mit to the President and the Congress annually a written report of the results of its study together with such recommendations for administrative and legislative changes as it deems appropriate.

(7) The Secretary shall provide the Council with such technical and other assistance, including secretarial and clerical assistance, as may be required to carry out its functions under this Act.

"(8) Members of the Council shall serve without compensation but shall receive reimbursement for necessary travel and subsistence expenses incurred by them in the performance of the duties of the Council.

"(i) On September 1, 1975, the Secretary shall forward to each State an advance payment for the month of September pursuant to subsection (c) of this section which shall not be less than the total payment made to such State for the month of July 1975, pursuant to subsection (c) of this section and the Secretary shall forward any remaining payment due pursuant to subsection (c) of this section for the month of September 1975 no later than thirty days following the receipt of valid claims. Thereafter, on the first day of each month the Secretary shall, in a similar manner, forward an advance monthly payment to each State pursuant to subsection (c) of this section which shall not be less than the total payment made to such State in the second preceding month pursuant to subsection (c) of this section and the Secretary shall forward any remaining payment due pursuant to subsection (c) of this section for such month no later than thirty days following receipt of valid claims: Provided, That any funds advanced to a State for which valid claims have been established within ninety days shall be deducted from the next appropriate monthly advance payment, unless the claimant requests a hearing with the Secretary prior to the ninetieth day. Ou each July 1 and on each January 1 the Secretary shall publish in the Federal Register the amount of advance payments to be made to each State pursuant to this subsection for that month.".

AMENDMENT INTENDED TO BE PROPOSED BY MR. MCGOVERN AND MR. JAVITS TO S. 850 A BILL TO AMEND THE NATIONAL SCHOOL LUNCH AND CHILD NUTRITION ACTS

SUMMER FOOD PROGRAM

Sec. 2. On page 6, line 2, insert the following:

"Sec. 12. Section 13 of the National School Lunch Act is amended to read as follows:

"(a) (1) There is hereby authorized to be appropriated such sums as are necessary for the fiscal year ending June 30, 1976, September 30, 1977, and September 30, 1978, to enable the Secretary to formulate and carry out a program to assist States through grants-in-aid and other means, to initiate, maintain, and expand nonprofit food service programs for children in service institutions. For purposes of this section, the term 'service institutions' means nonresidential public or private, nonprofit institutions and residential public or private nonprofit summer camps that develop special summer programs providing food service similar to that available to children under the school lunch program under this Act or the school breakfast program under the Child Nutrition Act of 1966 during the school year. To the maximum extent feasible, consistent with the purposes of this section, special summer programs shall utilize the existing food service facilities of public and nonprofit private schools. Any eligible service institution shall receive the summer food program upon its request.

"(2) Service institutions eligible to participate under the program authorized under this section shall be limited to those which conduct a regularly scheduled program for children from areas in which poor economic conditions exist, for any period during the months of May through September at site locations where organized recreation activities or food services are provided for children in attendance."

"(3) For the purposes of this section, "poor economic conditions" shall mean an area in which at least 33% percent of the children are eligible for free or reduced price school meals under the National School Lunch Act and Child Nutrition Act as shown by information provided from Model City target areas, departments of welfare, zoning commissions, census tracts, by the number of free and reduced price lunches or breakfasts served to children attending schools located in the area of summer food sites, or from other applicable sources. "State" shall mean any of the fifty states, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa and the Trust Territory of the Pacific Islands.

(b) Disbursement to service institutions shall equal the full cost of food service operations, except that such financial assistance to any such institution shall not exceed (1) 75.5 cents for all costs excepting administrative costs for each lunch and supper served, (2) 6 cents for administrative costs for each lunch and supper served, (3) 42 cents for all costs except administrative costs for each breakfast served, (4) 3 cents for administrative costs for each breakfast served, (5) 19.75 cents for all costs except administrative costs for each meal supplement served, and (6) 1.5 cents for administrative costs for each meal supplement served. Provided, That the above amounts shall be adjusted each March 1 to the nearest 4 cent in accordance with changes for the year ending January 31 in the series for food away from home of the Consumer Price Index published by the Bureau of Labor Statistics of the Department of Labor. The initial such adjustment shall reflect the change in the series for food away from home during the period January 31, 1975, to January 31, 1976. The cost of food service operations shall include the cost of obtaining, preparing and serving food and related administrative costs.

