserved, and rural populations, as
determined by the State.
(3) Eligible vendor.--For purposes of this
subsection, an eligible vendor is a food vendor which
the State determines has the administrative capacity
and proven operating performance to provide eligible
meals to children in underserved areas in accordance
with this subsection and the summer food service
program requirements on management responsibilities of
sponsors and self-preparation sites, including
requirements that the vendor--
(A) accepts final administrative and
financial responsibility for management of an
effective food service, including auditing and
reporting responsibilities, but will not
receive administrative funding from the State
to do so;
(B) has not been determined ineligible to
participate in any other program under this Act
or the Child Nutrition Act of 1966 by reason of
violation of the requirements of that program;
(C) will provide adequate supervisory and
operational personnel for monitoring and
management of a self-preparation site;
(D) contracts directly with the State as a
sponsor;
(E) ensures that meals are inspected
periodically as required under existing program
regulations;
(F) participates in applicable State and
Federal reporting and auditing requirements
under this Act as appropriate, including to
provide other information determined relevant
by the Secretary in accordance with paragraph
(5);
(G) has State or local health certification
for the facilities in which meals will be
prepared and distributed for use in the
program, and ensures that State and local
health and sanitation requirements are met at
all times; and
(H) has the organizational capacity to offer
meals in underserved communities, including
preparation and delivery logistics.
(4) State disbursement.--A State shall use the grant
awarded to the State under this subsection to reimburse
an eligible vendor for meals served to eligible
children in accordance with the summer food service
program under section 13 and with this subsection, as
follows:
(A) Reimbursements shall be available for an
eligible vendor operating in an eligible area
in which poor economic conditions exist where
no sponsor is currently operating the program
under section 13.
(B) To the extent practicable, a State shall
give priority to eligible vendors that--
(i) demonstrate partnerships with
entities providing summer enrichment
activities such as schools, local
government agencies, and nonprofit
agencies; and
(ii) provide meals at a congregate
site.
(C) A State shall follow established
procedures in entering into contracts with a
vendor, such as through a Request for Proposal,
Invitation for Sealed Bid, Small Purchase
Procedure, or other common method.
(5) Auditing.--
(A) State reporting.--Not later than 1 year
after the end of the grant period for a grant
awarded to a State under this subsection, the
State shall submit to the Secretary a report
on--
(i) the activities carried out with
such grant; and
(ii) the impacts of such activities
on children, families, and eligible
service institutions during the summer.
(B) Report from secretary.--No later than 4
years after the first grant is awarded under
this subsection, the Secretary shall provide to
the Committee on Education and the Workforce of
the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the
Senate a report on the grant program under this
subsection, which shall include--
(i) a review of information submitted
by States under subparagraph (A); and
(ii) best practices on reducing
childhood hunger in the summer months.
(6) Limitations.--The following rules shall apply
with respect to this subsection:
(A) No commodities shall be provided to
businesses or vendors under this subsection.
(B) Vendors shall assume all administrative
costs under this subsection.
(C) Meals shall be provided to children
eligible for the summer food service program
under section 13.
(D) A vendor receiving reimbursements shall
not profit directly from such reimbursements
under this subsection.
(E) The Secretary shall include payments to
States under this subsection in its
calculations for administrative costs incurred
by States under subsection (k)(1) of section
13.
(f) Summer Electronic Benefit Transfer for Children.--
(1) Purpose.--The purposes of the provision of
electronic benefits provided through this subsection
are to assess the use of alternate methods of providing
access to food for children during the summer months
when school is not in regular session that are intended
to--
(A) increase summer food service program
effectiveness and efficiency;
(B) reduce or eliminate the food insecurity
and hunger of children; and
(C) improve the nutritional status of
children.
(2) Demonstration.--
(A) Election.--A State that, as of the date
of enactment of the Improving Child Nutrition
and Education Act of 2016, is operating, or has
operated, a summer electronic benefit transfer
for children demonstration may elect to
continue operating such demonstration in
accordance with the requirements of this
subsection as an alternative to other delivery
models of providing meals to children during
the summer months when school is not in regular
session.
(B) State requirements.--As a condition of
participating in the demonstration under this
subsection, a State shall--
(i) comply with the requirements
under this subsection; and
(ii) agree to provide such
information the Secretary may require
for the evaluation of the demonstration
as required under this subsection.
(3) Definitions.--In this subsection:
(A) Eligible household.--The term ``eligible
household'' means a household that includes 1
or more school-aged child determined as
eligible to receive free or reduced price
school meals during the prior school year, but
such child is not participating in a program
that provides food during the summer through
the summer food service program under section
13.
(B) State.--The term ``State'' includes a
tribal entity.
(C) Summer electronic benefit transfer for
children demonstration.--The term ``summer
electronic benefit transfer for children
demonstration'' means an electronic benefit
transfer demonstration project under section
748(g)(1) of the Agriculture, Rural
Development, Food and Drug Administration, and
Related Appropriations Act, 2010 (Public Law
111-80; 123 Stat. 2132).
(4) Benefit levels.--
(A) In general.--The Secretary shall approve
States seeking to make an election under
paragraph (2)(A) that will evaluate the impact
of providing a variety of differentiated
benefit levels to eligible children as a way to
reach such children to the greatest extent
practicable. The values of such benefits shall
be determined by the State, but shall be
between $15 and $30 per month for each school-
aged child in an eligible household.
(B) Rate determination.--In determining the
values under subparagraph (A), a State may
consider differentiating rates based on the
need for such benefits, which may be determined
through factors such as--
(i) the proportion of applicants that
are eligible for free price meals;
(ii) total number of households and
children seeking to participate;
(iii) food security in children
across communities in such State;
(iv) average redemption rates of
benefits;
(v) impact of such values at
improving food security in children;
(vi) availability of other community
programs that provide meals to children
during the summer months when school is
not in regular session where children
might otherwise receive nutrition
assistance; and
(vii) any other information a State
determines is useful for determining
such rates.
(C) Limitations.--
(i) Time.--No child may receive more
than 3 months of benefits under this
paragraph in any 12-month period.
(ii) Amount.--No child may receive
more than $30 of benefits under this
paragraph per month.
(D) Cost sharing.--Nothing in this paragraph
shall be construed to prohibit States or local
entities from providing additional non-Federal
resources for the purposes of this subsection.
(5) Effective implementation.--
(A) In general.--In administering this
subsection and providing benefits to children
in accordance with this subsection, a State
shall consider previous State experiences and
best practices in implementing the summer
electronic benefit transfer for children
demonstration carried out before the date of
enactment of the Improving Child Nutrition and
Education Act of 2016, including information
evaluating findings of the demonstration
(including the 2013 final report published by
the Department of Agriculture).
(B) Technical assistance.--The Secretary
shall provide, and periodically update,
technical assistance to States for purposes of
this paragraph.
(6) Use of benefits.--
(A) In general.--Benefits issued to families
through the election under paragraph (2)(A) may
be used only for the purchase of food for
consumption by school-aged children in such
family.
(B) Timing.--Benefits issued through the
election described in this subparagraph may be
redeemed only when school is out of session for
the summer period.
(7) Administration.--In administering this
subsection, the State shall--
(A) ensure that benefits are issued only to
eligible households that live--
(i) in areas with high rates of
poverty or long-term poverty that are
rural and have no congregate feeding
sites or access to meals otherwise
provided through the summer food
service program authorized under
section 13; or
(ii) outside an area in which poor
economic conditions exist but in an
area with no access to meals otherwise
provided through the summer food
service program authorized under
section 13;
(B) issue benefits to eligible households
only after such household has made an oral or
written request to receive electronic benefit
transfer benefits under this subsection; and
(C) document how the election will be
administered in the management and
administration plan described in subsection
(n), including the process for identifying
areas in which benefits will be issued.
(8) Evaluation.--The Secretary shall provide for an
ongoing, independent evaluation of the demonstration
carried out under this subsection, including quasi-
experimental or other methods that are capable of
producing scientifically valid information to determine
effectiveness in achieving the purposes described in
paragraph (1), including examining or assessing--
(A) feasibility of, or barriers to,
successful implementation of this subsection;
(B) varied approaches in State implementation
of this subsection, including different
approaches, challenges, and lessons learned;
(C) specific levels of use and receipt of
benefits;
(D) impact on children's food security and
nutritional impacts, including by the different
impacts on children in a variety of
geographical areas such as rural, urban, and
suburban areas, localities, and States;
(E) total cost (including administrative
cost) of implementing and operating this
subsection, including in comparison to other
methods of providing summer meal service to
school-aged children;
(F) impacts and results of such evaluation in
comparison to evaluations of the summer
electronic benefits transfer for children
demonstration published by the Secretary of
Agriculture; and
(G) the potential for benefits provided under
this subsection to improve effectiveness and
efficiency of the summer food service program
in comparison to other methods of providing
summer meal service to school-aged children.
(9) Report.--Not later than one year after amounts
are first appropriated under paragraph (10), and each
year thereafter, the Secretary shall submit to Congress
a report that--
(A) includes the information resulting from
the most recent evaluation under paragraph (8);
and
(B) takes into consideration evaluations of
the summer electronic benefits transfer for
children demonstration published by the
Secretary of Agriculture.
(10) Authorization of appropriations.--
(A) In general.--There is authorized to be
appropriated to carry out this subsection not
more than $10,000,000 for each of fiscal years
2018 through 2020, to remain available until
expended.
(B) Limitations.--Of such appropriations, for
each fiscal year--
(i) each State shall utilize a
portion for administrative funds that
shall be equal to the levels necessary
to effectively and efficiently
administer the State's demonstration
under this subsection, as determined by
the State;
(ii) not more than 1 percent may be
spent on administrative funds by the
Secretary; and
(iii) not more than $499,999 shall be
available for the Secretary to comply
with paragraph (8).
(11) Guidance.--Not later than December 31, 2016, the
Secretary shall provide guidance to States to implement
this subsection, including recommendations for States
to successfully continue to implement the summer
electronic benefit transfer for children demonstration
while complying with the new or additional requirements
of this subsection.
[(i)] (g) Year-Round Services for Eligible Entities.--
(1) In general.--A service institution that is
described in section 13(a)(6) (excluding a public
school), or a private nonprofit organization described
in section 13(a)(7), and that is located in the State
of California may be reimbursed--
(A) for up to 2 meals during each day of
operation served--
(i) during the months of May through
September;
(ii) in the case of a service
institution that operates a food
service program for children on school
vacation, at anytime under a continuous
school calendar; and
(iii) in the case of a service
institution that provides meal service
at a nonschool site to children who are
not in school for a period during the
school year due to a natural disaster,
building repair, court order, or
similar case, at anytime during such a
period; and
(B) for a snack served during each day of
operation after school hours, weekends, and
school holidays during the regular school
calendar.
(2) Payments.--The service institution shall be
reimbursed consistent with section 13(b)(1).
(3) Administration.--To receive reimbursement under
this subsection, a service institution shall comply
with section 13, other than subsections (b)(2) and
(c)(1) of that section.
(4) Evaluation.--Not later than September 30, 2007,
the State agency shall submit to the Secretary a report
on the effect of this subsection on participation in
the summer food service program for children
established under section 13.
(5) Funding.--The Secretary shall provide to the
State of California such sums as are necessary to carry
out this subsection for each of fiscal years [2011
through 2015] 2017 through 2021.
[(j) Free Lunch and Breakfast Eligibility.--
[(1) In general.--Subject to the availability of
funds under paragraph (4), the Secretary shall expand
the service of free lunches and breakfasts provided at
schools participating in 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)
in all or part of 5 States selected by the Secretary
(of which at least 1 shall be a largely rural State
with a significant Native American population).
[(2) Income eligibility.--The income guidelines for
determining eligibility for free lunches or breakfasts
under this subsection shall be 185 percent of the
applicable family size income levels contained in the
nonfarm income poverty guidelines prescribed by the
Office of Management and Budget, as adjusted annually
in accordance with section 9(b)(1)(B).
[(3) Evaluation.--
[(A) In general.--Not later than 3 years
after the implementation of this subsection,
the Secretary shall conduct an evaluation to
assess the impact of the changed income
eligibility guidelines by comparing the school
food authorities operating under this
subsection to school food authorities not
operating under this subsection.
[(B) Impact assessment.--
[(i) Children.--The evaluation shall
assess the impact of this subsection
separately on--
[(I) children in households
with incomes less than 130
percent of the applicable
family income levels contained
in the nonfarm poverty income
guidelines prescribed by the
Office of Management and
Budget, as adjusted annually in
accordance with section
9(b)(1)(B); and
[(II) children in households
with incomes greater than 130
percent and not greater than
185 percent of the applicable
family income levels contained
in the nonfarm poverty income
guidelines prescribed by the
Office of Management and
Budget, as adjusted annually in
accordance with section
9(b)(1)(B).
[(ii) Factors.--The evaluation shall
assess the impact of this subsection
on--
[(I) certification and
participation rates in the
school lunch and breakfast
programs;
[(II) rates of lunch- and
breakfast-skipping;
[(III) academic achievement;
[(IV) the allocation of funds
authorized in title I of the
Elementary and Secondary
Education Act (20 U.S.C. 6301)
to local educational agencies
and public schools; and
[(V) other factors determined
by the Secretary.
[(C) Cost assessment.--The evaluation shall
assess the increased costs associated with
providing additional free, reduced price, or
paid meals in the school food authorities
operating under this subsection.
[(D) Report.--On completion of the
evaluation, the Secretary shall submit to the
Committee on Education and the Workforce of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate a report describing the results of the
evaluation under this paragraph.
[(4) Authorization of appropriations.--There are
authorized to be appropriated such sums as are
necessary to carry out this subsection, to remain
available until expended.
[(k) Organic Food Pilot Program.--
[(1) Establishment.--The Secretary shall establish an
organic food pilot program (referred to in this
subsection as the ``pilot program'') under which the
Secretary shall provide grants on a competitive basis
to school food authorities selected under paragraph
(3).
[(2) Use of funds.--
[(A) In general.--The Secretary shall use
funds provided under this section--
[(i) to enter into competitively
awarded contracts or cooperative
agreements with school food authorities
selected under paragraph (3); or
[(ii) to make grants to school food
authority applicants selected under
paragraph (3).
[(B) School food authority uses of funds.--A
school food authority that receives a grant
under this section shall use the grant funds to
establish a pilot program that increases the
quantity of organic foods provided to
schoolchildren under the school lunch program
established under this Act.
[(3) Application.--
[(A) In general.--A school food authority
seeking a contract, grant, or cooperative
agreement under this subsection shall submit to
the Secretary an application in such form,
containing such information, and at such time
as the Secretary shall prescribe.
[(B) Criteria.--In selecting contract, grant,
or cooperative agreement recipients, the
Secretary shall consider--
[(i) the poverty line (as defined in
section 673(2) of the Community
Services Block Grant Act (42 U.S.C.
9902(2), including any revision
required by that section)) applicable
to a family of the size involved of the
households in the district served by
the school food authority, giving
preference to school food authority
applicants in which not less than 50
percent of the households in the
district are at or below the Federal
poverty line;
[(ii) the commitment of each school
food authority applicant--
[(I) to improve the
nutritional value of school
meals;
[(II) to carry out innovative
programs that improve the
health and wellness of
schoolchildren; and
[(III) to evaluate the
outcome of the pilot program;
and
[(iii) any other criteria the
Secretary determines to be appropriate.
[(4) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection $10,000,000 for fiscal years 2011 through
2015.]
(h) State Administration of Child Nutrition Programs.--
(1) Purposes.--The purposes of this subsection are to
provide States flexibility to develop programs and
policies to best meet the nutritional needs of school-
aged children in the State by providing flexibility
over school meal programs under this Act and section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773) and
other programs to address such needs more effectively
and efficiently with less Federal involvement,
including by--
(A) removing duplication, redundancies,
regulatory burden, and unnecessary requirements
resulting from the Federal administration of
the school meal programs;
(B) more efficiently using Federal, State,
local, and nongovernmental resources to
strengthen delivery of the school meal programs
and other programs; and
(C) supporting healthy meals through
involvement by parents, family members, and the
community, including nonprofit organizations,
health organizations, and school officials from
large and small urban, suburban, and rural
areas in the State.
(2) Grants authorized.--
(A) In general.--The Secretary shall award
grants, on a competitive basis, to up to 3
States to enable the States to carry out the
activities described in this subsection.
(B) Considerations.--In awarding grants under
this subsection, the Secretary shall--
(i) in a case in which more than 3
States apply for a grant under this
subsection, give priority to States by
taking into consideration regional
diversity; and
(ii) ensure each State awarded a
grant under this subsection meets the
required assurances under paragraph
(3)(D), except that the Secretary shall
not approve or disapprove an
application on the basis of a State's
plan or proposed program.
(C) Duration of grants.--A grant to a State
under this subsection--
(i) shall be awarded to the State for
a 3-year period; and
(ii) may be renewed by the Secretary
for an additional 3-year period if the
State can demonstrate success in
meeting the nutritional needs of the
school-aged children in the State.
(D) Amount of grants.--The amount of a grant
awarded to a State under this subsection for
each year of the grant period shall be equal to
the amount described in paragraph (3)(C).
(E) Matching requirement.--Each State that
receives a grant under this subsection shall
provide funds from non-Federal sources (which
may be provided in cash, commodities, or in
kind) to support the activities under this
subsection.
(F) Limitations.--A State that receives a
grant under this subsection may not, during any
period during which the State receives such
grant, receive funds under any of the
following:
(i) The school lunch program under
this Act.
(ii) The school breakfast program
under section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773).
(iii) The special milk program under
section 3 of the Child Nutrition Act of
1966 (42 U.S.C. 1772).
(iv) The State administrative
expenses funding under section 7 of the
Child Nutrition Act of 1966 (42 U.S.C.
1776).
(v) The team nutrition network under
section 19 of the Child Nutrition Act
of 1966 (42 U.S.C. 1788).
(3) Application.--To receive a grant under this
subsection, a State shall submit an application at such
time and in such manner as the Secretary may reasonably
require. The application shall contain--
(A) an assurance that each school-aged child
in the State will have access to at least one
affordable meal service option during the
school day at the school in which the child is
enrolled, and a plan for how the State will
carry out such assurance, including--
(i) the income thresholds or other
needs-based determinations to be used
for determining--
(I) which students are
eligible for free meals;
(II) which students are
eligible for reduced price
meals; and
(III) which students are
required to pay the full price
for meals;
(ii) the estimated number of students
in the State eligible for the
thresholds for each meal category
described in clause (i);
(iii) the price to be charged to
students eligible for reduced price
meals and the price to be charged to
students required to pay the full price
for meals;
(iv) how the State will identify and
verify eligibility of such students,
such as through census data,
application processes, or any other
State-determined method;
(v) an identification of any non-
Federal sources, including State funds,
the State will utilize to meet the
needs of school-aged children in the
State if the grant received under this
subsection is not sufficient to cover
the cost of the meals to be served
during the period in which the State
receives such grant;
(vi) any other factors the State will
use to determine distribution of funds
received under the grant to each
elementary school and secondary school
in the State to reimburse the schools
for the cost of the meals served,
including how the State will ensure a
fair distribution of such funds to
address the need for such meals at each
such school; and
(vii) the monitoring plan the State
will use to ensure the funding
described in clause (v) will be used in
accordance with this subsection;
(B) a description of the requirements for
meals provided under this subsection that the
State will require, including requirements for
meal standards and pricing;
(C) a request for an amount of grant funds
for each year that the State will receive a
grant under this subsection, which may not, for
each such year exceed the amount the State
received for fiscal year 2016--
(i) for free and reduced price meal
reimbursements under the programs
described in clauses (i) and (ii) of
paragraph (2)(F), excluding any
additional reimbursements received
under section 4(b)(3) of this Act; and
(ii) under the programs described in
paragraphs (iii) through (v) of
paragraph (2)(F); and
(D) assurances that the State will--
(i) provide healthy meals to school-
aged children in the State to ensure
maximum participation of students in
the State;
(ii) provide technical assistance to
local educational agencies and schools
to ensure maximum participation of
students in the State;
(iii) provide an annual report to the
Secretary that outlines the activities
and progress made in providing healthy
meals to students in a more cost
efficient manner than such meals were
provided prior to the State receiving
such grant; and
(iv) work with school leaders, school
nutrition providers, and health
professionals to develop and implement
the plan under subparagraph (A) and to
ensure that meals provided in schools
in the State using the grant will be
healthy and provided in an efficient
and cost effective manner.
(4) Use of funds.--
(A) In general.--A State that receives a
grant under this subsection shall use the grant
funds to--
(i) provide meals to school-aged
children in accordance with paragraph
(3);
(ii) carry out the activities
described in subparagraph (B) of this
paragraph; and
(iii) carry out any other activities
the State determines will support the
goals of this subsection.
(B) Additional state activities.--Each State
that receives a grant under this subsection
shall, in addition to the activities described
in clauses (i) and (ii) of subparagraph (A),
provide nutritional assistance to low-income
and vulnerable children, as determined by the
State, by--
(i) addressing specific State and
community nutritional needs;
(ii) engaging partners to deliver the
meal programs to spur innovation in
such delivery, including local
governments and school officials,
businesses, non-profit and faith-based
organizations, and other community
partners;
(iii) developing or strengthening
private sector partnerships to support
the community and nutritional needs of
school-aged children; and
(iv) achieving administrative and
other programmatic cost savings.
(C) Limitation.--A State may use not more
than 10 percent of the grant received under
this subsection for administrative and outreach
expenses.
(5) State reporting.--Not later than 2 years after
receiving a grant under this subsection, a State shall
submit to the Secretary a report on how the State was
better able to operate school meals and other programs
to address needs more effectively compared to how the
State addressed such needs before the grant was awarded
to the State. The report shall include--
(A) a description of how the State used the
grant funds, the State costs of carrying out
the activities under this subsection (including
food, administrative, labor, oversight, and any
other costs), and any revenue the State
received by carrying out such activities
(including Federal, non-Federal, and family
contributions);
(B) the strategies and activities undertaken
at the State and, if applicable, local level to
meet the goals of this subsection;
(C) financial efficiencies the State has
identified through the grant, including the
extent to which activities under the grant have
led to the addition, blending, or braiding of
other Federal or private funding, and the
specific or estimated amount of cost-savings,
reduced burdens, and other efficiencies;
(D) the impacts the State has made in meeting
the goals of this subsection;
(E) any barriers the State has identified in
providing school meals, and ways in which to
overcome such barriers; and
(F) other State-determined and voluntarily
provided information intended to share best
practices for future implementation of this
subsection.
(6) Limitations on federal interference.--Nothing in
this subsection shall be construed to authorize the
Secretary to establish, as a condition to receive a
grant under this subsection or as requirement to
operate such a grant, any criterion that specifies,
defines, or prescribes--
(A) nutritional guidelines, standards, or
meal requirements, including the methods that a
State uses to develop, implement, or improve
such nutritional guidelines, standards, or meal
requirements;
(B) specific aspects, parameters, or measures
of programmatic quality, including measures of
compliance or evaluation;
(C) nutritional curriculum, programs of
instruction, or instructional content;
(D) any aspect of meal provision criteria,
including nutritional requirements, timing,
duration, type, price, amount, or any other
aspect of meals or meal program operation;
(E) any term under this subsection as such
term applies to activities carried out by a
State, including the terms healthy, affordable
meal, school day, and nutritional needs;
(F) the ways in which a State identifies and
verifies eligibility for benefits, including
child, family, and provider eligibility;
(G) differentiated payment rates a State may
use;
(H) the amount or sources of non-Federal
funds that a State must provide;
(I) the percentages or amounts of grant funds
to be used for specific activities within or
among programs;
(J) the scope or structure of programs,
including number of meals served, timing within
the day, and length or time of year a program
operates; and
(K) any aspect or parameter of programmatic
evaluation.
(7) Federal reporting.--Not later than 4 years after
the first grant is awarded under this subsection, the
Secretary shall provide to the Committee on Education
and the Workforce of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry
of the Senate, and to States, a report on the
feasibility of scaling the implementation of this
subsection, including the efficiencies, cost savings,
and other benefits identified by State implementation
of the programs described in paragraph (2)(F) under
this subsection. Such determination of feasibility
shall be based on information including--
(A) State reports submitted under paragraph
(5);
(B) a determination of the level of Federal
cost-savings achieved and the amount of future
cost-saving implications;
(C) programmatic simplifications the Federal
Government could pursue; and
(D) other information provided by States or
private entities that would be useful in
recommendations to the public, States, and to
Congress.
SEC. 19. [FRESH] FRUIT AND VEGETABLE PROGRAM.
(a) In General.--For the school year beginning July 2008 and
each subsequent school year, the Secretary shall provide grants
to States to carry out a program to make free [fresh] fruits
and vegetables available in elementary schools (referred to in
this section as the ``program'').
(b) Program.--A school participating in the program shall
make free [fresh] fruits and vegetables available to students
throughout the school day (or at such other times as are
considered appropriate by the Secretary) in 1 or more areas
designated by the school.
(c) Funding to States.--
(1) Minimum grant.--Except as provided in subsection
(i)(2), the Secretary shall provide to each of the 50
States and the District of Columbia an annual grant in
an amount equal to 1 percent of the funds made
available for a year to carry out the program.
(2) Additional funding.--Of the funds remaining after
grants are made under paragraph (1), the Secretary
shall allocate additional funds to each State that is
operating a school lunch program under section 4 based
on the proportion that--
(A) the population of the State; bears to
(B) the population of the United States.
(d) Selection of Schools.--
(1) In general.--Except as provided in paragraph (2)
of this subsection and section 4304(a)(2) of the Food,
Conservation, and Energy Act of 2008, each year, in
selecting schools to participate in the program, each
State shall--
(A) ensure that each school chosen to
participate in the program is a school--
(i) in which not less than 50 percent
of the students are eligible for free
or reduced price meals under this Act;
and
(ii) that submits an application in
accordance with subparagraph (D);
(B) to the maximum extent practicable, give
the highest priority to schools with the
highest proportion of children who are eligible
for free or reduced price meals under this Act;
(C) ensure that each school selected is an
elementary school (as defined in section 9101
of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7801));
(D) 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 program signed by
the school food manager, the school
principal, and the district
superintendent (or equivalent
positions, as determined by the
school);
(iii) a plan for implementation of
the program, including efforts to
integrate activities carried out under
this section with other efforts to
promote sound health and nutrition,
reduce overweight and obesity, or
promote physical activity; and
(iv) such other information as may be
requested by the Secretary; and
(E) encourage applicants to submit a plan for
implementation of the program that includes a
partnership with 1 or more entities that will
provide non-Federal resources (including
entities representing the fruit and vegetable
industry).
(2) Exception.--Clause (i) of paragraph (1)(A) shall
not apply to a State if all schools that meet the
requirements of that clause have been selected and the
State does not have a sufficient number of additional
schools that meet the requirement of that clause.
(3) Outreach to low-income schools.--
(A) In general.--Prior to making decisions
regarding school participation in the program,
a State agency shall inform the schools within
the State with the highest proportion of free
and reduced price meal eligibility, including
Native American schools, of the eligibility of
the schools for the program with respect to
priority granted to schools with the highest
proportion of free and reduced price
eligibility under paragraph (1)(B).
(B) Requirement.--In providing information to
schools in accordance with subparagraph (A), a
State agency shall inform the schools that
would likely be chosen to participate in the
program under paragraph (1)(B).
(e) Notice of Availability.--If selected to participate in
the program, a school shall widely publicize within the school
the availability of free [fresh] fruits and vegetables under
the program.
(f) Per-Student Grant.--The per-student grant provided to a
school under this section shall be--
(1) determined by a State agency; and
(2) not less than $50, nor more than $75.
(g) Limitation.--To the maximum extent practicable, each
State agency shall ensure that in making the fruits and
vegetables provided under this section available to students,
schools offer the fruits and vegetables separately from meals
otherwise provided at the school under this Act or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
(h) Evaluation and Reports.--
(1) In general.--The Secretary shall conduct an
evaluation of the program, including a determination as
to whether children experienced, as a result of
participating in the program--
(A) increased consumption of fruits and
vegetables;
(B) other dietary changes, such as decreased
consumption of less nutritious foods; and
(C) such other outcomes as are considered
appropriate by the Secretary.
(2) Report.--Not later than September 30, 2011, the
Secretary shall submit to the [Committee on Education
and Labor] Committee on Education and the Workforce of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a
report that describes the results of the evaluation
under paragraph (1).
(i) Funding.--
(1) In general.--Out of the funds made available
under subsection (b)(2)(A) of section 14222 of the
Food, Conservation, and Energy Act of 2008, the
Secretary shall use the following amounts to carry out
this section:
(A) On October 1, 2008, $40,000,000.
(B) On July 1, 2009, $65,000,000.
(C) On July 1, 2010, $101,000,000.
(D) On July 1, 2011, $150,000,000.
(E) On July 1, 2012, and each July 1
thereafter, the amount made available for the
preceding fiscal year, as adjusted to reflect
changes for the 12-month period ending the
preceding April 30 in the Consumer Price Index
for All Urban Consumers published by the Bureau
of Labor Statistics of the Department of Labor,
for items other than food.
(2) Maintenance of existing funding.--In allocating
funding made available under paragraph (1) among the
States in accordance with subsection (c), the Secretary
shall ensure that each State that received funding
under section 18(f) on the day before the date of
enactment of the Food, Conservation, and Energy Act of
2008 shall continue to receive sufficient funding under
this section to maintain the caseload level of the
State under that section as in effect on that date.
(3) Evaluation funding.--On October 1, 2008, out of
any funds made available under subsection (b)(2)(A) of
section 14222 of the Food, Conservation, and Energy Act
of 2008, the Secretary shall use to carry out the
evaluation required under subsection (h), $3,000,000,
to remain available for obligation until September 30,
2010.
(4) Receipt and acceptance.--The Secretary shall be
entitled to receive, shall accept, and shall use to
carry out this section any funds transferred for that
purpose, without further appropriation.
[(5) Authorization of appropriations.--In addition to
any other amounts made available to carry out this
section, there are authorized to be appropriated such
sums as are necessary to expand the program established
under this section.]
[(6)] (5) Administrative costs.--
(A) In general.--Of funds made available to
carry out this section for a fiscal year, the
Secretary may use not more than $500,000 for
the administrative costs of carrying out the
program.
(B) Reservation of funds.--The Secretary
shall allow each State to reserve such funding
as the Secretary determines to be necessary to
administer the program in the State (with
adjustments for the size of the State and the
grant amount), but not to exceed the amount
required to pay the costs of 1 full-time
coordinator for the program in the State.
[(7) Reallocation.--
[(A) Among states.--The Secretary may
reallocate any amounts made available to carry
out this section that are not obligated or
expended by a date determined by the Secretary.
[(B) Within states.--A State that receives a
grant under this section may reallocate any
amounts made available under the grant that are
not obligated or expended by a date determined
by the Secretary.]
(6) Clarification.--
(A) Guidance.--The Secretary shall issue
guidance with respect to how funds under the
program may be used, which--
(i) clarifies to States that such
funds may be used on all forms of
fruits and vegetables, provided the
fruit or vegetable product meets the
requirements of section 210.11 of title
7, Code of Federal Regulations (as in
effect on the date of enactment of the
Improving Child Nutrition and Education
Act of 2016);
(ii) provides the appropriate
exemptions described in such section
210.11 of the Code of Federal
Regulations; and
(iii) encourages schools to introduce
fruits and vegetables to children in
new contexts, including by allowing
schools to offer combinations of fruits
and vegetables with tree nuts, which
provide a good source of protein per
serving and meet the nutrition
standards of such section 210.11 of the
Code of Federal Regulations, except
that the Secretary shall provide
exemptions from the total fat
requirements under such section 210.11
for tree nut products.
(B) Local decision.--Nothing in this section
shall be construed to require a school
participating in the program to select forms of
fruit or vegetables other than fresh.
* * * * * * *
SEC. 21. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE MANAGEMENT
INSTITUTE.
