Text: S.3307 — 111th Congress (2009-2010)All Information (Except Text)

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Public Law No: 111-296 (12/13/2010)

 
[111th Congress Public Law 296]
[From the U.S. Government Printing Office]



[[Page 124 STAT. 3183]]

Public Law 111-296
111th Congress

                                 An Act


 
         To reauthorize child nutrition programs, and for other 
             purposes. <<NOTE: Dec. 13, 2010 -  [S. 3307]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Healthy, Hunger-
Free Kids Act of 2010.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 42 USC 1751 note.>>  Short Title.--This Act may be cited 
as the ``Healthy, Hunger-Free Kids Act of 2010''.

    (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--A PATH TO END CHILDHOOD HUNGER

                Subtitle A--National School Lunch Program

Sec. 101. Improving direct certification.
Sec. 102. Categorical eligibility of foster children.
Sec. 103. Direct certification for children receiving Medicaid benefits.
Sec. 104. Eliminating individual applications through community 
           eligibility.
Sec. 105. Grants for expansion of school breakfast programs.

                 Subtitle B--Summer Food Service Program

Sec. 111. Alignment of eligibility rules for public and private 
           sponsors.
Sec. 112. Outreach to eligible families.
Sec. 113. Summer food service support grants.

              Subtitle C--Child and Adult Care Food Program

Sec. 121. Simplifying area eligibility determinations in the child and 
           adult care food program.
Sec. 122. Expansion of afterschool meals for at-risk children.

 Subtitle D--Special Supplemental Nutrition Program for Women, Infants, 
                              and Children

Sec. 131. Certification periods.

                        Subtitle E--Miscellaneous

Sec. 141. Childhood hunger research.
Sec. 142. State childhood hunger challenge grants.
Sec. 143. Review of local policies on meal charges and provision of 
           alternate meals.

TITLE II--REDUCING CHILDHOOD OBESITY AND IMPROVING THE DIETS OF CHILDREN

                Subtitle A--National School Lunch Program

Sec. 201. Performance-based reimbursement rate increases for new meal 
           patterns.
Sec. 202. Nutrition requirements for fluid milk.
Sec. 203. Water.
Sec. 204. Local school wellness policy implementation.
Sec. 205. Equity in school lunch pricing.
Sec. 206. Revenue from nonprogram foods sold in schools.

[[Page 124 STAT. 3184]]

Sec. 207. Reporting and notification of school performance.
Sec. 208. Nutrition standards for all foods sold in school.
Sec. 209. Information for the public on the school nutrition 
           environment.
Sec. 210. Organic food pilot program.

              Subtitle B--Child and Adult Care Food Program

Sec. 221. Nutrition and wellness goals for meals served through the 
           child and adult care food program.
Sec. 222. Interagency coordination to promote health and wellness in 
           child care licensing.
Sec. 223. Study on nutrition and wellness quality of child care 
           settings.

 Subtitle C--Special Supplemental Nutrition Program for Women, Infants, 
                              and Children

Sec. 231. Support for breastfeeding in the WIC Program.
Sec. 232. Review of available supplemental foods.

                        Subtitle D--Miscellaneous

Sec. 241. Nutrition education and obesity prevention grant program.
Sec. 242. Procurement and processing of food service products and 
           commodities.
Sec. 243. Access to Local Foods: Farm to School Program.
Sec. 244. Research on strategies to promote the selection and 
           consumption of healthy foods.

  TITLE III--IMPROVING THE MANAGEMENT AND INTEGRITY OF CHILD NUTRITION 
                                PROGRAMS

                Subtitle A--National School Lunch Program

Sec. 301. Privacy protection.
Sec. 302. Applicability of food safety program on entire school campus.
Sec. 303. Fines for violating program requirements.
Sec. 304. Independent review of applications.
Sec. 305. Program evaluation.
Sec. 306. Professional standards for school food service.
Sec. 307. Indirect costs.
Sec. 308. Ensuring safety of school meals.

                 Subtitle B--Summer Food Service Program

Sec. 321. Summer food service program permanent operating agreements.
Sec. 322. Summer food service program disqualification.

              Subtitle C--Child and Adult Care Food Program

Sec. 331. Renewal of application materials and permanent operating 
           agreements.
Sec. 332. State liability for payments to aggrieved child care 
           institutions.
Sec. 333. Transmission of income information by sponsored family or 
           group day care homes.
Sec. 334. Simplifying and enhancing administrative payments to 
           sponsoring organizations.
Sec. 335. Child and adult care food program audit funding.
Sec. 336. Reducing paperwork and improving program administration.
Sec. 337. Study relating to the child and adult care food program.

 Subtitle D--Special Supplemental Nutrition Program for Women, Infants, 
                              and Children

Sec. 351. Sharing of materials with other programs.
Sec. 352. WIC program management.

                        Subtitle E--Miscellaneous

Sec. 361. Full use of Federal funds.
Sec. 362. Disqualified schools, institutions, and individuals.

                         TITLE IV--MISCELLANEOUS

           Subtitle A--Reauthorization of Expiring Provisions

          PART I--Richard B. Russell National School Lunch Act

Sec. 401. Commodity support.
Sec. 402. Food safety audits and reports by States.
Sec. 403. Procurement training.

[[Page 124 STAT. 3185]]

Sec. 404. Authorization of the summer food service program for children.
Sec. 405. Year-round services for eligible entities.
Sec. 406. Training, technical assistance, and food service management 
           institute.
Sec. 407. Federal administrative support.
Sec. 408. Compliance and accountability.
Sec. 409. Information clearinghouse.

                  PART II--Child Nutrition Act of 1966

Sec. 421. Technology infrastructure improvement.
Sec. 422. State administrative expenses.
Sec. 423. Special supplemental nutrition program for women, infants, and 
           children.
Sec. 424. Farmers market nutrition program.

                    Subtitle B--Technical Amendments

Sec. 441. Technical amendments.
Sec. 442. Use of unspent future funds from the American Recovery and 
           Reinvestment Act of 2009.
Sec. 443. Equipment assistance technical correction.
Sec. 444. Budgetary effects.
Sec. 445. Effective date.

SEC. 2. <<NOTE: 7 USC 3179 note.>>  DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of 
Agriculture.

                 TITLE I--A PATH TO END CHILDHOOD HUNGER

                Subtitle A--National School Lunch Program

SEC. 101. IMPROVING DIRECT CERTIFICATION.

    (a) Performance Awards.--Section 9(b)(4) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758(b)(4)) is amended--
            (1) in the paragraph heading, by striking ``food stamp'' and 
        inserting ``supplemental nutrition assistance program''; and
            (2) by adding at the end the following:
                    ``(E) Performance awards.--
                          ``(i) <<NOTE: Effective dates.>>  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)--

[[Page 124 STAT. 3186]]

                                    ``(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) <<NOTE: Effective dates.>>  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.''.

    (b) Continuous Improvement Plans.--Section 9(b)(4) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(b)(4)) (as amended by 
subsection (a)) is amended by adding at the end the following:
                    ``(F) 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, 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).
                          ``(iii) Failure to meet performance 
                      standard.--

[[Page 124 STAT. 3187]]

                                    ``(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; and
                                            ``(cc) goals for the State 
                                        to improve direct certification 
                                        results.''.

    (c) Without Further Application.--Section 9(b)(4) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(b)(4)) (as amended by 
subsection (b)) is amended by adding at the end the following:
                    ``(G) Without further application.--
                          ``(i) <<NOTE: Definition.>>  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).''.
SEC. 102. CATEGORICAL ELIGIBILITY OF FOSTER CHILDREN.

    (a) Discretionary Certification.--Section 9(b)(5) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(b)(5)) is amended--
            (1) in subparagraph (C), by striking ``or'' at the end;
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(E)(i) a foster child 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 who a court has placed with a 
                caretaker household.''.

    (b) Categorical Eligibility.--Section 9(b)(12)(A) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(b)(12)(A)) is 
amended--
            (1) in clause (iv), by adding ``)'' before the semicolon at 
        the end;
            (2) in clause (v), by striking ``or'' at the end;
            (3) in clause (vi), by striking the period at the end and 
        inserting ``; or''; and
            (4) by adding at the end the following:
                          ``(vii)(I) a foster child 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

[[Page 124 STAT. 3188]]

                          ``(II) a foster child who a court has placed 
                      with a caretaker household.''.

    (c) Documentation.--Section 9(d)(2) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758(d)(2)) is amended--
            (1) in subparagraph (D), by striking ``or'' at the end;
            (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(F)(i) documentation has been provided to the 
                appropriate local educational agency showing the status 
                of the child as a foster child 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 who a court has placed 
                with a caretaker household.''.
SEC. 103. DIRECT CERTIFICATION FOR CHILDREN RECEIVING MEDICAID 
                        BENEFITS.

    (a) In General.--Section 9(b) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(b)) is amended by adding at the end the 
following:
            ``(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

[[Page 124 STAT. 3189]]

                      under section 9(b)(1)(A) of this Act 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) <<NOTE: Deadline.>>  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.

[[Page 124 STAT. 3190]]

                          ``(ii) <<NOTE: Procedures.>>  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)).
                    ``(D) <<NOTE: Effective date.>>  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)).
                    ``(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.--

[[Page 124 STAT. 3191]]

                          ``(i) In general.--Not later than October 1, 
                      2014, the Secretary shall submit to the Committee 
                      on Education and Labor 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) <<NOTE: Effective date.>>  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.''.

