NUTRITION SERVICES INCENTIVE PROGRAM.

SEC. 309. NUTRITION SERVICES INCENTIVE PROGRAM. Section 311 of the Older Americans Act of 1965 (42 U.S.C. 3030a) is amended—(1) in subsection (b), by adding at the end the following:“(3) State agencies that elect to make grants and enter into contracts for purposes of this section shall promptly and equitably disburse amounts received under this subsection to the recipients of the grants and contracts.”;(2) in subsection (c)—(A) in paragraph (1), by inserting “(including bonus commodities)” after “commodities”;(B) in paragraph (2), by inserting “(including bonus commodities)” after “commodities”;120 STAT. 2546(C) in paragraph (3), by inserting “(including bonus commodities)” after “products”; and(D) by adding at the end the following:“(4) Among the commodities provided under this subsection, the Secretary of Agriculture shall give special emphasis to foods of high nutritional value to support the health of older individuals. The Secretary of Agriculture, in consultation with the Assistant Secretary, is authorized to prescribe the terms and conditions respecting the provision of commodities under this subsection.”;(3) in subsection (d), to read as follows:“(d)(1) Amounts provided under subsection (b) shall be available only for the purchase, by State agencies, recipients of grants and contracts from the State agencies (as applicable), and title VI grantees, of United States agricultural commodities and other foods for their respective nutrition projects, subject to paragraph (2).“(2) An entity specified in paragraph (1) may, at the option of such entity, use part or all of the amounts received by the entity under subsection (b) to pay a school food authority (within the meaning of the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.)) to obtain United States agricultural commodities for such entity’s nutrition projects, in accordance with an agreement between the entity and the school food authority, under which such payments—“(A) shall cover the cost of such commodities; and“(B) may cover related expenses incurred by the school food authority, including the cost of transporting, distributing, processing, storing, and handling such commodities.”;(4) in subsection (e), by striking “2001” and inserting “2007”; and(5) in subsection (f)—(A) in the matter preceding paragraph (1), by striking “the Secretary of Agriculture and the Secretary of Health and Human Services” and inserting “the Assistant Secretary and the Secretary of Agriculture”; and(B) by striking paragraphs (1) and (2) and inserting the following:“(1) school food authorities participating in programs authorized under the Richard B. Russell National School Lunch Act within the geographic area served by each such State agency, area agency on aging, and provider; and“(2) the foods available to such State agencies, area agencies on aging, and providers under subsection (c).”.