(a) General Authority.--The Secretary--
(1) subject to the availability of, and from, amounts
appropriated pursuant to subsection (e)(1), shall
conduct training activities and provide--
(A) training and technical assistance to
improve the skills of individuals employed in--
(i) food service programs carried out
with assistance under this Act and, to
the maximum extent practicable, using
individuals who administer exemplary
local food service programs in the
State;
(ii) school breakfast programs
carried out with assistance under
section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773); and
(iii) as appropriate, other federally
assisted feeding programs; and
(B) 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--
(i) addresses the cost savings and
improvements in program integrity and
operations that would result from the
use of new or upgraded technology;
(ii) ensures that there is not any
overt identification of any child by
special tokens or tickets, announced or
published list of names, or by any
other means;
(iii) provides for processing and
verifying applications for free and
reduced price school meals;
(iv) integrates menu planning,
production, and serving data to monitor
compliance with section 9(f)(1); and
(v) establishes compatibility with
statewide reporting systems;
(C) assistance, on a competitive basis, to
State agencies with low proportions of schools
or students that--
(i) participate in the school
breakfast program under section 4 of
the Child Nutrition Act of 1966 (42
U.S.C. 1773); and
(ii) 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
(2) from amounts appropriated pursuant to subsection
(e)(2), is authorized to provide financial and other
assistance to the University of Mississippi, in
cooperation with the University of Southern
Mississippi, to establish and maintain a food service
management institute.
(b) Minimum Requirements.--The activities conducted and
assistance provided as required by subsection (a)(1) shall at
least include activities and assistance with respect to--
(1) menu planning;
(2) implementation of regulations and appropriate
guidelines; and
(3) compliance with program requirements and
accountability for program operations.
(c) Duties of Food Service Management Institute.--
(1) In general.--Any food service management
institute established as authorized by subsection
(a)(2) shall carry out activities to improve the
general operation and quality of--
(A) food service programs assisted under this
Act;
(B) school breakfast programs assisted under
section 4 of the Child Nutrition Act of 1966;
and
(C) as appropriate, other federally assisted
feeding programs.
(2) Required activities.--Activities carried out
under paragraph (1) shall include--
(A) conducting research necessary to assist
schools and other organizations that
participate in such programs in providing high
quality, nutritious, cost-effective meal
service to the children served;
(B) providing training and technical
assistance with respect to--
(i) efficient use of physical
resources;
(ii) financial management;
(iii) efficient use of computers;
(iv) procurement;
(v) sanitation;
(vi) safety, including food handling,
hazard analysis and critical control
point plan implementation, emergency
readiness, responding to a food recall,
and food biosecurity training;
(vii) meal planning and related
nutrition activities;
(viii) culinary skills; and
(ix) other appropriate activities;
(C) establishing a national network of
trained professionals to present training
programs and workshops for food service
personnel;
(D) developing training materials for use in
the programs and workshops described in
subparagraph (C);
(E) acting as a clearinghouse for research,
studies, and findings concerning all aspects of
the operation of food service programs;
(F) training food service personnel to comply
with the nutrition guidance and objectives
established by the Secretary through a national
network of instructors or other means;
(G) preparing informational materials, such
as video instruction tapes and menu planners,
to promote healthier food preparation; and
(H) assisting [State educational agencies]
State agencies in providing additional
nutrition and health instructions and
instructors, including training personnel to
comply with the nutrition guidance and
objectives established by the Secretary.
(d) Coordination.--
(1) In general.--The Secretary shall coordinate
activities carried out and assistance provided as
required by subsection (b) with activities carried out
by any food service management institute established as
authorized by subsection (a)(2).
(2) Use of institute for dietary and nutrition
activities.--The Secretary shall use any food service
management institute established under subsection
(a)(2) to assist in carrying out dietary and nutrition
activities of the Secretary.
(e) Food Service Management Institute.--
(1) Funding.--
(A) In general.--In addition to any amounts
otherwise made available for fiscal year 2011,
on October 1, 2010, and each October 1
thereafter, out of any funds in the Treasury
not otherwise appropriated, the Secretary of
the Treasury shall transfer to the Secretary to
carry out subsection (a)(2) $5,000,000, to
remain available until expended.
(B) Receipt and acceptance.--The Secretary
shall be entitled to receive, shall accept, and
shall use to carry out subsection (a)(2) the
funds transferred under subparagraph (A),
without further appropriation.
(2) Additional funding.--In addition to amounts made
available under paragraph (1), there are authorized to
be appropriated to carry out subsection (a)(2) such
sums as are necessary for fiscal year 1995 and each
subsequent fiscal year. The Secretary shall carry out
activities under subsection (a)(2), in addition to the
activities funded under paragraph (1), to the extent
provided for, and in such amounts as are provided for,
in advance in appropriations Acts.
(3) Funding for education, training, or applied
research or studies.--In addition to amounts made
available under paragraphs (1) and (2), from amounts
otherwise appropriated to the Secretary in
discretionary appropriations, the Secretary may provide
funds to any food service management institute
established under subsection (a)(2) for projects
specified by the Secretary that will contribute to
implementing dietary or nutrition initiatives. Any
additional funding under this subparagraph shall be
provided noncompetitively in a separate cooperative
agreement.
(f) Administrative Training and Technical Assistance
Material.--In collaboration with [State educational agencies]
State agencies, local educational agencies, and school food
authorities of varying sizes, the Secretary shall develop and
distribute training and technical assistance material relating
to the administration of school meals programs that are
representative of the best management and administrative
practices.
(g) 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;
(ii) on October 1, 2006, October 1,
2007, October 1, 2008, and October 1,
2009, $2,000,000; and
(iii) on October 1, 2010, and every
October 1 thereafter, $4,000,000.
(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 and material related to improving
program integrity and administrative accuracy
in school meals programs; and
(B) to assist [State educational agencies]
State agencies in reviewing the administrative
practices of local educational agencies, to the
extent determined by the Secretary.
SEC. 22. COMPLIANCE AND ACCOUNTABILITY.
(a) Unified Accountability System.--
[(1) In general.--]There shall be a unified system
prescribed and administered by the Secretary to ensure
that local food service authorities participating in
the school lunch program established under this Act and
the school breakfast program established by section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773)
comply with those Acts, including compliance with--
[(A)] (1) the nutritional requirements of section
9(f) of this Act for school lunches; and
[(B)] (2) as applicable, the nutritional requirements
for school breakfasts under section 4(e)(1) of the
Child Nutrition Act of 1966 (42 U.S.C. 1773(e)(1)).
(b) Functions of System.--
(1) In general.--Under the system described in
subsection (a), each [State educational agency] State
agency shall--
(A) require that local food service
authorities comply with the nutritional
requirements described in subparagraphs (A) and
(B) of paragraph (1);
(B) to the maximum extent practicable, ensure
compliance through reasonable audits and
supervisory assistance reviews;
(C) in conducting audits and reviews for the
purpose of determining compliance with this
Act, including the nutritional requirements of
section 9(f)--
(i) conduct audits and reviews during
a [3-year cycle] 5-year cycle or other
period prescribed by the Secretary;
(ii) select schools for review in
each local educational agency using
criteria established by the Secretary;
(iii) report the final results of the
reviews to the public in the State in
an accessible, easily understood manner
in accordance with guidelines
promulgated by the Secretary; and
(iv) submit to the Secretary each
year a report containing the results of
the reviews in accordance with
procedures developed by the Secretary;
and
(D) when any local food service authority is
reviewed under this section, ensure that the
final results of the review by the [State
educational agency] State agency are posted and
otherwise made available to the public on
request in an accessible, easily understood
manner in accordance with guidelines
promulgated by the Secretary.
(2) Minimization of additional duties.--Each [State
educational agency] State agency shall coordinate the
compliance and accountability activities described in
paragraph (1) in a manner that minimizes the imposition
of additional duties on local food service authorities.
[(3) Additional review requirement for selected local
educational agencies.--
[(A) Definition of selected local educational
agencies.--In this paragraph, the term
``selected local educational agency'' means a
local educational agency that has a
demonstrated 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 followup review of
the selected local educational agency
under standards established by the
Secretary.]
(3) Error reduction plans.--
(A) In general.--Each State agency shall work
with the local educational agencies that have
the highest rates of certification errors
according to the verification process under
section 9(a)(D) to develop an error reduction
plan and monitor implementation of the plan
over the remainder of the review cycle.
(B) Plan components.--Each error reduction
plan shall include--
(i) specific measures that the local
educational agency shall take to reduce
certification errors, including at a
minimum--
(I) increasing the standard
verification sample size,
except such increase shall not
result in a verification sample
size of more than 15 percent;
(II) improvements in the
application;
(III) the use of technology
to minimize opportunities for
error; and
(IV) enhanced training and
oversight of staff involved in
the certification and
verification process;
(ii) a timeline for the local
educational agency to implement those
measures within the review cycle;
(iii) annual goals for reductions in
certification errors;
(iv) technical assistance to be
provided by the State agency; and
(v) working with an educational
service agency to help conduct the
verification process and other aspects
of the program as necessary to help
reduce errors in the administration of
the program.
(C) State agency responsibilities.--Each
State agency shall--
(i) assist the local educational
agencies identified under subparagraph
(D) with developing an error reduction
plan that complies with subparagraph
(B);
(ii) provide technical assistance as
described in the error reduction plan
under subparagraph (B)(iv);
(iii) conduct annual reviews focused
on the direct certification,
application, certification,
verification, meal counting, and meal
claiming processes; and
(iv) report annually to the Secretary
on the progress of the State in
reducing errors.
(D) Selection of local educational
agencies.--
(i) In general.--Each State agency
shall select up to 10 percent of the
local educational agencies in the State
to develop an error reduction plan.
(ii) Limitation.--The percentage of
local educational agencies selected
under clause (i) shall not be comprised
of more than 50 percent of small local
educational agencies, as determined by
the Secretary.
(iii) Assessment of certification
error.--In selecting local educational
agencies under this paragraph,
certification error shall be assessed
based on a measure determined by the
Secretary that considers--
(I) the results of the
reviews conducted under
paragraph (1) and
(II) the percentage of
household applications verified
under section 9(b)(3)(D)(i)
that had the level of benefits
changed as a result of
information obtained during the
verification process, excluding
benefit terminations resulting
from not obtaining information
during household verification
conducted under section
9(b)(3)(G).
(4) High performance.--
(A) In general.--If a local educational
agency is determined to be in the top 20
percent of local educational agencies in the
State, as determined by the State under
subparagraph (B), the sample size under section
9(b)(3)(D)(i)(II) shall be a verification
sample size of 2.5 percent.
(B) Considerations.--The State shall
determine whether a local educational agency is
in the top 20 percent of local educational
agencies in the State by considering error
rates, confirmation rates, non-response rates,
response rates, and other factors as necessary
to make such determination.
[(4)] (5) Retaining 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 followup review under paragraph
(1) or (3) or subsection (a), the Secretary may
require the [State educational agency] State
agency to retain funds that would otherwise be
paid to the local educational agency for school
meals programs under procedures prescribed by
the Secretary.
(B) Amount.--The amount of funds retained
under subparagraph (A) shall equal the value of
any overpayment made to the local educational
agency or school food authority 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 overpayment 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
followup review conducted by
the [State educational agency]
State 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 followup review
conducted by the [State
educational agency] State
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)] (6) Use of retained funds.--
(A) In general.--Subject to subparagraph (B),
funds retained under [paragraph (4)] paragraph
(5) shall--
(i) be returned to 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 to [State educational
agencies] State agencies and,
to the extent determined by the
Secretary, to local educational
agencies and school food
authorities;
(II) to assist [State
educational agencies] State
agencies in reviewing the
administrative practices of
local educational agencies in
carrying out school meals
programs; and
(III) to carry out section
21(f); or
(ii) be credited to the child
nutrition programs appropriation
account.
(B) State share.--A [State educational
agency] State agency may retain not more than
25 percent of an amount recovered under
[paragraph (4)] paragraph (5), to carry out
school meals program integrity initiatives to
assist local educational agencies and school
food authorities 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] State agency shall--
(i) submit to the Secretary a plan
describing how the [State educational
agency] State agency will use the funds
to improve school meals program
integrity, including measures to give
priority to local educational agencies
from which funds were retained under
[paragraph (4)] paragraph (5);
(ii) consider using individuals who
administer exemplary local food service
programs in the provision of training
and technical assistance; and
(iii) obtain the approval of the
Secretary for the plan.
[(6)] (7) Eligibility determination review for
selected local educational agencies.--
(A) In general.--A local educational agency
that has demonstrated a high level of, or a
high risk for, administrative error associated
with certification, verification, and other
administrative processes, as determined by the
Secretary, shall ensure that the initial
eligibility determination for each application
is reviewed for accuracy prior to notifying a
household of the eligibility or ineligibility
of the household for free or reduced price
meals.
(B) Timeliness.--The review of initial
eligibility determinations--
(i) shall be completed in a timely
manner; and
(ii) shall not result in the delay of
an eligibility determination for more
than 10 operating days after the date
on which the application is submitted.
(C) Acceptable types of review.--Subject to
standards established by the Secretary, the
system used to review eligibility
determinations for accuracy shall be conducted
by an individual or entity that did not make
the initial eligibility determination.
(D) Notification of household.--Once the
review of an eligibility determination has been
completed under this paragraph, the household
shall be notified immediately of the
determination of eligibility or ineligibility
for free or reduced price meals.
(E) Reporting.--
(i) Local educational agencies.--In
accordance with procedures established
by the Secretary, each local
educational agency required to review
initial eligibility determinations
shall submit to the relevant State
agency a report describing the results
of the reviews, including--
(I) the number and percentage
of reviewed applications for
which the eligibility
determination was changed and
the type of change made; and
(II) such other information
as the Secretary determines to
be necessary.
(ii) State agencies.--In accordance
with procedures established by the
Secretary, each State agency shall
submit to the Secretary a report
describing the results of the reviews
of initial eligibility determinations,
including--
(I) the number and percentage
of reviewed applications for
which the eligibility
determination was changed and
the type of change made; and
(II) such other information
as the Secretary determines to
be necessary.
(iii) Transparency.--The Secretary
shall publish annually the results of
the reviews of initial eligibility
determinations by State, number,
percentage, and type of error.
(c) Role of Secretary.--In carrying out this section, the
Secretary shall--
(1) assist the [State educational agency] State
agency in the monitoring of programs conducted by local
food service authorities; and
(2) through management evaluations, review the
compliance of the [State educational agency] State
agency and the local school food service authorities
with regulations issued under this Act.
(d) Authorization of Appropriations.--There is authorized to
be appropriated for purposes of carrying out the compliance and
accountability activities referred to in subsection (c)
$10,000,000 for each of fiscal years [2011 through 2015] 2017
through 2021.
(e) Fines for Violating Program Requirements.--
(1) School food authorities and schools.--
(A) In general.--The Secretary shall
establish criteria by which the Secretary or a
State agency may impose a fine against any
school food authority or school administering a
program authorized under this Act or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.)
if the Secretary or the State agency determines
that the school food authority or school has--
(i) failed to correct severe
mismanagement of the program;
(ii) disregarded a program
requirement of which the school food
authority or school had been informed;
or
(iii) failed to correct repeated
violations of program requirements.
(B) Limits.--
(i) In general.--In calculating the
fine for a school food authority or
school, the Secretary shall base the
amount of the fine on the reimbursement
earned by school food authority or
school for the program in which the
violation occurred.
(ii) Amount.--The amount under clause
(i) shall not exceed--
(I) 1 percent of the amount
of meal reimbursements earned
for the fiscal year for the
first finding of 1 or more
program violations under
subparagraph (A);
(II) 5 percent of the amount
of meal reimbursements earned
for the fiscal year for the
second finding of 1 or more
program violations under
subparagraph (A); and
(III) 10 percent of the
amount of meal reimbursements
earned for the fiscal year for
the third or subsequent finding
of 1 or more program violations
under subparagraph (A).
(2) State agencies.--
(A) In general.--The Secretary shall
establish criteria by which the Secretary may
impose a fine against any State agency
administering a program authorized under this
Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.) if the Secretary
determines that the State agency has--
(i) failed to correct severe
mismanagement of the program;
(ii) disregarded a program
requirement of which the State had been
informed; or
(iii) failed to correct repeated
violations of program requirements.
(B) Limits.--In the case of a State agency,
the amount of a fine under subparagraph (A)
shall not exceed--
(i) 1 percent of funds made available
under section 7(a) of the Child
Nutrition Act of 1966 (42 U.S.C.
1776(a)) for State administrative
expenses during a fiscal year for the
first finding of 1 or more program
violations under subparagraph (A);
(ii) 5 percent of funds made
available under section 7(a) of the
Child Nutrition Act of 1966 (42 U.S.C.
1776(a)) for State administrative
expenses during a fiscal year for the
second finding of 1 or more program
violations under subparagraph (A); and
(iii) 10 percent of funds made
available under section 7(a) of the
Child Nutrition Act of 1966 (42 U.S.C.
1776(a)) for State administrative
expenses during a fiscal year for the
third or subsequent finding of 1 or
more program violations under
subparagraph (A).
(3) Source of funding.--Funds to pay a fine imposed
under paragraph (1) or (2) shall be derived from non-
Federal sources.
SEC. 23. CHILDHOOD HUNGER RESEARCH.
(a) Research on Causes and Consequences of Childhood
Hunger.--
(1) In general.--The Secretary shall conduct research
on--
(A) the causes of childhood hunger and food
insecurity;
(B) the characteristics of households with
childhood hunger and food insecurity; and
(C) the consequences of childhood hunger and
food insecurity.
(2) Authority.--In carrying out research under
paragraph (1), the Secretary may--
(A) enter into competitively awarded
contracts or cooperative agreements; or
(B) provide grants to States or public or
private agencies or organizations, as
determined by the Secretary.
(3) Application.--To be eligible to enter into a
contract or cooperative agreement or receive a grant
under this subsection, a State or public or private
agency or organization shall submit to the Secretary an
application at such time, in such manner, and
containing such information as the Secretary shall
require.
(4) Areas of inquiry.--The Secretary shall design the
research program to advance knowledge and understanding
of information on the issues described in paragraph
(1), such as--
(A) economic, health, social, cultural,
demographic, and other factors that contribute
to childhood hunger or food insecurity;
(B) the geographic distribution of childhood
hunger and food insecurity;
(C) the extent to which--
(i) existing Federal assistance
programs, including the Internal
Revenue Code of 1986, reduce childhood
hunger and food insecurity; and
(ii) childhood hunger and food
insecurity persist due to--
(I) gaps in program coverage;
(II) the inability of
potential participants to
access programs; or
(III) the insufficiency of
program benefits or services;
(D) the public health and medical costs of
childhood hunger and food insecurity;
(E) an estimate of the degree to which the
Census Bureau measure of food insecurity
underestimates childhood hunger and food
insecurity because the Census Bureau excludes
certain households, such as homeless, or other
factors;
(F) the effects of childhood hunger on child
development, well-being, and educational
attainment; and
(G) such other critical outcomes as are
determined by the Secretary.
(5) Funding.--
(A) In general.--On October 1, 2012, out of
any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out
this subsection $10,000,000, 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.
(b) Demonstration Projects To End Childhood Hunger.--
(1) Definitions.--In this subsection:
(A) Child.--The term ``child'' means a person
under the age of 18.
(B) Supplemental nutrition assistance
program.--The term ``supplemental nutrition
assistance program'' means the supplemental
nutrition assistance program established under
the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.).
(2) Purpose.--Under such terms and conditions as are
established by the Secretary, the Secretary shall carry
out demonstration projects that test innovative
strategies to end childhood hunger, including
alternative models for service delivery and benefit
levels that promote the reduction or elimination of
childhood hunger and food insecurity.
(3) Projects.--Demonstration projects carried out
under this subsection may include projects that--
(A) enhance benefits provided under the
supplemental nutrition assistance program for
eligible households with children;
(B) enhance benefits or provide for
innovative program delivery models in the
school meals, afterschool snack, and child and
adult care food programs under this Act and the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.); and
(C) target Federal, State, or local
assistance, including emergency housing or
family preservation services, at households
with children who are experiencing hunger or
food insecurity, to the extent permitted by the
legal authority establishing those assistance
programs and services.
(4) Grants.--
(A) Demonstration projects.--
(i) In general.--In carrying out this
subsection, the Secretary may enter
into competitively awarded contracts or
cooperative agreements with, or provide
grants to, public or private
organizations or agencies (as
determined by the Secretary), for use
in accordance with demonstration
projects that meet the purposes of this
subsection.
(ii) Requirement.--At least 1
demonstration project funded under this
subsection shall be carried out on an
Indian reservation in a rural area with
a service population with a prevalence
of diabetes that exceeds 15 percent, as
determined by the Director of the
Indian Health Service.
(B) Application.--To be eligible to receive a
contract, cooperative agreement, or grant under
this subsection, an organization or agency
shall submit to the Secretary an application at
such time, in such manner, and containing such
information as the Secretary may require.
(C) Selection criteria.--Demonstration
projects shall be selected based on publicly
disseminated criteria that may include--
(i) an identification of a low-income
target group that reflects individuals
experiencing hunger or food insecurity;
(ii) a commitment to a demonstration
project that allows for a rigorous
outcome evaluation as described in
paragraph (6);
(iii) a focus on innovative
strategies to reduce the risk of
childhood hunger or provide a
significant improvement to the food
security status of households with
children; and
(iv) such other criteria as are
determined by the Secretary.
(5) Consultation.--In determining the range of
projects and defining selection criteria under this
subsection, the Secretary shall consult with--
(A) the Secretary of Health and Human
Services;
(B) the Secretary of Labor; and
(C) the Secretary of Housing and Urban
Development.
(6) Evaluation and reporting.--
(A) Independent evaluation.--The Secretary
shall provide for an independent evaluation of
each demonstration project carried out under
this subsection that--
(i) measures the impact of each
demonstration project on appropriate
participation, food security,
nutrition, and associated behavioral
outcomes among participating
households; and
(ii) uses rigorous experimental
designs and methodologies, particularly
random assignment or other methods that
are capable of producing scientifically
valid information regarding which
activities are effective in reducing
the prevalence or preventing the
incidence of food insecurity and hunger
in the community, especially among
children.
(B) Reporting.--Not later than December 31,
2013 and each December 31 thereafter until the
date on which the last evaluation under
subparagraph (A) is completed, the Secretary
shall--
(i) submit to the Committee on
Agriculture and the [Committee on
Education and Labor] Committee on
Education and the Workforce of the
House of Representatives and the
Committee on Agriculture, Nutrition,
and Forestry of the Senate a report
that includes a description of--
(I) the status of each
demonstration project; and
(II) the results of any
evaluations of the
demonstration projects
completed during the previous
fiscal year; and
(ii) ensure that the evaluation
results are shared broadly to inform
policy makers, service providers, other
partners, and the public in order to
promote the wide use of successful
strategies.
(7) Funding.--
(A) In general.--On October 1, 2012, out of
any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury
shall transfer to the Secretary to carry out
this subsection $40,000,000, to remain
available until September 30, 2017.
(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) Use of funds.--
(i) In general.--Funds made available
under subparagraph (A) may be used to
carry out this subsection, including to
pay Federal costs associated with
developing, soliciting, awarding,
monitoring, evaluating, and
disseminating the results of each
demonstration project under this
subsection.
(ii) Indian reservations.--Of amounts
made available under subparagraph (A),
the Secretary shall use a portion of
the amounts to carry out research
relating to hunger, obesity and type 2
diabetes on Indian reservations,
including research to determine the
manner in which Federal nutrition
programs can help to overcome those
problems.
(iii) Report.--Not later than 1 year
after the date of enactment of this
section, the Secretary shall submit to
the Committee on Agriculture of the
House of Representatives and the
Committee on Agriculture, Nutrition,
and Forestry of the Senate a report
that--
(I) describes the manner in
which Federal nutrition
programs can help to overcome
child hunger nutrition problems
on Indian reservations; and
(II) contains proposed
administrative and legislative
recommendations to strengthen
and streamline all relevant
Department of Agriculture
nutrition programs to reduce
childhood hunger, obesity, and
type 2 diabetes on Indian
reservations.
(D) Limitations.--
(i) Duration.--No project may be
funded under this subsection for more
than 5 years.
(ii) Project requirements.--No
project that makes use of, alters, or
coordinates with the supplemental
nutrition assistance program may be
funded under this subsection unless the
project is fully consistent with the
project requirements described in
section 17(b)(1)(B) of the Food and
Nutrition Act of 2008 (7 U.S.C.
2026(b)(1)(B)).
(iii) Hunger-free communities.--No
project may be funded under this
subsection that receives funding under
section 4405 of the Food, Conservation,
and Energy Act of 2008 (7 U.S.C. 7517).
(iv) Other benefits.--Funds made
available under this subsection may not
be used for any project in a manner
that is inconsistent with--
(I) this Act;
(II) the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et
seq.);
(III) the Food and Nutrition
Act of 2008 (7 U.S.C. 2011 et
seq.); or
(IV) the Emergency Food
Assistance Act of 1983 (7
U.S.C. 7501 et seq.).
[SEC. 24. STATE CHILDHOOD HUNGER CHALLENGE GRANTS.
[(a) Definitions.--In this section:
[(1) Child.--The term ``child'' means a person under
the age of 18.
[(2) Supplemental nutrition assistance program.--The
term ``supplemental nutrition assistance program''
means the supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.).
[(b) Purpose.--Under such terms and conditions as are
established by the Secretary, funds made available under this
section may be used to competitively award grants to or enter
into cooperative agreements with Governors to carry out
comprehensive and innovative strategies to end childhood
hunger, including alternative models for service delivery and
benefit levels that promote the reduction or elimination of
childhood hunger by 2015.
[(c) Projects.--State demonstration projects carried out
under this section may include projects that--
[(1) enhance benefits provided under the supplemental
nutrition assistance program for eligible households
with children;
[(2) enhance benefits or provide for innovative
program delivery models in the school meals,
afterschool snack, and child and adult care food
programs under this Act and the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.);
[(3) target Federal, State, or local assistance,
including emergency housing, family preservation
services, child care, or temporary assistance at
households with children who are experiencing hunger or
food insecurity, to the extent permitted by the legal
authority establishing those assistance programs and
services;
[(4) enhance outreach to increase access and
participation in Federal nutrition assistance programs;
and
[(5) improve the coordination of Federal, State, and
community resources and services aimed at preventing
food insecurity and hunger, including through the
establishment and expansion of State food policy
councils.
[(d) Grants.--
[(1) In general.--In carrying out this section, the
Secretary may competitively award grants or enter into
competitively awarded cooperative agreements with
Governors for use in accordance with demonstration
projects that meet the purposes of this section.
[(2) Application.--To be eligible to receive a grant
or cooperative agreement under this section, a Governor
shall submit to the Secretary an application at such
time, in such manner, and containing such information
as the Secretary may require.
[(3) Selection criteria.--The Secretary shall
evaluate proposals based on publicly disseminated
criteria that may include--
[(A) an identification of a low-income target
group that reflects individuals experiencing
hunger or food insecurity;
[(B) a commitment to approaches that allow
for a rigorous outcome evaluation as described
in subsection (f);
[(C) a comprehensive and innovative strategy
to reduce the risk of childhood hunger or
provide a significant improvement to the food
security status of households with children;
and
[(D) such other criteria as are determined by
the Secretary.
[(4) Requirements.--Any project funded under this
section shall provide for--
[(A) a baseline assessment, and subsequent
annual assessments, of the prevalence and
severity of very low food security among
children in the State, based on a methodology
prescribed by the Secretary;
[(B) a collaborative planning process
including key stakeholders in the State that
results in a comprehensive agenda to eliminate
childhood hunger that is--
[(i) described in a detailed project
plan; and
[(ii) provided to the Secretary for
approval;
[(C) an annual budget;
[(D) specific performance goals, including
the goal to sharply reduce or eliminate food
insecurity among children in the State by 2015,
as determined through a methodology prescribed
by the Secretary and carried out by the
Governor; and
[(E) an independent outcome evaluation of not
less than 1 major strategy of the project that
measures--
[(i) the specific impact of the
strategy on food insecurity among
children in the State; and
[(ii) if applicable, the nutrition
assistance participation rate among
children in the State.
[(e) Consultation.--In determining the range of projects and
defining selection criteria under this section, the Secretary
shall consult with--
[(1) the Secretary of Health and Human Services;
[(2) the Secretary of Labor;
[(3) the Secretary of Education; and
[(4) the Secretary of Housing and Urban Development.
[(f) Evaluation and Reporting.--
[(1) General performance assessment.--Each project
authorized under this section shall require an
independent assessment that--
[(A) measures the impact of any activities
carried out under the project on the level of
food insecurity in the State that--
[(i) focuses particularly on the
level of food insecurity among children
in the State; and
[(ii) includes a preimplementation
baseline and annual measurements taken
during the project of the level of food
insecurity in the State; and
[(B) is carried out using a methodology
prescribed by the Secretary.
[(2) Independent evaluation.--Each project authorized
under this section shall provide for an independent
evaluation of not less than 1 major strategy that--
[(A) measures the impact of the strategy on
appropriate participation, food security,
nutrition, and associated behavioral outcomes
among participating households; and
[(B) uses rigorous experimental designs and
methodologies, particularly random assignment
or other methods that are capable of producing
scientifically valid information regarding
which activities are effective in reducing the
prevalence or preventing the incidence of food
insecurity and hunger in the community,
especially among children.
[(3) Reporting.--Not later than December 31, 2011 and
each December 31 thereafter until the date on which the
last evaluation under paragraph (1) is completed, the
Secretary shall--
[(A) submit to the Committee on Agriculture
and the Committee on Education and Labor of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate a report that includes a description
of--
[(i) the status of each State
demonstration project; and
[(ii) the results of any evaluations
of the demonstration projects completed
during the previous fiscal year; and
[(B) ensure that the evaluation results are
shared broadly to inform policy makers, service
providers, other partners, and the public in
order to promote the wide use of successful
strategies.
[(g) Authorization of Appropriations.--
[(1) In general.--There are authorized to be
appropriated to carry out this section such sums as are
necessary for each of fiscal years 2011 through 2014,
to remain available until expended.
[(2) Use of funds.--Funds made available under
paragraph (1) may be used to carry out this section,
including to pay Federal costs associated with
developing, soliciting, awarding, monitoring,
evaluating, and disseminating the results of each
demonstration project under this section.
[(3) Limitations.--
[(A) Duration.--No project may be funded
under this section for more than 5 years.
[(B) Performance basis.--Funds provided under
this section shall be made available to each
Governor on an annual basis, with the amount of
funds provided for each year contingent on the
satisfactory implementation of the project plan
and progress towards the performance goals
defined in the project year plan.
[(C) Altering nutrition assistance program
requirements.--No project that makes use of,
alters, or coordinates with the supplemental
nutrition assistance program may be funded
under this section unless the project is fully
consistent with the project requirements
described in section 17(b)(1)(B) of the Food
and Nutrition Act of 2008 (7 U.S.C.
2026(b)(1)(B)).
[(D) Other benefits.--Funds made available
under this section may not be used for any
project in a manner that is inconsistent with--
[(i) this Act;
[(ii) the Child Nutrition Act of 1966
(42 U.S.C. 1771 et seq.);
[(iii) the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.); or
[(iv) the Emergency Food Assistance
Act of 1983 (7 U.S.C. 7501 et seq.).]
SEC. 25. DUTIES OF THE SECRETARY RELATING TO NONPROCUREMENT DEBARMENT.
(a) Purposes.--The purposes of this section are to promote
the prevention and deterrence of instances of fraud, bid
rigging, and other anticompetitive activities encountered in
the procurement of products for child nutrition programs by--
(1) establishing guidelines and a timetable for the
Secretary to initiate debarment proceedings, as well as
establishing mandatory debarment periods; and
(2) providing training, technical advice, and
guidance in identifying and preventing the activities.
(b) Definitions.--As used in this section:
(1) Child nutrition program.--The term ``child
nutrition program'' means--
(A) the school lunch program established
under this Act;
(B) the summer food service program for
children established under section 13;
(C) the child and adult care food program
established under section 17;
(D) the special milk program established
under section 3 of the Child Nutrition Act of
1966 (42 U.S.C. 1772);
(E) the school breakfast program established
under section 4 of such Act (42 U.S.C. 1773);
and
(F) the special supplemental nutrition
program for women, infants, and children
authorized under section 17 of such Act (42
U.S.C. 1786).
(2) Contractor.--The term ``contractor'' means a
person that contracts with a State, an agency of a
State, or a local agency to provide goods or services
in relation to the participation of a local agency in a
child nutrition program.
