"(2) For purposes of this section, the term 'institution' means any public or private nonprofit organization where children are not maintained in permanent residence including but not limited to day care centers, settlement houses, recreation centers, family day care centers, Headstart centers, and institutions providing day care services for handicapped children. No such institution shall be eligible to participate in this program unless it has either local, State, or Federal licensing or approval as a child-care institution, or can satisfy the Secretary that it is in compliance with the applicable Federal Interagency Day Care Requirements of 1968: Provided, however, That lack of tax exempt status shall not prohibit eligibility for any institution under this section. The term 'State' means 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. Any institution shall receive the special food service program upon its request.

"(b) (1) APPORTIONMENT TO THE STATE. For each fiscal year beginning with the fiscal year ending June 30, 1976, the Secretary shall make special food service payments no less frequently than on a monthly basis to each State educational agency in an amount no less than the sum of the product obtained by multiplying (a) the number of breakfasts served in special food service programs within that State by the national average payment rate for breakfasts under section 4 of the Child Nutrition Act of 1966 as amended, (b) the number of breakfasts served in special food service programs within the State to children from families whose incomes meet the eligibility criteria for free school meals by the national average payment rate for free breakfasts under section 4 of the Child Nutrition Act of 1966 as amended, (c) the number of breakfasts served in special food service programs, within that State to children from families whose incomes meet the eligibility criteria for reduced price school meals by the national average payment rate for reduced price school breakfasts under section 4 of the Child Nutrition Act of 1966 as amended, (d) the number of lunches and suppers served in special food service programs within the State by the national average payment rate for lunches under section 4 of the National School Lunch Act, (e) the number of lunches and suppers served in special food service programs within that State to children from families whose incomes meet the eligibility criteria for free school meals by the national average payment rate for free school lunches under section 11 of the National School Lunch Act, (f) the number of lunches and suppers served in special food service programs in the State to children whose families meet the eligibility criteria for reduced price school meals by the national average payment factor for reduced price lunches under section 11 of the National School Lunch Act, (g) the number of snacks served in special food service programs in that State by 5 cents; (h) the number of snacks served in special food service programs in the State and to children from families whose incomes meet the eligibility criteria for free school meals by 20 cents, (i) the number of snacks served in special food service programs in that State to children from families whose incomes meet the eligibility criteria for reduced price school meals by 15 cents. The rates established pursuant to subsection (g), (h), and (i) shall be adjusted semiannually to the nearest one-fourth cent by the Secretary to reflect the changes in the series for food away from home of the Consumer Price Index published by the department of Labor Statistics of the Department of Labor: Provided, That the initial such adjustment shall be effective January 1, 1976, and shall reflect changes in the series food away from home during the period June through November 1975. Reimbursement for meals provided under this subsection or under subsection (2) of this section shall not be dependent upon collection of moneys from participating children.

"(2) For each fiscal year beginning with the fiscal year ending June 30, 1976, the Secretary shall make further special food service payments no less frequently that a monthly basis to each State educational agency in amounts equal to the sum of the product obtained by multiplying the number of breakfasts, lunches, suppers, and snacks served in special food service programs within that State by institutions that are determined to be especially needy by the difference between the cost of providing such meals (which shall include the full cost of obtaining, handling, serving, and preparing food as well as supervisory and administrative costs and indirect expenses, but not including the cost of equipment provided for under section 18 of this Act) and the respective rates for such meals specified in subsection (1).

"(3) No later than the first day of each month, the Secretary shall forward to each State an advance payment for meals served in that month pursuant to sub

sections (1) and (2) of this section, which payment shall be no less than the total payment made to such State for meals served pursuant to subsections (1) and (2) of this section for the most recent month for which final reimbursement claims have been settled. The Secretary shall forward any remaining payment due pursuant to subsections (1) and (2) of this section no later than thirty days following receipt of valid claims: Provided, That any funds advanced to a State for which valid claims have not been established within ninety days shall be deducted from the next appropriate monthly advance payments, unless the claimant requests a hearing with the Secretary prior to the ninetieth day.

