SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN.

SEC. 203. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN. (a) Additional Requirements for Applicants.— (1) Physical presence requirement.— Section 17(d)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is amended by adding at the end the following:112 STAT. 3159 “(C) Physical presence.— “(i) In general.— Except as provided in clause (ii) and subject to the requirements of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), each individual seeking certification or recertification for participation in the program shall be physically present at each certification or recertification determination in order to determine eligibility under the program. “(ii) Waivers.— If the agency determines that the requirement of clause (i) would present an unreasonable barrier to participation, a local agency may waive the requirement of clause (i) with respect to— “(I) an infant or child who— “(aa) was present at the initial certification visit; and “(bb) is receiving ongoing health care from a provider other than the local agency; or “(II) an infant or child who— “(aa) was present at the initial certification visit; “(bb) was present at a certification or recertification determination within the 1-year period ending on the date of the certification or recertification determination described in clause (i); and “(cc) has one or more parents who work.”. (2) Income documentation requirement.— Section 17(d)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)), as amended by paragraph (1), is further amended by adding at the end the following: “(D) Income documentation.— “(i) In general.— Except as provided in clause (ii), in order to participate in the program pursuant to clause (i) of paragraph (2)(A), an individual seeking certification or recertification for participation in the program shall provide documentation of family income. “(ii) Waivers.— A State agency may waive the documentation requirement of clause (i), in accordance with criteria established by the Secretary, with respect to— “(I) an individual for whom the necessary documentation is not available; or “(II) an individual, such as a homeless woman or child, for whom the agency determines the requirement of clause (i) would present an unreasonable barrier to participation.”. (3) Adjunct documentation requirement.— Section 17(d)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)), as amended by paragraph (2), is further amended by adding at the end the following: “(E) Adjunct documentation.— In order to participate in the program pursuant to clause (ii) or (iii) of paragraph (2)(A), an individual seeking certification or recertification for participation in the program shall provide documentation of receipt of assistance described in that clause.”. 112 STAT. 3160 (b) Education and Educational Materials Relating to Effects of Drug and Alcohol Use.— Section 17(e)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(e)(1)) is amended by adding at the end the following: “A local agency participating in the program shall provide education or educational materials relating to the effects of drug and alcohol use by a pregnant, postpartum, or breastfeeding woman on the developing child of the woman.”. (c) Distribution of Nutrition Education Materials.— Section 17(e)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(e)(3)) is amended— (1) by striking “(3) The” and inserting the following: “(3) Nutrition education materials.— “(A) In general.— The”; and (2) by adding at the end the following: “(B) Sharing of materials.— 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 authorized under sections 4(a) and 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.”. (d) Use of Claims From Vendors and Participants.— Section 17(f)(21) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(21)) is amended to read as follows: “(21) Use of claims from vendors and participants.— A State agency may use funds recovered from vendors and participants, as a result of a claim arising under the program, to carry out the program during— “(A) the fiscal year in which the claim arises; “(B) the fiscal year in which the funds are collected; and “(C) the fiscal year following the fiscal year in which the funds are collected.”. (e) Individuals Participating at More Than One Site.— Section 17(f) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)) is amended by adding at the end the following: “(23) Individuals participating at more than one site.— Each State agency shall implement a system designed by the State agency to identify individuals who are participating at more than one site under the program.”. (f) Identification of High Risk Vendors; Compliance Investigations.— (1) In general.— Section 17(f) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)), as amended by subsection (e), is further amended by adding at the end the following: “(24) High risk vendors.— Each State agency shall— “(A) identify vendors that have a high probability of program abuse; and “(B) conduct compliance investigations of the vendors.”. (2) Regulations.— The Secretary of Agriculture shall promulgate— (A) not later than March 1, 1999, proposed regulations to carry out section 17(f )(24) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(f)(24)), as added by paragraph (1); and 112 STAT. 3161 (B) not later than March 1, 2000, final regulations to carry out section 17(f)(24) of that Act. (g) Reauthorization of Program.— Section 17(g)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(g)(1)) is amended in the first sentence by striking “1998” and inserting “2003”. (h) Purchase of Breast Pumps.— Section 17(h)(1)(C) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(1)(C)) is amended— (1) by striking “(C) In” and inserting the following: “(C) Remaining amounts.