CHILD CARE FOOD PROGRAM.

SEC. 105. CHILD CARE FOOD PROGRAM. (a) Amendment to Heading.— The heading for section 17 of the National School Lunch Act (42 U.S.C. 1766) is amended to read as follows: “child and adult care food program”. (b) Other Amendments to Section 17.— Section 17 of the National School Lunch Act (42 U.S.C. 1766) is amended— (1) in subparagraph (O of subsection (f)(3)— (A) in the first sentence, by inserting before the period the following: “and expansion funds to finance the administrative expenses for such institutions to expand into low-income or rural areas”; (B) in the second sentence, by inserting “and expansion funds” after “start-up funds”; (C) in the third sentence, by inserting “and expansion funds” after “Start-up funds”; (D) in the fourth sentence, by inserting “and expansion funds” after “start-up funds”; (E) in the fifth sentence, by inserting “and expansion funds” after “start-up funds”; and (F) by inserting after the first sentence the following new sentence: “Institutions that have received start-up funds may also apply at a later date for expansion funds.”; (2) in subsection 0)— (A) by inserting “(1)” after “(1)”; and (B) by adding at the end the following new paragraphs: “(2) The Secretary shall conduct demonstration projects to test innovative approaches to remove or reduce barriers to participation in the program established under this section regarding family or group day care homes that operate in low-income areas or that primarily serve low-income children. As part of such demonstration 103 STAT. 884projects, the Secretary may provide grants to, or otherwise modify administrative reimbursement rates for, family or group day care home sponsoring organizations. “(3) The Secretary and the States shall provide training and technical assistance to assist family and group day care home sponsoring organizations in reaching low-income children.”; (3) in subsection (p)— (A) by adding at the end of paragraph (1) the following: “Lunches served by each such institution for which reimbursement is claimed under this section shall provide, on the average, approximately ⅓ of the daily recommended dietary allowance established by the Food and Nutrition Board of the National Research Council of the National Academy of Sciences. Such institutions shall make reasonable efforts to serve meals that meet the special dietary requirements of participants, including efforts to serve foods in forms palatable to participants.”; and (B) by adding at the end the following new paragraph: “(6) The Governor of any State may designate to administer the program under this subsection a State agency other than the agency that administers the child care food program under this section.”, and (4) by adding at the end the following new subsection: “(q) (1) From amounts appropriated or otherwise made available for purposes of carrying out this section, the Secretary shall carry out 2 statewide demonstration projects under which private for-profit organizations providing nonresidential day care services shall qualify as institutions for the purposes of this section. An organization may participate in a demonstration project described in the preceding sentence if— “(A) at least 25 percent of the children served by such organization meet the income eligibility criteria established under section 9(b) for free or reduced price meals; and “(B) as a result of the participation of the organization in the project— “(i) the nutritional content or quality of meals and snacks served to children under the care of such organization will be improved; or “(ii) fees charged by such organization for the care of the children described in subparagraph (A) will be lowered. “(2) Under each such project, the Secretary shall examine— “(A) the budgetary impact of the change in eligibility being tested; “(B) the extent to which, as a result of such change, additional low-income children can be reached; and “(C) which outreach methods are most effective. “(3) The Secretary shall choose to conduct demonstration projects under this subsection— “(A) 1 State that— “(i) has a history of participation of for-profit organizations in the child care food program; “(ii) allocates a significant proportion of the amounts it receives for child care under title XX of the Social Security Act in a manner that allows low-income parents to choose the type of child care their children will receive; “(iii) has other funding mechanisms that support parental choice for child care; 103 STAT. 885 “(iv) has a large, State-regulated for-profit child care industry that serves low-income children; and “(v) has large sponsors of family or group day care homes that have a history of recruiting and sponsoring for-profit child care centers in the child care food program; and “(B) 1 State in which— “(i) the majority of children for whom child care arrangements are made are being cared for in center-based child care facilities; “(ii) for-profit child care centers and preschools are located throughout the State and serve both rural and urban populations; “(iii) at least % of the licensed child care centers and preschools operate as for-profit facilities; “(iv) all licensed facilities are subject to identical nutritional requirements for food service that are similar to those required under the child care food program; and “(v) less than 1 percent of child care centers participating in the child care food program receive assistance under title XX of the Social Security Act. “(4) Such project shall— “(A) commence not earlier than May 1, 1990, and not later than June 30, 1990; and “(B) terminate on September 30, 1992.”. (c) Family or Group Day Care Home Demonstration Project.— (1) In general.— Section 503(e) of the Hunger Prevention Act of 1988 (42 U.S.C. 1766 note) is amended by striking “not later than 12 months after the date on which the project was fully initiated” and inserting “September 30, 1990”. (2) Effective date.— The amendment made by paragraph (1) shall be effective as of October 1, 1989. The Secretary of Agriculture shall reimburse day care institutions and family or group day care sponsoring organizations participating in the demonstration project authorized under section 503(a) of the Hunger Prevention Act of 1988 (42 U.S.C. 1766 note) as if this Act was enacted before such date. (d) Implementation.— (1) Expansion; demonstration project.— The Secretary of Agriculture shall implement the amendments made by subsections (b)(1) and (b)(2) not later than July 1, 1990. (2) Dietary requirements for adult day care food program.— Not later than July 1, 1990, the Secretary of Agriculture shall issue final regulations to implement the amendments made by subsection (b)(3).