PROCESSING OF COMMODITIES.

SEC. 4104. PROCESSING OF COMMODITIES. (a) In General.—Section 17 of the Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237) is amended— (1) in the section heading, by inserting “and processing” after “donations”; and (2) by adding at the end the following: “(c) Processing. “(1) In general. For any program included under subsection (b), the Secretary may, notwithstanding any other provision of Federal or State law relating to the procurement of goods and services— “(A) retain title to commodities delivered to a processor, on behalf of a State (including a State distributing agency and a recipient agency), until such time as end products containing the commodities, or similar commodities as approved by the Secretary, are delivered to a State distributing agency or to a recipient agency; and “(B) promulgate regulations to ensure accountability for commodities provided to a processor for processing into end products, and to facilitate processing of commodities into end products for use by recipient agencies. “(2) Regulations. The regulations described in paragraph (1)(B) may provide that— “(A) a processor that receives commodities for processing into end products, or provides a service with respect to the commodities or end products, in accordance with the agreement of the processor with a State distributing agency or a recipient agency, provide to the Secretary a bond or other means of financial assurance to protect the value of the commodities; and “(B) in the event a processor fails to deliver to a State distributing agency or a recipient agency an end product in conformance with the processing agreement entered into under this Act, the Secretary— “(i) take action with respect to the bond or other means of financial assurance pursuant to regulations promulgated under this subsection; and “(ii) distribute any proceeds obtained by the Secretary to 1 or more State distributing agencies and recipient agencies, as determined appropriate by the Secretary.” . (b) Definitions.—Section 18 of the Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237) is amended by striking paragraphs (1) and (2) and inserting the following: “(1) Commodities. The term ‘commodities’ means agricultural commodities and their products that are donated by the Secretary for use by recipient agencies. “(2) End product. The term ‘end product’ means a food product that contains processed commodities.” . (c) Technical and Conforming Amendments.—Section 3 of the Commodity Distribution Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237) is amended— (1) in subsection (a)— (A) in paragraph (2), by striking subparagraph (B) and inserting the following: “(B) the program established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));” ; and (B) in paragraph (3)(D), by striking “the Committee on Education and Labor” and inserting “the Committee on Education and the Workforce”; (2) in subsection (b)(1)(A)(ii), by striking “section 32 of the Agricultural Adjustment Act (7 U.S.C. 601 et seq.)” and inserting “section 32 of the Act of August 24, 1935 (7 U.S.C. 612c)”; (3) in subsection (e)(1)(D)(iii), by striking subclause (II) and inserting the following: “(II) the program established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));” ; and (4) in subsection (k), by striking “the Committee on Education and Labor” and inserting “the Committee on Education and the Workforce”.