    (b) Documentation.--Section 9(d)(2) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758(d)(2)) (as amended by section 
102(c)) is amended--
            (1) in subparagraph (E), by striking ``or'' at the end;
            (2) in subparagraph (F)(ii), by striking the period at the 
        end and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(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)).''.

    (c) Agreement for Direct Certification and Cooperation by State 
Medicaid Agencies.--
            (1) In general.--Section 1902(a)(7) of the Social Security 
        Act (42 U.S.C. 1396a(a)(7)) is amended to read as follows:
            ``(7) provide--
                    ``(A) safeguards which restrict the use or 
                disclosure of information concerning applicants and 
                recipients to purposes directly connected with--
                          ``(i) the administration of the plan; and
                          ``(ii) the exchange of information necessary 
                      to certify or verify the certification of 
                      eligibility of children for free or reduced price 
                      breakfasts under the Child Nutrition Act of 1966 
                      and free or reduced price lunches under the 
                      Richard B. Russell National School Lunch Act, in 
                      accordance with section 9(b) of that Act, using 
                      data standards and formats established by the 
                      State agency; and
                    ``(B) that, notwithstanding the Express Lane option 
                under subsection (e)(13), the State may enter into an 
                agreement with the State agency administering the school 
                lunch program established under the Richard B. Russell 
                National School Lunch Act under which the State shall 
                establish procedures to ensure that--
                          ``(i) a child receiving medical assistance 
                      under the State plan under this title whose family 
                      income does not exceed 133 percent of the poverty 
                      line (as defined

[[Page 124 STAT. 3192]]

                      in section 673(2) of the Community Services Block 
                      Grant Act, including any revision required by such 
                      section), as determined without regard to any 
                      expense, block, or other income disregard, 
                      applicable to a family of the size involved, may 
                      be certified as eligible for free lunches under 
                      the Richard B. Russell National School Lunch Act 
                      and free breakfasts under the Child Nutrition Act 
                      of 1966 without further application; and
                          ``(ii) the State agencies responsible for 
                      administering the State plan under this title, and 
                      for carrying out the school lunch program 
                      established under the Richard B. Russell National 
                      School Lunch Act (42 U.S.C. 1751 et seq.) or the 
                      school breakfast program established by section 4 
                      of the Child Nutrition Act of 1966 (42 U.S.C. 
                      1773), cooperate in carrying out paragraphs (3)(F) 
                      and (15) of section 9(b) of that Act;''.
            (2) <<NOTE: 42 USC 1396a note.>>  Effective date.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by this subsection shall take 
                effect on the date of enactment of this Act.
                    (B) Extension of effective date for state law 
                amendment.--In the case of a State plan under title XIX 
                of the Social Security Act (42 U.S.C. 1396 et seq.) 
                which the Secretary of Health and Human Services 
                determines requires State legislation in order for the 
                plan to meet the additional requirements imposed by the 
                amendments made by this section, the State plan shall 
                not be regarded as failing to comply with the 
                requirements of the amendments made by this section 
                solely on the basis of its failure to meet such 
                additional requirements before the first day of the 
                first calendar quarter beginning after the close of the 
                first regular session of the State legislature that 
                begins after the date of the enactment of this Act. For 
                purposes of the previous sentence, in the case of a 
                State that has a 2-year legislative session, each year 
                of the session is considered to be a separate regular 
                session of the State legislature.

    (d) Conforming Amendments.--Section 444(b)(1) of the General 
Education Provisions Act (20 U.S.C. 1232g(b)(1)) is amended--
            (1) in subparagraph (I), by striking ``and'' at the end;
            (2) in subparagraph (J)(ii), by striking the period at the 
        end and inserting ``; and'';
            (3) by adding at the end the following:
            ``(K) <<NOTE: Confidentiality.>>  the Secretary of 
        Agriculture, or authorized representative from the Food and 
        Nutrition Service or contractors acting on behalf of the Food 
        and Nutrition Service, for the purposes of conducting program 
        monitoring, evaluations, and performance measurements of State 
        and local educational and other agencies and institutions 
        receiving funding or providing benefits of 1 or more programs 
        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.) for which the results will be reported 
        in an aggregate form that does not identify any individual, on 
        the conditions that--
                    ``(i) any data collected under this subparagraph 
                shall be protected in a manner that will not permit the 
                personal

[[Page 124 STAT. 3193]]

                identification of students and their parents by other 
                than the authorized representatives of the Secretary; 
                and
                    ``(ii) any personally identifiable data shall be 
                destroyed when the data are no longer needed for program 
                monitoring, evaluations, and performance 
                measurements.''.
SEC. 104. ELIMINATING INDIVIDUAL APPLICATIONS THROUGH COMMUNITY 
                        ELIGIBILITY.

    (a) Universal Meal Service in High Poverty Areas.--
            (1) Eligibility.--Section 11(a)(1) of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1759a(a)(1)) is amended by 
        adding at the end the following:
                    ``(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 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).

[[Page 124 STAT. 3194]]

                                    ``(II) Election to stop receiving 
                                payments.--
                                A <<NOTE: Notification. Deadline.>>  
                                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.--

[[Page 124 STAT. 3195]]

                                    ``(I) <<NOTE: Deadline.>>  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.
                          ``(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.

[[Page 124 STAT. 3196]]

                                    ``(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) <<NOTE: Deadline.>>  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

[[Page 124 STAT. 3197]]

                                            ``(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 <<NOTE: Deadline. Publication. Lists.
                                >>  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) <<NOTE: Deadline. Publication. Lis
                                ts.>>  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) <<NOTE: Deadline.>>  
                                Guidance.--Not later than 90 days after 
                                the date of enactment of this 
                                subparagraph, the Secretary shall issue 
                                guidance to implement this subparagraph.
                                    ``(II) <<NOTE: Deadline.>>  
                                Regulations.--Not later than December 
                                31, 2013, 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) <<NOTE: Deadline. Web 
                                site.>>  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, 
                                the Secretary shall publish on the 
                                website of the Secretary a table that 
                                indicates--

[[Page 124 STAT. 3198]]

                                            ``(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) <<NOTE: Publication.>>  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;

[[Page 124 STAT. 3199]]

                                            ``(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) <<NOTE: Effective date.>>  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) Conforming amendments.--Section 11(a)(1)(B) of the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 
        1759a(a)(1)(B)) is amended by striking ``or (E)'' and inserting 
        ``(E), or (F)''.

    (b) Universal Meal Service Through Census Data.--Section 11 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1759a) is 
amended by adding at the end the following:
    ``(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

[[Page 124 STAT. 3200]]

                                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

[[Page 124 STAT. 3201]]

                                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.''.
SEC. 105. GRANTS FOR EXPANSION OF SCHOOL BREAKFAST PROGRAMS.

    The Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) is amended 
by adding at the end the following:
``SEC. 23. <<NOTE: 42 USC 1793.>>  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 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.--
            ``(1) Application.--To be eligible to receive a grant under 
        this section, a State educational 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 concerning the availability of 
                funds under this section.
            ``(3) Allocation.--The amount of grants provided by the 
        Secretary to State educational 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 receiving a 
        grant under this section shall use funds made available

[[Page 124 STAT. 3202]]

        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 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 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 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 determines appropriate.
                    ``(B) Maximum amount.--The amount of a subgrant 
                provided by a State educational 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 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 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 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

[[Page 124 STAT. 3203]]

        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) <<NOTE: Deadline.>>  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.

    ``(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.''.

                 Subtitle B--Summer Food Service Program

SEC. 111. ALIGNMENT OF ELIGIBILITY RULES FOR PUBLIC AND PRIVATE 
                        SPONSORS.

    Section 13(a) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1761(a)) is amended by striking paragraph (7) and inserting 
the following:
            ``(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.''.

[[Page 124 STAT. 3204]]

SEC. 112. OUTREACH TO ELIGIBLE FAMILIES.

    Section 13(a) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1761(a)) is amended by adding at the end the following:
            ``(11) 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.''.
SEC. 113. SUMMER FOOD SERVICE SUPPORT GRANTS.

    Section 13(a) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1761(a)) (as amended by section 112) is amended by adding at 
the end the following:
            ``(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,

[[Page 124 STAT. 3205]]

                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.''.

              Subtitle C--Child and Adult Care Food Program

SEC. 121. SIMPLIFYING AREA ELIGIBILITY DETERMINATIONS IN THE CHILD 
                        AND ADULT CARE FOOD PROGRAM.

    Section 17(f)(3)(A)(ii)(I)(bb) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(f)(3)(A)(ii)(I)(bb)) is amended by 
striking ``elementary''.
SEC. 122. EXPANSION OF AFTERSCHOOL MEALS FOR AT-RISK CHILDREN.

    Section 17(r) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1766(r)) is amended by striking paragraph (5) and inserting 
the following:
            ``(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) <<NOTE: Deadline.>>  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.''.

[[Page 124 STAT. 3206]]

 Subtitle D--Special Supplemental Nutrition Program for Women, Infants, 
                              and Children

SEC. 131. CERTIFICATION PERIODS.