Provided further, that no service institution shall be prohibited from serving breakfast, suppers, and meal supplements as well as lunches unless the service period of different meals coincides or overlaps.

(c) Disbursements shall be made to service institutions only for meals served during the months of May through September, except that this period limitation shall not apply to institutions which develop food service programs for children on school vacation at any time under a continuous school calendar.

(d) No later than June 1, July 1, and August 1 of each year, the Secretary shall forward to each State an advance payment for meals served in that month pursuant to subsection (b), which amount shall be no less than (1) the total payment made to such State for meals served pursuant to subsection (b) for the same calendar month of the preceding calendar year or (2) 65 per centum of the amount estimated by the State, on the basis of approved applications, to be needed to reimburse service institutions for meals served pursuant to subsection (b) in that month, whichever is the greater.

The Secretary shall forward any remaining payment due pursuant to subsection (b) no later than 60 days following receipt of valid claims. Any funds advanced to a State for which valid claims have not been established within 180 days shall be deducted from the next appropriate monthly advance payment unless the claimant requests a hearing with the Secretary prior to the 180th day. Provided, however, that those programs operating during non-summer vacations during a continuous school year calendar shall receive advance payments on the first day of each month involved.

(e) Service institutions to which funds are disbursed under this section shall serve meals consisting of a combination of foods and meeting minimum nutritional standards prescribed by the Secretary on the basis of tested nutritional research. Such meals shall be served without cost to children attending service institutions approved for operation under this section.

(f) The Secretary shall publish proposed regulations relating to the implementation of the summer food program by January 1 of each fiscal year, and shall publish final regulations, guidelines, applications and handbooks by March 1 of each fiscal year.

In order to improve program planning, the Secretary is authorized to provide service institutions with start-up costs not to exceed 10 per centum of the federal funds provided such service institutions for meals served pursuant to subsection (b) during the preceding summer. Any such start-up costs shall be subtracted from payments subsequently made to service institutions for meals served pursuant to subsection (b).

(g) Each service institution participating under this section shall, insofar as practicable, utilize in its program foods designated from time to time by the Secretary as being in abundance, either nationally or in the institution area, or foods donated by the Secretary. Irrespective of the amount of funds appropriated under this section, foods available under section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) or purchased under section 32 of the Act of August 24, 1935, (7 U.S.C. 612e), or section 709 of the Food and Agriculture Act of 1965 (7 U.S.C. 1446a-1), may be donated by the Secretary to service institutions in accordance with the needs as determined by authorities of these institutions for utilization in their feeding programs.

(h) If in any State the State educational agency is not permitted by law or is otherwise unable to disburse the funds paid to it under this section to any service institution in the State, the Secretary shall withhold all funds apportioned under 52-880-75- 2

this section and shall disburse the funds so withheld directly to service institutions in the State for the same purpose and subject to the same conditions as are required of a State educational agency disbursing funds made available under this section.

(i) The value of assistance to children under this section shall not be considered to be income or resources for any purpose under any Federal or State laws, including laws relating to taxation and welfare and public assistance programs. Expenditures of funds from State and local sources for the maintenance of food programs for children shall not be diminished as a result of funds received under this section.

(j) There is hereby authorized to be appropriated for any fiscal year such sums as may be necessary to the Secretary for his administrative expenses under this section.

(k) The Secretary shall pay to each State for administrative costs incurred pursuant to this section an amount equal to 2 per centum of the funds distributed to that State pursuant to subsection (b). Provided, however, that no state shall receive less than $10,000 each fiscal year for its administrative costs unless the funds distributed to that State pursuant to subsection (b) total less than $50,000 for such fiscal year. Provided further, that States shall undertake effective outreach to inform institutions in low income areas of the availability of the summer food program and to reach the maximum number of low income children who are served free or reduced price school lunches during the school year.

