,,ii #aacth ,,congress #b;d ,session ,s4 #bbdh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #aj1 #bjad ,mr4 ,franken introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,richard ,b4 ,russell ,national ,school ,lunch ,act and the ,child ,nutrition ,act of #aiff to increase the number of children eligible for free school meals1 with a phased-in transition period1 with an offset4 #a4 ,short title ,this ,act may be cited as the ,expand ,school ,meals ,act of #bjad4 ,i ,transition period #aja4 ,phased-in increase in ,states providing free school lunches and breakfasts ,section #aa of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agei;a7 is amended by adding at the end the following3 7h7 ,phased-,in increase in ,states providing free school lunches and breakfasts 7#a7 ,in general ,the ,secretary shall expand the service of free lunches and breakfasts provided at schools participating in the school lunch program under this ,act and the school breakfast program under section #d of the ,child ,nutrition ,act of #aiff 7#db ,u4,s4,c4 #aggc7 in ,states selected by the ,secretary in accordance with paragraph 7#b74 7#b7 ,selection of ,states 7,a7 ,in general ,a ,state that elects to participate in the program under this subsection shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require4 7,b7 ,first year ,for the school year beginning ,july #a1 #bjad1 the ,secretary shall enroll in the program under this subsection any ,state that1 as of ,april #aj1 #bjad1 has enacted a law under which1 in compliance with this ,act and the ,child ,nutrition ,act of #aiff 7#db ,u4,s4,c4 #agga et seq47 7as appropriate71 school food authorities in the ,state provide free breakfasts or lunches in lieu of reduced-price breakfasts or lunches in schools statewide4 7,c7 ,subsequent years 7i7 ,in general ,the ,secretary shall enroll in the program under this subsection not more than-- 7,i7 for the school year beginning ,july #a1 #bjae1 #e additional ,states2 7,,ii7 for the school year beginning ,july #a1 #bjaf1 #e additional ,states2 7,,iii7 for the school year beginning ,july #a1 #bjag1 #e additional ,states2 7,,iv7 for the school year beginning ,july #a1 #bjah1 #e additional ,states2 and 7,v7 for the school year beginning ,july #a1 #bjai1 #e additional ,states4 7ii7 ,priority ,in enrolling ,states1 the ,secretary shall give priority to ,states that-- 7,i7 have enacted a law described in subparagraph 7,b7 after ,april #aj1 #bjad2 7,,ii7 have school food authorities that provide free breakfasts or lunches in lieu of reduced-price breakfasts or lunches in schools in the ,state2 or 7,,iii7 have high levels of participation in the free or reduced-price lunch program1 as determined by the ,secretary4 7#c7 ,income eligibility ,for any ,state enrolled in the program under this subsection1 the income guidelines for determining eligibility for free lunches or breakfasts in the ,state shall be #ahe percent of the applicable family size income levels contained in the nonfarm income poverty guidelines prescribed by the ,office of ,management and ,budget1 as adjusted annually in accordance with section #i7;b77#a77;,b74 7#d7 ,relationship to universal meal service in high poverty areas ,a school for which a local educational agency has elected to receive special assistance payments under subsection 7a77#a77;,f7 may not receive any additional payments under this subsection4 4 #ajb4 ,period of effectiveness ,the amendments made by section #aja shall be effective only during the period beginning on the date of enactment of this ,act and ending on ,june #cj1 #bjai4 ,,ii ,permanent change #bja4 ,free lunch eligibility 7a7 ,in general ,section #i7;b77#a7 of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #ageh7;b77#a77 is amended-- 7#a7 by redesignating subparagraph 7,b7 as