Commodity Distribution Reform Act and WIC Amendments of 1987

(House agreed to Senate amendments with an amendment)

Commodity Distribution Reform Act and WIC Amendments of 1987 - Expresses the sense of the Congress that commodity and product distribution: (1) should be improved; (2) is inextricably linked to the agricultural support and surplus removal programs; and (3) is an important mission of the Department of Agriculture.

Sets forth requirements which the Secretary of Agriculture (Secretary) must observe in developing specifications for commodity acquisition for nutrition programs under the National School Lunch Act, the Child Nutrition Act of 1966, the Food Stamp Act of 1977, the Older Americans Act of 1965 (nutrition programs for the elderly), the Agriculture and Consumer Protection Act of 1973 (commodity supplemental food program and charitable institutions program), and the Temporary Emergency Food Assistance Act of 1983.

Directs the Secretary to establish an advisory council on the distribution of donated commodities to recipient agencies. Requires the council to report annually to the Secretary and to specified congressional committees. Terminates the council at the end of FY 1992.

Enumerates duties of the Secretary with respect to the provision of commodities to recipient agencies. Sets deadlines for the implementation of systems and procedures to: (1) provide recipient agencies with options on package sizes and forms of such commodities; (2) monitor the manner in which State distribution agencies carry out their responsibilities; (3) establish criteria for the charging of storage and delivery fees to recipient agencies by State distribution agencies; (4) provide technical assistance on commodity use and nutritional data; (5) replace commodities that are stale, spoiled, out of condition or otherwise non-compliant; (6) monitor commodity conditions to ensure high quality; (7) establish a value for each donated entitlement commodity for use in determining how far donations fulfill Federal requirements; and (8) require each State distribution agency to receive donated commodities within 90 days after order, unless the agency specifies a longer delivery period.

Declares that the Secretary may not refuse any offer in response to an invitation to bid for a commodity purchase contract solely on the basis that such offer provides less than the total amount of poundage for a destination specified in the invitation.

Directs the Secretary to require each State distribution agency to: (1) evaluate and implement storage and distribution systems; (2) use commercial facilities for such services unless the Secretary approves alternatives; and (3) monitor contract processors.

Directs the Secretary to: (1) issue regulations with respect to procedures for allocating donated commodities among the States and guidelines for intrastate commodity distribution; (2) provide for systematic cost-benefit analysis and monitoring of recipient agency reports concerning commodities suitable to recipient needs; (3) develop and implement an ongoing field testing program to determine the acceptability of commodities to recipient agencies; (4) require, with specified exceptions, that recipient agencies purchase only food products that are produced in the United States; (5) ensure consistent interpretation by Department of Agriculture regional offices of the policies and regulations governing donated commodities; and (6) report annually to specified congressional Committees.

Amends the National School Lunch Act to require each State agency to offer each school food authority in its jurisdiction receiving commodities under the school lunch program, commodities and their products equal in per meal value to at least the required national average assistance level established under such Act.

Directs the Secretary to carry out at least one demonstration project to provide and redistribute agricultural commodities and food products to needy individuals and families through community food banks. Sets forth recordkeeping and monitoring requirements. Requires annual reports to the Congress beginning July 1, 1988, with a final report due on July 1, 1990. Terminates project authority as of December 31, 1990.

Amends the National School Lunch Act to provide that, upon their request, school districts receiving all cash or all commodity letters of credit in lieu of entitlement commodities for school lunch programs on January 1, 1987, shall receive either all cash or all commodity letters of credit for each school year through December 31, 1990. States that school districts electing cash or commodity letters of credit shall receive bonus commodities as if they were receiving all entitlement commodities instead of an alternative.

Amends the Agriculture and Food Act of 1981 to the extend the national commodity processing programs through FY 1990.

Directs the Comptroller General of the United States to monitor and assess the implementation of this Act by the Secretary. Requires a report to specified congressional committees within 18 months after the enactment of this Act.

Amends the Child Nutrition Act of 1966, with regard to the supplemental food program for women, children, and infants (WIC), to permit States to use savings from rebates or competitive bidding for nutrition services and administrative costs associated with serving additional recipients.

Requires the Secretary to: (1) conduct a study of nutrition services and administrative funding; and (2) report to the Congress by March 1, 1989.

Provides for the coordination of WIC with Medicaid counseling.

Directs the Secretary to: (1) conduct a study of the savings in Medicaid and in State indigent health care programs during the first 60 days after birth regarding newborns whose mothers were WIC participants during pregnancy; and (2) report to the Congress by February 1, 1990.

Requires that infant formula bought for the WIC program be registered with the Food and Drug Administration and meet the requirements of the Infant Formula Act.

Limits State agency fiscal year reallocation authority to not more than one percent of WIC funds.