NUTRITION PROGRAM STAFF STUDY

Sec. 3. On page 27, after line 11, insert the following:

"Sec. 17. The Secretary of Agriculture is authorized to carry out a study to determine how States are utilizing federal funds provided to States for the administration of the child nutrition programs authorized by the National School Lunch Act and the Child Nutrition Act of 1966, and to determine the level of funds needed by the States for administrative purposes. The study shall report on the current size and structure of State staffs, job descriptions and classifications; training provided to such staff; representation of minorities on staffs; and the allocation of staff time, training time, and federal administrative dollars spent among each of the various child nutrition programs. The study shall assess State needs for additional staff positions, training, and funds, for each of the above areas, including additional State needs to implement adequately the provisions of this Act. The study shall also determine State staffing needs and training program support required to conduct effective outreach for the purpose of reaching the maximum number of eligible children in the special food service program and the summer food program. The Secretary shall review the study design with the appropriate Congressional committees prior to its implementation, and shall report his findings together with any recommendations he may have with respect to additional legislation, to the Congress no later than March 1, 1976."

STAFF EXPLANATION OF S. 850

S. 850 would amend the National School Lunch Act and the Child Nutrition Act of 1966. The major provisions of the bill would—

(1) Make permanent the authorization for appropriations in the Child Nutrition Act for the school breakfast program and encourage the expansion of that program. (Under existing law, the authorization is scheduled to expire with the fiscal year ending June 30, 1975.)

(2) Except Federal funds received by a State to provide free and reduced price lunches under the National School Lunch Act from the general requirement that States match every dollar of Federal funds with $3.00 of State and local funds. No State could, however, reduce its present level of State funds.

(3) Provide that State educational agencies could establish income guidelines for reduced price lunches under the National School Lunch Act-at levels up to 100 percent above those in the income poverty guidelines prescribed by the Secretary of Agriculture. (Under existing law, the State income guidelines may not be in excess of 75 percent above the income poverty guidelines prescribed by the Secretary.)

(4) Expand the definition of "school" under the national School Lunch Act to include any public or licensed nonprofit private residential child caring institution such as orphanages and homes for the mentally retarded.

(5) Extend through the fiscal year ending September 30, 1978, the commodity distribution program authorized by section 14 of the National School Lunch Act and require the donation to the school lunch program of cereal and shortening and oil products at the level provided during the fiscal year 1974. (Under existing law, the Secretary's authority to use section 32 funds and funds of the Commodity Credit Corporation to purchase commodities pursuant to section 14 of the National School Lunch Act will expire on June 30, 1975.)

(6) Require that not less than 75 percent of the assistance provided under section 6 of the National School Lunch Act be in the form of foods purchased by the U.S. Department of Agriculture.

(7) Provide that the value of assistance to children under the National School Lunch Act will not be considered income or resources for any purposes under any Federal or State law.

(8) Make Puerto Rico eligible for participation under the special milk program authorized by the Child Nutrition Act.

(9) Continue (with amendments) through the fiscal year ending June 30, 1977, the summer food program of the special food service program for children. (Under existing law, the program will terminate on June 30, 1975.)

(10) Continue (with amendments) on a permanent basis the special food service program for children. (Under existing law, the program will terminate on June 30, 1975.)

The amendments provide that Federal payments under the special food service program shall be at a fixed reimbursement rate with semi-annual adjustments to reflect changes in the Consumer Price Index for food served away from home. (11) Require that the Secretary make available and apportion among the States $5,000,000 during each fiscal year for equipment assistance under the summer food program and the special food service program.

(12) Continue on a permanent basis (with amendments) the special supplemental food program for women, infants, and children (WIC). (Under existing law, the program will terminate on June 30, 1975.)

The major amendments include

(A) An increase in the funding level for each fiscal year from $100,000,000 to $300,000,000.

(B) An increase in the amount the Secretary is authorized to pay States for administrative costs from 10 to 25 percent of the funds provided under the program. Administrative costs are defined as including costs for outreach.

(C) The establishment of a National Advisory Council on Maternal, Infant, and Fetal Nutrition. The Council is to make a continuing study of the WIC program and programs under related Acts providing diet supplementation to women, infants, and children with a view to determining how the programs may be improved.