    Section 17(d)(3)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(d)(3)(A)) is amended by adding at the end the following:
                          ``(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.''.

                        Subtitle E--Miscellaneous

SEC. 141. CHILDHOOD HUNGER RESEARCH.

    The Richard B. Russell National School Lunch Act is amended by 
inserting after section 22 (42 U.S.C. 1769c) the following:
``SEC. 23. <<NOTE: 42 USC 1769d.>>  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

[[Page 124 STAT. 3207]]

                          ``(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) <<NOTE: Effective date.>>  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

[[Page 124 STAT. 3208]]

                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

[[Page 124 STAT. 3209]]

                      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 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) <<NOTE: Effective date.>>  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

[[Page 124 STAT. 3210]]

                                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. 142. STATE CHILDHOOD HUNGER CHALLENGE GRANTS.

    The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
seq.) is amended by inserting after section 23 (as added by section 141) 
the following:
``SEC. 24. <<NOTE: 42 USC 1769e.>>  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,

[[Page 124 STAT. 3211]]

        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

[[Page 124 STAT. 3212]]

                          ``(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

[[Page 124 STAT. 3213]]

        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. 143. <<NOTE: 42 USC 1758 note.>>  REVIEW OF LOCAL POLICIES ON 
                        MEAL CHARGES AND PROVISION OF ALTERNATE 
                        MEALS.

    (a) In General.--
            (1) Review.--The Secretary, in conjunction with States and 
        participating local educational agencies, shall examine the 
        current policies and practices of States and local educational 
        agencies regarding extending credit to children to pay the cost 
        to the children of reimbursable school lunches and breakfasts.
            (2) Scope.--The examination under paragraph (1) shall 
        include the policies and practices in effect as of the date of 
        enactment of this Act relating to providing to children who are 
        without funds a meal other than the reimbursable meals.
            (3) Feasibility.--In carrying out the examination under 
        paragraph (1), the Secretary shall--
                    (A) <<NOTE: Reports.>>  prepare a report on the 
                feasibility of establishing national standards for meal 
                charges and the provision of alternate meals; and
                    (B) <<NOTE: Recommenda- tions.>>  provide 
                recommendations for implementing those standards.

    (b) Followup Actions.--
            (1) In general.--Based on the findings and recommendations 
        under subsection (a), the Secretary may--

[[Page 124 STAT. 3214]]

                    (A) implement standards described in paragraph (3) 
                of that subsection through regulation;
                    (B) test recommendations through demonstration 
                projects; or
                    (C) study further the feasibility of 
                recommendations.
            (2) Factors for consideration.--In determining how best to 
        implement recommendations described in subsection (a)(3), the 
        Secretary shall consider such factors as--
                    (A) the impact of overt identification on children;
                    (B) the manner in which the affected households will 
                be provided with assistance in establishing eligibility 
                for free or reduced price school meals; and
                    (C) the potential financial impact on local 
                educational agencies.

TITLE II--REDUCING CHILDHOOD OBESITY AND IMPROVING THE DIETS OF CHILDREN

                Subtitle A--National School Lunch Program

SEC. 201. PERFORMANCE-BASED REIMBURSEMENT RATE INCREASES FOR NEW 
                        MEAL PATTERNS.

    Section 4(b) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1753(b)) is amended by adding at the end the following:
            ``(3) Additional reimbursement.--
                    ``(A) <<NOTE: Deadlines.>>  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

[[Page 124 STAT. 3215]]

                                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 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) <<NOTE: Effective date.>>  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 
                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) <<NOTE: Effective date.>>  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 
                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) are promulgated

[[Page 124 STAT. 3216]]

                                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.''.
SEC. 202. NUTRITION REQUIREMENTS FOR FLUID MILK.

    Section 9(a)(2)(A) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1758(a)(2)(A)) is amended by striking clause (i) and 
inserting the following:
                          ``(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);''.
SEC. 203. WATER.

    Section 9(a) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758(a)) is amended by adding at the end the following:
            ``(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.''.
SEC. 204. LOCAL SCHOOL WELLNESS POLICY IMPLEMENTATION.

    (a) In General.--The Richard B. Russell National School Lunch Act is 
amended by inserting after section 9 (42 U.S.C. 1758) the following:
``SEC. 9A. <<NOTE: 42 USC 1758b.>>  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) <<NOTE: Regulations.>>  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;

[[Page 124 STAT. 3217]]

            ``(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 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

[[Page 124 STAT. 3218]]

                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 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.''.

    (b) Repeal.--Section 204 of the Child Nutrition and WIC 
Reauthorization Act of 2004 (42 U.S.C. 1751 note; Public Law 108-265) is 
repealed.
SEC. 205. EQUITY IN SCHOOL LUNCH PRICING.

    Section 12 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760) is amended by adding at the end the following:
    ``(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) <<NOTE: Effective date.>>  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.

[[Page 124 STAT. 3219]]

                          ``(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) <<NOTE: Procedures.>>  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.''.

[[Page 124 STAT. 3220]]

SEC. 206. REVENUE FROM NONPROGRAM FOODS SOLD IN SCHOOLS.

    Section 12 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760) (as amended by section 205) is amended by adding at the end 
the following:
    ``(q) 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.''.
SEC. 207. REPORTING AND NOTIFICATION OF SCHOOL PERFORMANCE.

    Section 22 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769c) is amended--
            (1) by striking subsection (a) and inserting the following:

    ``(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) the nutritional requirements of section 9(f) 
                of this Act for school lunches; and
                    ``(B) 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)).''; and
            (2) in subsection (b)(1), by striking subparagraphs (A) and 
        (B) and inserting the following:
                    ``(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;

[[Page 124 STAT. 3221]]

                    ``(C) <<NOTE: Audits.>>  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 or other period prescribed by the 
                      Secretary;
                          ``(ii) select schools for review in each local 
                      educational agency using criteria established by 
                      the Secretary;
                          ``(iii) <<NOTE: Reports.>>  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) <<NOTE: Reports.>>  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 
                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.''.
SEC. 208. NUTRITION STANDARDS FOR ALL FOODS SOLD IN SCHOOL.

    Section 10 of the Child Nutrition Act of 1966 (42 U.S.C. 1779) is 
amended--
            (1) by striking the section heading and all that follows 
        through ``(a) The Secretary'' and inserting the following:
``SEC. 10. REGULATIONS.

    ``(a) In General.--The Secretary''; and
            (2) by striking subsection (b) and inserting the following:

    ``(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) <<NOTE: Deadline.>>  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;

[[Page 124 STAT. 3222]]

                                    ``(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.
                    ``(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) <<NOTE: Regulations.>>  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 of the 
                House of Representatives a quarterly report that 
                describes progress made toward promulgating final 
                regulations under this subsection.''.
SEC. 209. INFORMATION FOR THE PUBLIC ON THE SCHOOL NUTRITION 
                        ENVIRONMENT.

    Section 9 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758) is amended by adding at the end the following:
    ``(k) Information on the School Nutrition Environment.--
            ``(1) In general.--The Secretary shall--
                    ``(A) <<NOTE: Requirements.>>  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--

[[Page 124 STAT. 3223]]

                    ``(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) <<NOTE: Public information. Guidelines.>>  
                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.''.
SEC. 210. ORGANIC FOOD PILOT PROGRAM.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended by adding at the end the following:
    ``(j) 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;

[[Page 124 STAT. 3224]]

                                    ``(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.''.

              Subtitle B--Child and Adult Care Food Program

SEC. 221. NUTRITION AND WELLNESS GOALS FOR MEALS SERVED THROUGH 
                        THE CHILD AND ADULT CARE FOOD PROGRAM.

    Section 17 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1766) is amended--
            (1) in subsection (a), by striking ``(a) Grant Authority'' 
        and all that follows through the end of paragraph (1) and 
        inserting the following:

    ``(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) by striking subsection (g) and inserting the following:

    ``(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

[[Page 124 STAT. 3225]]

                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) <<NOTE: Deadline. Review. Requirements.>>  
                      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) <<NOTE: Deadline.>>  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) <<NOTE: Waiver authority.>>  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

[[Page 124 STAT. 3226]]

                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.'';
            (3) by adding at the end the following:

    ``(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

[[Page 124 STAT. 3227]]

                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) <<NOTE: Deadline.>>  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, 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.

[[Page 124 STAT. 3228]]

                    ``(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) <<NOTE: Handbook.>>  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) <<NOTE: Effective date.>>  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.''.
SEC. 222. <<NOTE: 42 USC 1766 note.>>  INTERAGENCY COORDINATION TO 
                        PROMOTE HEALTH AND WELLNESS IN CHILD CARE 
                        LICENSING.

    The Secretary shall coordinate with the Secretary of Health and 
Human Services to encourage State licensing agencies to include 
nutrition and wellness standards within State licensing standards that 
ensure, to the maximum extent practicable, that licensed child care 
centers and family or group day care homes--
            (1) provide to all children under the supervision of the 
        child care centers and family or group day care homes daily 
        opportunities for age-appropriate physical activity;
            (2) limit among children under the supervision of the child 
        care centers and family or group day care homes the use of 
        electronic media and the quantity of time spent in sedentary 
        activity to an appropriate level;
            (3) serve meals and snacks that are consistent with the 
        requirements of 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); and
            (4) promote such other nutrition and wellness goals as the 
        Secretaries determine to be necessary.