(3) Local agency.--The term ``local agency'' means a
school, school food authority, child care center,
sponsoring organization, or other entity authorized to
operate a child nutrition program at the local level.
(4) Nonprocurement debarment.--The term
``nonprocurement debarment'' means an action to bar a
person from programs and activities involving Federal
financial and nonfinancial assistance, but not
including Federal procurement programs and activities.
(5) Person.--The term ``person'' means any
individual, corporation, partnership, association,
cooperative, or other legal entity, however organized.
(c) Assistance To Identify and Prevent Fraud and
Anticompetitive Activities.--The Secretary shall--
(1) in cooperation with any other appropriate
individual, organization, or agency, provide advice,
training, technical assistance, and guidance (which may
include awareness training, training films, and
troubleshooting advice) to representatives of States
and local agencies regarding means of identifying and
preventing fraud and anticompetitive activities
relating to the provision of goods or services in
conjunction with the participation of a local agency in
a child nutrition program; and
(2) provide information to, and fully cooperate with,
the Attorney General and State attorneys general
regarding investigations of fraud and anticompetitive
activities relating to the provision of goods or
services in conjunction with the participation of a
local agency in a child nutrition program.
(d) Nonprocurement Debarment.--
(1) In general.--Except as provided in paragraph (3)
and subsection (e), not later than 180 days after
notification of the occurrence of a cause for debarment
described in paragraph (2), the Secretary shall
initiate nonprocurement debarment proceedings against
the contractor who has committed the cause for
debarment.
(2) Causes for debarment.--Actions requiring
initiation of nonprocurement debarment pursuant to
paragraph (1) shall include a situation in which a
contractor is found guilty in any criminal proceeding,
or found liable in any civil or administrative
proceeding, in connection with the supplying,
providing, or selling of goods or services to any local
agency in connection with a child nutrition program,
of--
(A) an anticompetitive activity, including
bid-rigging, price-fixing, the allocation of
customers between competitors, or other
violation of Federal or State antitrust laws;
(B) fraud, bribery, theft, forgery, or
embezzlement;
(C) knowingly receiving stolen property;
(D) making a false claim or statement; or
(E) any other obstruction of justice.
(3) Exception.--If the Secretary determines that a
decision on initiating nonprocurement debarment
proceedings cannot be made within 180 days after
notification of the occurrence of a cause for debarment
described in paragraph (2) because of the need to
further investigate matters relating to the possible
debarment, the Secretary may have such additional time
as the Secretary considers necessary to make a
decision, but not to exceed an additional 180 days.
(4) Mandatory child nutrition program debarment
periods.--
(A) In general.--Subject to the other
provisions of this paragraph and
notwithstanding any other provision of law
except subsection (e), if, after deciding to
initiate nonprocurement debarment proceedings
pursuant to paragraph (1), the Secretary
decides to debar a contractor, the debarment
shall be for a period of not less than 3 years.
(B) Previous debarment.--If the contractor
has been previously debarred pursuant to
nonprocurement debarment proceedings initiated
pursuant to paragraph (1), and the cause for
debarment is described in paragraph (2) based
on activities that occurred subsequent to the
initial debarment, the debarment shall be for a
period of not less than 5 years.
(C) Scope.--At a minimum, a debarment under
this subsection shall serve to bar the
contractor for the specified period from
contracting to provide goods or services in
conjunction with the participation of a local
agency in a child nutrition program.
(D) Reversal, reduction, or exception.--
Nothing in this section shall restrict the
ability of the Secretary to--
(i) reverse a debarment decision;
(ii) reduce the period or scope of a
debarment;
(iii) grant an exception permitting a
debarred contractor to participate in a
particular contract to provide goods or
services; or
(iv) otherwise settle a debarment
action at any time;
in conjunction with the participation of a
local agency in a child nutrition program, if
the Secretary determines there is good cause
for the action, after taking into account
factors set forth in paragraphs (1) through (6)
of subsection (e).
(5) Information.--On request, the Secretary shall
present to the [Committee on Education and Labor]
Committee on Education and the Workforce, and the
Committee on Agriculture, of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate information
regarding the decisions required by this subsection.
(6) Relationship to other authorities.--A debarment
imposed under this section shall not reduce or diminish
the authority of a Federal, State, or local government
agency or court to penalize, imprison, fine, suspend,
debar, or take other adverse action against a person in
a civil, criminal, or administrative proceeding.
(7) Regulations.--The Secretary shall issue such
regulations as are necessary to carry out this
subsection.
(e) Mandatory Debarment.--Notwithstanding any other provision
of this section, the Secretary shall initiate nonprocurement
debarment proceedings against the contractor (including any
cooperative) who has committed the cause for debarment (as
determined under subsection (d)(2)), unless the action--
(1) is likely to have a significant adverse effect on
competition or prices in the relevant market or
nationally;
(2) will interfere with the ability of a local agency
to procure a needed product for a child nutrition
program;
(3) is unfair to a person, subsidiary corporation,
affiliate, parent company, or local division of a
corporation that is not involved in the improper
activity that would otherwise result in the debarment;
(4) is likely to have significant adverse economic
impacts on the local economy in a manner that is unfair
to innocent parties;
(5) is not justified in light of the penalties
already imposed on the contractor for violations
relevant to the proposed debarment, including any
suspension or debarment arising out of the same matter
that is imposed by any Federal or State agency; or
(6) is not in the public interest, or otherwise is
not in the interests of justice, as determined by the
Secretary.
(f) Exhaustion of Administrative Remedies.--Prior to seeking
judicial review in a court of competent jurisdiction, a
contractor against whom a nonprocurement debarment proceeding
has been initiated shall--
(1) exhaust all administrative procedures prescribed
by the Secretary; and
(2) receive notice of the final determination of the
Secretary.
(g) Fines.--
(1) In general.--In a situation in which a contractor
is found guilty in any criminal proceeding or found
liable in any civil or administrative proceeding, of
the activities listed in paragraph (2), in connection
with the supplying, providing, or selling of goods or
services to any local agency in connection with a child
nutrition program, the Secretary shall impose a civil
penalty of not more than $100,000,000, as determined by
the Secretary, to provide restitution to the program
for harm done to the program.
(2) Included activities.--Activities include, at a
minimum--
(A) an anticompetitive activity, including
bid-rigging, price-fixing, the allocation of
customers between competitors, or other
violation of Federal or State antitrust laws;
(B) fraud, bribery, theft, forgery, or
embezzlement;
(C) knowingly receiving stolen property;
(D) making a false claim or statement; or
(E) any other obstruction of justice.
(3) Use of funds.--Any funds collected under this
subsection shall be credited to the child nutrition
programs appropriations account.
[(g)] (h) Information Relating to Prevention and Control of
Anticompetitive Activities.--On request, the Secretary shall
present to the [Committee on Education and Labor] Committee on
Education and the Workforce, and the Committee on Agriculture,
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate information
regarding the activities of the Secretary relating to
anticompetitive activities, fraud, nonprocurement debarment,
and any waiver granted by the Secretary under this section.
* * * * * * *
SEC. 27. IMPROVEMENTS TO SCHOOL LUNCH FACILITIES.
(a) Definitions.--In this section:
(1) Durable equipment.--The term ``durable
equipment'' means durable food preparation, handling,
cooking, serving, and storage equipment greater than
$500 in value.
(2) Eligible entity.--The term ``eligible entity''
means--
(A) a local educational agency or a school
food authority administering or operating a
school lunch program under this Act;
(B) a tribal organization; or
(C) a consortium that includes a local
educational agency or school food authority
described in subparagraph (A), a tribal
organization, or both.
(3) Infrastructure.--The term ``infrastructure''
means a food storage facility, kitchen, food service
facility, cafeteria, dining room, or food preparation
facility.
(4) Local educational agency.--The term ``local
educational agency'' has the meaning given the term in
section 8101 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7801).
(5) School food authority.--The term ``school food
authority'' has the meaning given the term in section
210.2 of title 7, Code of Federal Regulations (or a
successor regulation).
(6) Tribal organization.--The term ``tribal
organization'' has the meaning given the term in
section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).
(b) Loan Guarantees.--
(1) Authority.--The Secretary shall issue a loan
guarantee to an eligible lender for purposes of
financing the construction, remodeling, or expansion of
infrastructure or the purchase of durable equipment
that will assist the eligible entity in providing
healthy meals through the school lunch program
authorized under this Act.
(2) Preference.--In issuing a loan guarantee under
this subsection, the Secretary shall give a preference
to an eligible entity that, as compared with other
eligible entities seeking a loan guarantee under this
subsection, demonstrates substantial or
disproportionate--
(A) need for infrastructure improvement or
durable equipment; or
(B) impairment in durable equipment.
(3) Oversight.--The Secretary, acting through the
Under Secretary for Rural Development, shall establish
procedures to oversee any project or purchase for which
a loan guarantee is issued under this subsection.
(4) Guarantee amount.--A loan guarantee issued under
this subsection may not guarantee more than 80 percent
of the principal amount of the loan.
(5) Fees and costs.--
(A) In general.--The Secretary shall
establish fees for loan guarantees under this
subsection that are, to the maximum extent
practicable, equal to all costs of the loan
guarantees as determined under the Federal
Credit Reform Act of 1990 (2 U.S.C. 661 et.
seq.), as determined by the Secretary.
(B) Fee shortfall.--To the extent that the
Secretary determines that fees described in
subparagraph (A) are not sufficient to pay for
all of the costs for the loan guarantees
pursuant to the Federal Credit Reform Act of
1990 (2 U.S.C. 661 et. seq.), the Secretary may
use funds described in paragraph (6) to pay for
the costs of loan guarantees not paid for by
the fees.
(6) Funding.--Subject to the availability of
appropriations provided in advance in an appropriations
Act specifically for the purpose of carrying out this
subsection, there is authorized to be appropriated
$5,000,000 for fiscal year 2017 and each fiscal year
thereafter.
(c) Grants.--
(1) Authority.--Beginning in fiscal year 2017 and
subject to the availability of appropriations provided
in advance in an appropriations Act specifically for
the purpose of carrying out this subsection, the
Secretary shall make grants, on a competitive basis, to
eligible entities for the purchase of durable equipment
and infrastructure needed to serve healthier meals and
improve food safety.
(2) Priority.--In awarding grants under this
subsection, the Secretary shall give priority to
eligible entities that--
(A) are located in States that have enacted
comparable statutory grant funding mechanisms
or that have otherwise appropriated funds for
the purpose described in paragraph (1); and
(B) have identified and are reasonably
expected to meet an unmet local or community
need--
(i) through a public-private
partnership or partnership with a food
pantry or other low-income assistance
agency; or
(ii) by allowing related community
organizations to use kitchen or
cafeteria space.
(3) Federal share.--
(A) In general.--The Federal share of costs
for assistance funded through a grant awarded
under this subsection shall not exceed 80
percent of the total cost of the durable
equipment or infrastructure.
(B) Matching.--To receive a grant under this
subsection, an eligible entity shall provide
matching support in the form of cash or in-kind
contributions.
(C) Waiver.--The Secretary may waive or vary
the requirements of subparagraphs (A) and (B)
if the Secretary determines that undue hardship
or effective exclusion from participation would
otherwise result.
(4) Authorization of appropriations.--
(A) In general.--There is authorized to be
appropriated $25,000,000 to carry out this
subsection for fiscal year 2017 through fiscal
year 2019.
(B) Limit.--The Secretary may use not more
than 5 percent of the funds made available
under subparagraph (A) to provide technical
assistance.
(d) Salad Bars.--Not later than 180 days after the date of
the enactment of the Improving Child Nutrition and Education
Act of 2016, the Secretary shall review or revise any guidance
in existence on that date of enactment so as to ensure that
school food authorities have flexibility in the establishment
and implementation of salad bars.
SEC. 28. PROGRAM EVALUATION.
(a) Performance Assessments.--
(1) In general.--Subject to the availability of funds
made available under paragraph (3), the Secretary,
acting through the Administrator of the Food and
Nutrition Service, may conduct annual national
performance assessments of the meal programs under this
Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771
et seq.).
(2) Components.--In conducting an assessment, the
Secretary may assess--
(A) the cost of producing meals and meal
supplements under the programs described in
paragraph (1); and
(B) the nutrient profile of meals, and status
of menu planning practices, under the programs.
(3) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $5,000,000 for fiscal year 2004 and each
subsequent fiscal year.
(b) Certification Improvements.--
(1) In general.--Subject to the availability of funds
made available under paragraph (5), the Secretary,
acting through the Administrator of the Food and
Nutrition Service, shall conduct a study of the
feasibility of improving the certification process used
for the school lunch program established under this
Act.
(2) Pilot projects.--In carrying out this subsection,
the Secretary may conduct pilot projects to improve the
certification process used for the school lunch
program.
(3) Components.--In carrying out this subsection, the
Secretary shall examine the use of--
(A) other income reporting systems;
(B) an integrated benefit eligibility
determination process managed by a single
agency;
(C) income or program participation data
gathered by State or local agencies; and
(D) other options determined by the
Secretary.
(4) Waivers.--
(A) In general.--Subject to subparagraph (B),
the Secretary may waive such provisions of this
Act and the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.) as are necessary to carry
out this subsection.
(B) Provisions.--The protections of section
9(b)(6) shall apply to any study or pilot
project carried out under this subsection.
(5) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection such sums as are necessary.
(c) Cooperation With Program Research and Evaluation.--
States, [State educational agencies] State agencies, local
educational agencies, schools, institutions, facilities, and
contractors participating in programs authorized under this Act
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.)
shall cooperate with officials and contractors acting on behalf
of the Secretary, in the conduct of evaluations and studies
under those Acts.
* * * * * * *
SEC. 30. PROHIBITIONS.
Nothing in this Act, the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.), the Healthy, Hunger-Free Kids Act of
2010, or the Improving Child Nutrition and Education Act of
2016 shall--
(1) authorize the Secretary to issue or establish any
regulations or requirements not explicitly authorized
under any such Act; or
(2) authorize the Secretary to require, as a
condition of participation in any program under any
such Act--
(A) any curriculum or education requirements
for participating schools or child care
providers; or
(B) the adoption of any specific education
standards for nutrition education.
----------
CHILD NUTRITION ACT OF 1966
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That this
Act may be cited as the ``Child Nutrition Act of 1966''.
* * * * * * *
SPECIAL MILK PROGRAM AUTHORIZATION
Sec. 3. (a)(1) There is hereby authorized to be appropriated
for the fiscal year ending June 30, 1970, and for each
succeeding fiscal year such sums as may be necessary to enable
the Secretary of Agriculture, under such rules and regulations
as the Secretary may deem in the public interest, to encourage
consumption of fluid milk by children in the United States in
(A) nonprofit schools of high school grade and under, except as
provided in paragraph (2), which do not participate in a meal
service program authorized under this Act or the Richard B.
Russell National School Lunch Act, and (B) nonprofit nursery
schools, child-care centers, settlement houses, summer camps,
and similar nonprofit institutions devoted to the care and
training of children, which do not participate in a meal
service program authorized under this Act or the Richard B.
Russell National School Lunch Act.
(2) The limitation imposed under paragraph (1)(A) for
participation of nonprofit schools in the special milk program
shall not apply to split-session kindergarten programs
conducted in schools in which children do not have access to
the meal service program operating in schools the children
attend as authorized under this Act or the Richard B. Russell
National School Lunch Act.
(3) For the purposes of this section ``United States'' means
the fifty States, Guam, the Commonwealth of Puerto Rico, the
Virgin Islands, American Samoa, the Commonwealth of the
Northern Mariana Islands, and the District of Columbia.
(4) The Secretary shall administer the special milk program
provided for by this section to the maximum extent practicable
in the same manner as the Secretary administered the special
milk program provided for by Public Law 89-642, as amended,
during the fiscal year ending June 30, 1969.
(5) Any school or nonprofit child care institution which does
not participate in a meal service program authorized under this
Act or the Richard B. Russell National School Lunch Act shall
receive the special milk program upon its request.
(6) Children who qualify for free lunches under guidelines
established by the Secretary shall, at the option of the school
involved (or of the local educational agency involved in the
case of a public school) be eligible for free milk upon their
request.
(7) For the fiscal year ending June 30, 1975, and for
subsequent school years, the minimum rate of reimbursement for
a half-pint of milk served in schools and other eligible
institutions shall not be less than 5 cents per half-pint
served to eligible children, and such minimum rate of
reimbursement shall be adjusted [on an annual basis each]
annually by February 15 for the upcoming school year to reflect
changes in the Producer Price Index for Fresh Processed Milk
published by the Bureau of Labor Statistics of the Department
of Labor.
(8) Such adjustment shall be computed to the nearest one-
fourth cent.
(9) Notwithstanding any other provision of this section, in
no event shall the minimum rate of reimbursement exceed the
cost to the school or institution of milk served to children.
(10) The [State educational agency] State agency shall
disburse funds paid to the State during any fiscal year for
purposes of carrying out the program under this section in
accordance with such agreements approved by the Secretary as
may be entered into by such State agency and the schools in the
State. The agreements described in the preceding sentence shall
be permanent agreements that may be amended as necessary.
Nothing in the preceding sentence shall be construed to limit
the ability of the [State educational agency] State agency to
suspend or terminate any such agreement in accordance with
regulations prescribed by the Secretary.
(b) Commodity only schools shall not be eligible to
participate in the special milk program under this section. For
the purposes of the preceding sentence, the term ``commodity
only schools'' means schools that do not participate in the
school lunch program under the Richard B. Russell National
School Lunch Act, but which receive commodities made available
by the Secretary for use by such schools in nonprofit lunch
programs.
SCHOOL BREAKFAST PROGRAM AUTHORIZATION
Sec. 4. (a) There is hereby authorized to be appropriated
such sums as are necessary to enable the Secretary to carry out
a program to assist the States and the Department of Defense
through grants-in-aid and other means to initiate, maintain, or
expand nonprofit breakfast programs in all schools which make
application for assistance and agree to carry out a nonprofit
breakfast program in accordance with this Act. Appropriations
and expenditures for this Act shall be considered Health and
Human Services functions for budget purposes rather than
functions of Agriculture.
APPORTIONMENT TO STATES
(b)(1)(A)(i) The Secretary shall make breakfast assistance
payments to each [State educational agency] State agency each
fiscal year, at such times as the Secretary may determine, from
the sums appropriated for such purpose, in an amount equal to
the product obtained by multiplying--
(I) the number of breakfasts served during such
fiscal year to children in schools in such States which
participate in the school breakfast program under
agreements with such [State educational agency] State
agency; by
(II) the national average breakfast payment for free
breakfasts, for reduced price breakfasts, or for
breakfasts served to children not eligible for free or
reduced price meals, as appropriate, as prescribed in
clause (B) of this paragraph.
(ii) The agreements described in clause (i)(I) shall be
permanent agreements that may be amended as necessary. Nothing
in the preceding sentence shall be construed to limit the
ability of the [State educational agency] State agency to
suspend or terminate any such agreement in accordance with
regulations prescribed by the Secretary.
(B) The national average payment for each free breakfast
shall be 57 cents (as adjusted pursuant to section 11(a) of the
Richard B. Russell National School Lunch Act. The national
average payment for each reduced price breakfast shall be one-
half of the national average payment for each free breakfast,
except that in no case shall the difference between the amount
of the national average payment for a free breakfast and the
national average payment for a reduced price breakfast exceed
30 cents. The national average payment for each breakfast
served to a child not eligible for free or reduced price meals
shall be 8.25 cents (as adjusted pursuant to section 11(a) of
the Richard B. Russell National School Lunch Act).
(C) No school which receives breakfast assistance payments
under this section may charge a price of more than 30 cents for
a reduced price breakfast.
(D) No breakfast assistance payment may be made under this
subsection for any breakfast served by a school unless such
breakfast consists of a combination of foods which meet the
minimum nutritional requirements prescribed by the Secretary
under subsection (e) of this section.
(E) 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] State
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.
(F) Increased reimbursement.--(i) For school
year 2018-2019, the Secretary shall increase by
2 cents the annually adjusted payment for each
breakfast (free, reduced price, and paid)
described in subparagraph (B).
(ii) For school year 2019-2020, the national
average payment for each breakfast referred to
in clause (i) of this subparagraph shall equal
the result obtained under such clause (i)
applicable to such breakfast, as annually
adjusted for the school year in accordance with
subparagraph (B).
(iii) For school year 2020-2021, the national
average payment for each breakfast referred to
in clause (i) of this subparagraph shall equal
the annually adjusted payment for such
breakfast, as determined under clause (ii) of
this subparagraph, plus 1 cent.
(iv) For school year 2021-2022, and each
succeeding school year, the national average
payment for each breakfast referred to in
clause (i) of this subparagraph shall equal the
result obtained under clause (iii) of this
subparagraph applicable to such breakfast, as
annually adjusted for the school year in
accordance with subparagraph (B).
(2)(A) The Secretary shall make additional payments for
breakfasts served to children qualifying for a free or reduced
price meal at schools that are in severe need.
(B) The maximum payment for each such free breakfast shall be
the higher of--
(i) the national average payment established by the
Secretary for free breakfasts plus 10 cents, or
(ii) 45 cents (as adjusted pursuant to section
11(a)(3)(B) of the Richard B. Russell National School
Lunch Act (42 U.S.C 1759a(a)(3)(B))).
(C) The maximum payment for each such reduced price breakfast
shall be thirty cents less than the maximum payment for each
free breakfast as determined under clause (B) of this
paragraph.
(3) The Secretary shall increase by 6 cents the annually
adjusted payment for each breakfast served under this Act and
section 17 of the Richard B. Russell National School Lunch Act.
These funds shall be used to assist States, to the extent
feasible, in improving the nutritional quality of the
breakfasts.
(4) Notwithstanding any other provision of law, whenever
stocks of agricultural commodities are acquired by the
Secretary or the Commodity Credit Corporation and are not
likely to be sold by the Secretary or the Commodity Credit
Corporation or otherwise used in programs of commodity sale or
distribution, the Secretary shall make such commodities
available to school food authorities and eligible institutions
serving breakfasts under this Act in a quantity equal in value
to not less than 3 cents for each breakfast served under this
Act and section 17 of the Richard B. Russell National School
Lunch Act.
(5) Expenditures of funds from State and local sources for
the maintenance of the breakfast program shall not be
diminished as a result of funds or commodities received under
paragraph (3) or (4).
STATE DISBURSEMENT TO SCHOOLS
(c) Funds apportioned and paid to any State for the purpose
of this section shall be disbursed by the [State educational
agency] State agency to schools selected by the [State
educational agency] State agency to assist such schools in
operating a breakfast program and for the purpose of subsection
(d). Disbursement to schools shall be made at such rates per
meal or on such other basis as the Secretary shall prescribe.
In selecting schools for participation, the [State educational
agency] State agency shall, to the extent practicable, give
first consideration to those schools drawing attendance from
areas in which poor economic conditions exist, to those schools
in which a substantial proportion of the children enrolled must
travel long distances daily, and to those schools in which
there is a special need for improving the nutrition and dietary
practices of children of working mothers and children from low-
income families. Breakfast assistance disbursements to schools
under this section may be made in advance or by way of
reimbursement in accordance with procedures prescribed by the
Secretary.
(d) Severe Need Assistance.--
(1) In general.--Each [State educational agency]
State 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--
(A) 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
(B) in the case of a school in which lunches
were not served during the most recent second
preceding school year, the Secretary otherwise
determines that the requirements of
subparagraph (A) would have been met.
(2) Additional assistance.--A school, on the
submission of appropriate documentation about the need
circumstances in that school and the eligibility of the
school for additional assistance, shall be entitled to
receive the meal reimbursement rate specified in
subsection (b)(2).
NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS
(e)(1)(A) Breakfasts served by schools participating in the
school breakfast program under this section shall consist of a
combination of foods and shall meet minimum nutritional
requirements prescribed by the Secretary on the basis of tested
nutritional research, except that the minimum nutritional
requirements shall be measured by not less than the weekly
average of the nutrient content of school breakfasts. Such
breakfasts shall be served free or at a reduced price to
children in school under the same terms and conditions as are
set forth with respect to the service of lunches free or at a
reduced price in section 9 of the Richard B. Russell National
School Lunch Act.
(B) The Secretary shall provide through [State educational
agencies] State agencies technical assistance and training[,
including technical assistance and training in the preparation
of foods high in complex carbohydrates and lower-fat versions
of foods commonly used in the school breakfast program
established under this section,] to schools participating in
the school breakfast program to assist the schools in complying
with the nutritional requirements prescribed by the Secretary
pursuant to subparagraph (A) and in providing appropriate meals
to children with medically certified special dietary needs.
(2) At the option of a local school food authority, a student
in a school under the authority that participates in the school
breakfast program under this Act may be allowed to refuse not
more than one item of a breakfast that the student does not
intend to consume. A refusal of an offered food item shall not
affect the full charge to the student for a breakfast meeting
the requirements of this section or the amount of payments made
under this Act to a school for the breakfast.
DISBURSEMENT TO SCHOOLS BY THE SECRETARY
Sec. 5. (a) The Secretary shall withhold funds payable to a
State under this Act and disburse the funds directly to schools
or institutions within the State for the purposes authorized by
this Act to the extent that the Secretary has so withheld and
disbursed such funds continuously since October 1, 1980, but
only to such extent (except as otherwise required by subsection
(b)). Any funds so withheld and disbursed by the Secretary
shall be used for the same purposes, and shall be subject to
the same conditions, as applicable to a State disbursing funds
made available under this Act. If the Secretary is
administering (in whole or in part) any program authorized
under this Act, the State in which the Secretary is
administering the program may, upon request to the Secretary,
assume administration of that program.
(b) If a [State educational agency] State agency is not
permitted by law to disburse the funds paid to it under this
Act to any of the nonpublic schools in the State, the Secretary
shall disburse the funds directly to such schools within the
State for the same purposes and subject to the same conditions
as are authorized or required with respect to the disbursements
to public schools within the State by the [State educational
agency] State agency.
* * * * * * *
SEC. 7. STATE ADMINISTRATIVE EXPENSES.
(a) Amount and Allocation of Funds.--
(1) Amount available.--
(A) In general.--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, and 17 of
the Richard B. Russell National School Lunch
Act and sections 3 and 4 of this Act during the
second preceding fiscal year.
(B) Allocation.--The Secretary shall allocate
the funds so provided in accordance with
paragraphs (2), (3), and (4) of this
subsection.
(2) Expense grants.--
(A) In general.--Subject to subparagraph (B),
the Secretary shall allocate to each State for
administrative costs incurred in any fiscal
year in connection with the programs authorized
under the Richard B. Russell National School
Lunch Act or under this Act, except for the
programs authorized under section 13 or 17 of
the Richard B. Russell National School Lunch
Act or under section 17 of this Act, an amount
equal to not less than 1 percent and not more
than 1\1/2\ percent of the funds expended by
each State under sections 4 and 11 of the
Richard B. Russell National School Lunch Act
and sections 3 and 4 of this Act during the
second preceding fiscal year.
(B) Minimum amount.--
(i) In general.--In no case shall the
grant available to any State under this
paragraph be less than the amount such
State was allocated in the fiscal year
ending September 30, 1981, or $200,000
(as adjusted under [clause (ii)] clause
(ii)), whichever is larger.
(ii) Adjustment.--On October 1, 2008,
and each October 1 thereafter, the
minimum dollar amount for a fiscal year
specified in clause (i) shall be
adjusted to reflect the percentage
change between--
(I) the value of the index
for State and local government
purchases, as published by the
Bureau of Economic Analysis of
the Department of Commerce, for
the 12-month period ending June
30 of the second preceding
fiscal year; and
(II) the value of that index
for the 12-month period ending
June 30 of the preceding fiscal
year.
(3) The Secretary shall allocate to each State for its
administrative costs incurred under the program authorized by
section 17 of the Richard B. Russell National School Lunch Act
in any fiscal year an amount, based upon funds expended under
that program in the second preceding fiscal year, equal to (A)
20 percent of the first $50,000, (B) 10 percent of the next
$100,000, (C) 5 percent of the next $250,000, and (D) 2\1/2\
percent of any remaining funds. If an agency in the State other
than the [State educational agency] State agency administers
such program, the State shall ensure that an amount equal to no
less than the funds due the State under this paragraph is
provided to such agency for costs incurred by such agency in
administering the program[, except as provided in paragraph
(5)]. The Secretary may adjust any State's allocation to
reflect changes in the size of its program.
(4) The remaining funds appropriated under this section shall
be allocated among the States by the Secretary in amounts the
Secretary determines necessary for the improvement in the
States of the administration of the programs authorized under
the Richard B. Russell National School Lunch Act and this Act,
except for section 17 of this Act, including, but not limited
to, improved program integrity and the quality of meals served
to children.
[(5)(A) Not more than 25 percent of the amounts made
available to each State under this section for the fiscal year
1991 and 20 percent of the amounts made available to each State
under this section for the fiscal year 1992 and for each
succeeding fiscal year may remain available for obligation or
expenditure in the fiscal year succeeding the fiscal year for
which such amounts were appropriated.
[(B) Reallocation of funds.--
[(i) Return to secretary.--For each fiscal
year, any amounts appropriated that are not
obligated or expended during the fiscal year
and are not carried over for the succeeding
fiscal year under subparagraph (A) shall be
returned to the Secretary.
[(ii) Reallocation by secretary.--The
Secretary shall allocate, for purposes of
administrative costs, any remaining amounts
among States that demonstrate a need for the
amounts.]
[(6)] (5) Use of administrative funds.--Funds
available to a State under this subsection and under
section 13(k)(1) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1761(k)(1)) may be used by
the State for the costs of administration of the
programs authorized under this Act (except for the
programs authorized under sections 17 and 21) and the
Richard B. Russell National School Lunch Act (42 U.S.C.
1751 et seq.) without regard to the basis on which the
funds were earned and allocated.
[(7)] (6) Where the Secretary is responsible for the
administration of programs under this Act or the Richard B.
Russell National School Lunch Act, the amount of funds that
would be allocated to the State agency under this section and
under section 13(k)(1) of the Richard B. Russell National
School Lunch Act shall be retained by the Secretary for the
Secretary's use in the administration of such programs.
[(8)] (7) In the fiscal year 1991 and each succeeding fiscal
year, in accordance with regulations issued by the Secretary,
each State shall ensure that the State agency administering the
distribution of commodities under programs authorized under
this Act and under the Richard B. Russell National School Lunch
Act is provided, from funds made available to the State under
this subsection, an appropriate amount of funds for
administrative costs incurred in distributing such commodities.
In developing such regulations, the Secretary may consider the
value of commodities provided to the State under this Act and
under the Richard B. Russell National School Lunch Act.
[(9)] (8)(A) If the Secretary determines that the
administration of any program by a State under this Act (other
than section 17) or under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.) (including any
requirement to provide sufficient training, technical
assistance, and monitoring of the child and adult care food
program under section 17 of that Act (42 U.S.C. 1766)), or
compliance with a regulation issued pursuant to either of such
Acts, is seriously deficient, and the State fails to correct
the deficiency within a specified period of time, the Secretary
may withhold from the State some or all of the funds allocated
to the State under this section or under section 13(k)(1) or 17
of the Richard B. Russell National School Lunch Act (42 U.S.C.
1761(k)(1) or 1766).
(B) On a subsequent determination by the Secretary that the
administration of any program referred to in subparagraph (A),
or compliance with the regulations issued to carry out the
program, is no longer seriously deficient and is operated in an
acceptable manner, the Secretary may allocate some or all of
the funds withheld under such subparagraph.
(b) Funds paid to a State under subsection (a) of this
section may be used to pay salaries, including employee
benefits and travel [expenses, for administrative] expenses
for--
(1) administrative and supervisory personnel; [for
support services; for office equipment; and for staff]
(2) support services;
(3) office equipment;
(4) State-operated purchasing programs; and
(5) staff development.
(c) If any State agency agrees to assume responsibility for
the administration of food service programs in nonprofit
private schools or child care institutions that were previously
administered by the Secretary, an appropriate adjustment shall
be made in the administrative funds paid under this section to
the State not later than the succeeding fiscal year.