"(c) Meals served by institutions participating in the program under this section shall consist of a combination of foods and shall meet minimum nutritional requirements prescribed by the Secretary on the basis of tested nutritional research. Such meals shall be served free to needy children. No physical segregation or other discrimination against any child shall be made because of his inability to pay, nor shall there be any overt identification of any such child by special tokens or tickets, announced or published lists of names or other means. No institution shall be prohibited from serving a breakfast, lunch, dinner, and snack to each eligible child each day.

"(d) Funds paid to any State under this section shall be disbursed by the State agency to institutions approved for participation of a nondiscriminatory basis to reimburse such institutions for all costs including labor and administrative expenses, of food service operations. All valid claims from such institutions shall be paid within thirty days.

"(e) Irrespective of the amount of funds appropriated under section 13 of this Act, 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. 612c), or section 709 of the Food and Agriculture Act of 1965 (7 U.S.C. 1446a-1), shall be donated by the Secretary of Agriculture to institutions participating in the special food service program in accordance with the needs as determined by authorities of these institutions for utilization in their feeding programs. The amount of such commodities donated to each State for each fiscal year shall be, at a minimum, the amount obtained by multiplying the number of lunches served in participating institutions during that fiscal year by the rate for commodities and cash in lieu thereof established for that fiscal year in accordance with the provisions of section 6 (e) of the National School Lunch Act. "(f) 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 provided under this section and shall disburse the funds so withheld directly to service institutions to 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.

"(g) 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.

"(h) 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.

"(i) States, State educational agencies, and service institutions participating in programs under this secction shall keep such accounts and records as may be necessary to enable the Secretary to determine whether there has been compliance with this section and the regulations hereunder. Such accounts and records shall at all times be available for inspection and audit by representatives of the Secretary and shall be preserved for such period of time, not in excess of five years, as the Secretary determines is necessary.”.

SEC. 14. The National School Lunch Act is amended by adding the following section:

"SEC. 17. As a national nutrition and health policy, it is the purpose and intent of the Congress that the special food service program and the summer food program be made available in all service institutions where it is needed to provide adequate nutrition for children in attendance. The Secretary is hereby directed, in cooperation with State educational and child-care agencies, to carry out a program of information to the schools in furtherance of this policy. Within

ninety days after the enactment of this legislation, the Secretary shall report to the committees of jurisdiction in the Congress his plans and those of the cooperating State agencies to bring about the needed expansion in the special food service and summer food program.".

NONFOOD ASSISTANCE

SEC. 15. The National School Lunch Act is amended by adding the following section:

"SEC. 18. (1) Of the sum appropriated for any fiscal year pursuant to the authorization contained in section 13 and section 16 of the Act, $5,000,000 shall be available to the Secretary for the purpose of providing, during each such fiscal year, nonfood assistance for the special food service program, and the summer food program, pursuant to the provisions of this Act. The Secretary shall apportion among the States during each fiscal year the aforesaid sum of $5,000,000 : Provided, That such an apportionment shall be made according to the ratio among the States of the number of children below age 6 who are members of households which have an annual income not above the applicable family size income level set forth in the income poverty guideline prescribed by the Secretary under section 9 (b) of the National School Lunch Act.

"(2) If any State cannot utilize all of the funds apportioned to it under the provisions of this section, the Secretary shall make further apportionments to the remaining States. Payments to any State of funds apportioned under the provisions of this subsection for any fiscal year shall be made upon condition that at least one-fourth of the cost of equipment financed under this section shall be borne by funds from sources within the State, except that such condition shall not apply with respect to funds used under this section to assist institutions determined by the State to be especially needy.

"(3) For purposes of this section, the term '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. "(4) 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 appor tioned under 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.".

SPECIAL SUPPLEMENTAL FOOD PROGRAM

SEC. 16. Section 17 of the Child Nutrition Act of 1966 is revised to read as follows:

"(a) The Congress finds that substantial numbers of pregnant women, infants, and young children are at special risk in respect to their physical and mental health by reason of poor or inadequate nutrition and/or health care. Therefore, it is the intent of this act to provide supplemental nutritious food as an adjunet to good health care during these critical times of growth and development in order to prevent the occurrence of these health problems.