— “(i) In general.— Except as provided in clause (ii), in”; and (2) by adding at the end the following: “(ii) Breast pumps.— A State agency may use amounts made available under clause (i) for the purchase of breast pumps.”. (i) Nutrition Services and Administration.— (1) Allocation of amounts.— Section 17(h)(2)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(A)) is amended in the first sentence by striking “1998” and inserting “2003”. (2) Technical amendment.— Section 17(h)(2)(A)(iv) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(A)(iv)) is amended by striking “, to the extent funds are not already provided under subparagraph (1)(v) for the same purpose,”. (3) Level of per-participant expenditure for nutrition services and administration.— Section 17(h)(2)(B)(ii) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(2)(B)(ii)) is amended by striking “15 percent” and inserting “10 percent (except that the Secretary may establish a higher percentage for State agencies that are small)”. (4) Technical amendments.— Section 17(h)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(3)) is amended— (A) in subparagraph (E), by striking “In the case” and all that follows through “subsequent fiscal year,” and inserting “For each fiscal year,”; and (B) by striking subparagraphs (F) and (G). (5) Conversion of amounts for supplemental foods to amounts for nutrition services and administration.— Section 17(h)(5)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(5)(A)) is amended in the matter preceding clause (i) by striking “achieves” and all that follows through “such State agency may” and inserting “submits a plan to reduce average food costs per participant and to increase participation above the level estimated for the State agency, the State agency may, with the approval of the Secretary,”. (j) Infant Formula Procurement.— Section 17(h)(8)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)(A)) is amended by adding at the end the following: “(iii) Competitive bidding system.— A State agency using a competitive bidding system for infant formula shall award contracts to bidders offering the lowest net price unless the State agency demonstrates to the satisfaction of the Secretary that the weighted average retail price for different brands of infant formula in the State does not vary by more than 5 percent.”. (k) Infrastructure and Breastfeeding Promotion and Support Activities.— Section 17(h)(10)(A) of the Child Nutrition Act 112 STAT. 3162of 1966 (42 U.S.C. 1786(h)(10)(A)) is amended by striking “1998” and inserting “2003”. (l) Consideration of Price Levels of Retail Stores for Participation in Program.— (1) In general.— Section 17(h) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by adding at the end the following: “(11) Consideration of price levels of retail stores for participation in program.— “(A) In general.— For the purpose of promoting efficiency and to contain costs under the program, a State agency shall, in selecting a retail store for participation in the program, take into consideration the prices that the store charges for foods under the program as compared to the prices that other stores charge for the foods. “(B) Subsequent price increases.— The State agency shall establish procedures to ensure that a retail store selected for participation in the program does not subsequently raise prices to levels that would otherwise make the store ineligible for participation in the program.”. (2) Regulations.— The Secretary of Agriculture shall promulgate— (A) not later than March 1, 1999, proposed regulations to carry out section 17(h)(11) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(11)), as added by paragraph (1); and (B) not later than March 1, 2000, final regulations to carry out section 17(h)(11) of that Act. (m) Management Information System Plan.— Section 17(h) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)), as amended by subsection (1)(1), is further amended by adding at the end the following: “(12) Management information system plan.— “(A) In general.— In consultation with State agencies, vendors, and other interested persons, the Secretary shall establish a long-range plan for the development and implementation of management information systems (including electronic benefit transfers) to be used in carrying out the program. “(B) Report.— Not later than 2 years after the date of enactment of this paragraph, the Secretary shall submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on actions taken to carry out subparagraph (A). “(C) Interim period.— Prior to the date of submission of the report of the Secretary required under subparagraph (B), a State agency may not require retail stores to pay the cost of systems or equipment that may be required to test electronic benefit transfer systems.”. (n) Use of Funds in Preceding and Subsequent Fiscal Years.— (1) In general.