Expand School Meals Act of 2014 - Amends the Richard B. Russell National School Lunch Act and the Child Nutrition Act of 1966 to require the Secretary of Agriculture (USDA) to gradually expand eligibility for free meals under the school lunch and breakfast programs to children whose family income falls at or below 185% of the federal poverty guidelines. (This makes children who are currently eligible for reduced price meals eligible for free meals.)
Requires the Secretary to: (1) begin this expansion in the school year beginning July 1, 2014, in states that have enacted a law under which school food authorities provide free breakfasts or lunches in lieu of reduced price breakfasts or lunches in schools statewide; and (2) continue such expansion in up to five additional states in each subsequent school through the school year beginning on July 1, 2019. Makes the new income eligibility guidelines effective on such date.
Amends the Internal Revenue Code to: (1) deny a tax deduction for any amount paid or incurred for punitive damages in connection with any judgment in, or settlement of, any action; and (2) include in gross income any amount paid as insurance or otherwise due to liability for punitive damages.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2248 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2248
To amend the Richard B. Russell National School Lunch Act and the Child
Nutrition Act of 1966 to increase the number of children eligible for
free school meals, with a phased-in transition period, with an offset.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 10, 2014
Mr. Franken introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Richard B. Russell National School Lunch Act and the Child
Nutrition Act of 1966 to increase the number of children eligible for
free school meals, with a phased-in transition period, with an offset.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Expand School Meals Act of 2014''.
TITLE I--TRANSITION PERIOD
SEC. 101. PHASED-IN INCREASE IN STATES PROVIDING FREE SCHOOL LUNCHES
AND BREAKFASTS.
Section 11 of the Richard B. Russell National School Lunch Act (42
U.S.C. 1759a) is amended by adding at the end the following:
``(h) Phased-In Increase in States Providing Free School Lunches
and Breakfasts.--
``(1) 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 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773) in States selected by
the Secretary in accordance with paragraph (2).
``(2) Selection of states.--
``(A) In general.--A State that elects to
participate in the program under this subsection shall
submit to the Secretary an application at such time, in
such manner, and containing such information as the
Secretary may require.
``(B) First year.--For the school year beginning
July 1, 2014, the Secretary shall enroll in the program
under this subsection any State that, as of April 10,
2014, has enacted a law under which, in compliance with
this Act and the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.) (as appropriate), school food authorities
in the State provide free breakfasts or lunches in lieu
of reduced-price breakfasts or lunches in schools
statewide.
``(C) Subsequent years.--
``(i) In general.--The Secretary shall
enroll in the program under this subsection not
more than--
``(I) for the school year beginning
July 1, 2015, 5 additional States;
``(II) for the school year
beginning July 1, 2016, 5 additional
States;
``(III) for the school year
beginning July 1, 2017, 5 additional
States;
``(IV) for the school year
beginning July 1, 2018, 5 additional
States; and
``(V) for the school year beginning
July 1, 2019, 5 additional States.
``(ii) Priority.--In enrolling States, the
Secretary shall give priority to States that--
``(I) have enacted a law described
in subparagraph (B) after April 10,
2014;
``(II) have school food authorities
that provide free breakfasts or lunches
in lieu of reduced-price breakfasts or
lunches in schools in the State; or
``(III) have high levels of
participation in the free or reduced-
price lunch program, as determined by
the Secretary.
``(3) Income eligibility.--For any State enrolled in the
program under this subsection, the income guidelines for
determining eligibility for free lunches or breakfasts in the
State shall be 185 percent of the applicable family size income
levels contained in the nonfarm income poverty guidelines
prescribed by the Office of Management and Budget, as adjusted
annually in accordance with section 9(b)(1)(B).
``(4) 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 (a)(1)(F) may not receive any additional payments
under this subsection.''.
SEC. 102. PERIOD OF EFFECTIVENESS.
The amendments made by section 101 shall be effective only during
the period beginning on the date of enactment of this Act and ending on
June 30, 2019.
TITLE II--PERMANENT CHANGE
SEC. 201. FREE LUNCH ELIGIBILITY.
(a) In General.--Section 9(b)(1) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1758(b)(1)) is amended--
(1) by redesignating subparagraph (B) as subparagraph (D);
(2) by striking ``(b)(1)(A) Not'' and inserting the
following:
``(b) Income Eligibility Guidelines.--
``(1) Establishment.--
``(A) In general.--Not'';
(3) in subparagraph (A)--
(A) in the first sentence, by striking ``and
reduced price'';
(B) in the second sentence--
(i) by striking ``The income guidelines for
determining eligibility for free lunches shall
be 130 percent'' and inserting the following:
``(B) Free lunches.--The income guidelines for
determining eligibility for free lunches shall be 185
percent''; and
(ii) by striking ``subparagraph (B)'' and
inserting ``subparagraph (D)'';
(C) by striking the third sentence; and
(D) in the last sentence, by striking ``The
Office'' and inserting the following:
``(C) Frequency of revisions.--The Office''; and
(4) in subparagraph (D) (as redesignated by paragraph
(1))--
(A) by striking ``(D) The'' and inserting the
following:
``(D) Amount of revisions.--The''; and
(B) by striking ``subparagraph (A) of this
paragraph'' and inserting ``subparagraph (C)''.