"(b) For each fiscal year the Secretary shall make cash grants to the health department or comparable agency of each State, Indian tribe, band or group recognized by the Department of the Interior; or the Indian Health Service of the Department of Health, Education, and Welfare for the purpose of providing funds to local health or welfare agencies or private nonprofit agencies of such State, Indian tribe, band, or group recognized by the Department of the Interior; or the Indian Health Service of the Department of Health, Education, and Welfare, serving local health or welfare needs to enable such agencies to carry out health and nutrition programs under which supplemental foods will be made available to all pregnant or lactating women and to infants determined by competent professionals to be nutritional risks because of inadequate nutrition and inadequate income, in order to improve their health status. Such program shall be carried out without regard to whether a food stamp program or supplemental food program or a direct food distribution program is in effect in such area.

(c) In order to carry out the program provided for under subsection (b) of this section during each fiscal year, the Secretary shall use $300,000,000 out of funds appropriated by section 32 of the Act of August 24, 1935 (7 U.S.C. 612

(c)). In order to carry out such program during each fiscal year, there is authorized to be appropriated the sum of $300,000,000, but in the event that such sum has not been appropriated for such purpose by July 1 of each fiscal year, the Secretary shall use $300,000,000, or, if any amount has been appropriated for such program, the difference, if any, between the amount directly appropriated for such purpose and $300,000,000, out of funds appropriated by section 32 of the Act of August 24, 1935 (7 U.S.C. 612(c)). Any funds expended from such section 32 to carry out the provisions of subsection (a) of this section shall be reimbursed out of any supplemental appropriation hereafter enacted for the purpose of carrying out the provisions of such subsection, and such reimbursements shall be deposited into the fund established pursuant to such section 32, to be available for the purpose.

"(d) Whenever any program is carried out by the Secretary under authority of this section through any State or local or nonprofit agency, he is authorized to pay administrative costs not to exceed 25 percentum of the projected program funds provided to each State under the authority of this section: Provided, That each health department or comparable agency of each State, Indian tribe, band, or group recognized by the Department of the Interior; or the Indian Health Service of the Department of Health, Education, and Welfare receiving funds from the Secretary under this section shall, by January 1, each year, for approval by him as a prerequisite to receipt of funds under this section, submit a description of the manner in which administrative funds shall be spent, including, but not limited to, a description of the manner in which nutrition education and outreach services will be provided. Outreach funds shall be used to search out those most in need of the benefits of this program. The Secretary shall take affirmative action to insure that programs begin in areas most in need of special supplemental food: Provided further, That during the first three months of any program, or until the program reaches its projected caseload level, whichever comes first, the Secretary shall pay those administrative costs necessary to successfully commence the program.

"(e) The eligibility of persons to participate in the program provided for under subsection (a) of this section shall be determined by competent professional authority. Participants shall be residents or members of populations served by clinics or other health facilities determined to have significant numbers of infants and pregnant and lactating women at nutritional risk.

"(f) State or local agencies or groups carrying out any programs under this section shall maintain adequate medical records or the participants assisted to enable the Secretary to determine and evaluate the benefits of the nutritional assistance provided under this section. The Secretary shall convene an advisory committee made up of representatives from the Maternal and Child Health Division, of the Department of Health, Education, and Welfare, the Center for Disease Control, the Association of State and Territorial Public Health Nutrition Directors, the American Academy of Pediatrics, the National Academy of Science National Research Council, the American Dietetic Association, the American Public Health Association, the Public Health Service, and others as the Secretary deems appropriate. This committee shall study the methods available to successfully and economically evaluate in part or in total, the health benefits of the special supplemental food program. Their study shall consider the usefulness of the medical data collected and the methodology used by the Department of Agriculture and the Comptroller General of the United States prior to March 30, 1975. Their study shall also include the applicability to an evaluation of the special supplemental food program of Federal and State health, welfare, and nutrition assessment and surveillance projects currently being conducted. The purpose of this advisory committee shall be to determine and recommend in detail how, using accepted scientific methods, the health benefits of the special supplemental food program may best be evaluated and assessed. This advisory committee shall report to the Secretary no later than December 1, 1975. The Secretary shall submit to Congress his recommendations based on this study no later than March 1, 1976.