subparagraph 7,d72 7#b7 by striking 7b77#a77;,a7 ,not and inserting the following3 7b7 ,income eligibility guidelines 7#a7 ,establishment 7,a7 ,in general ,not 2 7#c7 in subparagraph 7,a7-- 7,a7 in the first sentence1 by striking and reduced price2 7,b7 in the second sentence-- 7i7 by striking ,the income guidelines for determining eligibility for free lunches shall be #acj percent and inserting the following3 7,b7 ,free lunches ,the income guidelines for determining eligibility for free lunches shall be #ahe percent 2 and 7ii7 by striking subparagraph 7,b7 and inserting subparagraph 7,d72 7,c7 by striking the third sentence2 and 7,d7 in the last sentence1 by striking ,the ,office and inserting the following3 7,c7 ,frequency of revisions ,the ,office 2 and 7#d7 in subparagraph 7,d7 7as redesignated by paragraph 7#a77-- 7,a7 by striking 7,d7 ,the and inserting the following3 7,d7 ,amount of revisions ,the 2 and 7,b7 by striking subparagraph 7,a7 of this paragraph and inserting subparagraph 7,c74 7b7 ,conforming amendments 7#a7 ,section #i of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #ageh7 is amended-- 7,a7 in subsection 7b7-- 7i7 by striking free and reduced price each place it appears 7other than paragraph 7#g77 and inserting free2 7ii7 by striking free or reduced price each place it appears and inserting free2 7iii7 in paragraph 7#b77;,b77i71 by striking 1 and shall contain and all that follows through or reduced price lunches2 7iv7 in paragraph 7#c7-- 7,i7 in subparagraph 7,e77iii71 by striking free or reduced-price each place it appears and inserting free2 and 7,,ii7 in subparagraph 7,f7-- 7aa7 in clause 7i71 by striking ,subject to clauses 7ii7 and 7iii71 and inserting ,subject to clause 7ii712 7bb7 in clause 7ii77,,ii71 by striking #acc percent both places it appears in items 7aa7 and 7bb7 and inserting #ahe percent2 7cc7 by striking clause 7iii72 and 7dd7 by redesignating clauses 7iv7 and 7v7 as clauses 7iii7 and 7iv71 respectively2 7v7 in paragraph 7#g7-- 7,i7 in the paragraph heading1 by striking and reduced price and inserting meals2 7,,ii7 by striking and reduced price policy each place it appears and inserting meals policy2 and 7,,iii7 in subparagraph 7,b71 by striking and reduced price meals and inserting meals2 7vi7 in paragraph 7#i7-- 7,i7 in the paragraph heading1 by striking and reduced price2 7,,ii7 by striking subparagraph 7,b72 and 7,,iii7 by redesignating subparagraph 7,c7 as subparagraph 7,b72 7vii7 in paragraph 7#aj71 by striking or a reduced price lunch2 and 7viii7 in paragraph 7#aa71 in the first sentence1 by striking or reduced price lunches2 7,b7 in subsection 7c71 in the third sentence1 by striking or at a reduced cost2 7,c7 in subsection 7d71 by striking or reduced price each place it appears2 and 7,d7 in subsection 7e71 by striking 1 reduced price14 7#b7 ,section #aa of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agei;a7 is amended-- 7,a7 in subsection 7a7-- 7i7 in paragraph 7#a7-- 7,i7 in subparagraph 7,a7-- 7aa7 by striking the sum of2 and 7bb7 by striking and the product obtained by multiplying and all that follows through for such fiscal year2 7,,ii7 in subparagraph 7,b7-- 7aa7 by striking or reduced price lunches the first place it appears2 7bb7 by striking or reduced price lunches1 as the case may be12 and 7cc7 by striking and reduced price lunches2 7,,iii7 in subparagraph 7,c7-- 7aa7 in clause 7ii71 by striking or reduced price lunches or breakfasts each place it appears2 and 7bb7 in clause 7iii71 by striking or reduced price2 and 7,,iv7 in subparagraph 7,d71 by striking and reduced price lunches each place it appears in clauses 7iii7 and 7iv72 and 7ii7 in paragraph 7#b71 by striking and the special assistance factor for reduced price and all that follows through free lunches2 7,b7 in subsection 7b71 