PILOT PROJECTS.

SEC. 118. PILOT PROJECTS. (a) Commodity Letter of Credit (CLOC) Programs.— The first sentence of section 18(b)(1) of the National School Lunch Act (42 U.S.C. 1769(b)(1)) is amended by striking “, and ending September 30, 1994”. (b) Demonstration Program To Provide Meals and Supplements Outside of School Hours.— Section 18 of such Act (42 U.S.C. 1769) is amended by adding at the end the following new subsection: “(e) (1) (A) The Secretary shall establish a demonstration program to provide grants to eligible institutions or schools to provide meals or supplements to adolescents participating in educational, recreational, or other programs and activities provided outside of school hours. “(B) The amount of a grant under subparagraph (A) shall be equal to the amount necessary to provide meals or supplements described in such subparagraph and shall be determined in accordance with reimbursement payment rates for meals and supplements under the child and adult care food program under section 17. “(2) The Secretary may not provide a grant under paragraph (1) to an eligible institution or school unless the institution or school submits to the Secretary an application containing such information as the Secretary may reasonably require. “(3) The Secretary may not provide a grant under paragraph (1) to an eligible institution or school unless the institution or school agrees that the institution or school will— 108 STAT. 4720 “(A) use amounts from the grant to provide meals or supplements under educational, recreational, or other programs and activities for adolescents outside of school hours, and the programs and activities are carried out in geographic areas in which there are high rates of poverty, violence, or drug and alcohol abuse among school-aged youths; and “(B) use the same meal patterns as meal patterns required under the child and adult care food program under section 17. “(4) Determinations with regard to eligibility for free and reduced price meals and supplements provided under programs and activities under this subsection shall be made in accordance with the income eligibility guidelines for free and reduced price lunches under section 9. “(5) (A) Except as provided in subparagraph (B), the Secretary shall expend to carry out this subsection, from amounts appropriated for purposes of carrying out section 17, $325,000 for fiscal year 1995, $475,000 for each of fiscal years 1996 and 1997, and $525,000 for fiscal year 1998. In addition to amounts described in the preceding sentence, the Secretary shall expend any additional amounts in any fiscal year as may be provided in advance in appropriations Acts. “(B) The Secretary may expend less than the amount required under subparagraph (A) if there is an insufficient number of suitable applicants. “(6) As used in this subsection: “(A) The term ‘adolescent’ means a child who has attained the age of 13 but has not attained the age of 19. “(B) The term ‘eligible institution or school’ means— “(i) an institution, as the term is defined in section 17; or “(ii) an elementary or secondary school participating in the school lunch program under this Act. “(C) The term ‘outside of school hours’ means after-school hours, weekends, or holidays during the regular school year.”. (c) Fortified Fluid Milk.— Section 18 of such Act (42 U.S.C. 1769) (as amended by subsection (b)) is further amended by adding at the end the following new subsection: “(f) (1) Subject to the availability of appropriations to carry out this subsection, the Secretary shall establish pilot projects in at least 25 school districts under which the milk offered by schools meets the fortification requirements of paragraph (3) for lowfat, skim, and other forms of fluid milk. “(2) The Secretary shall make available to school districts information that compares the nutritional benefits of fluid milk that meets the fortification requirements of paragraph (3) and the nutritional benefits of other milk that is made available through the school lunch program established under this Act. “(3) The fortification requirements for fluid milk for the pilot project referred to in paragraph (1) shall provide that— “(A) all whole milk in final package form for beverage use shall contain not less than— “(i) 3.25 percent milk fat; and “(ii) 8.7 percent milk solids not fat; “(B) all lowfat milk in final package form for beverage use shall contain not less than 10 percent milk solids not fat; and 108 STAT. 4721 “(C) all skim milk in final package form for beverage use shall contain not less than 9 percent milk solids not fat. “(4) (A) In selecting where to establish pilot projects under this subsection, the Secretary shall take into account, among other factors, the availability of fortified milk and the interest of the school district in being included in the pilot project. “(B) The Secretary shall establish the pilot projects in as many geographic areas as practicable, except that none of the projects shall be established in school districts that use milk described in paragraph (3) or similar milk. “(5) Not later than 2 years after the establishment of the first pilot project under this subsection, the Secretary shall report to the Committee on Education and Labor, and the Committee on Agriculture, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on— “(A) the acceptability of fortified whole, lowfat, and skim milk products to participating children; “(B) the impact of offering the milk on milk consumption; “(C) the views of the school food service authorities on the pilot projects; and “(D) any increases or reductions in costs attributed to the pilot projects. “(6) The Secretary shall— “(A) obtain copies of any research studies or papers that discuss the impact of the fortification of milk pursuant to standards established by the States; and “(B) on request, make available to State agencies and the public— “(i) the information obtained under subparagraph (A); and “(ii) information about where to obtain milk described in paragraph (3). “(7) (A) Each pilot project established under this subsection shall terminate on the last day of the third year after the establishment of the pilot project. “(B) The Secretary shall advise representatives of each district participating in a pilot project that the district may continue to offer the fortified forms of milk described in paragraph (3) after the project terminates.”