Commodity Distribution Reform Act of 1987

(Measure indefinitely postponed in Senate, H.R. 1340 passed in lieu)

Commodity Distribution Reform Act of 1987 - Expresses the sense of the Congress that the Department of Agriculture's distribution of commodities should be improved in quality and efficiency in order to remove surplus commodities from the market and to provide nutritious foods for assistance to the needy.

Amends the Agriculture and Food Act of 1981 to extend the commodity processing (into food products) program through June 30, 1989.

Directs the Secretary of Agriculture (Secretary), with regard to specified commodity distribution programs including food stamps, school lunch and breakfast and child care, older persons, and temporary emergency food assistance, to: (1) develop and make available specifications for quality and form of commodities and products; (2) make commodities and products available in optional sizes and forms; and (3) establish an ongoing product acceptability field testing program.

Requires, to the maximum extent practicable, distributed commodities and products to be consistent with dietary guidelines published by the Secretary and the Secretary of Health and Human Services.

Provides for the replacement of commodities and products that are not in good condition. Requires the Secretary to establish: (1) replacement procedures; and (2) a system to monitor the condition and age of stored commodities and products.

Requires the Secretary to: (1) establish distribution schedules consistent with recipient needs; (2) monitor State delivery systems and establish values for donated commodities for State agency use in allocating commodities against entitlements; (3) distribute and update commodity recipes; and (4) issue implementing regulations, and ensure their uniform regional interpretation, within nine months of enactment of this Act, including regulations concerning intrastate fees, performance standards, delivery schedules, and State commodity allocations.

Amends the Food Security Act of 1985 and the National School Lunch Act to extend the eligibility of certain school districts to receive school lunch program cash or commodity letters of credit in lieu of commodities through the school year ending June 30, 1989. Requires such school districts, in their contracts used to buy food, to provide that food purchased with the Secretary's assistance be produced and processed in the United States.

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 up to ten percent of savings from rebates or competitive bidding for nutrition services and administrative costs associated with serving additional recipients.

Permits an additional amount of up to ten percent to be used for such purposes. Requires the Secretary to issue implementing rules for such additional ten percent which shall take into account the following criteria: (1) the types of persons to be served and the per participant State nutrition and administrative costs; (2) the incremental per participant costs of increased service; (3) amounts allocated under such rebate savings; and (4) other administrative factors.

Makes such rebate savings provisions effective on the first day of the first quarter beginning 180 days after the date of enactment of this Act.

Amends the Child Nutrition Act of 1966 to provide for the coordination of WIC with Medicaid counseling.

Requires 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.

Allows States to use up to one percent of the unspent WIC funds for the preceding fiscal year for the current fiscal year and for the current fiscal year for the succeeding fiscal year.

Amends the Consolidated Omnibus Reconciliation Act of 1985 to extend from one year to 15 months the period of time to complete studies of quality control programs contracted for by the Secretary.