(b) Conforming Amendments.--
(1) Section 9 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1758) is amended--
(A) in subsection (b)--
(i) by striking ``free and reduced price''
each place it appears (other than paragraph
(7)) and inserting ``free'';
(ii) by striking ``free or reduced price''
each place it appears and inserting ``free'';
(iii) in paragraph (2)(B)(i), by striking
``, and shall contain'' and all that follows
through ``or reduced price lunches'';
(iv) in paragraph (3)--
(I) in subparagraph (E)(iii), by
striking ``free or reduced-price'' each
place it appears and inserting
``free''; and
(II) in subparagraph (F)--
(aa) in clause (i), by
striking ``Subject to clauses
(ii) and (iii),'' and inserting
``Subject to clause (ii),'';
(bb) in clause (ii)(II), by
striking ``133 percent'' both
places it appears in items (aa)
and (bb) and inserting ``185
percent'';
(cc) by striking clause
(iii); and
(dd) by redesignating
clauses (iv) and (v) as clauses
(iii) and (iv), respectively;
(v) in paragraph (7)--
(I) in the paragraph heading, by
striking ``and reduced price'' and
inserting ``meals'';
(II) by striking ``and reduced
price policy'' each place it appears
and inserting ``meals policy''; and
(III) in subparagraph (B), by
striking ``and reduced price meals''
and inserting ``meals'';
(vi) in paragraph (9)--
(I) in the paragraph heading, by
striking ``and reduced price'';
(II) by striking subparagraph (B);
and
(III) by redesignating subparagraph
(C) as subparagraph (B);
(vii) in paragraph (10), by striking ``or a
reduced price lunch''; and
(viii) in paragraph (11), in the first
sentence, by striking ``or reduced price
lunches'';
(B) in subsection (c), in the third sentence, by
striking ``or at a reduced cost'';
(C) in subsection (d), by striking ``or reduced
price'' each place it appears; and
(D) in subsection (e), by striking ``, reduced
price,''.
(2) Section 11 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1759a) is amended--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) in subparagraph (A)--
(aa) by striking ``the sum
of''; and
(bb) by striking ``and the
product obtained by
multiplying'' and all that
follows through ``for such
fiscal year'';
(II) in subparagraph (B)--
(aa) by striking ``or
reduced price lunches'' the
first place it appears;
(bb) by striking ``or
reduced price lunches, as the
case may be,''; and
(cc) by striking ``and
reduced price lunches'';
(III) in subparagraph (C)--
(aa) in clause (ii), by
striking ``or reduced price
lunches or breakfasts'' each
place it appears; and
(bb) in clause (iii), by
striking ``or reduced price'';
and
(IV) in subparagraph (D), by
striking ``and reduced price lunches''
each place it appears in clauses (iii)
and (iv); and
(ii) in paragraph (2), by striking ``and
the special assistance factor for reduced
price'' and all that follows through ``free
lunches'';
(B) in subsection (b), in the first sentence, by
striking ``and reduced price'';
(C) in subsection (d), by striking ``and the
average number of children who received reduced price
lunches'' each place it appears paragraphs (1) and (2);
and
(D) in subsection (e)--
(i) in the second sentence, by striking ``,
and shall serve meals at a reduced price'' and
all that follows through ``such section''; and
(ii) in the third sentence, by striking
``or reduced priced''.
(3) Section 12(l)(4) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1760(l)(4)) is amended--
(A) in subparagraph (C), by striking ``and reduced
price'';
(B) by striking subparagraph (D);
(C) in subparagraph (H), by striking ``or reduced
price''; and
(D) by redesignating subparagraphs (E) through (M)
as subparagraphs (D) through (L), respectively.
(4) Section 13 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1761) is amended--
(A) in subsection (a)--
(i) in paragraph (1)(A)(i), by striking
``or reduced price'' each place it appears; and
(ii) in paragraph (5), by striking ``or
reduced price''; and
(B) in subsection (f)(3), by striking ``or reduced
price''.
(5) Section 17 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1766) is amended--
(A) in subsection (a)(2)(B)(i), by striking ``or
reduced price'';
(B) in subsection (c)--
(i) in paragraph (1), by inserting ``(as
calculated on the day before the date of
enactment of the Expand School Meals Act of
2014)'' after ``lunches, reduced price
lunches'';
(ii) in paragraph (2), by inserting ``(as
calculated on the day before the date of
enactment of the Expand School Meals Act of
2014)'' after ``breakfasts, reduced price
breakfasts''; and
(iii) by striking paragraph (4) and
inserting the following:
``(4) Determinations.--
``(A) 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 9.