. (d) Increased Choices of Fruits, Vegetables, Legumes, Cereals, and Grain-Based Products.— Section 18 of such Act (42 U.S.C. 1769) (as amended by subsection (c)) is further amended by adding at the end the following new subsection: “(g) (1) The Secretary is authorized to establish a pilot project to assist schools participating in the school lunch program established under this Act, and the school breakfast program established under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773), to offer participating students additional choices of fruits, vegetables, legumes, cereals, and grain-based products (including, subject to paragraph (6), organically produced agricultural commodities and products) (collectively referred to in this subsection as ‘qualified products’). “(2) The Secretary shall establish procedures under which schools may apply to participate in the pilot project. To the maximum extent practicable, the Secretary shall select qualified schools that apply from each State. 108 STAT. 4722 “(3) The Secretary may provide a priority for receiving funds under this subsection to— “(A) schools that are located in low-income areas (as defined by the Secretary); and “(B) schools that rarely offer 3 or more choices of qualified products per meal. “(4) On request, the Secretary shall provide information to the Committee on Education and Labor, and the Committee on Agriculture, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the impact of the pilot project on participating schools, including— “(A) the extent to which participating children increased consumption of qualified products; “(B) the extent to which increased consumption of qualified products offered under the pilot project has contributed to a reduction in fat intake in the school breakfast and school lunch programs; “(C) the desirability of requiring that— “(i) each school participating in the school breakfast program increase the number of choices of qualified products offered per meal to at least 2 choices; “(ii) each school participating in the school lunch program increase the number of choices of qualified products offered per meal; and “(iii) the Secretary provide additional Federal reimbursements to assist schools in complying with clauses (i) and (ii); “(D) the views of school food service authorities on the pilot project; and “(E) any increase or reduction in costs to the schools in offering the additional qualified products. “(5) Subject to the availability of funds appropriated to carry out this subsection, the Secretary shall use not more than $5,000,000 for each of fiscal years 1995 through 1997 to carry out this subsection. “(6) For purposes of this subsection, qualified products shall include organically produced agricultural commodities and products beginning on the date the Secretary establishes an organic certification program for producers and handlers of agricultural products in accordance with the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).”. (e) Increased Choices of Lowfat Dairy Products and Lean Meat and Poultry Products.— Section 18 of such Act (42 U.S.C. 1769) (as amended by subsection (d)) is further amended by adding at the end the following new subsection: “(h) (1) The Secretary is authorized to establish a pilot project to assist schools participating in the school lunch program established under this Act, and the school breakfast program established under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773), to offer participating students additional choices of lowfat dairy products (including lactose-free dairy products) and lean meat and poultry products (including, subject to paragraph (6), organically produced agricultural commodities and products) (collectively referred to in this subsection as ‘qualified products’). “(2) The Secretary shall establish procedures under which schools may apply to participate in the pilot project. To the maxi-108 STAT. 4723 mum extent practicable, the Secretary shall select qualified schools that apply from each State. “(3) The Secretary may provide a priority for receiving funds under this subsection to— “(A) schools that are located in low-income areas (as defined by the Secretary); and “(B) schools that rarely offer 3 or more choices of qualified products per meal. “(4) On request, the Secretary shall provide information to the Committee on Education and Labor, and the Committee on Agriculture, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the impact of the pilot project on participating schools, including— “(A) the extent to which participating children increased consumption of qualified products; “(B) the extent to which increased consumption of qualified products offered under the pilot project has contributed to a reduction in fat intake in the school breakfast and school lunch programs; “(C) the desirability of requiring that— “(i) each school participating in the school breakfast program increase the number of choices of qualified products offered per meal to at least 2 choices; “(ii) each school participating in the school lunch program increase the number of choices of qualified products offered per meal; and “(iii) the Secretary provide additional Federal reimbursements to assist schools in complying with clauses (i) and (ii); “(D) the views of the school food service authorities on the pilot project; and “(E) any increase or reduction in costs to the schools in offering the additional qualified products. “(5) Subject to the availability of funds appropriated to carry out this subsection, the Secretary shall use not more than $5,000,000 for each of fiscal years 1995 through 1997 to carry out this subsection. “(6) For purposes of this subsection, qualified products shall include organically produced agricultural commodities and products beginning on the date the Secretary establishes an organic certification program for producers and handlers of agricultural products in accordance with the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.).”. (f) Reduced Paperwork and Application Requirements and Increased Participation Pilots.—Section 18 of such Act (42 U.S.C. 1769) (as amended by subsection (e)) is further amended by adding at the end the following new subsection: “(i) (1) Subject to the availability of advance appropriations under paragraph (8), the Secretary shall make grants to a limited number of schools to conduct pilot projects in 2 or more States approved by the Secretary to— “(A) reduce paperwork; “(B) reduce application and meal counting requirements; and “(C) make changes that will increase participation in the school lunch and school breakfast programs. 