[[Page 124 STAT. 3229]]

SEC. 223. STUDY ON NUTRITION AND WELLNESS QUALITY OF CHILD CARE 
                        SETTINGS.

    (a) <<NOTE: Deadline. Contracts.>>  In General.--Not less than 3 
years after the date of enactment of this Act, the Secretary, in 
consultation with the Secretary of Health and Human Services, shall 
enter into a contract for the conduct of a nationally representative 
study of child care centers and family or group day care homes that 
includes an assessment of--
            (1) the nutritional quality of all foods provided to 
        children in child care settings as compared to the 
        recommendations in 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) the quantity and type of opportunities for physical 
        activity provided to children in child care settings;
            (3) the quantity of time spent by children in child care 
        settings in sedentary activities;
            (4) an assessment of barriers and facilitators to--
                    (A) providing foods to children in child care 
                settings that meet the recommendations 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);
                    (B) providing the appropriate quantity and type of 
                opportunities of physical activity for children in child 
                care settings; and
                    (C) participation by child care centers and family 
                or group day care homes 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); and
            (5) such other assessment measures as the Secretary may 
        determine to be necessary.

    (b) Report to Congress.--The Secretary shall submit to Congress a 
report that includes a detailed description of the results of the study 
conducted under subsection (a).
    (c) Funding.--
            (1) <<NOTE: Effective date.>>  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 this section $5,000,000, to remain 
        available until expended.
            (2) Receipt and acceptance.--The Secretary shall be entitled 
        to receive, shall accept, and shall use to carry out this 
        section the funds transferred under paragraph (1), without 
        further appropriation.

 Subtitle C--Special Supplemental Nutrition Program for Women, Infants, 
                              and Children

SEC. 231. SUPPORT FOR BREASTFEEDING IN THE WIC PROGRAM.

    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 
        ``supplemental foods and nutrition education through any 
        eligible local agency'' and inserting ``supplemental foods and

[[Page 124 STAT. 3230]]

        nutrition education, including breastfeeding promotion and 
        support, through any eligible local agency'';
            (2) in subsection (b)(4), by inserting ``breastfeeding 
        support and promotion,'' after ``nutrition education,'';
            (3) in subsection (c)(1), in the first sentence, by striking 
        ``supplemental foods and nutrition education to'' and inserting 
        ``supplemental foods, nutrition education, and breastfeeding 
        support and promotion to'';
            (4) in subsection (e)(2), in the second sentence, by 
        inserting ``, including breastfeeding support and education,'' 
        after ``nutrition education'';
            (5) in subsection (f)(6)(B), in the first sentence, by 
        inserting ``and breastfeeding'' after ``nutrition education'';
            (6) in subsection (h)--
                    (A) in paragraph (4)--
                          (i) by striking ``(4) The Secretary'' and all 
                      that follows through ``(A) in consultation'' and 
                      inserting the following:
            ``(4) Requirements.--
                    ``(A) In general.--The Secretary shall--
                          ``(i) in consultation'';
                          (ii) by redesignating subparagraphs (B) 
                      through (F) as clauses (ii) through (vi), 
                      respectively, and indenting appropriately;
                          (iii) in clause (v) (as so redesignated), by 
                      striking ``and'' at the end;
                          (iv) in clause (vi) (as so redesignated), by 
                      striking ``2010 initiative.'' and inserting 
                      ``initiative; and''; and
                          (v) by adding at the end the following:
                          ``(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

[[Page 124 STAT. 3231]]

                                    ``(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) <<NOTE: Payments.>>  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) <<NOTE: Deadline.>>  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''; and
                    (B) by striking paragraph (10) and inserting the 
                following:
            ``(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;

[[Page 124 STAT. 3232]]

                          ``(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).''; and
            (7) in subsection (j), by striking ``supplemental foods and 
        nutrition education'' each place it appears in paragraphs (1) 
        and (2) and inserting ``supplemental foods, nutrition education, 
        and breastfeeding support and promotion''.
SEC. 232. REVIEW OF AVAILABLE SUPPLEMENTAL FOODS.

    Section 17(f)(11)(D) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(f)(11)(D)) is amended in the matter preceding clause (i) by 
inserting ``but not less than every 10 years,'' after ``scientific 
knowledge,''.

                        Subtitle D--Miscellaneous

SEC. 241. NUTRITION EDUCATION AND OBESITY PREVENTION GRANT 
                        PROGRAM.

    (a) In General.--The Food and Nutrition Act of 2008 (7 U.S.C. 2011 
et seq.) is amended by adding at the end the following:
``SEC. 28. <<NOTE: 7 USC 2036a.>>  NUTRITION EDUCATION AND OBESITY 
                      PREVENTION GRANT PROGRAM.

    ``(a) Definition of Eligible Individual.--In this section, the term 
`eligible individual' means an individual who is eligible to receive 
benefits under a nutrition education and obesity prevention program 
under this section as a result of being--
            ``(1) an individual eligible for benefits under--
                    ``(A) this Act;
                    ``(B) sections 9(b)(1)(A) and 17(c)(4) of the 
                Richard B Russell National School Lunch Act (42 U.S.C. 
                1758(b)(1)(A), 1766(c)(4)); or
                    ``(C) section 4(e)(1)(A) of the Child Nutrition Act 
                of 1966 (42 U.S.C. 1773(e)(1)(A));
            ``(2) an individual who resides in a community with a 
        significant low-income population, as determined by the 
        Secretary; or

[[Page 124 STAT. 3233]]

            ``(3) such other low-income individual as is determined to 
        be eligible by the Secretary.

    ``(b) Programs.--Consistent with the terms and conditions of grants 
awarded under this section, State agencies may implement a nutrition 
education and obesity prevention program for eligible individuals that 
promotes healthy food choices 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).
    ``(c) Delivery of Nutrition Education and Obesity Prevention 
Services.--
            ``(1) In general.--State agencies may deliver nutrition 
        education and obesity prevention services under a program 
        described in subsection (b)--
                    ``(A) directly to eligible individuals; or
                    ``(B) through agreements with other State or local 
                agencies or community organizations.
            ``(2) Nutrition education state plans.--
                    ``(A) In general.--A State agency that elects to 
                provide nutrition education and obesity prevention 
                services under this subsection shall submit to the 
                Secretary for approval a nutrition education State plan.
                    ``(B) Requirements.--Except as provided in 
                subparagraph (C), a nutrition education State plan 
                shall--
                          ``(i) identify the uses of the funding for 
                      local projects;
                          ``(ii) ensure that the interventions are 
                      appropriate for eligible individuals who are 
                      members of low-income populations by recognizing 
                      the constrained resources, and the potential 
                      eligibility for Federal food assistance programs, 
                      of members of those populations; and
                          ``(iii) conform to standards established by 
                      the Secretary through regulations, guidance, or 
                      grant award documents.
                    ``(C) Transition period.--During each of fiscal 
                years 2011 and 2012, a nutrition education State plan 
                under this section shall be consistent with the 
                requirements of section 11(f) (as that section, other 
                than paragraph (3)(C), existed on the day before the 
                date of enactment of this section).
            ``(3) Use of funds.--
                    ``(A) In general.--A State agency may use funds 
                provided under this section for any evidence-based 
                allowable use of funds identified by the Administrator 
                of the Food and Nutrition Service of the Department of 
                Agriculture in consultation with the Director of the 
                Centers for Disease Control and Prevention of the 
                Department of Health and Human Services, including--
                          ``(i) individual and group-based nutrition 
                      education, health promotion, and intervention 
                      strategies;
                          ``(ii) comprehensive, multilevel interventions 
                      at multiple complementary organizational and 
                      institutional levels; and
                          ``(iii) community and public health approaches 
                      to improve nutrition.
                    ``(B) Consultation.--In identifying allowable uses 
                of funds under subparagraph (A) and in seeking to 
                strengthen

[[Page 124 STAT. 3234]]

                delivery, oversight, and evaluation of nutrition 
                education, the Administrator of the Food and Nutrition 
                Service shall consult with the Director of the Centers 
                for Disease Control and Prevention and outside 
                stakeholders and experts, including--
                          ``(i) representatives of the academic and 
                      research communities;
                          ``(ii) nutrition education practitioners;
                          ``(iii) representatives of State and local 
                      governments; and
                          ``(iv) community organizations that serve low-
                      income populations.
            ``(4) Notification.--To the maximum extent practicable, 
        State agencies shall notify applicants, participants, and 
        eligible individuals under this Act of the availability of 
        nutrition education and obesity prevention services under this 
        section in local communities.
            ``(5) Coordination.--Subject to the approval of the 
        Secretary, projects carried out with funds received under this 
        section may be coordinated with other health promotion or 
        nutrition improvement strategies, whether public or privately 
        funded, if the projects carried out with funds received under 
        this section remain under the administrative control of the 
        State agency.