(d) Notwithstanding any other provision of law, funds made
available to each State under this section shall remain
available for obligation and expenditure by that State during
the fiscal year immediately following the fiscal year for which
such funds were made available. For each fiscal year the
Secretary shall establish a date by which each State shall
submit to the Secretary a plan for the disbursement of funds
provided under this section for each such year, and the
Secretary shall reallocate any unused funds, as evidenced by
such plans, to other States as the Secretary considers
appropriate.
(e) Plans for Use of Administrative Expense Funds.--
(1) In general.--Each State shall submit to the
Secretary for approval by October 1 of the initial
fiscal year a plan for the use of State administrative
expense funds, including a staff formula for State
personnel, system level supervisory and operating
personnel, and school level personnel.
(2) Updates and information management systems.--
(A) In general.--After submitting the initial
plan, a State shall be required to submit to
the Secretary for approval only a substantive
change in the plan.
(B) Plan contents.--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--
(i) monitoring the nutrient content
of meals served;
(ii) training local educational
agencies, school food authorities, and
schools in how to use technology and
information management systems
(including verifying eligibility for
free or reduced price meals using
program participation or income data
gathered by State or local agencies);
and
(iii) using electronic data to
establish benchmarks to compare and
monitor program integrity, program
participation, and financial data.
(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.
(f) Payments of funds under this section shall be made only
to States that agree to maintain a level of funding out of
State revenues, for administrative costs in connection with
programs under this Act (except section 17 of this Act) and the
Richard B. Russell National School Lunch Act (except section 13
of that Act ), not less than the amount expended or obligated
in fiscal year 1977, and that agree to participate fully in any
studies authorized by the Secretary.
(g) Professional Standards for School Food Service.--
(1) Criteria for school food service and state agency
directors.--
(A) School food service directors.--
(i) In general.--The Secretary shall
establish a program of required
education, training, and certification
for all school food service directors
responsible for the management of a
school food authority.
(ii) Requirements.--The program shall
include--
(I) minimum educational
requirements necessary to
successfully manage the school
lunch program established under
the Richard B. Russell National
School Lunch Act (42 U.S.C.
1751 et seq.) and the school
breakfast program established
by section 4 of this Act;
(II) minimum program training
and certification criteria for
school food service directors;
and
(III) minimum periodic
training criteria to maintain
school food service director
certification.
(B) School nutrition state agency
directors.--The Secretary shall establish
criteria and standards for States to use in the
selection of State agency directors with
responsibility for the school lunch program
established under the Richard B. Russell
National School Lunch Act (42 U.S.C. 1751 et
seq.) and the school breakfast program
established by section 4 of this Act.
(C) Training program partnership.--The
Secretary may provide financial and other
assistance to 1 or more professional food
service management organizations--
(i) to establish and manage the
program under this paragraph; and
(ii) to develop voluntary training
and certification programs for other
school food service workers.
(D) Required date of compliance.--
(i) School food service directors.--
The Secretary shall establish a date by
which all school food service directors
whose local educational agencies are
participating in the school lunch
program established under the Richard
B. Russell National School Lunch Act
(42 U.S.C. 1751 et seq.) and the school
breakfast program established by
section 4 of this Act shall be required
to comply with the education, training,
and certification criteria established
in accordance with subparagraph (A).
(ii) School nutrition state agency
directors.--The Secretary shall
establish a date by which all State
agencies shall be required to comply
with criteria and standards established
in accordance with subparagraph (B) for
the selection of State agency directors
with responsibility for the school
lunch program established under the
Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.) and
the school breakfast program
established by section 4 of this Act.
(2) Training and certification of food service
personnel.--
(A) Training for individuals conducting or
overseeing administrative procedures.--
(i) 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 local
educational agency and school food
authority personnel and other
appropriate personnel.
(ii) Federal role.--The Secretary
shall--
(I) provide training and
technical assistance described
in clause (i) to the State; or
(II) at the option of the
Secretary, directly provide
training and technical
assistance described in clause
(i).
(iii) Required participation.--In
accordance with procedures established
by the Secretary, each local
educational agency or school food
authority shall ensure that an
individual conducting or overseeing
administrative procedures described in
clause (i) receives training at least
annually, unless determined otherwise
by the Secretary.
(B) Training and certification of all local
food service personnel.--
(i) In general.--The Secretary shall
provide training designed to improve--
(I) the accuracy of approvals
for free and reduced price
meals; and
(II) the identification of
reimbursable meals at the point
of service.
(ii) Certification of local
personnel.--In accordance with criteria
established by the Secretary, local
food service personnel shall complete
annual training and receive annual
certification--
(I) to ensure program
compliance and integrity; and
(II) to demonstrate
competence in the training
provided under clause (i).
[(iii) Training modules.--In addition
to the topics described in clause (i),
a training program carried out under
this subparagraph shall include
training modules on--
[(I) nutrition;
[(II) health and food safety
standards and methodologies;
and
[(III) any other appropriate
topics, as determined by the
Secretary.]
(iii) Minimizing disruptions.--The
Secretary shall encourage school food
authorities to consider--
(I) providing the training
required under this
subparagraph to local food
service personnel during paid,
regular hours; and
(II) that to the extent that
training must occur during
nonwork hours, it is minimally
disruptive to employees' other
work obligations if employees
are provided with sufficient
notice of training.
(3) Funding.--
(A) In general.--Out of any funds in the
Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the
Secretary to carry out this subsection, to
remain available until expended--
(i) on October 1, 2010, $5,000,000;
and
(ii) on each October 1 thereafter,
$1,000,000.
(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.
(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 local
educational agencies carried out under section
22 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769c).
(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 under 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 and WIC Reauthorization Act of 2004 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.
(i) Technology Infrastructure Improvement.--
(1) In general.--Each State shall submit to the
Secretary, for approval by the Secretary, an amendment
to the plan required by subsection (e) that describes
the manner in which funds provided under this section
will be used for technology and information management
systems.
(2) Requirements.--The amendment shall, at a minimum,
describe the manner in which the State will improve
program integrity by--
(A) monitoring the nutrient content of meals
served;
(B) providing training to local educational
agencies, school food authorities, and schools
on the use of technology and information
management systems for activities including--
(i) menu planning;
(ii) collection of point-of-sale
data; and
(iii) the processing of applications
for free and reduced price meals; 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) Technology infrastructure grants.--
(A) In general.--Subject to the availability
of funds made available under paragraph (4) to
carry out this paragraph, the Secretary shall,
on a competitive basis, provide funds to States
to be used to provide grants to local
educational agencies, school food authorities,
and schools to defray the cost of purchasing or
upgrading technology and information management
systems for use in programs authorized by this
Act (other than section 17) and the Richard B.
Russell National School Lunch Act (42 U.S.C.
1751 et seq.) and for the purposes described in
section 749(h) of the Agriculture, Rural
Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2010
(Public Law 111-80; 123 Stat. 2133).
(B) Infrastructure development plan.--To be
eligible to receive a grant under this
paragraph, a school or school food authority
shall submit to the State a plan to purchase or
upgrade technology and information management
systems that addresses potential cost savings
and methods to improve program integrity,
including--
(i) processing and verification of
applications for free and reduced price
meals;
(ii) integration of menu planning,
production, and serving data to monitor
compliance with section 9(f)(1) of the
Richard B. Russell National School
Lunch Act (42 U.S.C. 1758(f)(1)); and
(iii) compatibility with statewide
reporting systems.
(C) Priority.--In awarding funds to States
under this paragraph, the Secretary shall give
priority to States in which local educational
agencies, school food authorities, or schools
submit a plan under subparagraph (B) that
includes the use of technology or information
management systems to provide assistance to
tribal organizations administering the food
distribution program on Indian reservations
established under section 4(b) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2013(b)) for
purposes of improving the rate of direct
certification of children in households
participating in that program.
(4) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection such sums as are necessary for each of
fiscal years 2010 through [2015] 2021, to remain
available until expended.
(j) Centralized Exchange Network.--
(1) Establishment.--The Secretary shall establish a
centralized exchange network to facilitate State
exchange of information and best practices, for
programs authorized under this Act or the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et
seq.).
(2) Network topics.--State exchanges of information
and best practices described in paragraph (1) may
include, at a minimum, research methods and data
related to--
(A) improved efficiency in the delivery of
benefits;
(B) improved compliance in the programs; and
(C) reduction of fraud, waste, and abuse in
the programs.
(3) Administrative funds.--The Secretary shall not
use more than $450,000 for such network.
[(j)] (k) For the fiscal year beginning October 1, 1977, and
each succeeding fiscal year ending before October 1, [2015]
2021, there are hereby authorized to be appropriated such sums
as may be necessary for the purposes of this section.
* * * * * * *
SEC. 10. REGULATIONS.
(a) In General.--The Secretary shall prescribe such
regulations as the Secretary may deem necessary to carry out
this Act and the Richard B. Russell National School Lunch Act,
including regulations relating to the service of food in
participating schools and service institutions in competition
with the programs authorized under this Act and the Richard B.
Russell National School Lunch Act.
(b) National School Nutrition Standards.--
(1) Proposed regulations.--
(A) In general.--The Secretary shall--
(i) establish science-based nutrition
standards for foods sold in schools
other than foods provided under this
Act and the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et
seq.); and
(ii) not later than 1 year after the
date of enactment of this paragraph,
promulgate proposed regulations to
carry out clause (i).
(B) Application.--The nutrition standards
shall apply to all foods sold--
(i) outside the school meal programs;
(ii) on the school campus; and
(iii) at any time during the school
day.
(C) Requirements.--In establishing nutrition
standards under this paragraph, the Secretary
shall--
(i) establish standards that are
consistent with the most recent Dietary
Guidelines for Americans published
under section 301 of the National
Nutrition Monitoring and Related
Research Act of 1990 (7 U.S.C. 5341),
including the food groups to encourage
and nutrients of concern identified in
the Dietary Guidelines; [and]
(ii) consider--
(I) authoritative scientific
recommendations for nutrition
standards;
(II) existing school
nutrition standards, including
voluntary standards for
beverages and snack foods and
State and local standards;
(III) the practical
application of the nutrition
standards; and
(IV) special exemptions for
school-sponsored fundraisers
(other than fundraising through
vending machines, school
stores, snack bars, a la carte
sales, and any other exclusions
determined by the Secretary),
if the fundraisers are approved
by the school and are
infrequent within the
school[.];
(iii) ensure that the nutrition
standards under this paragraph do not
apply to fundraisers held by student
groups or organizations, and that the
school and applicable State agency are
not prohibited from determining which
such fundraisers may be held; and
(iv) ensure that the nutrition
standards under this paragraph allow
any foods that may be served as part of
a reimbursable meal served under the
school meal programs to be sold in
schools as described in subparagraph
(B).
(D) Updating standards.--As soon as
practicable after the date of publication by
the Department of Agriculture and the
Department of Health and Human Services of a
new edition of the Dietary Guidelines for
Americans under section 301 of the National
Nutrition Monitoring and Related Research Act
of 1990 (7 U.S.C. 5341), the Secretary shall
review and update as necessary the school
nutrition standards and requirements
established under this subsection.
(2) Implementation.--
(A) Effective date.--The interim or final
regulations under this subsection shall take
effect at the beginning of the school year that
is not earlier than 1 year and not later than 2
years following the date on which the
regulations are finalized.
(B) Reporting.--The Secretary shall submit to
the Committee on Agriculture, Nutrition, and
Forestry of the Senate and the [Committee on
Education and Labor] Committee on Education and
the Workforce of the House of Representatives a
quarterly report that describes progress made
toward promulgating final regulations under
this subsection.
(c) In such regulations the Secretary may provide for the
transfer of funds by any State between the programs authorized
under this Act and the Richard B. Russell National School Lunch
Act on the basis of an approved State plan of operation for the
use of the funds and may provide for the reserve of up to 1 per
centum of the funds available for apportionment to any State to
carry out special developmental projects.
* * * * * * *
MISCELLANEOUS PROVISIONS AND DEFINITIONS
Sec. 15. For the purposes of this Act--
(1) ``State'' means any of the fifty States, the
District of Columbia, the Commonwealth of Puerto Rico,
the Virgin Islands, Guam, American Samoa, or the
Commonwealth of the Northern Mariana Islands.
[(2) `` State educational agency'' means, as the
State legislature may determine, (A) the chief State
school officer (such as the State superintendent of
public instruction, commissioner of education, or
similar officer), or (B) a board of education
controlling the State department of education.]
(2) State agency.--The term ``State agency'' means--
(A) the chief State school officer (such as
the State superintendent of public instruction,
commissioner of education, or similar officer);
(B) a board of education controlling the
State department of education;
(C) the State Commissioner or individual who
administers agricultural programs in the State;
or
(D) a State official the State legislature
designates to administer the programs under
this Act.
(3) ``School'' means (A) any public or nonprofit
private school of high school grade or under, including
kindergarten and preschool programs operated by such
school, and (B) any public or licensed nonprofit
private residential child care institution (including,
but not limited to, orphanages and homes for the
mentally retarded, but excluding Job Corps Centers
funded by the Department of Labor). For purposes of
clauses (A) and (B) of this paragraph, the term
``nonprofit'', when applied to any such private school
or institution, means any such school or institution
which is exempt from tax under section 501(c)(3) of the
Internal Revenue Code of 1986.
(4) ``Secretary'' means the Secretary of Agriculture.
(5) ``School year'' means the annual period from July
1 through June 30.
(6) Except as used in section 17 of this Act, the
terms ``child'' and ``children'' as used in this Act,
shall be deemed to include persons regardless of age
who are determined by the [State educational agency]
State agency, in accordance with regulations prescribed
by the Secretary, to have 1 or more disabilities and
who are attending any nonresidential public or
nonprofit private school of high school grade or under
for the purpose of participating in a school program
established for individuals with disabilities.
(7) Disability.--The term ``disability'' has the
meaning given the term in the Rehabilitation Act of
1973 for purposes of title II of that Act (29 U.S.C 760
et seq.).
ACCOUNTS AND RECORDS
Sec. 16. (a) States, [State educational agencies] State
agencies, schools, and nonprofit institutions participating in
programs under this Act shall keep such accounts and records as
may be necessary to enable the Secretary to determine whether
there has been compliance with this Act and the regulations
hereunder. Such accounts and records shall be available at any
reasonable time for inspection and audit by representatives of
the Secretary and shall be preserved for such period of time,
not in excess of three years, as the Secretary determines is
necessary.
(b) With regard to any claim arising under this Act or under
the Richard B. Russell National School Lunch Act, the Secretary
shall have the authority to determine the amount of, to settle
and to adjust any such claim, and to compromise or deny such
claim or any part thereof. The Secretary shall also have the
authority to waive such claims if the Secretary determines that
to do so would serve the purposes of either such Act. Nothing
contained in this subsection shall be construed to diminish the
authority of the Attorney General of the United States under
section 516 of title 28, United States Code, to conduct
litigation on behalf of the United States.
SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN
Sec. 17. (a) Congress finds that substantial numbers of
pregnant, postpartum, and breastfeeding women, infants, and
young children from families with inadequate income are at
special risk with respect to their physical and mental health
by reason of inadequate nutrition or health care, or both. It
is, therefore, the purpose of the program authorized by this
section to provide, up to the authorization levels set forth in
subsection (g) of this section, supplemental foods and
nutrition education, including breastfeeding [promotion]
counseling, promotion, and support, through any eligible local
agency that applies for participation in the program. The
program shall serve as an adjunct to good health care, during
critical times of growth and development, to prevent the
occurrence of health problems, including drug abuse, and
improve the health status of these persons.
(b) As used in this section--
(1) ``Breastfeeding women'' means women up to one
year postpartum who are breastfeeding their infants.
(2) ``Children'' means persons who have had their
first birthday but have not yet attained their fifth
birthday.
(3) ``Competent professional authority'' means
physicians, nutritionists, registered nurses,
dietitians, or State or local medically trained health
officials, or persons designated by physicians or State
or local medically trained health officials, in
accordance with standards prescribed by the Secretary,
as being competent professionally to evaluate
nutritional risk.
(4) ``Costs of nutrition services and
administration'' or ``nutrition services and
administration'' means costs that shall include, but
not be limited to, costs for certification of
eligibility of persons for participation in the program
(including centrifuges, measuring boards,
spectrophotometers, and scales used for the
certification), food delivery, monitoring, nutrition
education, breastfeeding support and promotion,
outreach, startup costs, and general administration
applicable to implementation of the program under this
section, such as the cost of staff, transportation,
insurance, developing and printing food instruments,
and administration of State and local agency offices.
(5) ``Infants'' means persons under one year of age.
(6) ``Local agency'' means a public health or welfare
agency or a private nonprofit health or welfare agency,
which, directly or through an agency or physician with
which it has contracted, provides health services. The
term shall include an Indian tribe, band, or group
recognized by the Department of the Interior, the
Indian Health Service of the Department of Health and
Human Services, or an intertribal council or group that
is an authorized representative of Indian tribes,
bands, or groups recognized by the Department of the
Interior.
(7) Nutrition education.--The term ``nutrition
education'' means individual and group sessions and the
provision of material that are designed to improve
health status and achieve positive change in dietary
and physical activity habits, and that emphasize the
relationship between nutrition, physical activity, and
health, all in keeping with the personal and cultural
preferences of the individual.
(8) ``Nutritional risk'' means (A) detrimental or
abnormal nutritional conditions detectable by
biochemical or anthropometric measurements, (B) other
documented nutritionally related medical conditions,
(C) dietary deficiencies that impair or endanger
health, (D) conditions that directly affect the
nutritional health of a person, such as alcoholism or
drug abuse, or (E) conditions that predispose persons
to inadequate nutritional patterns or nutritionally
related medical conditions, including, but not limited
to, homelessness and migrancy.
(9) ``Plan of operation and administration'' means a
document that describes the manner in which the State
agency intends to implement and operate the program.
(10) ``Postpartum women'' means women up to six
months after termination of pregnancy.
(11) ``Pregnant women'' means women determined to
have one or more fetuses in utero.
(12) ``Secretary'' means the Secretary of
Agriculture.
(13) ``State agency'' means the health department or
comparable agency of each State; an Indian tribe, band,
or group recognized by the Department of the Interior;
an intertribal council or group that is the authorized
representative of Indian tribes, bands, or groups
recognized by the Department of the Interior; or the
Indian Health Service of the Department of Health and
Human Services.
(14) Supplemental food._ [``Supplemental foods''
means those foods] The term ``supplemental food'' means
any food containing nutrients determined by nutritional
research to be lacking in the diets of pregnant,
breastfeeding, and postpartum women, infants, and
children 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,
as prescribed by the Secretary. State agencies may,
with the approval of the Secretary, substitute
different foods providing the nutritional equivalent of
foods prescribed by the Secretary, to allow for
different cultural eating patterns.
(15) ``Homeless individual'' means--
(A) an individual who lacks a fixed and
regular nighttime residence; or
(B) an individual whose primary nighttime
residence is--
(i) a supervised publicly or
privately operated shelter (including a
welfare hotel or congregate shelter)
designed to provide temporary living
accommodations;
(ii) an institution that provides a
temporary residence for individuals
intended to be institutionalized;
(iii) a temporary accommodation of
not more than 365 days in the residence
of another individual; or
(iv) a public or private place not
designed for, or ordinarily used as, a
regular sleeping accommodation for
human beings.
(16) ``Drug abuse education'' means--
(A) the provision of information concerning
the dangers of drug abuse; and
(B) the referral of participants who are
suspected drug abusers to drug abuse clinics,
treatment programs, counselors, or other drug
abuse professionals.
(17) ``Competitive bidding'' means a procurement
process under which the Secretary or a State agency
selects a single source (a single infant formula
manufacturer) offering the lowest price, as determined
by the submission of sealed bids, for a product for
which bids are sought for use in the program authorized
by this section.
(18) ``Rebate'' means the amount of money refunded
under cost containment procedures to any State agency
from the manufacturer or other supplier of the
particular food product as the result of the purchase
of the supplemental food with a voucher or other
purchase instrument by a participant in each such
agency's program established under this section.
(19) ``Discount'' means, with respect to a State
agency that provides program foods to participants
without the use of retail grocery stores (such as a
State that provides for the home delivery or direct
distribution of supplemental food), the amount of the
price reduction or other price concession provided to
any State agency by the manufacturer or other supplier
of the particular food product as the result of the
purchase of program food by each such State agency, or
its representative, from the supplier.
(20) ``Net price'' means the difference between the
manufacturer's wholesale price for infant formula and
the rebate level or the discount offered or provided by
the manufacturer under a cost containment contract
entered into with the pertinent State agency.
(21) Remote indian or native village.--The term
``remote Indian or Native village'' means an Indian or
Native village that--
(A) is located in a rural area;
(B) has a population of less than 5,000
inhabitants; and
(C) is not accessible year-around by means of
a public road (as defined in section 101 of
title 23, United States Code).''.
(22) Primary contract infant formula.--The term
``primary contract infant formula'' means the specific
infant formula for which manufacturers submit a bid to
a State agency in response to a rebate solicitation
under this section and for which a contract is awarded
by the State agency as a result of that bid.
(23) State alliance.--The term ``State alliance''
means 2 or more State agencies that join together for
the purpose of procuring infant formula under the
program by soliciting competitive bids for infant
formula.
(c)(1) The Secretary may carry out a special supplemental
nutrition program to assist State agencies through grants-in-
aid and other means to provide, through local agencies, at no
cost, supplemental foods, nutrition education, and
breastfeeding support and promotion to low-income pregnant,
postpartum, and breastfeeding women, infants, and children who
satisfy the eligibility requirements specified in subsection
(d) of this section. The program shall be supplementary to--
(A) the supplemental nutrition assistance program;
(B) any program under which foods are distributed to
needy families in lieu of supplemental nutrition
assistance program benefits; and
(C) receipt of food or meals from soup kitchens, or
shelters, or other forms of emergency food assistance.
(2) Subject to amounts appropriated to carry out this section
under subsection (g)--
(A) the Secretary shall make cash grants to State
agencies for the purpose of administering the program,
and
(B) any State agency approved eligible local agency
that applies to participate in or expand the program
under this section shall immediately be provided with
the necessary funds to carry out the program.
(3) Nothing in this subsection shall be construed to permit
the Secretary to reduce ratably the amount of foods that an
eligible local agency shall distribute under the program to
participants. The Secretary shall take affirmative action to
ensure that the program is instituted in areas most in need of
supplemental foods. The existence of a commodity supplemental
food program under section 4 of the Agriculture and Consumer
Protection Act of 1973 shall not preclude the approval of an
application from an eligible local agency to participate in the
program under this section nor the operation of such program
within the same geographic area as that of the commodity
supplemental food program, but the Secretary shall issue such
regulations as are necessary to prevent dual receipt of
benefits under the commodity supplemental food program and the
program under this section.
(4) A State shall be ineligible to participate in programs
authorized under this section if the Secretary determines that
State or local sales taxes are collected within the State on
purchases of food made to carry out this section.
(d)(1) Participation in the program under this section shall
be limited to pregnant, postpartum, and breastfeeding women,
infants, and children from low-income families who are
determined by a competent professional authority to be at
nutritional risk.
(2)(A) The Secretary shall establish income eligibility
standards to be used in conjunction with the nutritional risk
criteria in determining eligibility of individuals for
participation in the program. Any individual at nutritional
risk shall be eligible for the program under this section only
if such individual--
(i) is a member of a family with an income that is
less than the maximum income limit prescribed under
section 9(b) of the Richard B. Russell National School
Lunch Act for free and reduced price meals;
(ii)(I) receives supplemental nutrition assistance
program benefits under the Food and Nutrition Act of
2008; or
(II) is a member of a family that receives assistance
under the State program funded established under part A
of title IV of the Social Security Act that the
Secretary determines 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;
or
(iii)(I) receives medical assistance under title XIX
of the Social Security Act; or
(II) is a member of a family in which a pregnant
woman or an infant receives such assistance.
(B) For the purpose of determining income eligibility under
this section, any State agency [may choose to] shall exclude
from income--
(i) any basic allowance--
(I) for housing received by military service
personnel residing off military installations;
or
(II) provided under section 403 of title 37,
United States Code, for housing that is
acquired or constructed under subchapter IV of
chapter 169 of title 10, United States Code, or
any related provision of law; [and]
(ii) any cost-of-living allowance provided under
section 405 of title 37, United States Code, to a
member of a uniformed service who is on duty outside
the contiguous States of the United States[.]; and
(iii) any basic allowance for subsistence provided
under section 402 of title 37, United States Code, to a
member of a uniformed service.
(C) Combat pay.--For the purpose of determining
income eligibility under this section, a State agency
shall exclude from income any additional payment under
chapter 5 of title 37, United States Code, or otherwise
designated by the Secretary to be appropriate for
exclusion under this subparagraph, that is received by
or from a member of the United States Armed Forces
deployed to a designated combat zone, if the additional
pay--
(i) is the result of deployment to or service
in a combat zone; and
(ii) was not received immediately prior to
serving in a combat zone.
(D) In the case of a pregnant woman who is otherwise
ineligible for participation in the program because the family
of the woman is of insufficient size to meet the income
eligibility standards of the program, the pregnant woman shall
be considered to have satisfied the income eligibility
standards if, by increasing the number of individuals in the
family of the woman by 1 individual, the income eligibility
standards would be met.
(E) Child support payments.--For the purpose of
determining income eligibility under this section, a
State agency shall exclude from income any child
support payment for an applicant who is legally
obligated to pay child support for any noncustodial
child.
(3) Certification.--
(A) Procedures.--
(i) In general.--Subject to clause
(ii), a person shall be certified for
participation in accordance with
general procedures prescribed by the
Secretary.
(ii) Breastfeeding women.--A State
may elect to certify a breastfeeding
woman for a period of 1 year postpartum
or until a woman discontinues
breastfeeding, whichever is earlier.
(iii) Children.--A State may elect to
certify participant children for a
period of up to 1 year, if the State
electing the option provided under this
clause ensures that participant
children receive required health and
nutrition assessments.
(B) A State may consider pregnant women who meet the income
eligibility standards to be presumptively eligible to
participate in the program and may certify the women for
participation immediately, without delaying certification until
an evaluation is made concerning nutritional risk. A
nutritional risk evaluation of such a woman shall be completed
not later than 60 days after the woman is certified for
participation. If it is subsequently determined that the woman
does not meet nutritional risk criteria, the certification of
the woman shall terminate on the date of the determination.
(C) Physical presence.--
(i) In general.--Except as provided
in clause (ii) and subject to the
requirements of the Americans with
Disabilities Act of 1990 (42 U.S.C.
12101 et seq.) and section 504 of the
Rehabilitation Act of 1973 (29 U.S.C.
794), each individual seeking
certification or recertification for
participation in the program shall be
physically present at each
certification or recertification
determination in order to determine
eligibility under the program.
(ii) Waivers.--If the agency
determines that the requirement of
clause (i) would present an
unreasonable barrier to participation,
a local agency may waive the
requirement of clause (i) with respect
to--
(I) an infant or child who--
(aa) was present at
the initial
certification visit;
and
(bb) is receiving
ongoing health care;
(II) an infant or child who--
(aa) was present at
the initial
certification visit;
(bb) was present at a
certification or
recertification
determination within
the 1-year period
ending on the date of
the certification or
recertification
determination described
in clause (i); and
(cc) has one or more
parents who work; and
(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.
(D) Income documentation.--
(i) In general.--Except as provided
in clause (ii), in order to participate
in the program pursuant to clause (i)
of paragraph (2)(A), an individual
seeking certification or
recertification for participation in
the program shall provide documentation
of family income.
(ii) Waivers.--A State agency may
waive the documentation requirement of
clause (i), in accordance with criteria
established by the Secretary, with
respect to--
(I) an individual for whom
the necessary documentation is
not available; or
(II) an individual, such as a
homeless woman or child, for
whom the agency determines the
requirement of clause (i) would
present an unreasonable barrier
to participation.
(E) Adjunct documentation.--In order to
participate in the program pursuant to clause
(ii) or (iii) of paragraph (2)(A), an
individual seeking certification or
recertification for participation in the
program shall provide documentation of receipt
of assistance described in that clause.
(F) Proof of residency.--An individual
residing in a remote Indian or Native village
or an individual served by an Indian tribal
organization and residing on a reservation or
pueblo may, under standards established by the
Secretary, establish proof of residency under
this section by providing to the State agency
the mailing address of the individual and the
name of the remote Indian or Native village.
(G) Data exchange standards for improved
interoperability.--
(i) Designation.--The Secretary, in
consultation with an interagency work
group established by the Office of
Management and Budget, and taking into
consideration State government
perspectives, shall designate data
exchange standards to govern, under
this section--
(I) necessary categories of
information that State agencies
operating related programs are
required under applicable law
to electronically exchange with
another State agency; and
(II) Federal reporting and
data exchange required under
applicable law.
(ii) Requirements.--The data exchange
standards required by clause (i) shall,
to the maximum extent practicable--
(I) incorporate a widely
accepted, nonproprietary,
searchable, computer-readable
format;
(II) contain interoperable
standards developed and
maintained by intergovernmental
partnerships, such as the
National Information Exchange
Model;
(III) incorporate
interoperable standards
developed and maintained by
Federal entities with authority
regarding contracting and
financial assistance;
(IV) be consistent with, and
implement, applicable
accounting principles;
(V) be implemented in a
manner that--
(aa) is cost
effective; and
(bb) improves program
efficiency and
effectiveness;
(VI) be capable of being
upgraded as necessary; and
(VII) protects the privacy of
any personally identifiable
information from being accessed
by individuals who do not need
access to such information.
(iii) Effect of subparagraph.--
Nothing in this subparagraph requires
any change to an existing data exchange
standard for Federal reporting that is
determined to be effective and
efficient.
(iv) Implementation.--
(I) In general.--Not later
than 2 years after the date of
the enactment of the Improving
Child Nutrition and Education
Act of 2016, the Secretary
shall issue a proposed rule to
implement this subparagraph.
(II) Requirements.--The
proposed rule under this clause
shall--
(aa) identify all
federally required data
exchanges;
(bb) include
specification and
timing for the
exchanges to be
standardized;
(cc) address the
factors used in
determining whether and
when to standardize
data exchanges;
(dd) specify State
implementation options;
and
(ee) describe future
milestones.
[(e)(1) The State agency shall] (e) Nutrition and Drug Abuse
Education._
(1) Education._
(A) In general._A State agency shall ensure
that nutrition education and drug abuse
education is provided to all pregnant,
postpartum, and breastfeeding participants in
the program and to parents or caretakers of
infant and child participants in the program.
The State agency may also provide nutrition
education and drug abuse education to pregnant,
postpartum, and breastfeeding women and to
parents or caretakers of infants and children
enrolled at local agencies operating the
program under this section who do not
participate in the program. A local agency
participating in the program shall provide
education or educational materials relating to
the effects of drug and alcohol use by a
pregnant, postpartum, or breastfeeding woman on
the developing child of the woman.
(B) Disposal of certain infant formula.--
(i) In general.--The State agency
shall ensure that all pregnant,
postpartum, and breastfeeding
participants in the program, and
parents or caretakers of infant and
child participants in the program, are
provided education regarding proper
disposal of unused or excess infant
formula obtained with food instruments
issued under the program under this
section.
(ii) Inclusions.--The education under
this subparagraph shall include
information regarding--
(I) the safety hazards of
purchasing infant formula from
an unauthorized vendor; and
(II) the penalties associated
with the gifting, trading,
sale, or resale of infant
formula or other supplemental
foods obtained with food
instruments issued under the
program under this section, in
accordance with subsection (o).
(2) The Secretary shall prescribe standards to ensure that
adequate nutrition education services and breastfeeding
promotion and support are provided. The State agency shall
provide training to persons providing nutrition education,
including breastfeeding support and education, under this
section.
[(3) Nutrition education materials.--
[(A) In general.--The Secretary shall, after
submitting proposed nutrition education
materials to the Secretary of Health and Human
Services for comment, issue such materials for
use in the program under this section.
[(B) Sharing of materials with other
programs.--
[(i) Commodity supplemental food
program.--The Secretary may provide, in
bulk quantity, nutrition education
materials (including materials
promoting breastfeeding) developed with
funds made available for the program
authorized under this section to State
agencies administering the commodity
supplemental food program established
under section 5 of the Agriculture and
Consumer Protection Act of 1973 (7
U.S.C. 612c note; Public Law 93-86) at
no cost to that program.