108 STAT. 4724 “(2) (A) Except as provided in subparagraph (B), the Secretary may waive the requirements of this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) relating to counting of meals, applications for eligibility, and related requirements that would preclude the Secretary from making a grant to conduct a pilot project under paragraph (1). “(B) The Secretary may not waive a requirement under subparagraph (A) if the waiver would prevent a program participant, a potential program recipient, or a school from receiving all of the benefits and protections of this Act, the Child Nutrition Act of 1966, or a Federal statute or regulation that protects an individual constitutional right or a statutory civil right. “(C) No child otherwise eligible for free or reduced price meals under section 9 or under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) shall be required to pay more under a program carried out under this subsection for such a meal than the child would otherwise pay under section 9 or under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), respectively. “(3) To be eligible to receive a grant to conduct a pilot project under this subsection, a school shall— “(A) submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may reasonably require, including, at a minimum, information— “(i) demonstrating that the program carried out under the project differs from programs carried out under subparagraph (C), (D), or (E) of section 11(a)(1); “(ii) demonstrating that at least 40 percent of the students participating in the school lunch program at the school are eligible for free or reduced price meals; “(iii) demonstrating that the school operates both a school lunch program and a school breakfast program; “(iv) describing the funding, if any that the school will receive from non-Federal sources to carry out the pilot project; “(v) describing and justifying the additional amount, over the most recent prior year reimbursement amount received under the school lunch program and the school breakfast program (adjusted for inflation and fluctuations in enrollment), that the school needs from the Federal government to conduct the pilot; and “(vi) describing the policy of the school on a la carte and competitive foods; “(B) not have a history of violations of this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); and “(C) meet any other requirement that the Secretary may reasonably require. “(4) To the extent practicable, the Secretary shall select schools to participate in the pilot program under this subsection in a manner that will provide for an equitable distribution among the following types of schools: “(A) Urban and rural schools. “(B) Elementary, middle, and high schools. “(C) Schools of varying income levels. “(5) (A) Except as provided in subparagraph (B), a school conducting a pilot project under this subsection shall receive-108 STAT. 4725 commodities in an amount equal to the amount the school received in the prior year under the school lunch program under this Act and under the school breakfast program under section 4 of the Child Nutrition Act of 1966, adjusted for inflation and fluctuations in enrollment. “(B) Commodities required for the pilot project in excess of the amount of commodities received by the school in the prior year under the school lunch program and the school breakfast program may be funded from amounts appropriated to carry out this section. “(6) (A) Except as provided in subparagraph (B), a school conducting a pilot project under this subsection shall receive a total Federal reimbursement under the school lunch program and school breakfast program in an amount equal to the total Federal reimbursement for the school in the prior year under each such program (adjusted for inflation and fluctuations in enrollment). “(B) Funds required for the pilot project in excess of the level of reimbursement received by the school in the prior year (adjusted for inflation and fluctuations in enrollment) may be taken from any non-Federal source or from amounts appropriated to carry out this subsection. If no appropriations are made for the pilot projects, schools may not conduct the pilot projects. “(7) (A) The Secretary shall require each school conducting a pilot project under this subsection to submit to the Secretary documentation sufficient for the Secretary, to the extent practicable, to— “(i) determine the effect that participation by schools in the pilot projects has on the rate of student participation in the school lunch program and the school breakfast program, in total and by various income groups; “(ii) compare the quality of meals served under the pilot project to the quality of meals served under the school lunch program and the school breakfast program during the school year immediately preceding participation in the pilot project; “(iii) summarize the views of students, parents, and administrators with respect to the pilot project; “(iv) compare the amount of administrative costs under the pilot project to the amount of administrative costs under the school lunch program and the school breakfast program during the school year immediately preceding participation in the pilot project; “(v) determine the reduction in paperwork under the pilot project from the amount of paperwork under the school lunch and school breakfast programs at the school; and “(vi) determine the effect of participation in the pilot project on sales of, and school policy regarding, a la carte and competitive foods. “(B) Not later than January 31, 1998, 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 containing— “(i) a description of the pilot projects approved by the Secretary under this subsection; “(ii) a compilation of the information received by the Secretary under paragraph (1) as of this date from each school conducting a pilot project under this subsection; and “(iii) an evaluation of the program by the Secretary. 108 STAT. 4726 “(8) There are authorized to be appropriated to carry out this subsection $9,000,000 for each fiscal year during the period beginning October 1, 1995, and ending July 31, 1998.”.