(D) A requirement that advance monthly payments be made to each State.

SECTION-BY-SECTION ANALYSIS OF S. 850

SCHOOL BREAKFAST PROGRAM

Sec. 2. This section merely extends the School Breakfast Program. Sec. 3.-This section directs the Secretary of Agriculture to carry out a program of information to the States in regard to the School Breakfast Program. National participation in this program is only 10% of the School Lunch Program. Some schools may be uninformed as to the availability or the benefits of this program, and this section is an attempt to reach them and bring them into participation.

MATCHING

Sec. 4. This section makes a technical change in the $3.1 State matching requirement under the National School Act. It is needed because the nature of the School Lunch Program is changing slightly with more free meals being served. The result is that States are unable to meet, in every instance, the matching requirements as much of this money has come from paying children. This change will not affect the amount of appropriated funds needed from the State or local level.

INCOME GUIDELINES FOR REDUCED PRICE LUNCHES

Sec. 5. This section increases the eligibility for reduced price lunches to in clude more children from middle-income families. Last year this provision was also slightly expanded, and resulted in increased participation by tens of thou

sands of children daily. In many States, this helped keep total participation levels equal to the year before, as many other paying children dropped out of the program as food costs went up. This section is specifically intended to help those lower-middle income families who have felt the pinch of greatly increased food prices and have children in school. By expanding the eligibility for reduced price lunches, children from families whose incomes aren't so low as to qualify them for a free lunch but who come from working families with not a great deal of income, will be able to participate in the School Lunch Program, instead of dropping out. This section should help stem the flow of millions of paying children who have dropped out of the program in the last few years.

NON-PROFIT PRIVATE SCHOOLS

Sec. 6. This section makes a technical change, deleting some matching language that is no longer needed as a result of the newer performance funding requirements of the National School Lunch Act.

MISCELLANEOUS PROVISIONS AND DEFINITIONS

Sec. 7.-This section changes the definition of school to include licensed nonprofit private residential institutions such as orphanages, homes for the mentally retarded, etc.

Currently only 9.3% of children in institutional care participate in the National School Lunch Program. The rest receive some federally donated commodities and some milk assistance. However, they receive nothing approaching the benefits of the School Lunch Program, in commodities or per meal reimbursements.

The vast majority (80%) of these children would be eligible for the School Lunch Program if they resided at home. The purpose of this section is to give them the same valuable nutritional support through the School Lunch Program as other children their age receive, who live at home and attend school. In their bloc grant proposal for all child nutrition programs, the Administration provides in their budget for per meal reimbursements to institutionalized children. This section does the same.

COMMODITIES

Sec. 8. This section extends per meal commodity donations for the School Lunch Program. These commodities provide the foundation for this important program, and help support our agricultural markets. School lunch administrators and personnel are overwhelmingly in support of this extension. Without it, school meal costs would increase drastically, because many school districts cannot get commodities at the same price the Department of Agriculture can, nor could they inspect or grade the foods with same efficiency. If schools lost the commodities and lunch prices went up, a large number of the 25 million children receiving meals each day would either pay higher prices than they are now paying, receive inferior meals, or drop out of the program.

In addition to maintaining commodity support for the School Lunch Program, this section restores to the School commodity program flour, oil and shortening. The Department of Agriculture has withheld these commodities this entire school year while increasing shipment of them overseas. As a result, they are unavailable to schoolchildren for the first time in many years. Their loss has hurt local school districts that had facilities and employees intact to prepare foods from them, and the children who had been receiving them for years. Their loss has also been a factor in the increased prices paid this year by participating children. This section merely restores those cereal, shortening, and oil products which had previously been available to the schools.

COMMODITIES

Sec. 9. This section continues the current practice of providing the bulk of the commodity assistance to the School Lunch Program in the form of food, not cash to purchase food. USDA and Nutrition Committee studies show the purchasing power advantage held by USDA. If assistance under this section were given to schools in cash and not commodities, the local school districts would he presented with an added fiscal burden, as purchasing the same foods as USDA would cost them more, thus driving up the costs to children and driving some from the program. Authorization for this practice ends this year.