    ``(d) Funding.--
            ``(1) In general.--Of funds made available each fiscal year 
        under section 18(a)(1), the Secretary shall reserve for 
        allocation to State agencies to carry out the nutrition 
        education and obesity prevention grant program under this 
        section, to remain available for obligation for a period of 2 
        fiscal years--
                    ``(A) for fiscal year 2011, $375,000,000; and
                    ``(B) for fiscal year 2012 and each subsequent 
                fiscal year, the applicable amount during the preceding 
                fiscal year, as adjusted to reflect any increases for 
                the 12-month period ending the preceding June 30 in the 
                Consumer Price Index for All Urban Consumers published 
                by the Bureau of Labor Statistics of the Department of 
                Labor.
            ``(2) Allocation.--
                    ``(A) Initial allocation.--Of the funds set aside 
                under paragraph (1), as determined by the Secretary--
                          ``(i) for each of fiscal years 2011 through 
                      2013, 100 percent shall be allocated to State 
                      agencies in direct proportion to the amount of 
                      funding that the State received for carrying out 
                      section 11(f) (as that section existed on the day 
                      before the date of enactment of this section) 
                      during fiscal year 2009, as reported to the 
                      Secretary as of February 2010; and
                          ``(ii) subject to a reallocation under 
                      subparagraph (B)--
                                    ``(I) for fiscal year 2014--
                                            ``(aa) 90 percent shall be 
                                        allocated to State agencies in 
                                        accordance with clause (i); and
                                            ``(bb) 10 percent shall be 
                                        allocated to State agencies 
                                        based on the respective share of 
                                        each

[[Page 124 STAT. 3235]]

                                        State of the number of 
                                        individuals participating in the 
                                        supplemental nutrition 
                                        assistance program during the 
                                        12-month period ending the 
                                        preceding January 31;
                                    ``(II) for fiscal year 2015--
                                            ``(aa) 80 percent shall be 
                                        allocated to State agencies in 
                                        accordance with clause (i); and
                                            ``(bb) 20 percent shall be 
                                        allocated in accordance with 
                                        subclause (I)(bb);
                                    ``(III) for fiscal year 2016--
                                            ``(aa) 70 percent shall be 
                                        allocated to State agencies in 
                                        accordance with clause (i); and
                                            ``(bb) 30 percent shall be 
                                        allocated in accordance with 
                                        subclause (I)(bb);
                                    ``(IV) for fiscal year 2017--
                                            ``(aa) 60 percent shall be 
                                        allocated to State agencies in 
                                        accordance with clause (i); and
                                            ``(bb) 40 percent shall be 
                                        allocated in accordance with 
                                        subclause (I)(bb); and
                                    ``(V) for fiscal year 2018 and each 
                                fiscal year thereafter--
                                            ``(aa) 50 percent shall be 
                                        allocated to State agencies in 
                                        accordance with clause (i); and
                                            ``(bb) 50 percent shall be 
                                        allocated in accordance with 
                                        subclause (I)(bb).
                    ``(B) Reallocation.--
                          ``(i) In general.--If the Secretary determines 
                      that a State agency will not expend all of the 
                      funds allocated to the State agency for a fiscal 
                      year under paragraph (1) or in the case of a State 
                      agency that elects not to receive the entire 
                      amount of funds allocated to the State agency for 
                      a fiscal year, the Secretary shall reallocate the 
                      unexpended funds to other States during the fiscal 
                      year or the subsequent fiscal year (as determined 
                      by the Secretary) that have approved State plans 
                      under which the State agencies may expend the 
                      reallocated funds.
                          ``(ii) Effect of additional funds.--
                                    ``(I) Funds received.--Any 
                                reallocated funds received by a State 
                                agency under clause (i) for a fiscal 
                                year shall be considered to be part of 
                                the fiscal year 2009 base allocation of 
                                funds to the State agency for that 
                                fiscal year for purposes of determining 
                                allocation under subparagraph (A) for 
                                the subsequent fiscal year.
                                    ``(II) Funds surrendered.--Any funds 
                                surrendered by a State agency under 
                                clause (i) shall not be considered to be 
                                part of the fiscal year 2009 base 
                                allocation of funds to a State agency 
                                for that fiscal year for purposes of 
                                determining allocation under 
                                subparagraph (A) for the subsequent 
                                fiscal year.
            ``(3) Limitation on federal financial participation.--
                    ``(A) In general.--Grants awarded under this section 
                shall be the only source of Federal financial 
                participation under this Act in nutrition education and 
                obesity prevention.

[[Page 124 STAT. 3236]]

                    ``(B) Exclusion.--Any costs of nutrition education 
                and obesity prevention in excess of the grants 
                authorized under this section shall not be eligible for 
                reimbursement under section 16(a).

    ``(e) <<NOTE: Deadline. Federal Register, publication.>>  
Implementation.--Not later than January 1, 2012, the Secretary shall 
publish in the Federal Register a description of the requirements for 
the receipt of a grant under this section.''.

    (b) Conforming Amendments.--
            (1) Section 4(a) of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2013(a)) is amended in the first sentence by striking 
        ``and, through an approved State plan, nutrition education''.
            (2) Section 11 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2020) is amended by striking subsection (f).
SEC. 242. PROCUREMENT AND PROCESSING OF FOOD SERVICE PRODUCTS AND 
                        COMMODITIES.

    Section 9(a)(4) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(a)(4)) is amended by adding at the end the following:
                    ``(C) Procurement and processing of food service 
                products and commodities.--The Secretary shall--
                          ``(i) 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) <<NOTE: Deadline.>>  not later than 1 
                      year after the date of enactment of this 
                      subparagraph--
                                    ``(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) <<NOTE: Reports.>>  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) 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.''.
SEC. 243. ACCESS TO LOCAL FOODS: FARM TO SCHOOL PROGRAM.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended--
            (1) by redesignating subsections (h) and (i) and subsection 
        (j) (as added by section 210) as subsections (i) through (k), 
        respectively;

[[Page 124 STAT. 3237]]

            (2) in subsection (g), by striking ``(g) Access to Local 
        Foods and School Gardens.--'' and all that follows through ``(3) 
        Pilot program for high-poverty schools.--'' and inserting the 
        following:

    ``(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;

[[Page 124 STAT. 3238]]

                    ``(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) <<NOTE: Effective dates.>>  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.--''; and
            (3) in subsection (h) (as redesignated by paragraph (2))--
                    (A) in subparagraph (F) of paragraph (1) (as so 
                redesignated), by striking ``in accordance with 
                paragraph (1)(H)'' and inserting ``carried out by the 
                Secretary'';
                    (B) by redesignating paragraph (4) as paragraph (2); 
                and
                    (C) in paragraph (2) (as so redesignated), by 
                striking ``2009'' and inserting ``2015''.

[[Page 124 STAT. 3239]]

SEC. 244. <<NOTE: 7 USC 3179.>>  RESEARCH ON STRATEGIES TO PROMOTE 
                        THE SELECTION AND CONSUMPTION OF HEALTHY 
                        FOODS.

    (a) In General.--The Secretary, in consultation with the Secretary 
of Health and Human Services, shall establish a research, demonstration, 
and technical assistance program to promote healthy eating and reduce 
the prevalence of obesity, among all population groups but especially 
among children, by applying the principles and insights of behavioral 
economics research in schools, child care programs, and other settings.
    (b) Priorities.--The Secretary shall--
            (1) identify and assess the impacts of specific 
        presentation, placement, and other strategies for structuring 
        choices on selection and consumption of healthful foods in a 
        variety of settings, consistent with the most recent version of 
        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) demonstrate and rigorously evaluate behavioral 
        economics-related interventions that hold promise to improve 
        diets and promote health, including through demonstration 
        projects that may include evaluation of the use of portion size, 
        labeling, convenience, and other strategies to encourage healthy 
        choices; and
            (3) encourage adoption of the most effective strategies 
        through outreach and technical assistance.

    (c) Authority.--In carrying out the program under subsection (a), 
the Secretary may--
            (1) enter into competitively awarded contracts or 
        cooperative agreements; or
            (2) provide grants to States or public or private agencies 
        or organizations, as determined by the Secretary.

    (d) Application.--To be eligible to enter into a contract or 
cooperative agreement or receive a grant under this section, 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 may require.
    (e) Coordination.--The solicitation and evaluation of contracts, 
cooperative agreements, and grant proposals considered under this 
section shall be coordinated with the Food and Nutrition Service as 
appropriate to ensure that funded projects are consistent with the 
operations of Federally supported nutrition assistance programs and 
related laws (including regulations).
    (f) Annual Reports.--Not later than 90 days after the end of each 
fiscal year, 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 includes a 
description of--
            (1) the policies, priorities, and operations of the program 
        carried out by the Secretary under this section during the 
        fiscal year;
            (2) the results of any evaluations completed during the 
        fiscal year; and
            (3) the efforts undertaken to disseminate successful 
        practices through outreach and technical assistance.

    (g) Authorization of Appropriations.--

[[Page 124 STAT. 3240]]

            (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 2015.
            (2) Use of funds.--The Secretary may use up to 5 percent of 
        the funds made available under paragraph (1) for Federal 
        administrative expenses incurred in carrying out this section.

  TITLE III--IMPROVING THE MANAGEMENT AND INTEGRITY OF CHILD NUTRITION 
                                PROGRAMS

                Subtitle A--National School Lunch Program

SEC. 301. PRIVACY PROTECTION.