— Section 17(i)(3)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(i)(3)(A)) is amended— (A) by striking “subparagraphs (B) and (C)” and inserting “subparagraph (B)”; and 112 STAT. 3163 (B) by striking clauses (i) and (ii) and inserting the following: “(i) (I) not more than 1 percent (except as provided in subparagraph (C)) of the amount of funds allocated to a State agency under this section for supplemental foods for a fiscal year may be expended by the State agency for allowable expenses incurred under this section for supplemental foods during the preceding fiscal year; and “(II) not more than 1 percent of the amount of funds allocated to a State agency under this section for nutrition services and administration for a fiscal year may be expended by the State agency for allowable expenses incurred under this section for supplemental foods and nutrition services and administration during the preceding fiscal year; and “(ii) (I) for each fiscal year, of the amounts allocated to a State agency for nutrition services and administration, an amount equal to not more than 1 percent of the amount allocated to the State agency under this section for the fiscal year may be expended by the State agency for allowable expenses incurred under thus section for nutrition services and administration during the subsequent fiscal year; and “(II) for each fiscal year, of the amounts allocated to a State agency for nutrition services and administration, an amount equal to not more than ½ of 1 percent of the amount allocated to the State agency under this section for the fiscal year may be expended by the State agency, with the prior approval of the Secretary, for the development of a management information system, including an electronic benefit transfer system, during the subsequent fiscal year.”. (2) Conforming amendments.— Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) is amended— (A) in subsection (h)(10)(A), by inserting after “nutrition services and administration funds” the following: “and supplemental foods funds”; and (B) in subsection (i)(3)— (i) by striking subparagraphs (C) through (G); and (ii) by redesignating subparagraph (H) as subparagraph (C). (o) Farmers’ Market Nutrition Program.— (1) Matching requirement.— Section 17(m)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(3)) is amended in the first sentence by inserting “program income or” after “satisfied from”. (2) Criteria for additional funds.— Section 17(m)(6)(C) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)(C)) is amended— (A) by striking “serve additional recipients in”; (B) by striking clause (ii) and inserting the following: “(ii) documentation that demonstrates that— “(I) there is a need for an increase in funds; and “(II) the use of the increased funding will be consistent with serving nutritionally at-risk persons and expanding the awareness and use of farmers’ markets;”; (C) in clause (iii), by striking the period at the end and inserting “; and”; and (D) by adding at the end the following:112 STAT. 3164 “(iv) whether, in the case of a State that intends to use any funding provided under subparagraph (G)(i) to increase the value of the Federal share of the benefits received by a recipient, the funding provided under subparagraph (G)(i) will increase the rate of coupon redemption.”. (3) Ranking criteria for state plans.— Section 17(m)(6)) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)) is amended— (A) by striking subparagraph (F); and (B) by redesignating subparagraph (G) as subparagraph (F). (4) Funding for current and new states.— Section 17(m)(6)(F) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(6)(F)), as redesignated by paragraph (3)(B), is amended— (A) in clause (i)— (i) in the first sentence, by striking “that wish” and all follows through “to do so” and inserting “whose State plan”; and (ii) in the second sentence, by striking “for additional recipients”; and (B) in the second sentence of clause (ii), by striking “that desire to serve additional recipients, and”. (5) Reauthorization of program.— Section 17(m)(9)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended by striking “1998” and inserting “2003”. (p) Disqualification of Certain Vendors.— (1) In general.— Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) is amended by adding at the end the following: “(o) Disqualification of Vendors Convicted of Trafficking or Illegal Sales.— “(1) In general.— Except as provided in paragraph (4), a State agency shall permanently disqualify from participation in the program authorized under this section a vendor convicted of— “(A) trafficking in food instruments (including any voucher, draft, check, or access device (including an electronic benefit transfer card or personal identification number) issued in lieu of a food instrument under this section); or “(B) selling firearms, ammunition, explosives, or controlled substances (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)) in exchange for food instruments (including any item described in subparagraph (A) issued in lieu of a food instrument under this section). “(2) Notice of disqualification.— The State agency shall— “(A) provide the vendor with notification of the disqualification; and “(B) make the disqualification effective on the date of receipt of the notice of disqualification. “(3) Prohibition of receipt of lost revenues.— A vendor shall not be entitled to receive any compensation for revenues lost as a result of disqualification under this subsection. “(4) Exceptions in lieu of disqualification.— 112 STAT. 3165 “(A) In general.— A State agency may permit a vendor that, but for this paragraph, would be disqualified under paragraph (1), to continue to participate in the program if the State agency determines, in its sole discretion according to criteria established by the Secretary, that— “(i) disqualification of the vendor would cause hardship to participants in the program authorized under this section; or “(ii) (I) the vendor had, at the time of the violation under paragraph (1), an effective policy and program in effect to prevent violations described in paragraph (1); and “(II) the ownership of the vendor was not aware of, did not approve of, and was not involved in the conduct of the violation. “(B) Civil penalty.— If a State agency under subparagraph (A) permits a vendor to continue to participate in the program in lieu of disqualification, the State agency shall assess the vendor a civil penalty in an amount determined by the State agency, in accordance with criteria established by the Secretary, except that— “(i) the amount of the civil penalty shall not exceed $10,000 for each violation; and “(ii) the amount of civil penalties imposed for violations investigated as part of a single investigation may not exceed $40,000.”