[(ii) Child and adult care food
program.--A State agency may allow the
local agencies or clinics under the
State agency to share nutrition
educational materials with institutions
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) at no cost to that program, if a
written materials sharing agreement
exists between the relevant agencies.]
(3) Nutrition education materials.--
(A) In general.--The Secretary, after
submitting proposed nutrition education
materials to the Secretary of Health and Human
Services for comment, shall issue the materials
for use in the program under this section.
(B) Sharing of materials with child and adult
care food program.--A State agency may allow
the local agencies or clinics operating under
the State agency to share nutrition educational
materials with institutions 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) at no cost to that program, if a written
materials-sharing agreement exists between the
relevant agencies.
(4) The State agency--
(A) shall provide each local agency with materials
showing the maximum income limits, according to family
size, applicable to pregnant women, infants, and
children up to age 5 under the medical assistance
program established under title XIX of the Social
Security Act (in this section referred to as the
``medicaid program'');
(B) shall provide to individuals applying for the
program under this section, or reapplying at the end of
their certification period, written information about
the medicaid program and referral to such program or to
agencies authorized to determine presumptive
eligibility for such program, if such individuals are
not participating in such program and appear to have
family income below the applicable maximum income
limits for such program; and
(C) may provide a local agency with materials
describing other programs for which a participant in
the program may be eligible.
(5) Each local agency shall maintain and make available for
distribution a list of local resources for substance abuse
counseling and treatment.
[(f)(1)(A) Each State agency shall submit to the Secretary,
by a date specified by the Secretary, an initial date specified
by the Secretary, a plan of operation and administration for a
fiscal year. After submitting the initial plan, a State shall
be required to submit to the Secretary for approval only a
substantive change in the plan.]
(f) Plan of Operation and Administration by State Agency.--
(1) Requirements.--
(A) Submission.--
(i) In general.--Each State agency
shall submit to the Secretary a plan of
operation and administration of the
program authorized under this section.
(ii) Deadlines.--Each State agency
shall submit--
(I) an initial plan not later
than such date as is specified
by the Secretary; and
(II) an update to the plan
every 3 years thereafter or, if
the requirements of this
section continue to be met by
current plan, an assurance that
the current plan continues to
meet such requirements.
(B) To be eligible to receive funds under this section for a
fiscal year, a State agency must receive the approval of the
Secretary for the plan [submitted for] submitted covering the
fiscal year.
(C) The plan shall include--
(i) a description of the food delivery system of the
State agency and the method of enabling participants to
receive supplemental foods under the program at any of
the authorized retail stores under the program, to be
administered in accordance with standards developed by
the Secretary, including a description of the State
agency's vendor peer group system, competitive price
criteria, and allowable reimbursement levels that
demonstrate that the State is in compliance with the
cost-containment provisions in subsection (h)(11);
(ii) procedures for accepting and processing vendor
applications outside of the established timeframes if
the State agency determines there will be inadequate
access to the program, including in a case in which a
previously authorized vendor sells a store under
circumstances that do not permit timely notification to
the State agency of the change in ownership;
(iii) a description of the financial management
system of the State agency;
(iv) a plan to coordinate operations under the
program with other services or programs that may
benefit participants in, and applicants for, the
program;
(v) a plan to provide program benefits under this
section to, and to meet the special nutrition education
needs of, eligible migrants, homeless individuals, and
Indians;
(vi) a plan to expend funds to carry out the program
during the relevant fiscal year;
(vii) a plan to provide program benefits under this
section to unserved and underserved areas in the State
(including a plan to improve access to the program for
participants and prospective applicants who are
employed, or who reside in rural areas), if sufficient
funds are available to carry out this clause;
(viii) a plan for reaching and enrolling eligible
women in the early months of pregnancy, including
provisions to reach and enroll eligible migrants;
(ix) a plan to provide program benefits under this
section to unserved infants and children under the care
of foster parents, protective services, or child
welfare authorities, including infants exposed to drugs
perinatally;
(x) a plan to provide nutrition education and promote
breastfeeding; [and]
(xi) a plan to allow, during an emergency or disaster
period, for different foods to be obtained with program
benefits in lieu of, or in addition to, the
supplemental foods available to be obtained with such
benefits;
(xii) a plan detailing the methods to be used by all
local agencies to ensure compliance with subsection
(d)(2); and
[(xi)] (xiii) such other information as the Secretary
may reasonably require.
(D) The Secretary may not approve any plan that permits a
person to participate simultaneously in both the program
authorized under this section and the commodity supplemental
food program authorized under sections 4 and 5 of the
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c
note).
(2) A State agency shall establish a procedure under which
members of the general public are provided an opportunity to
comment on the development of the State agency plan.
(3) The Secretary shall establish procedures under which
eligible migrants may, to the maximum extent feasible, continue
to participate in the program under this section when they are
present in States other than the State in which they were
originally certified for participation in the program and shall
ensure that local programs provide priority consideration to
serving migrant participants who are residing in the State for
a limited period of time. Each State agency shall be
responsible for administering the program for migrant
populations within its jurisdiction.
(4) State agencies shall submit monthly financial reports and
participation data to the Secretary.
[(5) State and local]
(5) Accounts, records, and review._
(A) In general._State and local agencies operating
under the program shall keep such accounts and records,
including medical records, as may be necessary to
enable the Secretary to determine whether there has
been compliance with this section and to determine and
evaluate the benefits of the nutritional assistance
provided under this section. Such accounts and records
shall be available at any reasonable time for
inspection and audit by representatives of the
Secretary and shall be preserved for such period of
time, not in excess of five years, as the Secretary
determines necessary.
(B) Review.--The Secretary shall periodically review
State and local agency compliance with the approved
plan of operation and administration of the applicable
State.
(6)(A) Local agencies participating in the program under this
section shall notify persons of their eligibility or
ineligibility for the program within twenty days of the date
that the household, during office hours of a local agency,
personally makes an oral or written request to participate in
the program. The Secretary shall establish a shorter
notification period for categories of persons who, due to
special nutritional risk conditions, must receive benefits more
expeditiously.
(B) State agencies may provide for the delivery of vouchers
to any participant who is not scheduled for nutrition education
and breastfeeding counseling or a recertification interview
through means, such as mailing, that do not require the
participant to travel to the local agency to obtain vouchers.
The State agency shall describe any plans for issuance of
vouchers by mail in its plan submitted under paragraph (1). The
Secretary may disapprove a State plan with respect to the
issuance of vouchers by mail in any specified jurisdiction or
part of a jurisdiction within a State only if the Secretary
finds that such issuance would pose a significant threat to the
integrity of the program under this section in such
jurisdiction or part of a jurisdiction.
(7)(A) The State agency shall, in cooperation with
participating local agencies, publicly announce and distribute
information on the availability of program benefits (including
the eligibility criteria for participation and the location of
local agencies operating the program) to offices and
organizations that deal with significant numbers of potentially
eligible individuals (including health and medical
organizations, hospitals and clinics, welfare and unemployment
offices, social service agencies, farmworker organizations,
Indian tribal organizations, organizations and agencies serving
homeless individuals and shelters for victims of domestic
violence, and religious and community organizations in low
income areas).
(B) The information shall be publicly announced by the State
agency and by local agencies at least annually.
(C) The State agency and local agencies shall distribute the
information in a manner designed to provide the information to
potentially eligible individuals who are most in need of the
benefits, including pregnant women in the early months of
pregnancy.
(D) Each local agency operating the program within a hospital
and each local agency operating the program that has a
cooperative arrangement with a hospital shall--
(i) advise potentially eligible individuals that
receive inpatient or outpatient prenatal, maternity, or
postpartum services, or accompany a child under the age
of 5 who receives well-child services, of the
availability of program benefits; and
(ii) to the extent feasible, provide an opportunity
for individuals who may be eligible to be certified
within the hospital for participation in such program.
(8)(A) The State agency shall grant a fair hearing, and a
prompt determination thereafter, in accordance with regulations
issued by the Secretary, to any applicant, participant, or
local agency aggrieved by the action of a State or local agency
as it affects participation.
(B) Any State agency that must suspend or terminate benefits
to any participant during the participant's certification
period due to a shortage of funds for the program shall first
issue a notice to such participant.
(9) If an individual certified as eligible for participation
in the program under this section in one area moves to another
area in which the program is operating, that individual's
certification of eligibility shall remain valid for the period
for which the individual was originally certified.
[(10) The Secretary]
(10) Standards for administration._
(A) In general._The Secretary shall establish
standards for the proper, efficient, and
effective administration of the program. If the
Secretary determines that a State agency has
failed without good cause to administer the
program in a manner consistent with this
section or to implement the approved plan of
operation and administration under this
subsection, the Secretary may withhold such
amounts of the State agency's funds for
nutrition services and administration as the
Secretary deems appropriate. Upon correction of
such failure during a fiscal year by a State
agency, any funds so withheld for such fiscal
year shall be provided the State agency.
(B) Notification to state authority.--If, on
reviewing the administration by a State of the
program, the Secretary determines there is a
need to temporarily halt the State from
approving new vendors to address deficiencies
in proper administration, the Secretary may
issue a moratorium on the authority of the
State to approve new vendors, subject to the
condition that the Secretary shall provide the
State with reasoning behind such determination
and shall establish--
(i) a timeframe under which the
moratorium will be issued, including
any renewal or lifting of the
moratorium;
(ii) a process to approve vendors for
the State in a manner that does not
impede--
(I) the sale of a business;
or
(II) the establishment of any
new business; and
(iii) a review process to be
conducted by the Secretary to ensure
that participants, nonparticipants, and
vendors are not adversely impacted by
the implementation of the moratorium.
(11) Supplemental foods.--
(A) In general.--The Secretary shall
prescribe by regulation the supplemental foods
to be made available in the program under this
section.
(B) Appropriate content.--To the degree
possible, the Secretary shall assure that the
fat, sugar, and salt content of the prescribed
foods is appropriate.
(C) Review of available supplemental foods.--
As frequently as determined by the Secretary to
be necessary to reflect the most recent
scientific knowledge, but not less than every
10 years, the Secretary shall--
(i) conduct a scientific review of
the supplemental foods available under
the program which, beginning not later
than 60 days after the date of
enactment of the Improving Child
Nutrition and Education Act of 2016,
shall include an examination of
criteria relating to fluid milk (in
consideration of the most recent
Dietary Guidelines for Americans
published under section 301 of the
National Nutrition Monitoring and
Related Research Act of 1990 (7 U.S.C.
5341)), and an examination of the
consumption and redemption rates of
milk beginning on May 5, 2014; [and]
(ii) amend the supplemental foods
available, as necessary, to reflect
nutrition science, public health
concerns, [and cultural eating
patterns.] cultural eating patterns,
commercial availability, and
participant demand, except that any
changes made under this clause shall
not limit the overall fruit intake of
children; and
(iii) consider accommodations for
medical, including food allergies, or
other special dietary needs of
individuals, including religious
dietary restrictions.
(D) Product package sizes.--In promulgating
or revising regulations under this paragraph,
the Secretary shall allow a range of product
package sizes to be selected by participants.
(E) Cash value vouchers.--In adjusting
annually for food cost inflation in the food
package under this paragraph, the Secretary
shall round to the nearest dollar increment.
(F) Participant choice options.--The
Secretary shall maximize opportunities for
State agency flexibility to ensure adequate and
appropriate participant choice to meet
participant needs and cultural preferences in
supplemental foods made available under this
section.
(12) A competent professional authority shall be responsible
for prescribing the appropriate supplemental foods, taking into
account medical and nutritional conditions and cultural eating
patterns, and, in the case of homeless individuals, the special
needs and problems of such individuals.
(13) The State agency may (A) provide nutrition education,
breastfeeding promotion, and drug abuse education materials and
instruction in languages other than English and (B) use
appropriate foreign language materials in the administration of
the program, in areas in which a substantial number of low-
income households speak a language other than English.
(14) If a State agency determines that a member of a family
has received an overissuance of food benefits under the program
authorized by this section as the result of such member
intentionally making a false or misleading statement or
intentionally misrepresenting, concealing, or withholding
facts, the State agency shall recover, in cash, from such
member an amount that the State agency determines is equal to
the value of the overissued food benefits, unless the State
agency determines that the recovery of the benefits would not
be cost effective.
(15) To be eligible to participate in the program authorized
by this section, a manufacturer of infant formula that supplies
formula for the program shall--
(A) register with the Secretary of Health and Human
Services under the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 321 et seq.); and
(B) before bidding for a State contract to supply
infant formula for the program, certify with the State
health department that the formula complies with such
Act and regulations issued pursuant to such Act.
(16) The State agency may adopt methods of delivering
benefits to accommodate the special needs and problems of
homeless individuals.
(17) Notwithstanding subsection (d)(2)(A)(i), not later than
July 1 of each year, a State agency may implement income
eligibility guidelines under this section concurrently with the
implementation of income eligibility guidelines under the
medicaid program established under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.).
(18) Each local agency participating in the program under
this section may provide information about other potential
sources of food assistance in the local area to individuals who
apply in person to participate in the program under this
section, but who cannot be served because the program is
operating at capacity in the local area.
(19) The State agency shall adopt policies that--
(A) require each local agency to attempt to contact
each pregnant woman who misses an appointment to apply
for participation in the program under this section, in
order to reschedule the appointment, unless the phone
number and the address of the woman are unavailable to
such local agency; and
(B) in the case of local agencies that do not
routinely schedule appointments for individuals seeking
to apply or be recertified for participation in the
program under this section, require each such local
agency to schedule appointments for each employed
individual seeking to apply or be recertified for
participation in such program so as to minimize the
time each such individual is absent from the workplace
due to such application or request for recertification.
(20) Each State agency shall conduct monitoring reviews of
each local agency at least biennially.
(21) Use of claims from local agencies, vendors, and
participants.--A State agency may use funds recovered
from local agencies, vendors, and participants, as a
result of a claim arising under the program, to carry
out the program during--
(A) the fiscal year in which the claim
arises;
(B) the fiscal year in which the funds are
collected; and
(C) the fiscal year following the fiscal year
in which the funds are collected.
(22) The Secretary and the Secretary of Health and Human
Services shall carry out an initiative to assure that, in a
case in which a State medicaid program uses coordinated care
providers under a contract entered into under section 1903(m),
or a waiver granted under section 1915(b), of the Social
Security Act (42 U.S.C. 1396b(m) or 1396n(b)), coordination
between the program authorized by this section and the medicaid
program is continued, including--
(A) the referral of potentially eligible women,
infants, and children between the 2 programs; and
(B) the timely provision of medical information
related to the program authorized by this section to
agencies carrying out the program.
(23) Individuals participating at more than one
site.--Each State agency shall implement a system
designed by the State agency to identify individuals
who are participating at more than one site under the
program.
(24) High risk vendors.--Each State agency shall--
(A) identify vendors that have a high
probability of program abuse; and
(B) conduct compliance investigations of the
vendors.
(25) Infant formula benefits.--A State agency may
round up to the next whole can of infant formula to
allow all participants under the program to receive the
full-authorized nutritional benefit specified by
regulation.
(26) 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
penalty or 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.
(g) Authorization of Appropriations.--
(1) In general.--
[(A) Authorization.--There are authorized to
be appropriated to carry out this section such
sums as are necessary for each of fiscal years
2010 through 2015.]
(A) Authorization.--There are authorized to
be appropriated to carry out this section
$6,350,000,000 for each of fiscal years 2017
through 2021.
(B) Advance appropriations; availability.--As
authorized by section 3 of the Richard B.
Russell National School Lunch Act,
appropriations to carry out the provisions of
this section may be made not more than 1 year
in advance of the beginning of the fiscal year
in which the funds will become available for
disbursement to the States, and shall remain
available for the purposes for which
appropriated until expended.
(2)(A) Notwithstanding any other provision of law, unless
enacted in express limitation of this subparagraph, the
Secretary--
(i) in the case of legislation providing funds
through the end of a fiscal year, shall issue--
(I) an initial allocation of funds provided
by the enactment of such legislation not later
than the expiration of the 15-day period
beginning on the date of the enactment of such
legislation; and
(II) subsequent allocations of funds provided
by the enactment of such legislation not later
than the beginning of each of the second,
third, and fourth quarters of the fiscal year;
and
(ii) in the case of legislation providing funds for a
period that ends prior to the end of a fiscal year,
shall issue an initial allocation of funds provided by
the enactment of such legislation not later than the
expiration of the 10-day period beginning on the date
of the enactment of such legislation.
(B) In any fiscal year--
(i) unused amounts from a prior fiscal year that are
identified by the end of the first quarter of the
fiscal year shall be recovered and reallocated not
later than the beginning of the second quarter of the
fiscal year; and
(ii) unused amounts from a prior fiscal year that are
identified after the end of the first quarter of the
fiscal year shall be recovered and reallocated on a
timely basis.
(3) Notwithstanding any other provision of law, unless
enacted in express limitation of this paragraph--
(A) the allocation of funds required by paragraph
(2)(A)(i)(I) shall include not less than \1/3\ of the
amounts appropriated by the legislation described in
such paragraph;
(B) the allocations of funds required by paragraph
(2)(A)(i)(II) to be made not later than the beginning
of the second and third quarters of the fiscal year
shall each include not less than \1/4\ of the amounts
appropriated by the legislation described in such
paragraph; and
(C) in the case of the enactment of legislation
providing appropriations for a period of not more than
4 months, the allocation of funds required by paragraph
(2)(A)(ii) shall include all amounts appropriated by
such legislation except amounts reserved by the
Secretary for purposes of carrying out paragraph (5).
(4) Of the sums appropriated for any fiscal year for programs
authorized under this section, not less than nine-tenths of 1
percent shall be available first for services to eligible
members of migrant populations. The migrant services shall be
provided in a manner consistent with the priority system of a
State for program participation.
(5) Of the sums appropriated for any fiscal year for the
program under this section, one-half of 1 percent, not to
exceed $15,000,000, shall be available to the Secretary for the
purpose of evaluating program performance, evaluating health
benefits, preparing reports on program participant
characteristics, providing technical assistance to improve
State agency administrative systems, administration of pilot
projects, including projects designed to meet the special needs
of migrants, Indians, and rural populations, and carrying out
technical assistance and research evaluation projects of the
programs under this section.
(h)(1)(A) Each fiscal year, the Secretary shall make
available, from amounts appropriated for such fiscal year under
subsection (g)(1) and amounts remaining from amounts
appropriated under such subsection for the preceding fiscal
year, an amount sufficient to guarantee a national average per
participant grant to be allocated among State agencies for
costs of nutrition services and administration incurred by
State and local agencies for such year.
(B)(i) The amount of the national average per participant
grant for nutrition services and administration for any fiscal
year shall be an amount equal to the amount of the national
average per participant grant for nutrition services and
administration issued the preceding fiscal year, as adjusted.
(ii) Such adjustment, for any fiscal year, shall be made by
revising the national average per participant grant for
nutrition services and administration for the preceding fiscal
year to reflect the percentage change between--
(I) the value of the index for State and local
government purchases, as published by the Bureau of
Economic Analysis of the Department of Commerce, for
the 12-month period ending June 30 of the second
preceding fiscal year; and
(II) the best estimate that is available as of the
start of the fiscal year of the value of such index for
the 12-month period ending June 30 of the previous
fiscal year.
(C) Remaining amounts.--
(i) In general.--Except as provided
in clause (ii), in any fiscal year,
amounts remaining from amounts
appropriated for such fiscal year under
subsection (g)(1) and from amounts
appropriated under such section for the
preceding fiscal year, after carrying
out subparagraph (A), shall be made
available for food benefits under this
section, except to the extent that such
amounts are needed to carry out the
purposes of subsections (g)(4) and
(g)(5).
(ii) Breast pumps.--A State agency
may use amounts made available under
clause (i) for the purchase of breast
pumps.
(2)(A) The Secretary shall allocate to each State agency from
the amount described in paragraph (1)(A) an amount for costs of
nutrition services and administration on the basis of a formula
prescribed by the Secretary. Such formula--
(i) shall be designed to take into account--
(I) the varying needs of each State;
(II) the number of individuals participating
in each State; and
(III) other factors which serve to promote
the proper, efficient, and effective
administration of the program under this
section;
(ii) shall provide for each State agency--
(I) an estimate of the number of participants
for the fiscal year involved; and
(II) a per participant grant for nutrition
services and administration for such year;
(iii) shall provide for a minimum grant amount for
State agencies; and
(iv) may provide funds to help defray reasonable
anticipated expenses associated with innovations in
cost containment or associated with procedures that
tend to enhance competition.
(B)(i) Except as provided in clause (ii) and subparagraph
(C), in any fiscal year, the total amount allocated to a State
agency for costs of nutrition services and administration under
the formula prescribed by the Secretary under subparagraph (A)
shall constitute the State agency's operational level for such
costs for such year even if the number of participants in the
program at such agency is lower than the estimate provided
under subparagraph (A)(ii)(I).
(ii) If a State agency's per participant expenditure for
nutrition services and administration is more than 10 percent
(except that the Secretary may establish a higher percentage
for State agencies that are small) higher than its per
participant grant for nutrition services and administration
without good cause, the Secretary may reduce such State
agency's operational level for costs of nutrition services and
administration.
(C) In any fiscal year, the Secretary may reallocate amounts
provided to State agencies under subparagraph (A) for such
fiscal year. When reallocating amounts under the preceding
sentence, the Secretary may provide additional amounts to, or
recover amounts from, any State agency.
(3)(A) Except as provided in subparagraphs (B) and (C), in
each fiscal year, each State agency shall expend--
(i) for nutrition education activities and
breastfeeding promotion and support activities, an
aggregate amount that is not less than the sum of--
(I) \1/6\ of the amounts expended by the
State for costs of nutrition services and
administration; and
(II) except as otherwise provided in
subparagraphs (F) and (G), an amount equal to a
proportionate share of the national minimum
breastfeeding promotion expenditure, as
described in subparagraph (E), with each
State's share determined on the basis of the
number of pregnant women and breastfeeding
women in the program in the State as a
percentage of the number of pregnant women and
breastfeeding women in the program in all
States; and
(ii) for breastfeeding promotion and support
activities an amount that is not less than the amount
determined for such State under clause (i)(II).
(B) The Secretary may authorize a State agency to expend an
amount less than the amount described in subparagraph (A)(ii)
for purposes of breastfeeding promotion and support activities
if--
(i) the State agency so requests; and
(ii) the request is accompanied by documentation that
other funds will be used to conduct nutrition education
activities at a level commensurate with the level at
which such activities would be conducted if the amount
described in subparagraph (A)(ii) were expended for
such activities.
(C) The Secretary may authorize a State agency to expend for
purposes of nutrition education an amount that is less than the
difference between the aggregate amount described in
subparagraph (A) and the amount expended by the State for
breastfeeding promotion and support programs if--
(i) the State agency so requests; and
(ii) the request is accompanied by documentation that
other funds will be used to conduct such activities.
(D) The Secretary shall limit to a minimal level any
documentation required under this paragraph.
(E) For each fiscal year, the national minimum breastfeeding
promotion expenditure means an amount that is--
(i) equal to $21 multiplied by the number of pregnant
women and breastfeeding women participating in the
program nationwide, based on the average number of
pregnant women and breastfeeding women so participating
during the last 3 months for which the Secretary has
final data; and
(ii) adjusted for inflation on October 1, 1996, and
each October 1 thereafter, in accordance with paragraph
(1)(B)(ii).
(4) Requirements.--
(A) In general.--The Secretary shall--
(i) in consultation with the
Secretary of Health and Human Services,
develop a definition of breastfeeding
for the purposes of the program under
this section;
(ii) authorize the purchase of
breastfeeding aids by State and local
agencies as an allowable expense under
nutrition services and administration;
(iii) require each State agency to
designate an agency staff member to
coordinate breastfeeding promotion
efforts identified in the State plan of
operation and administration;
(iv) require the State agency to
provide training on the promotion and
management of breastfeeding to staff
members of local agencies who are
responsible for counseling participants
in the program under this section
concerning breastfeeding;
(v) not later than 1 year after the
date of enactment of this subparagraph,
develop uniform requirements for the
collection of data regarding the
incidence and duration of breastfeeding
among participants in the program;
(vi) partner with communities, State
and local agencies, employers, health
care professionals, and other entities
in 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 initiative; [and]
(vii) annually compile and publish
breastfeeding performance measurements
based on program participant data on
the number of partially and fully
breast-fed infants, including
breastfeeding performance measurements
for--
(I) each State agency; and
(II) each local agency;
(viii) in accordance with
subparagraph (B), implement a program
to recognize exemplary breastfeeding
support practices at local agencies or
clinics participating in the special
supplemental nutrition program
established under this section; and
(ix) in accordance with subparagraph
(C), implement a program to provide
performance bonuses to State agencies.
(B) Exemplary breastfeeding support
practices.--
(i) In general.--In evaluating
exemplary practices under subparagraph
(A)(viii), the Secretary shall
consider--
(I) performance measurements
of breastfeeding;
(II) the effectiveness of a
peer counselor program;
(III) the extent to which the
agency or clinic has partnered
with other entities to build a
supportive breastfeeding
environment for women
participating in the program;
and
(IV) such other criteria as
the Secretary considers
appropriate after consultation
with State and local program
agencies.
(ii) Authorization of
appropriations.--There is authorized to
be appropriated to carry out the
activities described in clause (viii)
of subparagraph (A) such sums as are
necessary.
(C) Performance bonuses.--
(i) In general.--Following the
publication of breastfeeding
performance measurements under
subparagraph (A)(vii), the Secretary
shall provide performance bonus
payments to not more than 15 State
agencies that demonstrate, as compared
to other State agencies participating
in the program--
(I) the highest proportion of
breast-fed infants; or
(II) the greatest improvement
in proportion of breast-fed
infants.
(ii) Consideration.--In providing
performance bonus payments to State
agencies under this subparagraph, the
Secretary shall consider the proportion
of fully breast-fed infants in the
States.
(iii) Use of funds.--A State agency
that receives a performance bonus under
clause (i)--
(I) shall treat the funds as
program income; and
(II) may transfer the funds
to local agencies for use in
carrying out the program.
(iv) Implementation.--The Secretary
shall provide the first performance
bonuses not later than 1 year after the
date of enactment of this clause and
may subsequently revise the criteria
for awarding performance bonuses[;
and].
(5)(A) Subject to subparagraph (B), in any fiscal year that a
State agency submits a plan to reduce average food costs per
participant and to increase participation above the level
estimated for the State agency, the State agency may, with the
approval of the Secretary, convert amounts allocated for food
benefits for such fiscal year for costs of nutrition services
and administration to the extent that such conversion is
necessary--
(i) to cover allowable expenditures in such fiscal
year; and
(ii) to ensure that the State agency maintains the
level established for the per participant grant for
nutrition services and administration for such fiscal
year.
(B) If a State agency increases its participation level
through measures that are not in the nutritional interests of
participants or not otherwise allowable (such as reducing the
quantities of foods provided for reasons not related to
nutritional need), the Secretary may refuse to allow the State
agency to convert amounts allocated for food benefits to defray
costs of nutrition services and administration.
(C) For the purposes of this paragraph, the term ``acceptable
measures'' includes use of cost containment measures,
curtailment of vendor abuse, and breastfeeding promotion
activities.
(D) Remote indian or native villages.--For
noncontiguous States containing a significant number of
remote Indian or Native villages, a State agency may
convert amounts allocated for food benefits for a
fiscal year to the costs of nutrition services and
administration to the extent that the conversion is
necessary to cover expenditures incurred in providing
services (including the full cost of air transportation
and other transportation) to remote Indian or Native
villages and to provide breastfeeding support in remote
Indian or Native villages.
(6) In each fiscal year, each State agency shall provide,
from the amounts allocated to such agency for such year for
costs of nutrition services and administration, an amount to
each local agency for its costs of nutrition services and
administration. The amount to be provided to each local agency
under the preceding sentence shall be determined under
allocation standards developed by the State agency in
cooperation with the several local agencies, taking into
account factors deemed appropriate to further proper,
efficient, and effective administration of the program, such
as--
(A) local agency staffing needs;
(B) density of population;
(C) number of individuals served; and
(D) availability of administrative support from other
sources.
(7) The State agency may provide in advance to any local
agency any amounts for nutrition services and administration
deemed necessary for successful commencement or significant
expansion of program operations during a reasonable period
following approval of--
(A) a new local agency;
(B) a new cost containment measure; or
(C) a significant change in an existing cost
containment measure.
(8)(A)(i) Except as provided in subparagraphs (B) and
(C)(iii), any State that provides for the purchase of foods
under the program at retail grocery stores shall, with respect
to the procurement of infant formula, use--
(I) a competitive bidding system; or
(II) any other cost containment measure that yields
savings equal to or greater than savings generated by a
competitive bidding system when such savings are
determined by comparing the amounts of savings that
would be provided over the full term of contracts
offered in response to a single invitation to submit
both competitive bids and bids for other cost
containment systems for the sale of infant formula.
(ii) In determining whether a cost containment measure other
than competitive bidding yields equal or greater savings, the
State, in accordance with regulations issued by the Secretary,
may take into account other cost factors (in addition to rebate
levels and procedures for adjusting rebate levels when
wholesale price levels change), such as--
(I) the number of infants who would not be expected
to receive the primary contract infant formula under a
competitive bidding system;
(II) the number of cans of infant formula for which
no rebate would be provided under another rebate
system; and
(III) differences in administrative costs relating to
the implementation of the various cost containment
systems (such as costs of converting a computer system
for the purpose of operating a cost containment system
and costs of preparing participants for conversion to a
new or alternate cost containment system).
(iii) Competitive bidding system.--A State
agency using a competitive bidding system for
infant formula shall award contracts to bidders
offering the lowest net price for a specific
infant formula for which manufacturers submit a
bid unless the State agency demonstrates to the
satisfaction of the Secretary that the weighted
average retail price for different brands of
infant formula in the State does not vary by
more than 5 percent.
(iv) Size of state alliances.--
(I) In general.--Except as provided
in subclauses (II) through (IV), no
State alliance may exist among States
if the total number of infants served
by States participating in the alliance
as of October 1, 2003, or such
subsequent date determined by the
Secretary for which data is available,
would exceed 100,000.
(II) Addition of infant
participants.--In the case of a State
alliance that exists on the date of
enactment of this clause, the alliance
may continue and may expand to serve
more than 100,000 infants but, except
as provided in subclause (III), may not
expand to include any additional State
agency.
(III) Addition of small state
agencies and indian state agencies.--
Except as provided in paragraph
(9)(B)(i)(II), any State alliance may
expand to include any State agency that
served less than 5,000 infant
participants as of October 1, 2003, or
such subsequent date determined by the
Secretary for which data is available,
or any Indian State agency, if the
State agency or Indian State agency
requests to join the State alliance.
(IV) Secretarial waiver.--The
Secretary may waive the requirements of
this clause not earlier than 30 days
after submitting to the Committee on
Education and the Workforce of the
House of Representatives and the
Committee on Agriculture, Nutrition,
and Forestry of the Senate a written
report that describes the cost-
containment and competitive benefits of
the proposed waiver.
(v) First choice of issuance.--The State
agency shall use the primary contract infant
formula as the first choice of issuance (by
formula type), with all other infant formulas
issued as an alternative to the primary
contract infant formula.
(vi) Rebate invoices.-- [Effective beginning]
(I) In general._Effective beginning
October 1, 2004, 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.
(II) Infant formula.--Effective
beginning on the date of the enactment
of the Improving Child Nutrition and
Education Act of 2016, a State agency
that has fully implemented electronic
benefits transfer systems throughout
the State shall have in effect a system
to ensure that infant formula rebate
invoices, under competitive bidding,
provide an actual count of the number
of units sold to participants in the
program under this section.
(vii) Separate solicitations.--In soliciting
bids for infant formula under a competitive
bidding system, any State agency, or State
alliance, that served under the program a
monthly average of more than 100,000 infants
during the preceding 12-month period shall
solicit bids from infant formula manufacturers
under procedures that require that bids for
rebates or discounts are solicited for milk-
based and soy-based infant formula separately.
(viii) Cent-for-cent adjustments.--A bid
solicitation for infant formula under the
program 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; and
(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.