    Section 9(d)(1) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(d)(1)) is amended--
            (1) in the first sentence, by inserting ``the last 4 digits 
        of'' before ``the social security account number''; and
            (2) by striking the second sentence.
SEC. 302. APPLICABILITY OF FOOD SAFETY PROGRAM ON ENTIRE SCHOOL 
                        CAMPUS.

    Section 9(h)(5) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(h)(5)) is amended--
            (1) by striking ``Each school food'' and inserting the 
        following:
                    ``(A) In general.--Each school food''; and
            (2) by adding at the end the following:
                    ``(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).''.
SEC. 303. FINES FOR VIOLATING PROGRAM REQUIREMENTS.

    Section 22 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769c) is amended by adding at the end the following:
    ``(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.--

[[Page 124 STAT. 3241]]

                          ``(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.''.

[[Page 124 STAT. 3242]]

SEC. 304. INDEPENDENT REVIEW OF APPLICATIONS.

    Section 22(b) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1769c(b)) is amended by adding at the end the following:
            ``(6) 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) <<NOTE: Standards.>>  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) <<NOTE: Procedures.>>  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) <<NOTE: Procedures.>>  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) <<NOTE: Publication.>>  
                      Transparency.--The Secretary shall publish 
                      annually the results of the reviews of initial 
                      eligibility determinations by State, number, 
                      percentage, and type of error.''.

[[Page 124 STAT. 3243]]

SEC. 305. PROGRAM EVALUATION.

    Section 28 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769i) is amended by adding at the end the following:
    ``(c) Cooperation With Program Research and Evaluation.--States, 
State educational 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. 306. PROFESSIONAL STANDARDS FOR SCHOOL FOOD SERVICE.

    Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 1776) is 
amended by striking subsection (g) and inserting the following:
    ``(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

[[Page 124 STAT. 3244]]

                      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) <<NOTE: Deadline.>>  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) <<NOTE: Procedures.>>  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;

[[Page 124 STAT. 3245]]

                                    ``(II) health and food safety 
                                standards and methodologies; and
                                    ``(III) any other appropriate 
                                topics, as determined by the Secretary.
            ``(3) Funding.--
                    ``(A) <<NOTE: Effective dates.>>  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.''.
SEC. 307. <<NOTE: 42 USC 1751 note.>>  INDIRECT COSTS.

    (a) <<NOTE: Deadline.>>  Guidance on Indirect Costs Rules.--Not 
later than 180 days after the date of enactment of this Act, the 
Secretary shall issue guidance to school food authorities 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 the Child Nutrition Act of 
1966 (42 U.S.C. 1773) covering program rules pertaining to indirect 
costs, including allowable indirect costs that may be charged to the 
nonprofit school food service account.

    (b) Indirect Cost Study.--The Secretary shall--
            (1) conduct a study to assess the extent to which school 
        food authorities 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 the Child Nutrition Act of 1966 (42 
        U.S.C. 1773) pay indirect costs, including assessments of--
                    (A) the allocation of indirect costs to, and the 
                methodologies used to establish indirect cost rates for, 
                school food authorities 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 
                the Child Nutrition Act of 1966 (42 U.S.C. 1773);
                    (B) the impact of indirect costs charged to the 
                nonprofit school food service account;
                    (C) the types and amounts of indirect costs charged 
                and recovered by school districts;
                    (D) whether the indirect costs charged or recovered 
                are consistent with requirements for the allocation of 
                indirect costs and school food service operations; and
                    (E) the types and amounts of indirect costs that 
                could be charged or recovered under requirements for the 
                allocation of indirect costs and school food service 
                operations but are not charged or recovered; and
            (2) after completing the study required under paragraph (1), 
        issue additional guidance relating to the types of costs that 
        are reasonable and necessary to provide meals 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.).

[[Page 124 STAT. 3246]]

    (c) Regulations.--After conducting the study under subsection (b)(1) 
and identifying costs under subsection (b)(2), the Secretary may 
promulgate regulations to address--
            (1) any identified deficiencies in the allocation of 
        indirect costs; and
            (2) the authority of school food authorities to reimburse 
        only those costs identified by the Secretary as reasonable and 
        necessary under subsection (b)(2).

    (d) Report.--Not later than October 1, 2013, the Secretary shall 
submit to 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 describes the results of the study 
under subsection (b).
    (e) Funding.--
            (1) <<NOTE: Effective date.>>  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 this section $2,000,000, to remain 
        available until expended.
            (2) Receipt and acceptance.--The Secretary shall be entitled 
        to receive, shall accept, and shall use to carry out this 
        section the funds transferred under paragraph (1), without 
        further appropriation.
SEC. 308. ENSURING SAFETY OF SCHOOL MEALS.

    The Richard B. Russell National School Lunch Act is amended by after 
section 28 (42 U.S.C. 1769i) the following:
``SEC. 29. <<NOTE: Deadlines. 42 USC 1769j.>>  ENSURING SAFETY OF 
                      SCHOOL MEALS.

    ``(a) Food and Nutrition Service.--Not later than 1 year after the 
date of enactment of the Healthy, Hunger-Free Kids Act of 2010, the 
Secretary, acting through the Administrator of the Food and Nutrition 
Service, shall--
            ``(1) <<NOTE: Guidelines.>>  in consultation with the 
        Administrator of the Agricultural Marketing Service and the 
        Administrator of the Farm Service Agency, develop guidelines to 
        determine the circumstances under which it is appropriate for 
        the Secretary to institute an administrative hold on suspect 
        foods purchased by the Secretary that are being used in school 
        meal programs under this Act and the Child Nutrition Act of 1966 
        (42 U.S.C. 1771 et seq.);
            ``(2) work with States to explore ways for the States to 
        increase the timeliness of notification of food recalls to 
        schools and school food authorities;
            ``(3) improve the timeliness and completeness of direct 
        communication between the Food and Nutrition Service and States 
        about holds and recalls, such as through the commodity alert 
        system of the Food and Nutrition Service; and
            ``(4) establish a timeframe to improve the commodity hold 
        and recall procedures of the Department of Agriculture to 
        address the role of processors and determine the involvement of 
        distributors with processed products that may contain recalled 
        ingredients, to facilitate the provision of more timely and 
        complete information to schools.

    ``(b) Food Safety and Inspection Service.--Not later than 1 year 
after the date of enactment of the Healthy, Hunger-Free Kids Act of 
2010, the Secretary, acting through the Administrator

[[Page 124 STAT. 3247]]

of the Food Safety and Inspection Service, shall revise the procedures 
of the Food Safety and Inspection Service to ensure that schools are 
included in effectiveness checks.''.

                 Subtitle B--Summer Food Service Program

SEC. 321. SUMMER FOOD SERVICE PROGRAM PERMANENT OPERATING 
                        AGREEMENTS.

    Section 13(b) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1761(b)) is amended by striking paragraph (3) and inserting 
the following:
            ``(3) Permanent operating agreements and budget for 
        administrative costs.--
                    ``(A) Permanent operating agreements.--
                          ``(i) <<NOTE: Regulations.>>  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) <<NOTE: Regulations.>>  
                                        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).''.
SEC. 322. SUMMER FOOD SERVICE PROGRAM DISQUALIFICATION.

    Section 13 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1761) is amended--
            (1) by redesignating subsection (q) as subsection (r); and
            (2) by inserting after subsection (p) the following:

    ``(q) Termination and Disqualification of Participating 
Organizations.--

[[Page 124 STAT. 3248]]

            ``(1) <<NOTE: Procedures.>>  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.''.

              Subtitle C--Child and Adult Care Food Program

SEC. 331. RENEWAL OF APPLICATION MATERIALS AND PERMANENT OPERATING 
                        AGREEMENTS.

    (a) Permanent Operating Agreements.--Section 17(d)(1) of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1766(d)(1)) is amended 
by adding at the end the following:
                    ``(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.''.

    (b) Applications and Reviews.--Section 17(d) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1766(d)) is amended by 
striking paragraph (2) and inserting the following:

[[Page 124 STAT. 3249]]

            ``(2) Program applications.--
                    ``(A) <<NOTE: Regulations. Deadlines.>>  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) <<NOTE: Deadlines.>>  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) <<NOTE: Deadline.>>  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;

[[Page 124 STAT. 3250]]

                                    ``(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).''.

    (c) Agreements.--Section 17(j)(1) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(j)(1)) is amended--
            (1) by striking ``may'' and inserting ``shall'';
            (2) by striking ``family or group day care'' the first place 
        it appears; and
            (3) by inserting ``or sponsored day care centers'' before 
        ``participating''.
SEC. 332. STATE LIABILITY FOR PAYMENTS TO AGGRIEVED CHILD CARE 
                        INSTITUTIONS.

    Section 17(e) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1766(e)) is amended--
            (1) in paragraph (3), by striking ``(3) If a State'' and 
        inserting the following:
            ``(5) Secretarial hearing.--If a State''; and
            (2) by striking ``(e) Except as provided'' and all that 
        follows through ``(2) A State'' and inserting the following:

    ``(e) Hearings.--
            ``(1) <<NOTE: Regulations.>>  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.

[[Page 124 STAT. 3251]]

            ``(2) <<NOTE: Regulations. Time period.>>  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) <<NOTE: Deadline.>>  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''.
SEC. 333. TRANSMISSION OF INCOME INFORMATION BY SPONSORED FAMILY 
                        OR GROUP DAY CARE HOMES.