. (2) Regulations.— The Secretary of Agriculture shall promulgate— (A) not later than March 1, 1999, proposed regulations to carry out section 17(o) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(o)), as added by paragraph (1); and (B) not later than March 1, 2000, final regulations to carry out section 17(o) of that Act. (q) Criminal Forfeiture.— Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786), as amended by subsection (p)(1), is amended by adding at the end the following: “(p) Criminal Forfeiture.— “(1) In general.— Notwithstanding any provision of State law and in addition to any other penalty authorized by law, a court may order a person that is convicted of a violation of a provision of law described in paragraph (2), with respect to food instruments (including any item described in subsection (o)(1)(A) issued in lieu of a food instrument under this section), funds, assets, or property that have a value of $100 or more and that are the subject of a grant or other form of assistance under this section, to forfeit to the United States all property described in paragraph (3). “(2) Applicable laws.— A provision of law described in this paragraph is— “(A) section 12(g) of the National School Lunch Act (42 U.S.C. 1760(g)); and “(B) any other Federal law imposing a penalty for embezzlement, willful misapplication, stealing, obtaining by fraud, or trafficking in food instruments (including any item described in subsection (o)(1)(A) issued in lieu of a food instrument under this section), funds, assets, or property. 112 STAT. 3166 “(3) Property subject to forfeiture.— The following property shall be subject to forfeiture under paragraph (1): “(A) All property, real and personal, used in a transaction or attempted transaction, to commit, or to facilitate the commission of, a violation described in paragraph (1). “(B) All property, real and personal, constituting, derived from, or traceable to any proceeds a person obtained directly or indirectly as a result of a violation described in paragraph (1). “(4) Procedures; interest of owner.— Except as provided in paragraph (5), all property subject to forfeiture under this subsection, any seizure or disposition of the property, and any proceeding relating to the forfeiture, seizure, or disposition shall be subject to section 413 of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 853), other than subsection (d) of that section. “(5) Proceeds.— The proceeds from any sale of forfeited property and any amounts forfeited under this subsection shall be used— “(A) first, to reimburse the Department of Justice, the Department of the Treasury, and the United States Postal Service for the costs incurred by the Departments or Service to initiate and complete the forfeiture proceeding; “(B) second, to reimburse the Office of Inspector General of the Department of Agriculture for any costs incurred by the Office in the law enforcement effort resulting in the forfeiture; “(C) third, to reimburse any Federal, State, or local law enforcement agency for any costs incurred in the law enforcement effort resulting in the forfeiture; and “(D) fourth, by the State agency to carry out approval, reauthorization, and compliance investigations of vendors.”. (r) Study of Cost Containment Practices.— (1) In general.— The Secretary of Agriculture shall conduct a study on the effect of cost containment practices established by States under the special supplemental nutrition program for women, infants, and children authorized under section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) for the selection of vendors and approved food items (other than infant formula) on— (A) program participation; (B) access and availability of prescribed foods; (C) voucher redemption rates and actual food selections by participants; (D) participants on special diets or with specific food allergies; (E) participant use and satisfaction of prescribed foods; (F) achievement of positive health outcomes; and (G) program costs. (2) Report.— The Secretary shall submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate— (A) not later than 2 years after the date of enactment of this Act, an interim report describing the results of the study conducted under paragraph (1); and 112 STAT. 3167 (B) not later than 3 years after the date of enactment of this Act, a final report describing the results of the study conducted under paragraph (1). (s) Study of WIC Services.— (1) In general.— The Comptroller General of the United States shall conduct a study that assesses— (A) the cost of delivering services under the special supplemental nutrition program for women, infants, and children authorized under section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786), including the costs of implementing and administering cost containment efforts; (B) the fixed and variable costs incurred by State and local governments for delivering the services and the extent to which those costs are charged to State agencies; (C) the quality of the services delivered, taking into account the effect of the services on the health of participants; and (D) the costs incurred for personnel, automation, central support, and other activities to deliver the services and whether the costs meet Federal audit standards for allowable costs under the program. (2) Report.— Not later than 3 years after the date of enactment of this Act, the Comptroller General shall submit to the Secretary of Agriculture, the Committee on Education and the Workforce of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report containing the results of the study conducted under paragraph (1).