(ix) List of infant formula wholesalers,
distributors, retailers, and manufacturers.--
The State agency shall maintain a list of--
(I) infant formula wholesalers,
distributors, and retailers licensed in
the State in accordance with State law
(including regulations); and
(II) infant formula manufacturers
registered with the Food and Drug
Administration that provide infant
formula.
(x) Purchase requirement.--A vendor
authorized to participate in the program under
this section shall only purchase infant formula
from the list described in clause (ix).
(xi) Contract duration.--The contracts
awarded under clause (iii) shall specify that--
(I) if the income eligibility limit
under title XIX of the Social Security
Act (42 U.S.C. 1396 et seq.) for
pregnant women or infants is
substantially increased, the contractor
may terminate the existing contract
effective on the later of--
(aa) the date that is 1 year
after the date on which the
State decision to increase the
eligibility limit by amending
the State plan is made by--
(AA) adopting State
legislation;
(BB) issuing a State
executive order or
administrative rule; or
(CC) any other
applicable State
process, as determined
by the Secretary; and
(bb) the first day of the
month during which the increase
takes effect; and
(II) if a contractor elects to
terminate a contract pursuant to
subclause (I), the contractor shall
notify the State agency by not later
than the date that is 1 year before the
proposed date of termination.
(B)(i) The Secretary shall waive the requirement of
subparagraph (A) in the case of any State that demonstrates to
the Secretary that--
(I) compliance with subparagraph (A) would be
inconsistent with efficient or effective operation of
the program operated by such State under this section;
or
(II) the amount by which the savings yielded by an
alternative cost containment system would be less than
the savings yielded by a competitive bidding system is
sufficiently minimal that the difference is not
significant.
(ii) The Secretary shall prescribe criteria under which a
waiver may be granted pursuant to clause (i).
(iii) The Secretary shall provide information on a timely
basis to the [Committee on Education and Labor] Committee on
Education and the Workforce of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate on waivers that have been granted under clause (i).
(C)(i) The Secretary shall provide technical assistance to
small Indian State agencies carrying out this paragraph in
order to assist such agencies to achieve the maximum cost
containment savings feasible.
(ii) The Secretary shall also provide technical assistance,
on request, to State agencies that desire to consider a cost
containment system that covers more than 1 State agency.
(iii) The Secretary may waive the requirement of subparagraph
(A) in the case of any Indian State agency that has not more
than 1,000 participants.
(D) No State may enter into a cost containment contract (in
this subparagraph referred to as the original contract'') that
prescribes conditions that would void, reduce the savings
under, or otherwise limit the original contract if the State
solicited or secured bids for, or entered into, a subsequent
cost containment contract to take effect after the expiration
of the original contract.
(E) The Secretary shall offer to solicit bids on behalf of
State agencies regarding cost-containment contracts to be
entered into by infant formula manufacturers and State
agencies. The Secretary shall make the offer to State agencies
once every 12 months. Each such bid solicitation shall only
take place if two or more State agencies request the Secretary
to perform the solicitation. For such State agencies, the
Secretary shall solicit bids and select the winning bidder for
a cost containment contract to be entered into by State
agencies and infant formula manufacturers or suppliers.
(F) In soliciting bids for contracts for infant formula for
the program authorized by this section, the Secretary shall
solicit bids from infant formula manufacturers under procedures
in which bids for rebates or discounts are solicited for milk-
based and soy-based infant formula, separately, except where
the Secretary determines that such solicitation procedures are
not in the best interest of the program.
(G) To reduce the costs of any supplemental foods, the
Secretary may make available additional funds to State agencies
out of the funds otherwise available under paragraph (1)(A) for
nutrition services and administration in an amount not
exceeding one half of 1 percent of the amounts to help defray
reasonable anticipated expenses associated with innovations in
cost containment or associated with procedures that tend to
enhance competition.
(H)(i) Any person, company, corporation, or other legal
entity that submits a bid to supply infant formula to carry out
the program authorized by this section and announces or
otherwise discloses the amount of the bid, or the rebate or
discount practices of such entities, in advance of the time the
bids are opened by the Secretary or the State agency, or any
person, company, corporation, or other legal entity that makes
a statement (prior to the opening of bids) relating to levels
of rebates or discounts, for the purpose of influencing a bid
submitted by any other person, shall be ineligible to submit
bids to supply infant formula to the program for the bidding in
progress for up to 2 years from the date the bids are opened
and shall be subject to a civil penalty of up to $100,000,000,
as determined by the Secretary to provide restitution to the
program for harm done to the program. The Secretary shall issue
regulations providing such person, company, corporation, or
other legal entity appropriate notice, and an opportunity to be
heard and to respond to charges.
(ii) The Secretary shall determine the length of the
disqualification, and the amount of the civil penalty referred
to in clause (i) based on such factors as the Secretary by
regulation determines appropriate.
(iii) Any person, company, corporation, or other legal entity
disqualified under clause (i) shall remain obligated to perform
any requirements under any contract to supply infant formula
existing at the time of the disqualification and until each
such contract expires by its terms.
(I) Not later than the expiration of the 180-day period
beginning on the date of enactment of this subparagraph, the
Secretary shall prescribe regulations to carry out this
paragraph.
(J) A State shall not incur any interest liability to the
Federal Government on rebate funds for infant formula and other
foods if all interest earned by the State on the funds is used
for program purposes.
(K) Reporting.--Effective beginning October 1, 2011,
each State agency shall report rebate payments received
from manufacturers in the month in which the payments
are received, rather than in the month in which the
payments were earned.
(9) Cost containment measure.--
(A) Definition of cost containment measure.--
In this subsection, the term ``cost containment
measure'' means a competitive bidding, rebate,
direct distribution, or home delivery system
implemented by a State agency as described in
the approved State plan of operation and
administration of the State agency.
(B) Solicitation and rebate billing
requirements.--Any State agency instituting a
cost containment measure for any authorized
food, including infant formula, shall--
(i) in the bid solicitation--
(I) identify the composition
of State alliances for the
purposes of a cost containment
measure; [and]
(II) verify that no
additional States shall be
added to the State alliance
between the date of the bid
solicitation and the end of the
contract;
(III) limit the term of any
contract (including any
extension or renewal period) to
a maximum of 5 years, subject
to the condition that any such
extension or renewal shall be
approved only on mutual consent
of the contractor and the State
agency;
(IV) agree to provide, by not
later than 180 days before
exercising any termination for
convenience clause, a written
notice to each affected
contractor;
(V) agree--
(aa) to receive an
annual audit of infant
formula rebate invoices
by a contractor; and
(bb) to provide to
each contractor
accurate monthly
redemption files; and
(VI) agree not to provide any
State preference to any bidder
in evaluating bids;
(ii) have a system to ensure that
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;
(iii) for any State agency that has
fully implemented electronic benefits
transfer systems throughout the State,
have a system to ensure that rebate
invoices under competitive bidding
provide an actual count of the number
of units lawfully sold to participants
in the program under this section;
[(iii)] (iv) open and read aloud all
bids at a public proceeding on the day
on which the bids are due; [and]
[(iv)] (v) unless otherwise exempted
by the Secretary, provide a minimum of
[30] 45 days between the publication of
the solicitation and the date on which
the bids are due[.];
(vi) provide a process to negotiate
the amount of funds to be returned to
the bidder by the State agency, and the
method of return, on determining and
verifying that rebates were paid on any
food, including infant formula, sold
under fraudulent means;
(vii) open bids and enter into a
contract under paragraph (8)(A)(iii)
only after making a reasonable effort
to confirm in writing, via email or
other means, that the manufacturers on
the list the State agency maintains
under paragraph (8)(A)(ix) received the
initial request for proposals or other
bid solicitation document by not later
than the date that is 45 days before
the date on which the bids are due;
(viii) agree to provide to
contractors supporting documentation
for monthly invoices, subject to the
participant and vendor confidentiality
protections under program rules; and
(ix) not later than the date that is
90 days after the date for opening
bids, submit to the Secretary a copy of
the bid solicitation and any other
contract documents.
(C) State alliances for authorized foods
other than infant formula.--Program
requirements relating to the size of State
alliances under paragraph (8)(A)(iv) shall
apply to cost containment measures established
for any authorized food under this section.
(D) Certain food for infants.--Before any
State agency solicits bids for a contract for
infant fruits, vegetables, cereal, or meat
under a competitive bidding system, the State
agency shall--
(i) consider--
(I) the impact of the
contract on--
(aa) participation or
redemption rates;
(bb) costs to the
State agency for infant
fruits, vegetables,
cereal, or meat,
including product,
administrative, and
procurement costs; and
(cc) the ability of
the State agency--
(AA) to
achieve the
purpose
described in
subsection (a);
(BB) to
provide infants
with a variety
of
developmentally
appropriate
infant fruits,
vegetables,
cereal, or
meat; and
(CC) to serve
the nutritional
needs of
program
participants;
and
(dd) consumers who
are not participants,
including the
availability of
alternate brands and
potential effects on
retail pricing of
infant fruits,
vegetables, cereal, or
meat; and
(II) whether the contract is
compatible with--
(aa) the management
information and food
instrument system of
the State agency;
(bb) eligible
vendors; and
(cc) the capacity of
the manufacturer to
meet technical
specifications; and
(ii) provide to the Secretary--
(I) a written explanation of
how the considerations
described in clause (i)
affected the decision of the
State agency to solicit bids
for a contract; and
(II) not later than 15 months
after the start of such
contract, a report that shall
include--
(aa) the net savings
to date from the
contract;
(bb) an assessment of
the impact on eligible
stores, non-
participants, and
retail prices for
infant fruits,
vegetables, cereal, and
meat; and
(cc) an analysis of
the costs and benefits
of the contract,
including an
examination of retail
prices of infant
fruits, vegetables,
cereal, and meat.
(10) Funds for infrastructure, management information
systems, and special nutrition education.--
(A) In general.--For each of fiscal years
2010 through 2015, the Secretary shall use for
the purposes specified in subparagraph (B)
$139,000,000 (as adjusted annually for
inflation by the same factor used to determine
the national average per participant grant for
nutrition services and administration for the
fiscal year under paragraph (1)(B)).
(B) Purposes.--Subject to subparagraph (C),
of the amount made available under subparagraph
(A) for a fiscal year--
(i) $14,000,000 shall be used for--
(I) infrastructure for the
program under this section;
(II) special projects to
promote breastfeeding,
including projects to assess
the effectiveness of particular
breastfeeding promotion
strategies; and
(III) special State projects
of regional or national
significance to improve the
services of the program;
(ii) $35,000,000 shall be used to
establish, improve, or administer
management information systems for the
program, including changes necessary to
meet new legislative or regulatory
requirements of the program, of which
up to $5,000,000 may be used for
Federal administrative costs; and
(iii) $90,000,000 shall be used for
special nutrition education (such as
breastfeeding peer counselors and other
related activities), of which not more
than $10,000,000 of any funding
provided in excess of $50,000,000 shall
be used to make performance bonus
payments under paragraph (4)(C).
(C) Adjustment.--Each of the amounts referred
to in clauses (i), (ii), and (iii) of
subparagraph (B) shall be adjusted annually for
inflation by the same factor used to determine
the national average per participant grant for
nutrition services and administration for the
fiscal year under paragraph (1)(B).
(D) Proportional distribution.--The Secretary
shall distribute funds made available under
subparagraph (A) in accordance with the
proportional distribution described in
subparagraphs (B) and (C).
(11) Vendor cost containment.--
(A) Peer groups.--
(i) In general.--The State agency
shall--
(I) establish a vendor peer
group system;
(II) in accordance with
subparagraphs (B) and (C),
establish competitive price
criteria and allowable
reimbursement levels for each
vendor peer group; and
(III) if the State agency
elects to authorize any types
of vendors described in
subparagraph (D)(ii)(I)--
(aa) distinguish
between vendors
described in
subparagraph (D)(ii)(I)
and other vendors by
establishing--
(AA) separate
peer groups for
vendors
described in
subparagraph
(D)(ii)(I);or
(BB) distinct
competitive
price criteria
and allowable
reimbursement
levels for
vendors
described in
subparagraph
(D)(ii)(I)
within a peer
group that
contains both
vendors
described in
subparagraph
(D)(ii)(I) and
other vendors;
and
(bb) establish
competitive price
criteria and allowable
reimbursement levels
that comply with
subparagraphs (B) and
(C), respectively, and
that do not result in
higher food costs if
program participants
redeem supplemental
food vouchers at
vendors described in
subparagraph (D)(ii)(I)
rather than at vendors
other than vendors
described in
subparagraph
(D)(ii)(I).
Nothing in this paragraph shall be construed to compel
a State agency to achieve lower food costs if program
participants redeem supplemental food vouchers at
vendors described in subparagraph (D)(ii)(I) rather
than at vendors other than vendors described in
subparagraph (D)(ii)(I).
(ii) Exemptions.--The Secretary may
exempt from the requirements of clause
(i)--
(I) a State agency that
elects not to authorize any
types of vendors described in
subparagraph (D)(ii)(I) and
that demonstrates to the
Secretary that--
(aa) compliance with
clause (i) would be
inconsistent with
efficient and effective
operation of the
program administered by
the State under this
section; or
(bb) an alternative
cost-containment system
would be as effective
as a vendor peer group
system; or
(II) a State agency--
(aa) in which the
sale of supplemental
foods that are obtained
with food instruments
from vendors described
in subparagraph
(D)(ii)(I) constituted
less than 5 percent of
total sales of
supplemental foods that
were obtained with food
instruments in the
State in the year
preceding a year in
which the exemption is
effective; and
(bb) that
demonstrates to the
Secretary that an
alternative cost-
containment system
would be as effective
as the vendor peer
group system and would
not result in higher
food costs if program
participants redeem
supplemental food
vouchers at vendors
described in
subparagraph (D)(ii)(I)
rather than at vendors
other than vendors
described in
subparagraph
(D)(ii)(I).
(B) Competitive pricing.--
(i) In general.--The State agency
shall establish competitive price
criteria for each peer group for the
selection of vendors for participation
in the program that--
(I) ensure that the retail
prices charged by vendor
applicants for the program are
competitive with the prices
charged by other vendors; and
(II) consider--
(aa) the shelf prices
of the vendor for all
buyers; or
(bb) the prices that
the vendor bid for
supplemental foods,
which shall not exceed
the shelf prices of the
vendor for all buyers.
(ii) Participant access.--In
establishing competitive price
criteria, the State agency shall
consider participant access by
geographic area.
(iii) Subsequent price increases.--
The State agency shall establish
procedures to ensure that a retail
store selected for participation in the
program does not, subsequent to
selection, increase prices to levels
that would make the store ineligible
for selection to participate in the
program.
(C) Allowable reimbursement levels.--
(i) In general.--The State agency
shall establish allowable reimbursement
levels for supplemental foods for each
vendor peer group that ensure--
(I) that payments to vendors
in the vendor peer group
reflect competitive retail
prices; and
(II) that the State agency
does not reimburse a vendor for
supplemental foods at a level
that would make the vendor
ineligible for authorization
under the criteria established
under subparagraph (B).
(ii) Price fluctuations.--The
allowable reimbursement levels may
include a factor to reflect
fluctuations in wholesale prices.
(iii) Participant access.--In
establishing allowable reimbursement
levels, the State agency shall consider
participant access in a geographic
area.
(D) Exemptions.--The State agency may exempt
from competitive price criteria and allowable
reimbursement levels established under this
paragraph--
(i) pharmacy vendors that supply only
exempt infant formula or medical foods
that are eligible under the program;
and
(ii) vendors--
(I)(aa) for which more than
50 percent of the annual
revenue of the vendor from the
sale of food items consists of
revenue from the sale of
supplemental foods that are
obtained with food instruments;
or
(bb) who are new applicants
likely to meet the criteria of
item (aa) under criteria
approved by the Secretary; and
(II) that are nonprofit.
(E) Cost containment.--[If a State]
(i) In general._If a State agency
elects to authorize any types of
vendors described in subparagraph
(D)(ii)(I), the State agency shall
demonstrate to the Secretary, and the
Secretary shall certify, that the
competitive price criteria and
allowable reimbursement levels
established under this paragraph for
vendors described in subparagraph
(D)(ii)(I) do not result in average
payments per voucher to vendors
described in subparagraph (D)(ii)(I)
that are higher than average payments
per voucher to comparable vendors other
than vendors described in subparagraph
(D)(ii)(I).
(ii) Requirement.--Effective not
later than 120 days after the date of
the enactment the Improving Child
Nutrition and Education Act of 2016, in
calculating average payments per
voucher under clause (i), a State
agency shall exclude food instruments
not fully redeemed, based on an actual
count or a reasonable estimate.
(F) Limitation on private rights of action.--
Nothing in this paragraph may be construed as
creating a private right of action.
(G) Implementation.--A State agency shall
comply with this paragraph not later than 18
months after the date of enactment of this
paragraph.
(12) Electronic benefit transfer.--
(A) Definitions.--In this paragraph:
(i) Electronic benefit transfer.--The
term ``electronic benefit transfer''
means a [food delivery system that
provides] method to deliver benefits
using a card or other access device
approved by the Secretary that permits
electronic access to program benefits.
(ii) Program.--The term ``program''
means the special supplemental
nutrition program established by this
section.
(B) Requirements.--
(i) In general.--Not later than
October 1, 2020, each State agency
shall be required to implement
electronic benefit transfer systems
throughout the State, unless the
Secretary grants an exemption under
subparagraph (C) for a State agency
that is facing unusual barriers to
implement an electronic benefit
transfer system.
(ii) Responsibility.--The State
agency shall be responsible for the
coordination and management of the
electronic benefit transfer system of
the agency.
(C) Exemptions.--
(i) In general.--To be eligible for
an exemption from the statewide
implementation requirements of
subparagraph (B)(i), a State agency
shall demonstrate to the satisfaction
of the Secretary 1 or more of the
following:
(I) There are unusual
technological barriers to
implementation.
(II) Operational costs are
not affordable within the
nutrition services and
administration grant of the
State agency.
(III) It is in the best
interest of the program to
grant the exemption.
(ii) Specific date.--A State agency
requesting an exemption under clause
(i) shall specify a date by which the
State agency anticipates statewide
implementation described in
subparagraph (B)(i).
(D) Reporting.--
(i) In general.--Each State agency
shall submit to the Secretary
electronic benefit transfer project
status reports to demonstrate the
progress of the State toward statewide
implementation.
(ii) Consultation.--If a State agency
plans to incorporate additional
programs in the electronic benefit
transfer system of the State, the State
agency shall consult with the State
agency officials responsible for
administering the programs prior to
submitting the planning documents to
the Secretary for approval.
(iii) Requirements.--At a minimum, a
status report submitted under clause
(i) shall contain--
(I) an annual outline of the
electronic benefit transfer
implementation goals and
objectives of the State;
(II) appropriate updates in
accordance with approval
requirements for active
electronic benefit transfer
State agencies; and
(III) such other information
as the Secretary may require.
(E) Imposition of costs on vendors.--
(i) Cost prohibition.--Except as
otherwise provided in this paragraph,
the Secretary may not impose, or allow
a State agency to impose, the costs of
any equipment or system required for
electronic benefit transfers on any
authorized vendor in order to transact
electronic benefit transfers if the
vendor equipment or system is used
solely to support the program.
(ii) Cost-sharing.--The Secretary
shall establish criteria for cost-
sharing by State agencies and vendors
of costs associated with any equipment
or system that is not solely dedicated
to transacting electronic benefit
transfers for the program.
(iii) Fees.--
(I) In general.--A vendor
that elects to accept
electronic benefit transfers
using multifunction equipment
shall pay commercial
transaction processing costs
and fees imposed by a third-
party processor that the vendor
elects to use to connect to the
electronic benefit transfer
system of the State.
(II) Interchange fees.--No
interchange fees shall apply to
electronic benefit transfer
transactions under this
paragraph.
(iv) Statewide operations.--After
completion of statewide expansion of a
system for transaction of electronic
benefit transfers--
(I) a State agency may not be
required to incur ongoing
maintenance costs for vendors
using multifunction systems and
equipment to support electronic
benefit transfers; and
(II) any retail store in the
State that applies for
authorization to become a
program vendor shall be
required to demonstrate the
capability to accept program
benefits electronically prior
to authorization, unless the
State agency determines that
the vendor is necessary for
participant access.
(F) Minimum lane coverage.--
(i) In general.--The Secretary shall
establish minimum lane coverage
guidelines for vendor equipment and
systems used to support electronic
benefit transfers.
(ii) Provision of equipment.--If a
vendor does not elect to accept
electronic benefit transfers using its
own multifunction equipment, the State
agency shall provide such equipment as
is necessary to solely support the
program to meet the established minimum
lane coverage guidelines.
(G) Technical standards.--The Secretary
shall--
(i) establish technical standards and
operating rules for electronic benefit
transfer systems; and
(ii) require each State agency,
contractor, and authorized vendor
participating in the program to
demonstrate compliance with the
technical standards and operating
rules.
(H) Regulations.--As State agencies
transition to electronic benefit transfer for
the program, the Secretary shall update
regulations to account for the fact that State
agencies--
(i) are receiving transaction pricing
more frequently than twice a year from
vendors; and
(ii) should adjust vendor
reimbursement levels more frequently to
reflect program food price changes in
the marketplace.
(I) Authorization of appropriations.--
(i) In general.--There is authorized
to be appropriated to carry out this
paragraph $25,000,000 for each of
fiscal years 2017 through 2019.
(ii) Use.--The Secretary shall
allocate the funds made available under
this subparagraph to States for
purposes of enhancing and accelerating
the implementation of electronic
benefit transfer systems.
(J) Penalty for noncompliance.--For any State
agency that fails to comply with subparagraph
(B), including a State agency receiving an
exemption under subparagraph (C), the Secretary
shall--
(i) withhold such amounts otherwise
required to be allocated to the State
agency for nutrition services and
administration as the Secretary
determines to be appropriate; and
(ii) direct the amounts withheld for
use by the State agency solely for
achieving compliance with subparagraph
(B).
(13) Universal product codes database.--
(A) In general.--Not later than 2 years after
the date of enactment of the Healthy, Hunger-
Free Kids Act of 2010, the Secretary shall
establish a national universal product code
database to be used by all State agencies in
carrying out the requirements of paragraph
(12).
(B) Funding.--
(i) In general.--On October 1, 2010,
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 to carry out this paragraph
$1,000,000, to remain available until
expended.
(ii) Receipt and acceptance.--The
Secretary shall be entitled to receive,
shall accept, and shall use to carry
out this paragraph the funds
transferred under clause (i), without
further appropriation.
(iii) Use of funds.--The Secretary
shall use the funds provided under
clause (i) for development, hosting,
hardware and software configuration,
and support of the database required
under subparagraph (A).
(C) Access.--The Secretary shall make
available upon request the national universal
product code database to vendors approved for
participation in the special supplemental food
program established under this section.
(14) Incentive items.--A State agency shall not
authorize or make payments to a vendor described in
paragraph (11)(D)(ii)(I) that provides incentive items
or other free merchandise, except food or merchandise
of nominal value (as determined by the Secretary), to
program participants unless the vendor provides to the
State agency proof that the vendor obtained the
incentive items or merchandise at no cost.
(i)(1) By the beginning of each fiscal year, the Secretary
shall divide, among the State agencies, the amounts made
available for food benefits under subsection (h)(1)(C) on the
basis of a formula determined by the Secretary.
(2) Each State agency's allocation, as so determined, shall
constitute the State agency's authorized operational level for
that year, except that the Secretary shall reallocate funds
periodically if the Secretary determines that a State agency is
unable to spend its allocation.
(3)(A) Notwithstanding paragraph (2) and subject to
subparagraph (B)--
(i)(I) not more than 1 percent (except as provided in
subparagraph (C)) of the amount of funds allocated to a
State agency under this section for supplemental foods
for a fiscal year may be expended by the State agency
for allowable expenses incurred under this section for
supplemental foods during the preceding fiscal year;
and
(II) not more than 1 percent of the amount of funds
allocated to a State agency under this section for
nutrition services and administration for a fiscal year
may be expended by the State agency for allowable
expenses incurred under this section for supplemental
foods and nutrition services and administration during
the preceding fiscal year; and
(ii)(I) for each fiscal year, of the amounts
allocated to a State agency for nutrition services and
administration, an amount equal to not more than 3
percent of the amount allocated to the State agency
under this section for the fiscal year may be expended
by the State agency for allowable expenses incurred
under this section for nutrition services and
administration during the subsequent fiscal year; and
(II) for each fiscal year, of the amounts allocated
to a State agency for nutrition services and
administration, an amount equal to not more than \1/2\
of 1 percent of the amount allocated to the State
agency under this section for the fiscal year may be
expended by the State agency, with the prior approval
of the Secretary, for the development of a management
information system, including an electronic benefit
transfer system, during the subsequent fiscal year.
(B) Any funds made available to a State agency in accordance
with subparagraph (A)(ii) for a fiscal year shall not affect
the amount of funds allocated to the State agency for such
year.
(C) The Secretary may authorize a State agency to expend not
more than 3 percent of the amount of funds allocated to a State
under this section for supplemental foods for a fiscal year for
expenses incurred under this section for supplemental foods
during the preceding fiscal year, if the Secretary determines
that there has been a significant reduction in infant formula
cost containment savings provided to the State agency that
would affect the ability of the State agency to at least
maintain the level of participation by eligible participants
served by the State agency.
(4) For purposes of the formula, if Indians are served by the
health department of a State, the formula shall be based on the
State population inclusive of the Indians within the State
boundaries.
(5) If Indians residing in the State are served by a State
agency other than the health department of the State, the
population of the tribes within the jurisdiction of the State
being so served shall not be included in the formula for such
State, and shall instead be included in the formula for the
State agency serving the Indians.
(6) Notwithstanding any other provision of this section, the
Secretary may use a portion of a State agency's allocation to
purchase supplemental foods for donation to the State agency
under this section.
(7) In addition to any amounts expended under paragraph
(3)(A)(i), any State agency using cost containment measures as
defined in subsection (h)(9) may temporarily use amounts made
available to such agency for the first quarter of a fiscal year
to defray expenses for costs incurred during the final quarter
of the preceding fiscal year. In any fiscal year, any State
agency that uses amounts made available for a succeeding fiscal
year under the authority of the preceding sentence shall
restore or reimburse such amounts when such agency receives
payment as a result of its cost containment measures for such
expenses.
(8) Temporary spending authority.--During each of
fiscal years 2012 and 2013, the Secretary may authorize
a State agency to expend more than the amount otherwise
authorized under paragraph (3)(C) for expenses incurred
under this section for supplemental foods during the
preceding fiscal year, if the Secretary determines
that--
(A) there has been a significant reduction in
reported infant formula cost containment
savings for the preceding fiscal year due to
the implementation of subsection (h)(8)(K); and
(B) the reduction would affect the ability of
the State agency to serve all eligible
participants.
(j)(1) The Secretary and the Secretary of Health and Human
Services (referred to in this subsection as the
``Secretaries'') shall jointly establish and carry out an
initiative for the purpose of providing both supplemental
foods, nutrition education, and breastfeeding support and
promotion under the special supplemental nutrition program and
health care services to low-income pregnant, postpartum, and
breastfeeding women, infants, and children at substantially
more community health centers and migrant health centers.
(2) The initiative shall also include--
(A) activities to improve the coordination of the
provision of supplemental foods, nutrition education,
and breastfeeding support and promotion under the
special supplemental nutrition program and health care
services at facilities funded by the Indian Health
Service; and
(B) the development and implementation of strategies
to ensure that, to the maximum extent feasible, new
community health centers, migrant health centers, and
other federally supported health care facilities
established in medically underserved areas provide
supplemental foods, nutrition education, and
breastfeeding support and promotion under the special
supplemental nutrition program.
(3) The initiative may include--
(A) outreach and technical assistance for State and
local agencies and the facilities described in
paragraph (2)(A) and the health centers and facilities
described in paragraph (2)(B);
(B) demonstration projects in selected State or local
areas; and
(C) such other activities as the Secretaries find are
appropriate.
(4) As used in this subsection:
(A) The term ``community health center'' has the
meaning given the term in section 330(a) of the Public
Health Service Act (42 U.S.C. 254c(a)).
(B) The term ``migrant health center'' has the
meaning given the term in section 329(a)(1) of such Act
(42 U.S.C. 254b(a)(1)).
[(k)(1) There is hereby established a National Advisory
Council on Maternal, Infant, and Fetal Nutrition (referred to
in this subsection as the ``Council'') composed of 24 members
appointed by the Secretary. One member shall be a State
director of a program under this section; one member shall be a
State official responsible for a commodity supplemental food
program under section 1304 of the Food and Agriculture Act of
1977; one member shall be a State fiscal officer of a program
under this section (or the equivalent thereof); one member
shall be a State health officer (or the equivalent thereof);
one member shall be a local agency director of a program under
this section in an urban area; one member shall be a local
agency director of a program under this section in a rural
area; one member shall be a project director of a commodity
supplemental food program; one member shall be a State public
health nutrition director (or the equivalent thereof); one
member shall be a representative of an organization serving
migrants; one member shall be an official from a State agency
predominantly serving Indians; three members shall be parent
participants of a program under this section or of a commodity
supplemental food program; one member shall be a pediatrician;
one member shall be an obstetrician; one member shall be a
representative of a nonprofit public interest organization that
has experience with and knowledge of the special supplemental
nutrition program; one member shall be a person involved at the
retail sales level of food in the special supplemental
nutrition program; two members shall be officials of the
Department of Health and Human Services appointed by the
Secretary of Health and Human Services; two members shall be
officials of the Department of Agriculture appointed by the
Secretary; 1 member shall be an expert in the promotion of
breast feeding; one member shall be an expert in drug abuse
education and prevention; and one member shall be an expert in
alcohol abuse education and prevention.
[(2) Members of the Council appointed from outside the
Department of Agriculture and the Department of Health and
Human Services shall be appointed for terms not exceeding three
years. State and local officials shall serve only during their
official tenure, and the tenure of parent participants shall
not exceed two years. Persons appointed to complete an
unexpired term shall serve only for the remainder of such term.
[(3) The Council shall elect a Chairman and a Vice Chairman.
The Council shall meet at the call of the Chairman, but shall
meet at least once a year. Eleven members shall constitute a
quorum.
[(4) The Secretary shall provide the Council with such
technical and other assistance, including secretarial and
clerical assistance, as may be required to carry out its
functions.
[(5) Members of the Council shall serve without compensation
but shall be reimbursed for necessary travel and subsistence
expenses incurred by them in the performance of the duties of
the Council. Parent participant members of the Council, in
addition to reimbursement for necessary travel and subsistence,
shall, at the discretion of the Secretary, be compensated in
advance for other personal expenses related to participation on
the Council, such as child care expenses and lost wages during
scheduled Council meetings.]
[(l)] (k) Foods available under section 416 of the
Agriculture Act of 1949, including, but not limited to, dry
milk, or purchased under section 32 of the Act of August 24,
1935 may be donated by the Secretary, at the request of a State
agency, for distribution to programs conducted under this
section. The Secretary may purchase and distribute, at the
request of a State agency, supplemental foods for donation to
programs conducted under this section, with appropriated funds,
including funds appropriated under this section.
[(m)] (l)(1) Subject to the availability of funds
appropriated for the purposes of this subsection, and as
specified in this subsection, the Secretary shall award grants
to States that submit State plans that are approved for the
establishment or maintenance of programs designed to provide
recipients of assistance under subsection (c), or those who are
on the waiting list to receive the assistance, with coupons
that may be exchanged for fresh, nutritious, unprepared foods
at farmers' markets and (at the option of a State) roadside
stands, as defined in the State plans submitted under this
subsection.
(2) A grant provided to any State under this subsection shall
be provided to the chief executive officer of the State, who
shall--
(A) designate the appropriate State agency or
agencies to administer the program in conjunction with
the appropriate nonprofit organizations; and
(B) ensure coordination of the program among the
appropriate agencies and organizations.
(3) The Secretary shall not make a grant to any State under
this subsection unless the State agrees to provide State,
local, or private funds for the program in an amount that is
equal to not less than 30 percent of the administrative cost of
the program, which may be satisfied from program income or
State contributions that are made for similar programs. The
Secretary may negotiate with an Indian State agency a lower
percentage of matching funds than is required under the
preceding sentence, but not lower than 10 percent of the
administrative cost of the program, if the Indian State agency
demonstrates to the Secretary financial hardship for the
affected Indian tribe, band, group, or council.