    Section 17(f)(3)(A)(iii)(III) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(f)(3)(A)(iii)(III)) is amended by 
adding at the end the following:
                                            ``(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.''.
SEC. 334. SIMPLIFYING AND ENHANCING ADMINISTRATIVE PAYMENTS TO 
                        SPONSORING ORGANIZATIONS.

    Section 17(f)(3) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1766(f)(3)) is amended by striking subparagraph (B) and 
inserting the following:
                    ``(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--

[[Page 124 STAT. 3252]]

                                    ``(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) <<NOTE: Procedures.>>  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.''.
SEC. 335. CHILD AND ADULT CARE FOOD PROGRAM AUDIT FUNDING.

    Section 17(i) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1766(i)) is amended by striking paragraph (2) and inserting 
the following:
            ``(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.
                          ``(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.''.
SEC. 336. <<NOTE: 42 USC 1766 note.>>  REDUCING PAPERWORK AND 
                        IMPROVING PROGRAM ADMINISTRATION.

    (a) Definition of Program.--In this section, the term ``program'' 
means 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).
    (b) Establishment.--The Secretary, in conjunction with States and 
participating institutions, shall continue to examine the feasibility of 
reducing unnecessary or duplicative paperwork resulting from regulations 
and recordkeeping requirements for State agencies, institutions, family 
and group day care homes, and sponsored centers participating in the 
program.

[[Page 124 STAT. 3253]]

    (c) Duties.--At a minimum, the examination shall include--
            (1) review and evaluation of the recommendations, guidance, 
        and regulatory priorities developed and issued to comply with 
        section 119(i) of the Child Nutrition and WIC Reauthorization 
        Act of 2004 (42 U.S.C. 1766 note; Public Law 108-265); and
            (2) examination of additional paperwork and administrative 
        requirements that have been established since February 23, 2007, 
        that could be reduced or simplified.

    (d) Additional Duties.--The Secretary, in conjunction with States 
and institutions participating in the program, may also examine any 
aspect of administration of the program.
    (e) Report.--Not later than 4 years after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that describes 
the actions that have been taken to carry out this section, including--
            (1) actions taken to address administrative and paperwork 
        burdens identified as a result of compliance with section 119(i) 
        of the Child Nutrition and WIC Reauthorization Act of 2004 (42 
        U.S.C. 1766 note; Public Law 108-265);
            (2) administrative and paperwork burdens identified as a 
        result of compliance with section 119(i) of that Act for which 
        no regulatory action or policy guidance has been taken;
            (3) additional steps that the Secretary is taking or plans 
        to take to address any administrative and paperwork burdens 
        identified under subsection (c)(2) and paragraph (2), 
        including--
                    (A) new or updated regulations, policy, guidance, or 
                technical assistance; and
                    (B) a timeframe for the completion of those steps; 
                and
            (4) recommendations to Congress for modifications to 
        existing statutory authorities needed to address identified 
        administrative and paperwork burdens.
SEC. 337. STUDY RELATING TO THE CHILD AND ADULT CARE FOOD PROGRAM.

    (a) Study.--The Secretary, acting through the Administrator of the 
Food and Nutrition Service, shall carry out a study of States 
participating in an afterschool supper program under the child and adult 
care food program established under section 17(r) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1766(r)).
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress, and make available on 
the website of the Food and Nutrition Service, a report that describes--
            (1) best practices of States in soliciting sponsors for an 
        afterschool supper program described in subsection (a); and
            (2) any Federal or State laws or requirements that may be a 
        barrier to participation in the program.

[[Page 124 STAT. 3254]]

 Subtitle D--Special Supplemental Nutrition Program for Women, Infants, 
                              and Children

SEC. 351. SHARING OF MATERIALS WITH OTHER PROGRAMS.

    Section 17(e)(3) of the Child Nutrition Act (42 U.S.C. 1786(e)(3)) 
is amended by striking subparagraph (B) and inserting the following:
                    ``(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.''.
SEC. 352. WIC PROGRAM MANAGEMENT.

    (a) WIC Evaluation Funds.--Section 17(g)(5) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(g)(5)) is amended by striking ``$5,000,000'' 
and inserting ``$15,000,000''.
    (b) WIC Rebate Payments.--Section 17(h)(8) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(h)(8)) is amended by adding at the end the 
following:
                    ``(K) <<NOTE: Effective date.>>  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.''.

    (c) Cost Containment Measure.--Section 17(h) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(h)) is amended--
            (1) in paragraph (8)(A)(iv)(III), by striking ``Any'' and 
        inserting ``Except as provided in paragraph (9)(B)(i)(II), 
        any''; and
            (2) by striking paragraph (9) and inserting the following:
            ``(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.

[[Page 124 STAT. 3255]]

                    ``(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;
                          ``(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) open and read aloud all bids at a 
                      public proceeding on the day on which the bids are 
                      due; and
                          ``(iv) unless otherwise exempted by the 
                      Secretary, provide a minimum of 30 days between 
                      the publication of the solicitation and the date 
                      on which the bids are due.
                    ``(C) State alliances for authorized foods other 
                than infant formula.--Program <<NOTE: Applicability.>>  
                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) Electronic Benefit Transfer.--Section 17(h) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by striking 
paragraph (12) and inserting the following:
            ``(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 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) <<NOTE: Deadline.>>  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:

[[Page 124 STAT. 3256]]

                                    ``(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.

[[Page 124 STAT. 3257]]

                          ``(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) <<NOTE: Guidelines.>>  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.''.

    (e) Universal Product Codes Database.--Section 17(h) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by striking 
paragraph (13) and inserting the following:
            ``(13) Universal product codes database.--
                    ``(A) <<NOTE: Deadline.>>  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) <<NOTE: Effective dates.>>  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).''.

[[Page 124 STAT. 3258]]

    (f) Temporary Spending Authority.--Section 17(i) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(i)) is amended by adding at the 
end the following:
            ``(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.''.

                        Subtitle E--Miscellaneous

SEC. 361. FULL USE OF FEDERAL FUNDS.

    Section 12 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760) is amended by striking subsection (b) and inserting the 
following:
    ``(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.''.
SEC. 362. DISQUALIFIED SCHOOLS, INSTITUTIONS, AND INDIVIDUALS.

    Section 12 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760) (as amended by section 206) is amended by adding at the end 
the following:
    ``(r) 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.).''.

[[Page 124 STAT. 3259]]

                         TITLE IV--MISCELLANEOUS

           Subtitle A--Reauthorization of Expiring Provisions

          PART I--RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

SEC. 401. COMMODITY SUPPORT.

    Section 6(e)(1)(B) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1755(e)(1)(B)) is amended by striking ``September 30, 
2010'' and inserting ``September 30, 2020''.
SEC. 402. FOOD SAFETY AUDITS AND REPORTS BY STATES.

    Section 9(h) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758(h)) is amended--
            (1) in paragraph (3), by striking ``2006 through 2010'' and 
        inserting ``2011 through 2015''; and
            (2) in paragraph (4), by striking ``2006 through 2010'' and 
        inserting ``2011 through 2015''.
SEC. 403. PROCUREMENT TRAINING.

    Section 12(m)(4) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1760(m)(4)) is amended by striking ``2005 through 2009'' and 
inserting ``2010 through 2015''.
SEC. 404. AUTHORIZATION OF THE SUMMER FOOD SERVICE PROGRAM FOR 
                        CHILDREN.

    Subsection (r) of section 13 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1761) (as redesignated by section 322(1)) is 
amended by striking ``September 30, 2009'' and inserting ``September 30, 
2015''.
SEC. 405. YEAR-ROUND SERVICES FOR ELIGIBLE ENTITIES.

    Subsection (i)(5) of section 18 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1769) (as redesignated by section 243(1)) is 
amended by striking ``2005 through 2010'' and inserting ``2011 through 
2015''.
SEC. 406. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE 
                        MANAGEMENT INSTITUTE.

    Section 21(e) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1769b-1(e)) is amended--
            (1) by striking ``(e) Authorization of Appropriations'' and 
        all that follows through the end of paragraph (2)(A) and 
        inserting the following:

    ``(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.

[[Page 124 STAT. 3260]]

                    ``(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) by redesignating subparagraphs (B) and (C) as paragraphs 
        (2) and (3), respectively, and indenting appropriately;
            (3) in paragraph (2) (as so redesignated), by striking 
        ``subparagraph (A)'' each place it appears and inserting 
        ``paragraph (1)''; and
            (4) in paragraph (3) (as so redesignated), by striking 
        ``subparagraphs (A) and (B)'' and inserting ``paragraphs (1) and 
        (2)''.
SEC. 407. FEDERAL ADMINISTRATIVE SUPPORT.

    Section 21(g)(1)(A)) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1769b-1(g)(1)(A)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause(ii), by striking the period at the end and 
        inserting ``; and''
            (3) and by adding at the end the following:
                          ``(iii) on October 1, 2010, and every October 
                      1 thereafter, $4,000,000.''.
SEC. 408. COMPLIANCE AND ACCOUNTABILITY.

    Section 22(d) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1769c(d)) is amended by striking ``$6,000,000 for each of 
fiscal years 2004 through 2009'' and inserting ``$10,000,000 for each of 
fiscal years 2011 through 2015''.
SEC. 409. INFORMATION CLEARINGHOUSE.