in the first sentence1 by striking and reduced price2 7,c7 in subsection 7d71 by striking and the average number of children who received reduced price lunches each place it appears paragraphs 7#a7 and 7#b72 and 7,d7 in subsection 7e7-- 7i7 in the second sentence1 by striking 1 and shall serve meals at a reduced price and all that follows through such section2 and 7ii7 in the third sentence1 by striking or reduced priced4 7#c7 ,section #ab7l77#d7 of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agfj7l77#d77 is amended-- 7,a7 in subparagraph 7,c71 by striking and reduced price2 7,b7 by striking subparagraph 7,d72 7,c7 in subparagraph 7,h71 by striking or reduced price2 and 7,d7 by redesignating subparagraphs 7,e7 through 7,m7 as subparagraphs 7,d7 through 7,l71 respectively4 7#d7 ,section #ac of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agfa7 is amended-- 7,a7 in subsection 7a7-- 7i7 in paragraph 7#a77;,a77i71 by striking or reduced price each place it appears2 and 7ii7 in paragraph 7#e71 by striking or reduced price2 and 7,b7 in subsection 7f77#c71 by striking or reduced price4 7#e7 ,section #ag of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agff7 is amended-- 7,a7 in subsection 7a77#b77;,b77i71 by striking or reduced price2 7,b7 in subsection 7c7-- 7i7 in paragraph 7#a71 by inserting 7as calculated on the day before the date of enactment of the ,expand ,school ,meals ,act of #bjad7 after lunches1 reduced price lunches2 7ii7 in paragraph 7#b71 by inserting 7as calculated on the day before the date of enactment of the ,expand ,school ,meals ,act of #bjad7 after breakfasts1 reduced price breakfasts2 and 7iii7 by striking paragraph 7#d7 and inserting the following3 7#d7 ,determinations 7,a7 ,free meals ,determinations with regard to eligibility for free meals and supplements shall be made in accordance with the income eligibility guidelines for free lunches under section #i4 7,b7 ,reduced price meals ,determinations with regard to eligibility for reduced price meals and supplements shall be made in accordance with the income eligibility guidelines for reduced price lunches under section #i1 as in effect on the day before the date of enactment of the ,expand ,school ,meals ,act of #bjad4 2 7,c7 in subsection 7f77#c7-- 7i7 by striking or reduced price each place it appears2 and 7ii7 in subparagraph 7,a77iii77,,ii77aa71 in the item heading1 by striking or reduced price2 and 7,d7 in subsection 7r77#a77;,b71 by striking or reduced price4 7#f7 ,section #ag;,a7c77#a7 of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agff;a7c77#a77 is amended in the matter preceding subparagraph 7,a7 by striking or reduced price4 7#g7 ,section #ah of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agfi7 is amended by striking subsection 7j74 7#h7 ,section #ai of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agfi;a7 is amended-- 7,a7 by striking or reduced price each place it appears2 and 7,b7 by striking and reduced price each place it appears4 7#i7 ,section #bj7;b7 of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agfi;b7b77 is amended by striking and reduced price4 7#aj7 ,section #ba7;a77#a77;,b7 of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agfi;b-#a7;a77#a77;,b77 is amended-- 7,a7 in the matter preceding clause 7i71 by striking or reduced price2 and 7,b7 in clause 7iii71 by striking and reduced price4 7c7 ,transition rules ,the ,secretary of ,agriculture shall carry out the amendments made by paragraphs 7#b7 and 7#h7 of subsection 7b7 in accordance with transition rules established by the ,secretary4 #bjb4 ,free breakfast eligibility 7a7 ,in general ,section #d of the ,child ,nutrition ,act of #aiff 7#db ,u4,s4,c4 #aggc7 is amended-- 7#a7 in subsection 7b7-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,a77i77,,ii7-- 