"(g) Definition of terms used in this section

"(1) 'Pregnant and lactating women' when used in connection with the term 'at nutritional risk' includes mothers up to six months post partum from lowincome populations who demonstrate one or more of the following characteristics: known inadequate nutritional patterns, unacceptably high incidence of anemia, high prematurity rates. or inadequate patterns of growth (underweight, obesity, or stunting). Such term (when used in connection with the term 'at nutritional

risk') also includes low-income individuals who have a history of high-risk pregnancy as evidenced by abortion, premature birth, or severe anemia.

"(2) 'Infants' when used in connection with the term 'at nutritional risk' means children under five years of age who are in low-income populations which have shown a deficient pattern of growth, by minimally acceptable standards, as reflected by an excess number of children in the lower percentiles of height and weight. Such term, when used in connection with 'at nutritional risk', may also include children under five years of age who (A) are in the parameter of nutritional anemia, or (B) are from low-income populations where nutritional studies have shown inadequate infant diets. Any child participating in a nonresidential child care program shall not be excluded from participating in the WIC program.

"(3) Supplemental foods' shall mean those foods containing nutrients known to be lacking in the diets of populations at nutritional risks and, in particular, those foods and food products containing high-quality protein, iron, calcium, vitamin A, and vitamin C. Such term may also include (at the discretion of the Secretary) any commercially formulated preparation specifically designed for women or infants. The contents of the food package shall be made available in such a manner as to provide flexibility based on medical necessity or cultural eating patterns.

"(4) Competent professional authority' includes physicians, nutritionists, registered nurses, dietitians, or State or local medically trained health officials as being competent professionally to evaluate nutritional risk.

“(5) 'Administrative costs' include costs for outreach, referral, operation, monitoring, nutrition education, general administration, startup, clinic, and administration of the State WIC office.

"(h) (1) There is hereby established a council to be known as the National Advisory Council on Maternal, Infant, and Fetal Nutrition (hereinafter in this section referred to as the 'Council') which shall be composed of fifteen members appointed by the Secretary. One member shall be a State director of the special supplemental food program, one member shall be a State fiscal director for the special supplemental food program (or the equivalent thereof), one member shall be a State health officer (or equivalent thereof), one member shall be a project director of a special supplemental food program in an urban area, one member shall be a project director of a special supplemental food program in a rural area, one member shall be a State public health nutrition director (or equivalent thereof), two members shall be parent recipients of the special supplemental food program, one member shall be a pediatrician, one member shall be an obstetrician, one member shall be a person involved at the retail sales of food in the special supplemental food program, two members shall be officers or employees of the Department of Health, Education, and Welfare, specially qualified to serve on the Council because of their education, training, experience, and knowledge in matters relating to maternal, infant, and fetal nutrition, and two members shall be officers or employees of the Department of Agriculture, specially qualified because of their education, training, experience, and knowledge in matters relating to maternal, infant, and fetal nutrition.

"(2) The eleven members of the Council appointed from outside the Department of Agriculture shall be appointed for terms of three years, except that the nine members first appointed to the Council shall be appointed as follows: Three members shall be appointed for terms of three years, three members shall be appointed for terms of two years, and three members shall be appointed for terms of one year. Thereafter all appointments shall be for a term of three years, except that a person appointed to fill an unexpired term shall serve only for the remainder of such term. Members appointed from the Department of Agriculture shall serve at the pleasure of the Secretary.

"(3) The Secretary shall designate one of the members to serve as Chairman and one to serve as Vice Chairman of the Council.

"(4) The Council shall meet at the call of the Chairman but shall meet at least once a year.

"(5) Eight members shall constitute a quorum and a vacancy on the Council shall not affect its powers.

"(6) It shall be the function of the Council to make a continuing study of the operation of the special supplemental food program and any related Act under which diet supplementation is provided to women, infants, and children, with a view to determining how such programs may be improved. The Council shall sub