    Section 26(d) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1769g(d)) is amended in the first sentence by striking ``2005 
through 2010'' and inserting ``2010 through 2015''.

                  PART II--CHILD NUTRITION ACT OF 1966

SEC. 421. TECHNOLOGY INFRASTRUCTURE IMPROVEMENT.

    Section 7(i)(4) of the Child Nutrition Act of 1966 (42 U.S.C. 
1776(i)(4)) is amended by striking ``2005 through 2009'' and inserting 
``2010 through 2015''.
SEC. 422. STATE ADMINISTRATIVE EXPENSES.

    Section 7(j) of the Child Nutrition Act of 1966 (42 U.S.C. 1776(j)) 
is amended by striking ``October 1, 2009'' and inserting ``October 1, 
2015''.
SEC. 423. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, 
                        INFANTS, AND CHILDREN.

    Section 17(g)(1)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(g)(1)(A)) is amended by striking ``each of fiscal years 2004 
through 2009'' and inserting ``each of fiscal years 2010 through 2015''.
SEC. 424. FARMERS MARKET NUTRITION PROGRAM.

    Section 17(m)(9) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(m)(9)) is amended by striking subparagraph (A) and inserting the 
following:
                    ``(A) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                subsection

[[Page 124 STAT. 3261]]

                such sums as are necessary for each of fiscal years 2010 
                through 2015.''.

                    Subtitle B--Technical Amendments

SEC. 441. TECHNICAL AMENDMENTS.

    (a) Richard B. Russell National School Lunch Act.--
            (1) Nutritional requirements.--Section 9(f) of the Richard 
        B. Russell National School Lunch Act (42 U.S.C. 1758(f)) is 
        amended--
                    (A) by striking ``(f)'' and all that follows through 
                the end of paragraph (1) and inserting the following:

    ``(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.'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraphs (3) through (5) as 
                paragraphs (2) through (4), respectively.
            (2) Rounding rules for computation of adjustment.--Section 
        11(a)(3)(B) of the Richard B. Russell National School Lunch Act 
        (42 U.S.C. 1759a(a)(3)(B)) is amended by striking ``Rounding.--
        '' and all that follows through ``On July'' in subclause (II) 
        and inserting ``Rounding.--On July''.
            (3) Information and assistance concerning reimbursement 
        options.--Section 11 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1759a) is amended by striking subsection 
        (f).
            (4) 1995 regulations to implement dietary guidelines.--
        Section 12 of the Richard B. Russell National School Lunch Act 
        (42 U.S.C. 1760) is amended by striking subsection (k).
            (5) Summer food service program for children.--
                    (A) In general.--Section 13 of the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 1761) is 
                amended by striking the section heading and all that 
                follows through the end of subsection (a)(1) and 
                inserting the following:
``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

[[Page 124 STAT. 3262]]

                                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) <<NOTE: Regulations.>>  
                                determined by a State educational agency 
                                or a local public educational agency of 
                                a State, in accordance with regulations 
                                promulgated by the Secretary, to have a 
                                disability, and

[[Page 124 STAT. 3263]]

                                    ``(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.''.
                    (B) Conforming amendments.--Section 13(a) of the 
                Richard B. Russell National School Lunch Act (42 U.S.C. 
                1761(a)) is amended--
                          (i) in paragraph (2)--
                                    (I) by striking ``(2) To the maximum 
                                extent feasible,'' and inserting the 
                                following:
            ``(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,''; and
                                    (II) by striking ``The Secretary 
                                shall'' and inserting the following:
                          ``(ii) Information and technical assistance.--
                      The Secretary shall'';
                          (ii) in paragraph (3)--
                                    (I) by striking ``(3) Eligible 
                                service institutions'' and inserting the 
                                following:
            ``(3) Eligible service institutions.--Eligible service 
        institutions''; and
                                    (II) by indenting subparagraphs (A) 
                                through (D) appropriately;
                          (iii) in paragraph (4)--
                                    (I) by redesignating subparagraphs 
                                (A) through (D) as clauses (i) through 
                                (iv), respectively, and indenting 
                                appropriately;
                                    (II) by striking ``(4) The 
                                following'' and inserting the following:
            ``(4) Priority.--

[[Page 124 STAT. 3264]]

                    ``(A) In general.--The following''; and
                                    (III) by striking ``The Secretary 
                                and the States'' and inserting the 
                                following:
                    ``(B) Rural areas.--The Secretary and the States'';
                          (iv) by striking ``(5) Camps'' and inserting 
                      the following:
            ``(5) Camps.--Camps''; and
                          (v) by striking ``(6) Service institutions'' 
                      and inserting the following:
            ``(6) Government institutions.--Service institutions''.
            (6) Report on impact of procedures to secure state school 
        input on commodity selection.--Section 14(d) of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1762a(d)) is 
        amended by striking the matter that follows paragraph (5).
            (7) Rural area day care home pilot program.--Section 17 of 
        the Richard B. Russell National School Lunch Act (42 U.S.C. 
        1766) is amended by striking subsection (p).
            (8) Child and adult care food program training and technical 
        assistance.--Section 17(q) of the Richard B. Russell National 
        School Lunch Act (42 U.S.C. 1766(q)) is amended by striking 
        paragraph (3).
            (9) Pilot project for private nonprofit state agencies.--
        Section 18 of the Richard B. Russell National School Lunch Act 
        (42 U.S.C. 1769) is amended by striking subsection (a).
            (10) Meal counting and application pilot programs.--Section 
        18(c) of the Richard B. Russell National School Lunch Act (42 
        U.S.C. 1769(c)) is amended--
                    (A) by striking paragraphs (1) and (2);
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (1) and (2), respectively; and
                    (C) in paragraph (1) (as so redesignated), by 
                striking ``In addition to the pilot projects described 
                in this subsection, the Secretary may conduct other'' 
                and inserting ``The Secretary may conduct''.
            (11) Milk fortification pilot.--Section 18 of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1769) is amended by 
        striking subsection (d).
            (12) Free breakfast pilot project.--Section 18 of the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1769) is 
        amended by striking subsection (e).
            (13) Summer food service residential camp eligibility.--
        Section 18 of the Richard B. Russell National School Lunch Act 
        (42 U.S.C. 1769) is amended by striking subsection (f).
            (14) <<NOTE: Repeal.>>  Accommodation of the special dietary 
        needs of individuals with disabilities.--Section 27 of the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1769h) 
        is repealed.

    (b) Child Nutrition Act of 1966.--
            (1) State administrative expenses minimum levels for 2005 
        through 2007.--Section 7(a)(1) of the Child Nutrition Act of 
        1966 (42 U.S.C. 1776(a)(1)) is amended--
                    (A) in subparagraph (A), by striking ``Except as 
                provided in subparagraph (B), each fiscal year'' and 
                inserting ``Each fiscal year'';

[[Page 124 STAT. 3265]]

                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B).
            (2) Fruit and vegetable grants under the special 
        supplemental nutrition program for women, infants, and 
        children.--Section 17(f)(11) of the Child Nutrition Act of 1966 
        (42 U.S.C. 1786(f)(11)) is amended--
                    (A) by striking subparagraph (C); and
                    (B) by redesignating subparagraph (D) as 
                subparagraph (C).
SEC. 442. USE OF UNSPENT FUTURE FUNDS FROM THE AMERICAN RECOVERY 
                        AND REINVESTMENT ACT OF 2009.

    Section 101(a) of division A of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 120) is amended--
            (1) in paragraph (1), by inserting before the period at the 
        end ``, if the value of the benefits and block grants would be 
        greater under that calculation than in the absence of this 
        subsection''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Termination.--The authority provided by this 
        subsection shall terminate after October 31, 2013.''.
SEC. 443. <<NOTE: Grants.>>  EQUIPMENT ASSISTANCE TECHNICAL 
                        CORRECTION.

    (a) In General.--Notwithstanding any other provision of law, school 
food authorities that received a grant for equipment assistance under 
the grant program carried out under the heading ``FOOD AND NUTRITION 
SERVICE CHILD NUTRITION PROGRAMS'' in title I of division A of the 
American Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 
Stat. 119) shall be eligible to receive a grant under section 749(j) of 
the Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2010 (Public Law 111-80; 123 Stat. 
2134).
    (b) Use of Grant.--A school food authority receiving a grant for 
equipment assistance described in subsection (a) may use the grant only 
to make equipment available to schools that did not previously receive 
equipment from a grant under the American Recovery and Reinvestment Act 
of 2009 (Public Law 111-5; 123 Stat. 115).
SEC. 444. 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 Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

[[Page 124 STAT. 3266]]

SEC. 445. <<NOTE: 42 USC 1751 note.>>  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, 2010.

    Approved December 13, 2010.

LEGISLATIVE HISTORY--S. 3307:
---------------------------------------------------------------------------

SENATE REPORTS: No. 111-178 (Comm. on Agriculture, Nutrition, and 
Forestry).
CONGRESSIONAL RECORD, Vol. 156 (2010):
            Aug. 5, considered and passed Senate.
            Dec. 1, 2, considered and passed House.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2010):
            Dec. 13, Presidential remarks.

                                  <all>