7,i7 by striking 1 for reduced price breakfasts12 7,,ii7 by striking or reduced price2 and 7,,iii7 by striking clause 7,b7 of this paragraph and inserting subparagraph 7,b72 7ii7 in subparagraph 7,b7-- 7,i7 in the third sentence1 by striking or reduced price2 and 7,,ii7 by striking the second sentence2 7iii7 by striking subparagraph 7,c72 7iv7 by redesignating subparagraphs 7,d7 and 7,e7 as subparagraphs 7,c7 and 7,d71 respectively2 and 7v7 in subparagraph 7,d7 7as so redesignated7-- 7,i7 in the subparagraph heading1 by striking and reduced price and inserting meals2 7,,ii7 by striking and reduced price policy each place it appears and inserting meals policy2 and 7,,iii7 by striking and reduced price meals and inserting meals2 and 7,b7 in paragraph 7#b7-- 7i7 in subparagraph 7,a71 by striking or reduced price2 and 7ii7 by striking subparagraph 7,c72 and 7#b7 in subsections 7d77#a77;,a7 and 7e77#a77;,a71 by striking or at a reduced price each place it appears4 7b7 ,conforming amendments 7#a7 ,section #g of the ,child ,nutrition ,act of #aiff 7#db ,u4,s4,c4 #aggf7 is amended-- 7,a7 in subsection 7e77#b77;,b77ii71 by striking or reduced price2 7,b7 in subsection 7g77#b77;,b77i77,i71 by striking and reduced price2 and 7,c7 in subsection 7i71 by striking and reduced price each place it appears in paragraphs 7#b77;,b77iii7 and 7#c77;,b77i74 7#b7 ,section #ag7;d77#b77;,a77i7 of the ,child ,nutrition ,act of #aiff 7#db ,u4,s4,c4 #aghf7;d77#b77;,a77i77 is amended by striking and reduced price4 7#c7 ,section #bj7;b7 of the ,child ,nutrition ,act of #aiff 7#db ,u4,s4,c4 #aghi7;b77 is amended by striking and reduced-price4 7#d7 ,section #bc7;d77#b7 of the ,child ,nutrition ,act of #aiff 7#db ,u4,s4,c4 #agic7;d77#b77 is amended by striking or reduced price4 #bjc4 ,period of effectiveness ,the amendments made by this title shall be effective beginning on ,july #a1 #bjai4 ,,iii ,offset #cja4 ,denial of deduction for punitive damages 7a7 ,disallowance of ,deduction 7#a7 ,in general ,section #afb7;g7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively1 7,b7 by striking ,if and inserting3 7#a7 ,treble damages ,if 1 and 7,c7 by adding at the end the following new paragraph3 7#b7 ,punitive damages ,no deduction shall be allowed under this chapter for any amount paid or incurred for punitive damages in connection with any judgment in1 or settlement of1 any action4 ,this paragraph shall not apply to punitive damages described in section #ajd7;c74 4 7#b7 ,conforming amendment ,the heading for section #afb7;g7 of such ,code is amended by inserting or ,punitive ,damages after ,laws4 7b7 ,inclusion in ,income of ,punitive ,damages ,paid by ,insurer or ,otherwise 7#a7 ,in general ,part ,,ii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ia4 ,punitive damages compensated by insurance or otherwise ,gross income shall include any amount paid to or on behalf of a taxpayer as insurance or otherwise by reason of the taxpayer's liability 7or agreement7 to pay punitive damages4 4 7#b7 ,reporting requirements ,section #fjda of such ,code is amended by adding at the end the following new subsection3 7h7 ,section ,to ,apply to ,punitive ,damages ,compensation ,this section shall apply to payments by a person to or on behalf of any corporation1 individual1 partnership1 or other entity1 as insurance or otherwise1 by reason of such corporation1 individual1 partnership1 or entity's liability 7or agreement7 to pay punitive damages4 4 7#c7 ,conforming amendment ,the table of sections for part ,,ii of subchapter ,b of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #ia4 ,punitive damages compensated by insurance or otherwise4 4 7c7 ,effective ,date ,the amendments made by this section shall apply to damages paid or incurred on or after the date of the enactment of this ,act4