(4) Subject to paragraph (6), the Secretary shall establish a
formula for determining the amount of the grant to be awarded
under this subsection to each State for which a State plan is
approved under paragraph (6), according to the number of
recipients proposed to participate as specified in the State
plan. In determining the amount to be awarded to new States,
the Secretary shall rank order the State plans according to the
criteria of operation set forth in this subsection, and award
grants accordingly. The Secretary shall take into consideration
the minimum amount needed to fund each approved State plan, and
need not award grants to each State that submits a State plan.
(5) Each State that receives a grant under this subsection
shall ensure that the program for which the grant is received
complies with the following requirements:
(A) Individuals who are eligible to receive Federal
benefits under the program shall only be individuals
who are receiving assistance under subsection (c), or
who are on the waiting list to receive the assistance.
(B) Construction or operation of a farmers' market
may not be carried out using funds--
(i) provided under the grant; or
(ii) required to be provided by the State
under paragraph (3).
(C) The value of the Federal share of the benefits
received by any recipient under the program may not
be--
(i) less than $10 per year; or
(ii) more than $30 per year.
(D) The coupon issuance process under the program
shall be designed to ensure that coupons are targeted
to areas with--
(i) the highest concentration of eligible
individuals;
(ii) the greatest access to farmers' markets;
and
(iii) certain characteristics, in addition to
those described in clauses (i) and (ii), that
are determined to be relevant by the Secretary
and that maximize the availability of benefits
to eligible individuals.
(E) The coupon redemption process under the program
shall be designed to ensure that the coupons may be--
(i) redeemed only by producers authorized by
the State to participate in the program; and
(ii) redeemed only to purchase fresh
nutritious unprepared food for human
consumption.
(F)(i) Except as provided in clauses (ii) and (iii),
the State may use for administration of the program in
any fiscal year not more than 17 percent of the total
amount of program funds.
(ii) During any fiscal year for which a State
receives assistance under this subsection, the
Secretary shall permit the State to use not more than 2
percent of total program funds for market development
or technical assistance to farmers' markets if the
Secretary determines that the State intends to promote
the development of farmers' markets in socially or
economically disadvantaged areas, or remote rural
areas, where individuals eligible for participation in
the program have limited access to locally grown fruits
and vegetables.
(iii) The provisions of clauses (i) and (ii) with
respect to the use of program funds shall not apply to
any funds that a State may contribute in excess of the
funds used by the State to meet the requirements of
paragraph (3).
(G) The State shall ensure that no State or local
taxes are collected within the State on purchases of
food with coupons distributed under the program.
(6)(A) The Secretary shall give the same preference for
funding under this subsection to eligible States that
participated in the program under this subsection in a prior
fiscal year as to States that participated in the program in
the most recent fiscal year. The Secretary shall inform each
State of the award of funds as prescribed by subparagraph (G)
by February 15 of each year.
(B)(i) Subject to the availability of appropriations, if a
State provides the amount of matching funds required under
paragraph (3), the State shall receive assistance under this
subsection in an amount that is not less than the amount of
such assistance that the State received in the most recent
fiscal year in which it received such assistance.
(ii) If amounts appropriated for any fiscal year pursuant to
the authorization contained in paragraph (10) for grants under
this subsection are not sufficient to pay to each State for
which a State plan is approved under paragraph (6) the amount
that the Secretary determines each such State is entitled to
under this subsection, each State's grant shall be ratably
reduced, except that (if sufficient funds are available) each
State shall receive at least $75,000 or the amount that the
State received for the prior fiscal year if that amount is less
than $75,000.
(C) In providing funds to a State that received assistance
under this subsection in the previous fiscal year, the
Secretary shall consider--
(i) the availability of any such assistance not spent
by the State during the program year for which the
assistance was received;
(ii) documentation that demonstrates that--
(I) there is a need for an increase in funds;
and
(II) the use of the increased funding will be
consistent with serving nutritionally at-risk
persons and expanding the awareness and use of
farmers' markets;
(iii) demonstrated ability to satisfactorily operate
the existing program; and
(iv) whether, in the case of a State that intends to
use any funding provided under subparagraph [(G)(i)]
(F)(i) to increase the value of the Federal share of
the benefits received by a recipient, the funding
provided under subparagraph [(G)(i)] (F)(i) will
increase the rate of coupon redemption.
(D)(i) A State that desires to receive a grant under this
subsection shall submit, for each fiscal year, a State plan to
the Secretary by November 15 of each year.
(ii) Each State plan submitted under this paragraph shall
contain--
(I) the estimated cost of the program and the
estimated number of individuals to be served by the
program;
(II) a description of the State plan for complying
with the requirements established in paragraph (5); and
(III) criteria developed by the State with respect to
authorization of producers to participate in the
program.
(iii) The criteria developed by the State as required by
clause (ii)(III) shall require any authorized producer to sell
fresh nutritious unprepared foods (such as fruits and
vegetables) to recipients, in exchange for coupons distributed
under the program.
(E) The Secretary shall establish objective criteria for the
approval and ranking of State plans submitted under this
paragraph.
(F)(i) An amount equal to 75 percent of the funds available
after satisfying the requirements of subparagraph (B) shall be
made available to States participating in the program whose
State plan is approved by the Secretary. If this amount is
greater than that necessary to satisfy the approved State
plans, the unallocated amount shall be applied toward
satisfying any unmet need of States that have not participated
in the program in the prior fiscal year, and whose State plans
have been approved.
(ii) An amount equal to 25 percent of the funds available
after satisfying the requirements of subparagraph (B) shall be
made available to States that have not participated in the
program in the prior fiscal year, and whose State plans have
been approved by the Secretary. If this amount is greater than
that necessary to satisfy the approved State plans for new
States, the unallocated amount shall be applied toward
satisfying any unmet need of States whose State plans have been
approved.
(iii) In any fiscal year, any funds that remain unallocated
after satisfying the requirements of clauses (i) and (ii) shall
be reallocated in the following fiscal year according to
procedures established pursuant to paragraph (10)(B)(ii).
(7)(A) The value of the benefit received by any recipient
under any program for which a grant is received under this
subsection may not affect the eligibility or benefit levels for
assistance under other Federal or State programs.
(B) Any programs for which a grant is received under this
subsection shall be supplementary to the supplemental nutrition
assistance program carried out under the Food and Nutrition Act
of 2008 (7 U.S.C. 2011 et seq.) and to any other Federal or
State program under which foods are distributed to needy
families in lieu of supplemental nutrition assistance program
benefits.
(8) For each fiscal year, the Secretary shall collect from
each State that receives a grant under this subsection
information relating to--
(A) the number and type of recipients served by both
Federal and non-Federal benefits under the program for
which the grant is received;
(B) the rate of redemption of coupons distributed
under the program;
(C) the average amount distributed in coupons to each
recipient;
(D) the change in consumption of fresh fruits and
vegetables by recipients, if the information is
available;
(E) the effects of the program on farmers' markets,
if the information is available; and
(F) any other information determined to be necessary
by the Secretary.
(9) Funding.--
[(A) Authorization of appropriations.--There
are authorized to be appropriated to carry out
this subsection such sums as are necessary for
each of fiscal years 2010 through 2015.]
(A) Authorization of appropriations.--There
are authorized to be appropriated to carry out
this subsection $18,548,000 for each of fiscal
years 2017 through 2021.
(B)(i)(I) Each State shall return to the Secretary any funds
made available to the State that are unobligated at the end of
the fiscal year for which the funds were originally allocated.
The unexpended funds shall be returned to the Secretary by
February 1st of the following fiscal year.
(II) Notwithstanding any other provision of this subsection,
a total of not more than 5 percent of funds made available to a
State for any fiscal year may be expended by the State to
reimburse expenses incurred for a program assisted under this
subsection during the preceding fiscal year.
(ii) The Secretary shall establish procedures to reallocate
funds that are returned under clause (i).
(10) For purposes of this subsection:
(A) The term ``coupon'' means a coupon, voucher, or
other negotiable financial instrument by which benefits
under this section are transferred.
(B) The term ``program'' means--
(i) the State farmers' market coupon
nutrition program authorized by this subsection
(as it existed on September 30, 1991); or
(ii) the farmers' market nutrition program
authorized by this subsection.
(C) The term ``recipient'' means a person or
household, as determined by the State, who is chosen by
a State to receive benefits under this subsection, or
who is on a waiting list to receive such benefits.
(D) The term ``State agency'' has the meaning
provided in subsection (b)(13), except that the term
also includes the agriculture department of each State
and any other agency approved by the chief executive
officer of the State.
[(n)] (m) Disqualification of Vendors Who Are Disqualified
Under the Supplemental Nutrition Assistance Program.--
(1) In general.--The Secretary shall issue
regulations providing criteria for the disqualification
under this section of an approved vendor that is
disqualified from accepting benefits under the
supplemental nutrition assistance program established
under the Food and Nutrition Act of 2008 (7 U.S.C. 2011
et seq.).
(2) Terms.--A disqualification under paragraph (1)--
(A) shall be for the same period as the
disqualification from the program referred to
in paragraph (1);
(B) may begin at a later date than the
disqualification from the program referred to
in paragraph (1); and
(C) shall not be subject to judicial or
administrative review.
[(o)] (n) Disqualification of Vendors Convicted of
Trafficking or Illegal Sales.--
(1) In general.--Except as provided in paragraph (4),
a State agency shall permanently disqualify from
participation in the program authorized under this
section a vendor convicted of--
(A) trafficking in food instruments
(including any voucher, draft, check, or access
device (including an electronic benefit
transfer card or personal identification
number) issued in lieu of a food instrument
under this section); or
(B) selling firearms, ammunition, explosives,
or controlled substances (as defined in section
102 of the Controlled Substances Act (21 U.S.C.
802)) in exchange for food instruments
(including any item described in subparagraph
(A) issued in lieu of a food instrument under
this section).
(2) Notice of disqualification.--The State agency
shall--
(A) provide the vendor with notification of
the disqualification; and
(B) make the disqualification effective on
the date of receipt of the notice of
disqualification.
(3) Prohibition of receipt of lost revenues.--A
vendor shall not be entitled to receive any
compensation for revenues lost as a result of
disqualification under this subsection.
(4) Exceptions in lieu of disqualification.--
(A) In general.--A State agency may permit a
vendor that, but for this paragraph, would be
disqualified under paragraph (1), to continue
to participate in the program if the State
agency determines, in its sole discretion
according to criteria established by the
Secretary, that--
(i) disqualification of the vendor
would cause hardship to participants in
the program authorized under this
section; or
(ii)(I) the vendor had, at the time
of the violation under paragraph (1),
an effective policy and program in
effect to prevent violations described
in paragraph (1); and
(II) the ownership of the vendor was
not aware of, did not approve of, and
was not involved in the conduct of the
violation.
(B) Civil penalty.--If a State agency under
subparagraph (A) permits a vendor to continue
to participate in the program in lieu of
disqualification, the State agency shall assess
the vendor a civil penalty in an amount
determined by the State agency, in accordance
with criteria established by the Secretary,
except that--
(i) the amount of the civil penalty
shall not exceed $10,000 for each
violation; and
(ii) the amount of civil penalties
imposed for violations investigated as
part of a single investigation may not
exceed $40,000.
[(p)] (o) Criminal Forfeiture.--
(1) In general.--Notwithstanding any provision of
State law and in addition to any other penalty
authorized by law, a court may order a person that is
convicted of a violation of a provision of law
described in paragraph (2), with respect to food
instruments (including any item described in
[subsection (o)(1)(A)] subsection (n)(1)(A) issued in
lieu of a food instrument under this section), funds,
assets, or property that have a value of $100 or more
and that are the subject of a grant or other form of
assistance under this section, to forfeit to the United
States all property described in paragraph (3).
(2) Applicable laws.--A provision of law described in
this paragraph is--
(A) section 12(g) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1760(g));
and
(B) any other Federal law imposing a penalty
for embezzlement, willful misapplication,
stealing, obtaining by fraud, or trafficking in
food instruments (including any item described
in [subsection (o)(1)(A)] subsection (n)(1)(A)
issued in lieu of a food instrument under this
section), funds, assets, or property.
(3) Property subject to forfeiture.--The following
property shall be subject to forfeiture under paragraph
(1):
(A) All property, real and personal, used in
a transaction or attempted transaction, to
commit, or to facilitate the commission of, a
violation described in paragraph (1).
(B) All property, real and personal,
constituting, derived from, or traceable to any
proceeds a person obtained directly or
indirectly as a result of a violation described
in paragraph (1).
(4) Procedures; interest of owner.--Except as
provided in paragraph (5), all property subject to
forfeiture under this subsection, any seizure or
disposition of the property, and any proceeding
relating to the forfeiture, seizure, or disposition
shall be subject to section 413 of the Comprehensive
Drug Abuse Prevention and Control Act of 1970 (21
U.S.C. 853), other than subsection (d) of that section.
(5) Proceeds.--The proceeds from any sale of
forfeited property and any amounts forfeited under this
subsection shall be used--
(A) first, to reimburse the Department of
Justice, the Department of the Treasury, and
the United States Postal Service for the costs
incurred by the Departments or Service to
initiate and complete the forfeiture
proceeding;
(B) second, to reimburse the Office of
Inspector General of the Department of
Agriculture for any costs incurred by the
Office in the law enforcement effort resulting
in the forfeiture;
(C) third, to reimburse any Federal, State,
or local law enforcement agency for any costs
incurred in the law enforcement effort
resulting in the forfeiture; [and]
(D) fourth, by the State agency to carry out
approval, reauthorization, and compliance
investigations of vendors[.]; and
(E) fifth, to reimburse any WIC infant
formula manufacturer for any rebate provided to
the State agency on WIC infant formula
unlawfully trafficked under a provision of law
described in paragraph (2).
(6) Notice of investigation.--
(A) In general.--For any investigation into
the trafficking of WIC infant formula pursuant
to this subsection, the Secretary shall provide
notice of resolution of the disposition of an
unlawful action resulting from the
investigation to all contracted manufacturers
of the trafficked infant formula.
(B) Estimates.--Not later than 60 days after
the date on which notice is provided under
subparagraph (A), the State shall submit to the
contracted manufacturer an estimate of--
(i) the number of units, if any, for
which rebates may have been issued as a
result of the violation; and
(ii) the total dollar amount of the
rebates.
[(q)] (p) The Secretary of Agriculture shall provide
technical assistance to the Secretary of Defense, if so
requested by the Secretary of Defense, for the purpose of
carrying out the overseas special supplemental food program
established under section 1060a(a) of title 10, United States
Code.
(q) Fraud and Safety Review.--
(1) In general.--Not later than 180 days after the
date of the enactment of the Improving Child Nutrition
and Education Act of 2016, the Secretary shall review
current guidance, regulations, and practices regarding
fraud and safety for purposes of this section.
(2) Inclusions.--The review under paragraph (1) shall
include a review of issues relating to--
(A) excess and unused infant formula;
(B) invoices pertaining to products subject
to rebate;
(C) the sale of infant formula by
unauthorized entities; and
(D) the purchase of infant formula from
unauthorized entities.
(3) Updates.--Based on the findings of the review
under paragraph (1), the Secretary shall update current
regulations and guidance and issue additional
regulations and guidance, as necessary--
(A) to minimize fraud; and
(B) to ensure the safety of participants.
(r) Cooperation With Law Enforcement Agencies.--
Notwithstanding any other provision of law, State agencies and
law enforcement agencies shall share WIC vendor information
relating to investigations or prosecutions under the program
under this section, as determined by the Secretary.
(s) Pilot Projects.--
(1) In general.--Subject to paragraph (2), the
Secretary may conduct pilot projects to test
alternative certification and food delivery procedures
under this section.
(2) Prohibition.--In conducting pilot projects under
paragraph (1), the Secretary may not waive or modify
the application of program eligibility, supplemental
foods, or cost containment requirements.
(3) Evaluation.--The Secretary shall evaluate each
pilot project carried out under this subsection after
the pilot project has been in operation for 3 years.
SEC. 19. TEAM NUTRITION NETWORK.
(a) Purposes.--The purposes of the team nutrition network
are--
(1) to establish State systems to promote the
nutritional health of school children of the United
States through nutrition education and the use of
evidence-based team nutrition messages and material
[developed by the Secretary], and to encourage regular
physical activity and other activities that support
healthy lifestyles for children, including those based
on the most recent Dietary Guidelines for Americans
published under section 301 of the National Nutrition
Monitoring and Related Research Act of 1990 (7 U.S.C.
5341);
(2) to provide assistance to States for the
development of comprehensive and integrated nutrition
education and active living programs in schools and
facilities that participate in child nutrition programs
under this Act and the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.);
(3) to provide training and technical assistance and
disseminate team nutrition messages to States, school
and community nutrition programs, and child nutrition
food service professionals;
(4) to coordinate and collaborate with other
nutrition education and active living programs that
share similar goals and [purposes; and] purposes,
including if appropriate--
(A) State and local nutrition education
programs, health and wellness policies,
nutrition and health education resources, and
other State resources; and
(B) Federal nutrition education efforts,
including those programs under this Act and the
Richard B. Russell National School Lunch Act
(42 U.S.C. 1751 et seq.);
(5) to identify and share innovative programs with
demonstrated effectiveness in [helping children to
maintain a healthy weight by] enhancing student
understanding of healthful eating patterns and the
importance of regular physical activity in and out of
school.
[(b) Definition of Team Nutrition Network.--In this section,
the term] (b) Definitions._In this section:
(1) Nutrition education._The term ``nutrition
education'' means the provision of individual or group
learning opportunities and materials for children and
families that--
(A) emphasize the relationship between
nutrition, physical activity, and health with a
goal of improving long-term dietary and
physical health and increasing food security;
and
(B) include learning about food preparation.
(2) Team nutrition network._The term ``team nutrition
network'' means a statewide multidisciplinary program
for children to promote healthy eating and physical
activity based on scientifically valid information and
sound educational, social, and marketing principles.
(c) [Grants] State Network Grants.--
(1) In general.--Subject to the availability of funds
for use in carrying out this section, in addition to
any other funds made available to the Secretary for
team nutrition purposes, the Secretary, in consultation
with the Secretary of Education, may make grants to
State agencies for each fiscal year, in accordance with
this section, to establish team nutrition networks to
promote nutrition education through--
(A) the use of team nutrition network
messages and other scientifically based
information; and
(B) the promotion of active lifestyles.
(2) Form.--A portion of the grants provided under
this subsection may be in the form of competitive
grants.
(3) Funds from nongovernmental sources.--In carrying
out this subsection, the Secretary may accept cash
contributions from nongovernmental organizations made
expressly to further the purposes of this section, to
be managed by the Food and Nutrition Service, for use
by the Secretary and the States in carrying out this
section.
(4) Allocation.--Subject to the availability of funds
for use in carrying out this subsection, the total
amount of funds made available for a fiscal year for
grants under this subsection shall equal not more than
the sum of--
(A) the product obtained by multiplying \1/2\
cent by the number of lunches reimbursed
through food service programs under the Richard
B. Russell National School Lunch Act (42 U.S.C.
1751 et seq.) during the second preceding
fiscal year in schools, institutions, and
service institutions that participate in the
food service programs; and
(B) the total value of funds received by the
Secretary in support of this subsection from
nongovernmental sources.
(5) Requirements for state participation.--To be
eligible to receive a grant under this subsection, a
State agency shall submit to the Secretary a plan, at
such time and in such manner as the Secretary may
require, including--
(A) a description of the goals and proposed
State plan for addressing the nutrition of
children;
(B) a description of the means by which the
State agency will use and disseminate the team
nutrition messages and material to children
and, if appropriate, families of such children;
(C) an explanation of the ways in which the
State agency will use the funds from the grant
to work toward the goals required under clause
(i), and to promote healthy eating in schools
throughout the State;
(D) a description of the ways in which the
State team nutrition network messages and
activities will be coordinated at the State and
local level with other community health
promotion and education activities;
(E) an annual summary of the team nutrition
network activities and their effectiveness;
(F) a description of the ways in which school
environments might support healthy eating and
physical activity; and
(G) a description of how all communications
to parents and legal guardians of students who
are members of a household receiving
information under the program shall be in an
understandable and uniform format and, to the
maximum extent practicable, in a language that
parents and legal guardians can understand.
(6) State coordinator.--Each State that receives a
grant under this subsection may appoint a team
nutrition network coordinator. Such coordinator shall
implement comprehensive, coordinated nutrition
education programming through the team nutrition
network, including to assist schools, school food
authorities, and other child nutrition program
providers in the State to administer and coordinate the
team nutrition network activities.
(7) Authorized activities.--A State agency that
receives a grant under this section may use funds from
the grant to--
(A) identify the programs and services
available to meet the health and nutritional
needs of children and families in the State;
(B) disseminate team nutrition network
messages and material that provide
comprehensive, coordinated nutrition and
physical fitness awareness and obesity
prevention education;
(C) implement demonstration projects in
schools to promote physical activity and to
enhance the nutrition education provided to
students;
(D) improve access to local foods through
coordinating with farm-to-school grant
activities that include the provision of
nutrition education;
(E) encourage schools to develop healthy
eating and lifestyle policies;
(F) provide training and technical assistance
to teachers and school food service
professionals consistent with the purposes of
this subsection; and
(G) collaborate with public and private and
faith-based organizations, including community-
based organizations, State medical
associations, and public health groups, to
provide nutrition and physical education
targeting lower income children, ethnic
minorities, and youth at a greater risk for
obesity or malnourishment.
[(d) Allocation.--Subject to the availability of funds for
use in carrying out this section, the total amount of funds
made available for a fiscal year for grants under this section
shall equal not more than the sum of--
[(1) the product obtained by multiplying \1/2\ cent
by the number of lunches reimbursed through food
service programs under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.) during the
second preceding fiscal year in schools, institutions,
and service institutions that participate in the food
service programs; and
[(2) the total value of funds received by the
Secretary in support of this section from
nongovernmental sources.
[(e) Requirements for State Participation.--To be eligible to
receive a grant under this section, a State agency shall submit
to the Secretary a plan that--
[(1) is subject to approval by the Secretary; and
[(2) is submitted at such time and in such manner,
and that contains such information, as the Secretary
may require, including--
[(A) a description of the goals and proposed
State plan for addressing the health and other
consequences of children who are at risk of
becoming overweight or obese;
[(B) an analysis of the means by which the
State agency will use and disseminate the team
nutrition messages and material developed by
the Secretary;
[(C) an explanation of the ways in which the
State agency will use the funds from the grant
to work toward the goals required under
subparagraph (A), and to promote healthy eating
and physical activity and fitness in schools
throughout the State;
[(D) a description of the ways in which the
State team nutrition network messages and
activities will be coordinated at the State
level with other health promotion and education
activities;
[(E) a description of the consultative
process that the State agency 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;
[(F) a description of how the State agency
will evaluate the effectiveness of each program
developed by the State agency;
[(G) an annual summary of the team nutrition
network activities;
[(H) a description of the ways in which the
total school environment will support healthy
eating and physical activity; and
[(I) a description of how all communications
to parents and legal guardians of 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 maximum extent practicable, in a
language that parents and legal guardians can
understand.
[(f) State Coordinator.--Each State that receives a grant
under this section shall appoint a team nutrition network
coordinator who shall--
[(1) administer and coordinate the team nutrition
network within and across schools, school food
authorities, and other child nutrition program
providers in the State; and
[(2) coordinate activities of the Secretary, acting
through the Food and Nutrition Service, and State
agencies responsible for other children's health,
education, and wellness programs to implement a
comprehensive, coordinated team nutrition network
program.
[(g) Authorized Activities.--A State agency that receives a
grant under this section may use funds from the grant--
[(1)(A) to collect, analyze, and disseminate data
regarding the extent to which children and youths in
the State are overweight, physically inactive, or
otherwise suffering from nutrition-related deficiencies
or disease conditions; and
[(B) to identify the programs and services available
to meet those needs;
[(2) to implement model elementary and secondary
education curricula using team nutrition network
messages and material developed by the Secretary to
create a comprehensive, coordinated nutrition and
physical fitness awareness and obesity prevention
program;
[(3) to implement pilot projects in schools to
promote physical activity and to enhance the
nutritional status of students;
[(4) to improve access to local foods through farm-
to-cafeteria activities that may include the
acquisition of food and the provision of training and
education;
[(5) to implement State guidelines in health
(including nutrition education and physical education
guidelines) and to emphasize regular physical activity
during school hours;
[(6) to establish healthy eating and lifestyle
policies in schools;
[(7) to provide training and technical assistance to
teachers and school food service professionals
consistent with the purposes of this section;
[(8) to collaborate with public and private
organizations, including community-based 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.]
[(h)] (d) Local Nutrition Education and Physical Activity
Grants.--
(1) In general.--Subject to the availability of funds
to carry out this subsection, the Secretary, in
consultation with the Secretary of Education, shall
provide assistance to selected local educational
agencies to create healthy school nutrition
environments, promote healthy eating habits, and
increase physical activity, consistent with the Dietary
Guidelines for Americans published under section 301 of
the National Nutrition Monitoring and Related Research
Act of 1990 (7 U.S.C. 5341), among elementary and
secondary education students.
(2) Selection of schools.--In selecting local
educational agencies for grants under this subsection,
the Secretary shall--
(A) provide for the equitable distribution of
grants among--
(i) urban, suburban, and rural
schools; and
(ii) schools with varying family
income levels;
(B) consider factors that affect need,
including local educational agencies with
significant minority or low-income student
populations; and
(C) establish a process that allows the
Secretary to conduct an evaluation of how funds
were used.
(3) Requirement for participation.--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 need of the local
educational agency for a nutrition and physical
activity program, including an assessment of
the nutritional environment of the school;
(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 the proposed project
will be aligned with the local wellness policy
required under section 204 of the Child
Nutrition and WIC Reauthorization Act of 2004;
(D) 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 (42 U.S.C. 1751 et
seq.), or other Acts, as appropriate, to
improve student health and nutrition;
(E) a statement of the measurable goals of
the local educational agency for nutrition and
physical education programs and promotion;
(F) a description of the procedures the
agency will use to assess and publicly report
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 maximum practicable,
in a language that parents can understand.
(4) 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 beginning with the initial
fiscal year for which the local educational agency
receives funds.
(5) 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 published
under section 301 of the National
Nutrition Monitoring and Related
Research Act of 1990 (7 U.S.C. 5341);
[and]
(ii) increase opportunities for
physical activity through after school
programs, athletics, intramural
activities, and recess; and
(iii) incorporate nutrition education
into physical and health education,
and, if appropriate, afterschool
programs, including athletics; 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 more
appealing, nutritious menus and
recipes;
[(iv) incorporate nutrition education
into physical education, health
education, and after school programs,
including athletics;]
[(v)] (iv) 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)] (v) provide nutrient content
or nutrition information on meals
served through the school lunch program
established under the Richard B.
Russell National School Lunch Act (42
U.S.C. 1751 et seq.) and the school
breakfast program established by
section 4 of this Act and items sold a
la carte during meal times;
[(vii)] (vi) encourage the increased
consumption of [a variety of healthy
foods, including fruits, vegetables,
whole grains, and low-fat dairy
products, through new initiatives to
creatively market healthful foods, such
as salad bars and fruit bars] a variety
of healthy foods, including through
initiatives to creatively market such
foods;
[(viii)] (vii) offer healthy food
choices outside program meals,
including by making [low-fat and
nutrient dense] healthy options
available in vending machines, school
stores, and other venues; and
[(ix)] (viii) provide nutrition
education, including sports nutrition
education, for teachers, coaches, food
service staff, athletic trainers, and
school nurses.
(6) Report.--Not later than 18 months after
completion of the projects and evaluations under this
subsection, the Secretary shall--
(A) submit 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 under
this subsection; and
(B) make the report available to the public,
including through the Internet.
[(i)] (e) Nutrition Education Support.--In carrying out the
purpose of this section to support nutrition education, the
Secretary [may provide for technical assistance and grants]
shall provide for technical assistance to improve the quality
of school meals and access to local foods in schools and
institutions.
[(j)] (f) Limitation.--Material prepared under this section
regarding agricultural commodities, food, or beverages, must be
factual and without bias.
[(k) Team Nutrition Network Independent Evaluation.--
[(1) In general.--Subject to the availability of
funds to carry out this subsection, the Secretary shall
offer to enter into an agreement with an independent,
nonpartisan, science-based research organization--
[(A) to conduct a comprehensive independent
evaluation of the effectiveness of the team
nutrition initiative and the team nutrition
network under this section; and
[(B) to identify best practices by schools
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 by increasing healthier meal
choices by students, as 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;
[(vii) successfully involving
parents, school administrators, the
private sector, public health agencies,
nonprofit organizations, and other
community partners;
[(viii) ensuring the adequacy of time
to eat during school meal periods; and
[(ix) successfully generating revenue
through the sale of food items, while
providing healthy options to students
through vending, student stores, and
other venues.
[(2) Report.--Not later than 3 years after funds are
made available to carry out this subsection, the
Secretary shall submit 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 a report describing the findings of the
independent evaluation.]
[(l)] (g) Authorization of Appropriations.--There are
authorized to be appropriated [such sums as are necessary to
carry out this section.] to carry out this section $17,000,000
for each fiscal year.
* * * * * * *
SEC. 23. GRANTS FOR EXPANSION OF SCHOOL BREAKFAST PROGRAMS.
(a) Definition of Qualifying School.--In this section, the
term ``qualifying school'' means a school in severe need, as
described in section 4(d)(1).
(b) Establishment.--Subject to the availability of
appropriations provided in advance in an appropriations Act
specifically for the purpose of carrying out this section, the
Secretary shall establish a program under which the Secretary
shall provide grants, on a competitive basis, to [State
educational agencies] State agencies for the purpose of
providing subgrants to local educational agencies for
qualifying schools to establish, maintain, or expand the school
breakfast program in accordance with this section.
(c) Grants to [State Educational Agencies] State Agencies.--
(1) Application.--To be eligible to receive a grant
under this section, a [State educational agency] State
agency shall submit to the Secretary an application at
such time, in such manner, and containing such
information as the Secretary may require.
(2) Administration.--In carrying out this section,
the Secretary shall--
(A) develop an appropriate competitive
application process; and
(B) make information available to [State
educational agencies] State agencies concerning
the availability of funds under this section.
(3) Allocation.--The amount of grants provided by the
Secretary to [State educational agencies] State
agencies for a fiscal year under this section shall not
exceed the lesser of--
(A) the product obtained by multiplying--
(i) the number of qualifying schools
receiving subgrants or other benefits
under subsection (d) for the fiscal
year; and
(ii) the maximum amount of a subgrant
provided to a qualifying school under
subsection (d)(4)(B); or
(B) $2,000,000.
(d) Subgrants to Qualifying Schools.--
(1) In general.--A [State educational agency] State
agency receiving a grant under this section shall use
funds made available under the grant to award subgrants
to local educational agencies for a qualifying school
or groups of qualifying schools to carry out activities
in accordance with this section.
(2) Priority.--In awarding subgrants under this
subsection, a [State educational agency] State agency
shall give priority to local educational agencies with
qualifying schools in which at least 75 percent of the
students are eligible for free or reduced price school
lunches under the school lunch program established
under the Richard B. Russell National School Lunch Act
(42 U.S.C. 1751 et seq.).
(3) State and district training and technical
support.--A local educational agency or [State
educational agency] State agency may allocate a portion
of each subgrant to provide training and technical
assistance to the staff of qualifying schools to carry
out the purposes of this section.
(4) Amount; term.--
(A) In general.--Except as otherwise provided
in this paragraph, a subgrant provided by a
[State educational agency] State agency to a
local educational agency or qualifying school
under this section shall be in such amount, and
shall be provided for such term, as the [State
educational agency] State agency determines
appropriate.
(B) Maximum amount.--The amount of a subgrant
provided by a [State educational agency] State
agency to a local educational agency for a
qualifying school or a group of qualifying
schools under this subsection shall not exceed
$10,000 for each school year.
(C) Maximum grant term.--A local educational
agency or [State educational agency] State
agency shall not provide subgrants to a
qualifying school under this subsection for
more than 2 fiscal years.
(e) Best Practices.--
(1) In general.--Prior to awarding grants under this
section, the Secretary shall make available to [State
educational agencies] State agencies information
regarding the most effective mechanisms by which to
increase school breakfast participation among eligible
children at qualifying schools.