``(B) 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 9, as in effect on the day before the date of
enactment of the Expand School Meals Act of 2014.'';
(C) in subsection (f)(3)--
(i) by striking ``or reduced price'' each
place it appears; and
(ii) in subparagraph (A)(iii)(II)(aa), in
the item heading, by striking ``or reduced
price''; and
(D) in subsection (r)(1)(B), by striking ``or
reduced price''.
(6) Section 17A(c)(1) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1766a(c)(1)) is amended in the
matter preceding subparagraph (A) by striking ``or reduced
price''.
(7) Section 18 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769) is amended by striking subsection
(j).
(8) Section 19 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769a) is amended--
(A) by striking ``or reduced price'' each place it
appears; and
(B) by striking ``and reduced price'' each place it
appears.
(9) Section 20(b) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769b(b)) is amended by striking ``and
reduced price''.
(10) Section 21(a)(1)(B) of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1769b-1(a)(1)(B)) is amended--
(A) in the matter preceding clause (i), by striking
``or reduced price''; and
(B) in clause (iii), by striking ``and reduced
price''.
(c) Transition Rules.--The Secretary of Agriculture shall carry out
the amendments made by paragraphs (2) and (8) of subsection (b) in
accordance with transition rules established by the Secretary.
SEC. 202. FREE BREAKFAST ELIGIBILITY.
(a) In General.--Section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (A)(i)(II)--
(I) by striking ``, for reduced
price breakfasts,'';
(II) by striking ``or reduced
price''; and
(III) by striking ``clause (B) of
this paragraph'' and inserting
``subparagraph (B)'';
(ii) in subparagraph (B)--
(I) in the third sentence, by
striking ``or reduced price''; and
(II) by striking the second
sentence;
(iii) by striking subparagraph (C);
(iv) by redesignating subparagraphs (D) and
(E) as subparagraphs (C) and (D), respectively;
and
(v) in subparagraph (D) (as so
redesignated)--
(I) in the subparagraph heading, by
striking ``and reduced price'' and
inserting ``meals'';
(II) by striking ``and reduced
price policy'' each place it appears
and inserting ``meals policy''; and
(III) by striking ``and reduced
price meals'' and inserting ``meals'';
and
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``or
reduced price''; and
(ii) by striking subparagraph (C); and
(2) in subsections (d)(1)(A) and (e)(1)(A), by striking
``or at a reduced price'' each place it appears.
(b) Conforming Amendments.--
(1) Section 7 of the Child Nutrition Act of 1966 (42 U.S.C.
1776) is amended--
(A) in subsection (e)(2)(B)(ii), by striking ``or
reduced price'';
(B) in subsection (g)(2)(B)(i)(I), by striking
``and reduced price''; and
(C) in subsection (i), by striking ``and reduced
price'' each place it appears in paragraphs (2)(B)(iii)
and (3)(B)(i).
(2) Section 17(d)(2)(A)(i) of the Child Nutrition Act of
1966 (42 U.S.C. 1786(d)(2)(A)(i)) is amended by striking ``and
reduced price''.
(3) Section 20(b) of the Child Nutrition Act of 1966 (42
U.S.C. 1789(b)) is amended by striking ``and reduced-price''.
(4) Section 23(d)(2) of the Child Nutrition Act of 1966 (42
U.S.C. 1793(d)(2)) is amended by striking ``or reduced price''.
SEC. 203. PERIOD OF EFFECTIVENESS.
The amendments made by this title shall be effective beginning on
July 1, 2019.
TITLE III--OFFSET
SEC. 301. DENIAL OF DEDUCTION FOR PUNITIVE DAMAGES.
(a) Disallowance of Deduction.--
(1) In general.--Section 162(g) of the Internal Revenue
Code of 1986 is amended--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively,
(B) by striking ``If'' and inserting:
``(1) Treble damages.--If'', and
(C) by adding at the end the following new
paragraph:
``(2) Punitive damages.--No deduction shall be allowed
under this chapter for any amount paid or incurred for punitive
damages in connection with any judgment in, or settlement of,
any action. This paragraph shall not apply to punitive damages
described in section 104(c).''.
(2) Conforming amendment.--The heading for section 162(g)
of such Code is amended by inserting ``or Punitive Damages''
after ``Laws''.
(b) Inclusion in Income of Punitive Damages Paid by Insurer or
Otherwise.--
(1) In general.--Part II of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new section:
``SEC. 91. 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 (or agreement) to pay punitive damages.''.
(2) Reporting requirements.--Section 6041 of such Code is
amended by adding at the end the following new subsection:
``(h) Section To Apply to Punitive Damages Compensation.--This
section shall apply to payments by a person to or on behalf of any
corporation, individual, partnership, or other entity, as insurance or
otherwise, by reason of such corporation, individual, partnership, or
entity's liability (or agreement) to pay punitive damages.''.
(3) Conforming amendment.--The table of sections for part
II of subchapter B of chapter 1 of such Code is amended by
adding at the end the following new item:
``Sec. 91. Punitive damages compensated by insurance or otherwise.''.
(c) 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 Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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