(2) Preference.--In awarding subgrants under this
section, a [State educational agency] State agency
shall give preference to local educational agencies for
qualifying schools or groups of qualifying schools that
have adopted, or provide assurances that the subgrant
funds will be used to adopt, the most effective
mechanisms identified by the Secretary under paragraph
(1).
(f) Use of Funds.--
(1) In general.--A qualifying school may use a grant
provided under this section--
(A) to establish, promote, or expand a school
breakfast program of the qualifying school
under this section, which shall include a
nutritional education component;
(B) to extend the period during which school
breakfast is available at the qualifying
school;
(C) to provide school breakfast to students
of the qualifying school during the school day;
or
(D) for other appropriate purposes, as
determined by the Secretary.
(2) Requirement.--Each activity of a qualifying
school under this subsection shall be carried out in
accordance with applicable nutritional guidelines and
regulations issued by the Secretary.
(g) Maintenance of Effort.--Grants made available under this
section shall not diminish or otherwise affect the expenditure
of funds from State and local sources for the maintenance of
the school breakfast program.
(h) Reports.--Not later than 18 months following the end of a
school year during which subgrants are awarded under this
section, the Secretary shall submit to Congress a report
describing the activities of the qualifying schools awarded
subgrants.
(i) Evaluation.--Not later than 180 days before the end of a
grant term under this section, a local educational agency that
receives a subgrant under this section shall--
(1) evaluate whether electing to provide universal
free breakfasts under the school breakfast program in
accordance with Provision 2 as established under
subsections (b) through (k) of section 245.9 of title
7, Code of Federal Regulations (or successor
regulations), would be cost-effective for the qualified
schools based on estimated administrative savings and
economies of scale; and
(2) submit the results of the evaluation to the
[State educational agency] State agency.
(j) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section such sums as are
necessary for each of fiscal years 2010 through 2015.
MINORITY VIEWS
INTRODUCTION
Committee Democrats strongly oppose H.R. 5003, the
Improving Child Nutrition and Education Act of 2016. During its
consideration by the Full Committee on May 18, 2016, all
Democratic Members in attendance voted in opposition to
reporting the legislation. Committee Democrats strongly feel
that efforts to reauthorize child nutrition programs present a
valuable opportunity to continue to improve the eating habits
of children, expand their access to nutritious meals, and
alleviate the child hunger crisis in our country. A responsible
reauthorization would make progress toward these goals and
improve the school meals programs for the benefit of those they
are intended to serve.
A child nutrition reauthorization that makes progress
toward eliminating childhood hunger and food insecurity is not
and should not be an impossible nor partisan goal. Rather than
moving us forward, H.R. 5003 would roll back access to and
availability of nutritious meals, putting at risk the current
and future health of millions of schoolchildren. The partisan
legislation introduced by Committee Republicans charts a path
that ignores scientific research and uses rhetoric of reduced
federal involvement to justify broad, irresponsible changes to
programs with demonstrated efficacy. The Republican
reauthorization means increased burden on schools and families
who participate in school meals programs, the ability for
states to restrict who is eligible for school meals through a
pilot block grant program, and weakened nutrition standards for
the foods that fuel our nation's children and students.
THE IMPORTANCE OF FEDERAL CHILD NUTRITION PROGRAMS
The passage of the Richard B. Russell National School Lunch
Act, signed by President Harry S. Truman in 1946, created the
National School Lunch Program (NSLP) to bolster national
security threatened by rampant malnutrition among prospective
military recruits. Over the last seventy years, this
established federal role has expanded to include nutritional
support for eligible children during breakfast and after
school, over the summer, and in child care centers or provider
homes, as well as nutritional support for mothers, infants, and
young children through the Special Supplemental Nutrition
Program for Women, Infants, and Children (WIC).
The national security purpose for which the National School
Lunch Program was first created remains as important today as
it was seventy years ago. In the twenty-first century,
malnutrition and food insecurity remain a threat to our
nation's youth. According to the Department of Agriculture's
Economic Research Service, 7.8 percent of U.S. households with
children (3 million households) experienced food insecurity in
2015. These households were at times unable to provide
adequate, nutritious food for their children during the
year.\1\ School meal programs serve as a major component of the
nutrition safety net for our nation's students and families,
providing them with nutritious foods and protecting them from
falling further into poverty. In fact, the Census Bureau's
Supplemental Poverty Measure demonstrates that nutrition
programs, such as the school lunch program and the WIC program,
have a tangible and measurable impact in alleviating
poverty.\2\
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\1\USDA ERS, Household Food Security in the United States in 2015,
Economic Research Report No. (ERR-215), (September 2016) available at:
https://www.ers.usda.gov/webdocs/publications/err215/err-215.pdf.
\2\United States Census Bureau. The Supplemental Poverty Measure:
2015, (September 13, 2016) available at: http://www.census.gov/content/
dam/Census/library/publications/2016/demo/p60-258.pdf.
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There is a federal role in ensuring every child has access
to healthy and nutritious food and is able to learn without the
burden of hunger. Child nutrition programs provide not only a
health benefit to children, but these programs also help ensure
students are able to grow, both physically and intellectually.
Studies from peer-reviewed journals on cognitive function and
pediatrics describe how nutritional deficiencies and increases
in the intake of nutrients can affect various brain functions,
including cognition, concentration, perception, intuition, and
reasoning. These studies also find that healthier students are
likely to have fewer absences and disciplinary issues. Research
published in the Journal of School Health and American Journal
of Diseases of Children found that programs focused on
improving students' health are associated with increased test
scores.\3\
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\3\M.D. Florence, M. Asbridge, & P.J. Veugelers. ``Diet Quality and
Academic Performance,'' Journal of School Health, (April 2008)
available at: https://www.ncbi.nlm.nih.gov/pubmed/18336680.
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The benefits of a healthy diet at a young age extend beyond
childhood. There is a large body of research demonstrating the
importance of consistent access to nutritious food to support
the health and wellbeing of children from early childhood
through adulthood, which could result in substantial long-term
savings in health care and education.\4\
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\4\J.T. Cook & A. Poblacion. Estimating the Health-Related Costs of
Food Insecurity and Hunger. Appendix of The Nourishing Effect: Ending
Hunger, Improving Health, Reducing Inequality, (2015) available at:
http://www.childrenshealthwatch.org/wp-content/uploads/
JohnCook_cost_of_hunger_study.pdf.
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H.R. 5003 ERODES SCIENCE-BASED NUTRITION STANDARDS
The previous bipartisan reauthorization of child nutrition
programs, the Healthy, Hunger-Free Kids Act of 2010, introduced
strong meal nutrition standards for foods served at schools,
both during and outside the traditional meal service. The
improvements in nutrition standards ensure that children are
exposed to healthy foods and can begin forming healthy eating
habits while in school. The new standards are based on
scientific evidence--the Dietary Guidelines for Americans as
well as the recommendations from nutrition experts at the
Institute of Medicine. The standards are tailored to age groups
and maintain flexibility for schools in their meal planning
process. In short, the standards reflect the best available
evidence about how to design and offer healthy and nutritious
meals, snacks, and beverages for students, while still allowing
for flexibility for schools on how to achieve compliance.
The standards enacted in the wake of the 2010
reauthorization have resulted in healthier school environments
across the country. According to researchers at the Harvard
School of Public Health, the new federal standards have led to
increased fruit and vegetable consumption.\5\ Further,
according to a three year study conducted by the Center for
Public Health Nutrition at the University of Washington's
School of Public Health, after the healthier standards were in
place, the overall nutritional quality of the foods chosen by
students increased by 29 percent and the calorie content per
gram decreased by 13 percent. In spite of claims to the
contrary, this study also found that there was no impact on
participation rates.\6\
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\5\J. F.W. Cohen, S. Richardson, E. Parker, P.J. Catalano, & E.B.
Rimm. ``Impact of the New U.S. Department of Agriculture School Meal
Standards on Food Selection, Consumption, and Waste,'' American Journal
of Preventive Medicine (March 4, 2014).
\6\Donna Johnson, Mary Podrabsky, Anita Rocha, JJ. Otten, ``Effect
of the Healthy Hunger-Free Kids Act on the Nutritional Quality of Meals
Selected by Students and School Lunch Participation Rates,'' JAMA
Pediatrics (January 4, 2016) available at: http://jamanetwork.com/
journals/jamapediatrics/article-abstract/2478057.
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Through the hard work of many actors at the local, state,
and federal levels, the improved nutrition standards are in
place at over 98 percent of NSLP-participating schools.\7\ The
standards are not only widely adopted by schools, but are also
widely supported by families; 90 percent of Americans support
the current national school nutrition standards, with similar
levels of support for maintaining or strengthening the
nutrition standards.\8\
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\7\USDA. School Meal Certification Data, (October 19, 2016)
available at: http://www.fns.usda.gov/sites/default/files/cn/
SFAcert_FY16Q3.pdf.
\8\W.K. Kellogg Foundation. Food for Thought 2015, available at:
http://ww2.wkkf.org/2015schoolfoodpoll/.
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Ignoring the widespread success and adoption of the new
nutrition standards, H.R. 5003 contains provisions that
threaten these federal standards. The legislation proposes a
three-year review of the nutrition standards by the United
States Department of Agriculture, with the first review to be
conducted almost immediately. The reviews would require the
Department to certify that the regulations meet specific
criteria. For example, certification must prove that nutrition
standards are not responsible for either increased costs or
decreased program participation. This shortsighted approach
allows other factors--that could be entirely unrelated to the
nutrition programs themselves, such as population changes,
inflation, or demographic shifts--to negate the fundamental
importance of science-based standards. The nutrition of
students' meals could therefore be compromised by a regulatory
process devoid of science. Ranking Member Scott offered an
amendment to strike the three-year review, keeping the current
apolitical, science-based review system in place, but this
amendment was defeated by a partisan vote.
H.R. 5003 also makes changes to current law and regulations
regarding the service of ``a la carte'' items. H.R. 5003 would
allow any entree that was part of a reimbursable meal to be
served as an a la carte item any day of the week. This
allowance undermines the structure of the current nutrition
standards, where average weekly meal targets for fat, calories,
and sodium must be met. This provision has the effect of
allowing high-fat, high-calorie, and/or high-sodium food items
that might be an appropriate part of a weekly average--but not
a daily meal component--to be served at any point, eroding the
intent of the nutrition standards that students be served
nutritionally balanced meals each day. Ms. Bonamici offered an
amendment striking the a la carte change, but it was defeated
by a partisan vote.
Committee Democrats recognize that legislators are not, in
general, nutrition experts or medical professionals and that
any changes to federal nutrition standards should be grounded
in scientific data. Congress is not the appropriate venue for
the current science-based process for determining nutrition
standards. The above-mentioned changes to nutrition standards
proposed in H.R. 5003, among others, represent a challenge to
the standards as a whole, allowing less healthy foods in
schools. Subcommittee Ranking Member Fudge also offered an
amendment that would prohibit the bill from taking effect if it
would: (1) lead to less healthy foods being available in
schools; or, (2) make it more difficult for schools to serve
free meals to all students. Committee Democrats unanimously
supported this amendment, but it was also defeated.
H.R. 5003 THREATENS ACCESS TO SCHOOLS MEALS
Community eligibility provision
H.R. 5003 proposes drastic changes to a successful
provision in the 2010 reauthorization that provides access to
free, nutritious meals to millions of students from low-income
families. In the 2015-2016 school year, the Community
Eligibility Provision (CEP) allowed more than 18,000 schools
across the country to serve free, universal, healthy school
meals to 8.5 million children without the stigma or burden of
paperwork.\9\ Now in just its third year of nationwide
availability, CEP has proven to be a powerful tool that allows
school districts to provide easier access to nutritious meals
for children in high-poverty schools and high-poverty areas. It
simplifies the meal program eligibility for schools and
administrators by allowing schools to offer breakfast and lunch
at no charge to all students while eliminating applications and
tracking eligibility in the lunch line. Additionally, CEP
simplifies the process for students and families by alleviating
the burden of filling out a school meals application that is
often redundant for families who are receiving benefits from a
similar income-based program.
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\9\Food Research Action Council & Center on Budget and Policy
Priorities. Community Eligibility Adoption Rises for the 2015-2016
School Year, Increasing Access to School Meals, (May 13, 2016)
available at: http://frac.org/pdf/take-up-of-cep-report.pdf.
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Under federal law, certain students are automatically
enrolled for free meals without an application because they are
at special risk for food insecurity and other consequences of
living in poverty, such as children living in households
receiving SNAP benefits or children who are homeless. These
especially vulnerable students are referred to as ``identified
students'' because they have been identified by other programs
as especially vulnerable. Schools in which 40 percent or more
of the students are identified students can adopt community
eligibility. But identified students are only a subset of those
who would qualify for free or reduced-price meals if the school
collected school meal applications. Schools in which 40 to 60
percent of students are identified as automatically eligible
for free meals typically have 64 to 96 percent of their
students approved for free or reduced-price meals.\10\ This
difference occurs because some children, for example, do not
participate in one of the programs that confer automatic
eligibility. H.R. 5003 would increase this threshold to 60
percent, potentially affecting the eligibility of thousands of
schools and taking away free, healthy meals from millions of
children.\11\
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\10\Center on Budget and Policy Priorities. House Bill Restricting
Free School Meals Option Could Increase Food Insecurity in High-poverty
Neighborhoods, (May 20, 2016) available at: http://www.cbpp.org/
research/food-assistance/house-bill-restricting-free-school-meals-
option-could-increase-food.
\11\Id.
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Committee Republicans argued that the CEP threshold change
in the bill is needed to better target resources to those
students most in need. However, this belief is misguided.
Committee Democrats recognize that the program, as designed,
already targets vulnerable students and schools most in need.
CEP has become a vital part of the nutrition safety net in the
fight to reduce food insecurity and improve access to healthy
meals. The change proposed in the legislation would severely
damage the progress made in reducing stigma, paperwork burden,
and other obstacles to school meal access. Children's
HealthWatch asserts that raising the threshold for the
Community Eligibility Provision would likely increase--rather
than decrease--the risk of food insecurity among these students
and their families.\12\ The nonpartisan Congressional Budget
Office confirmed that the CEP change in the bill would threaten
participation in the school meals program for many students
currently receiving free school meals.\13\
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\12\Children's HealthWatch. Treatment Plan for Hunger, (September
2016) available at: http://childrenshealthwatch.org/wp-content/uploads/
FINA-Treatment-Plan-for-Hunger-for-web.pdf.
\13\Congressional Budget Office. Cost Estimate H.R. 5003: Improving
Child Nutrition and Education Act of 2016, (June 30, 2016) available
at: https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/
costestimate/hr5003.pdf.
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Committee Democrats offered a series of amendments that
sought to preserve access to healthy meals for low-income
families and school districts through CEP. Subcommittee Ranking
Member Fudge offered an amendment to strike the CEP threshold
change and offered an amendment to prohibit the implementation
of the legislation should it make it more difficult for schools
to provide free meals. Ranking Member Scott offered an
amendment that called for a study on the efficacy of providing
universal free meals to all students nationwide.
Unfortunately, each of these amendments offered to protect
current access to school meals programs through CEP was
defeated.
Outreach restrictions and increased verification
Committee Democrats strongly believe that the integrity of
federal child nutrition programs is critically important and
must be protected. The Republican proposal to increase the
verification requirements in school meal programs as a response
to reports of error rates in the program however is misguided.
In addition to restricting community eligibility, the bill
dramatically increases verification requirements for school
meal applications in ways that could cause eligible students to
lose access to the free or reduced-price school meals to which
they are eligible. Under the proposal, many school districts
would be required to verify significantly more applications,
creating burdens for schools and families. The most troublesome
element of the increased verification requirement is that,
coupled with the loss of community eligibility, the two
provisions would work in concert to impact a disproportionate
number of the most vulnerable families, such as those who are
homeless, migrant, immigrant or have limited English
proficiency. Children in these families are the most likely to
fall through the cracks and lose access to these school meals
even though they are eligible. To mitigate the harm caused by
this proposal. Mr. Polis offered an amendment to protect free
and reduced-price eligibility in households where the language
accessibility requirement was not met. That amendment was not
adopted. Further, Mr. Takano offered an amendment to maintain
the current verification procedures, which was also defeated.
H.R. 5003 also interferes with school districts' ability to
conduct effective outreach to enroll families eligible for free
and reduced-price meals. The bill prohibits school districts
from including the eligibility requirements for school meals on
the school meal applications and places an arbitrary cap on the
number of times that schools can ask families to fill out
applications. This proposal would reduce the number of eligible
children applying for school meals and particularly impact the
many working poor families who become eligible during the
school year due to fluctuations in income. Ms. Davis offered an
amendment to remove the senseless cap on outreach that school
districts can conduct. That amendment was not adopted.
H.R. 5003 ERODES THE FEDERAL ROLE IN ENSURING ACCESS TO HEALTHY,
NUTRITIOUS MEALS
H.R. 5003 takes direct aim at the federal role in child
nutrition programs by weakening federal nutrition standards,
limiting Secretarial authority to administer the programs, and
introducing a three-state pilot block grant program that is
devoid of any meaningful federal oversight.
Section 115 of the legislation would prohibit the Secretary
of the Department of Agriculture from issuing or establishing,
``any regulations or requirements not explicitly authorized''
by the Act. This policy would not only challenge the
authorities granted to the Executive Branch under Article II of
the Constitution but also prevent a necessary response by the
federal government, even in an emergency situation. For
example, should food contamination or a public health crisis in
a school or schools occur, the Secretary could not issue
guidance to assist states and school districts in their
response to such crisis. Ranking Member Scott offered an
amendment to strike this limitation on the Secretary's
authority. This amendment was supported unanimously by
Committee Democrats, but was still defeated.
The three-state block grant proposal in the bill represents
an even more egregious challenge to the federal role in school
meals programs. This proposal coincides with the broader
Republican effort to give states blank checks of federal
taxpayer money under the guise of flexibility. The block grant
would allow three states nearly unfettered access to federal
money for the purpose of implementing child nutrition programs.
Under this pilot program, states would only be required to
provide an ``assurance'' that they provide access to at least
one affordable and healthy meal paid for out of one general
fund provided to the state, rather than reimbursed on a per
meal basis. The terms ``healthy'' and ``affordable'' are not
defined, so there are virtually no guarantees that children
would actually receive affordable and healthy meals.
Block grants are capped funding streams that cannot respond
to either increases or decreases in demand. Therefore, during a
recession the block grant would be unable to absorb the
increased demand and serve more needy children. The current
structure ensures that every eligible child gets a meal
reimbursed in full or in part by the USDA. Further, block
grants tend to dramatically lose value over time because they
are not adjusted for inflation. As a result, the vast majority
of major block grant programs have actually shrunk in
inflation-adjusted terms since their inception. For example,
inflation-adjusted funding for the Temporary Assistance for
Needy Families (TANF) program has decreased 32 percent and the
Maternal and Child Health Block Grant has decreased 29
percent.\14\ Therefore, it is deeply concerning that capping
the school meals funding could result in fewer children having
access to school meals through the loss of funding alone.
Coupled with the fact that the pilot program would only require
a loose assurance that children are actually fed healthy meals,
the block grant pilot erodes the very intention of school-based
feeding programs.
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\14\Center on Budget and Policy Priorities. Funding for Housing,
Health, and Social Services Block Grants Has Fallen Markedly Over Time,
(March 24, 2016) available at: http://www.cbpp.org/research/federal-
budget/funding-for-housing-health-and-social-services-block-grants-has-
fallen.
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The inclusion of the three state block grant pilot in the
bill serves as the first step in moving to block grant school
meal programs across all fifty states, as evidenced by a
Republican amendment offered to do just that, earning the
support of nearly half of Committee Republicans. The intent of
the block grant pilot is clear--to limit the number of children
served by federal nutrition programs and limit the federal
investment in these programs. Committee Democrats are steadfast
in unanimous rejection of any efforts to turn child nutrition
programs into a block grant. The amendment offered by Ranking
Member Scott to strike the block grant pilot was rejected on a
party line vote.
H.R. 5003 FAILS TO ADEQUATELY IMPROVE FOODS SERVED OUTSIDE OF SCHOOL
MEALS
The summer months bring with them reduced access to school
meal programs provided during the school year for millions of
children; they are periods of increased risk for food
insecurity and consumption of excessive unhealthy foods.
Millions of children lose access to school breakfast, lunch,
and afterschool meals that are available during the regular
school year. The Summer Food Service Program (SFSP) fills this
gap by providing free and nutritious meals and snacks to low-
income children when school is not in session.
H.R. 5003 made various changes to SFSP. The legislation
included certain provisions to streamline provider eligibility,
a concept widely supported by both Democrats and Republicans.
However, the legislation failed to make investments necessary
for successful implementation of this provision. In order to
build on the underlying provisions in H.R. 5003, Democrats
offered amendments to expand the range of the SFSP allowing
more low-income children to be served. Specifically, Ms. Adams
offered an amendment to modernize the area eligibility test to
allow community-based organizations to participate if 40
percent of the children in the area are eligible for free or
reduced-price meals. Currently, the 50 percent area
qualification is inconsistent with other federally funded
programs that support services for low-income children and
require 40 percent, such as the 21st Century Community Learning
Center program and Title I-A of the ESEA, which require at
least 40 percent. The amendment offered by Ms. Adams to use a
40 percent standard was not adopted.
The Summer Electronic Benefit Transfer for Children (Summer
EBT) program is also an important tool in combatting summer
hunger and enjoys widespread bipartisan support. The Summer EBT
program began as a demonstration program and studies have shown
success in reducing the most severe forms of food insecurity
and enabling participating families to procure and eat more
fruits, vegetables, dairy, and whole grains.\15\ In fact, a
Summer EBT benefit of $60 per month per child has been shown to
reduce the most severe category of food insecurity among
children during the summer by one-third.\16\ In April, the
program received nearly $27 million in grants to expand these
benefits to new rural areas, Tribal Nations, and areas of
extreme need, including Flint, Michigan. While H.R. 5003
continues the authorization of this important program, the
annual investment in the Summer EBT program is reduced by over
fifty percent from the FY 2016 appropriated amount, therefore
limiting the reach and the success of the Summer EBT program.
An amendment, introduced by Ms. Davis and co-sponsored by Ms.
Bonamici, sought to go beyond maintenance of current funding
levels and increase funding to expand the program nationwide.
Despite the successes of the program, the amendment was voted
down along partisan lines.
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\15\USDA. Summer Electronic Benefit Transfer for Children (SEBTC)
Demonstration: Summary Report, (May 2016) available at: http://
www.fns.usda.gov/sites/default/files/ops/sebtcfinalreport.pdf.
\16\Id.
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Outside of SFSP, the Child and Adult Care Food Program
(CACFP) also provides healthy foods outside the school day by
providing nutritious meals and snacks to children in day care
or afterschool. But many sites participating in either the SFSP
or the CACFP program also provide full-day educational and
enrichment activities. These programs provide a dual benefit,
providing both healthy foods and educational support to
children when not in school. For example, summer education
programs are valuable in addressing the academic slide that can
occur over the summer. As effective as these programs can be,
most are unable to provide a third meal to all-day
participants, despite the need for this additional meal among
many in the communities these sites serve.
Recognizing the essential role of SFSP and CACFP sites that
provide all-day enrichment activities to participants,
Committee Democrats sought to expand these providers' ability
to nourish those participants throughout the day. Amendments
proposed by Ranking Member Scott and Ms. Bonamici would allow
the provision of a third meal in the Summer Food Service
Program and the Child and Adult Care Food Program,
respectively. These amendments, despite their merits, unanimous
Democratic support, and even bipartisan support for similar
legislation introduced in this Congress, failed to gain more
than a handful of Committee Republican votes.
H.R. 5003 IGNORES THE PUBLIC HEALTH NEEDS OF THE NATION'S CHILDREN
No amount of lead is a safe amount of lead. Yet children in
Flint, Michigan were exposed to astronomical levels of lead in
their drinking water. The seepage of lead into the drinking
water in Flint generated a public health crisis and prompted
President Obama to declare a federal state of emergency. The
research is clear on the impact of exposure to lead on young
children. The adverse effects of lead exposure range from
decreased academic attainment, damage to the brain and nervous
system, slowed growth and development, learning and behavior
problems, such as juvenile delinquency and criminal behavior,
and hearing and speech problems.\17\ These effects can result
in a significant decline in earnings for those impacted, loss
of tax revenues, additional burdens to the criminal justice
system and special education system, and increased stress on
the health care system.
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\17\Centers for Disease Control. Childhood Lead Poisoning Data,
Statistics, and Surveillance, (September 1, 2016) available at: http://
www.cdc.gov/nceh/lead/data/index.htm.
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The tragedy in Flint resulted from irresponsible local and
state decisions made in an effort to cut costs, sacrificing the
health of a community in the process. The poisoning of Flint
residents, especially all of its 29,000 children, should serve
as catalyst for legislators to take action to both respond to
the families and children affected in Flint, and to also take
steps to prevent other children from lead exposure.
Unfortunately, Flint is not the only community suffering from
lead contamination in its water; other communities across the
country are also facing extremely elevated lead levels in
drinking water.
Federal nutrition programs are a powerful tool in
responding to the crisis in Flint, since the programs provide
the healthy foods with the vitamins and nutrients necessary to
help mitigate the effects of lead poisoning, such as vitamin C,
iron, and calcium.\18\ In its federal response to Flint, the
USDA provided: summertime nutrition assistance through the
Summer EBT program to the more than 39,000 children who live or
attend schools in the area affected by lead-contaminated water,
an additional $62,700 for the Fresh Fruit and Vegetable Program
to help schools purchase fruit and vegetable snacks, and
leveraged the WIC program to provide blood lead testing at
clinics for WIC participants and allowed WIC benefits to
include ready-to-feed infant formula.\19\ The approximately
7,600 Flint residents participating in the WIC program
(including around 1,500 women, 1,800 infants, and 4,300
children) were also offered supportive services as well as
nutrition education on mitigating lead absorption through
dietary changes.\20\
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\18\Academy of Nutrition and Dietetics. How to Fight Lead Exposure
with Nutrition, (February 12, 2016) available at: http://
www.eatright.org/resource/health/wellness/preventing-illness/how-to-
fight-lead-exposure-with-nutrition.
\19\USDA. Fact Sheet: USDA Assistance to Residents Affected by the
Water Emergency in Flint, Michigan, (August 16, 2016) available at:
http://www.usda.gov/wps/portal/usda/
usdahome?contentidonly=true&contentid=2016/02/0038.xml.
\20\Id.
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Committee Democrats recognize the importance of federal
nutrition programs in responding to a crisis, such as the one
residents of Flint experienced, as well as responding to the
everyday needs of our nation's mothers and children. Therefore,
in the wake of Flint, it is even more important that Congress
does not cut corners in federal nutrition programs. These
programs are relied upon every day, but even more so when a
situation like the water contamination in Flint emerges.
To prevent similar disasters, Democrats believe that any
reauthorization must address the immediate risk to mental and
physical health from contaminated water by ensuring that all
schools and CACFP providers have potable drinking water, as
required by current law. To that end, Democrats offered two
amendments related to water testing and safety. An amendment
offered by Ranking Member Scott provided funding for nationwide
water testing in schools and child care settings. Committee
Democrats recognize that addressing the prevalence of lead in
drinking water will require an upfront investment, but firmly
believe that this investment is both cost-effective and a moral
imperative. Research has shown that for every dollar spent on
controlling lead hazards, $17 to $221 would be returned on that
investment through health benefits, increased IQ, higher
lifetime earnings, tax revenue, reduced spending on special
education, and reduced criminal activity.\21\ Mr. DeSaulnier
also offered a water safety amendment requiring the USDA to set
up a process to ensure state compliance with potable water
requirements. This no-cost, commonsense amendment would have
been the first step in ensuring kids across the country are not
exposed to unsafe drinking water. Unfortunately, these
amendments failed to garner the support of Committee
Republicans and neither of these amendments was adopted by the
Committee.
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\21\E. Gould. Childhood Lead Poisoning: Conservative Estimates of
the Social and Economic Benefits of Lead Hazard Control, (March 31,
2009) available at: https://www.ncbi.nlm.nih.gov/pmc/articles/
PMC2717145/.
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STAKEHOLDERS AND ADVOCACY GROUPS OPPOSE H.R. 5003
A broad coalition of hundreds of nutrition, medical,
hunger, child welfare, education, and religious organizations
joined in opposition to H.R. 5003. The organizations opposed to
H.R. 5003 include, but are not limited to: 9to5, National
Association of Working Women, Academy of Nutrition and
Dietetics, Action for Healthy Kids, Afterschool Alliance,
Alliance for Strong Families and Communities, American Cancer
Society Cancer Action Network, American College of Preventive
Medicine, American Diabetes Association; American Public Health
Association, Bread for the World, Center for Law and Social
Policy (CLASP), Center for Science in the Public Interest,
Child Welfare League of America, Children's Defense Fund,
Children's HealthWatch, Children's Law Center, Coalition on
Human Needs, Consumer Federation of America, Evangelical
Lutheran Church in America, First Focus Campaign for Children,
Food Policy Action, Hunger Free America, Islamic Relief USA,
MAZON: A Jewish Response to Hunger, Migrant Legal Action
Program, MomsRising, National Advocacy Center of the Sisters of
the Good, National Association of School Nurses, National
Association of Secondary School Principals, National
Association of Social Workers, National Black Nurses
Association, National Council of La Raza (NCLR), National Farm
to School Network, National Farmers, National Immigration Law
Center, National Urban League, National WIC Association,
National Women's Law Center, NETWORK, A National Catholic
Social Justice Lobby, Presbyterian Church (U.S.A.), RESULTS,
School Social Work Association of America, Service Employees
International Union (SEIU), The Jewish Federations of North
America, The National CACFP Forum, The Pew Charitable Trusts,
The Salvation Army, Trust for America's Health, Union of
Concerned Scientists, United Fresh Produce Association,
Witnesses to Hunger Philadelphia, National Education
Association (NEA), National PTA, American Federation of State,
County, and Municipal Employees (AFSCME), American Academy of
Pediatrics (AAP), American Diabetes Association, Common Sense
Kids Action, Feeding America, The National Association for
Family Child Care (NAFCC), and Food Research & Action Center
(FRAC).
ROLL CALL VOTE TO REPORT H.R. 5003
H.R. 5003 was reported by a vote of 20 yeas and 14 nays. No
Democratic Committee Members voted in favor of the bill.
CONCLUSION
Regrettably, H.R. 5003 represents a missed opportunity to
make continued improvements in the health and wellbeing of our
country. H.R. 5003 threatens the long-established federal role
in school meals programs, weakens nutrition standards, and
makes it more difficult for schools to provide students with
access to free, healthy meals. These policies put at risk the
progress made by the last reauthorization in improving both the
nutritional quality of, and access to meals served, in federal
nutrition programs for millions of students and their families.
Rather than proposing policies that would introduce
unhealthy foods in schools, burdensome paperwork requirements,
and troubling limits on federal oversight, the Education and
the Workforce Committee should bolster and expand programs and
policies supported by stakeholders and advocacy groups that
provide needed support for the populations they serve. We, as a
nation, have the resources to ensure all children, especially
those in need, are able to access regular and healthy meals.
But we, as a Committee, must find the will to come together to
achieve that goal.
Despite opposition to the majority of amendments offered by
Democrats during mark-up, Committee Democrats will continue to
push for a comprehensive reauthorization that makes it easier
for schools to provide meals without unnecessary burden or
stigma, strengthens the nutrition safety net both inside and
outside of schools, and puts first the future health of our
country.
For these reasons, among others, Committee Democrats stand
in strong opposition to H.R. 5003, and respectfully ask the
full House of Representatives to oppose this bill.
Robert C. ``Bobby'' Scott,
Ranking Member.
Susan A. Davis.
Joe Courtney.
Jared Polis.
Frederica S. Wilson.
Mark Pocan.
Hakeem S. Jeffries.
Alma S. Adams.
Ruben Hinojosa.
Raul M. Grijalva.
Marcia L. Fudge.
Gregorio Kilili Camacho Sablan.
Suzanne Bonamici.
Mark Takano.
Katherine M. Clark.
Mark DeSaulnier.
[all]