SECTION 1. LOCAL WELLNESS POLICY; HEALTHY HABITS CHALLENGE PROGRAM.

    The Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) is amended 
by inserting after section 19, the following:

``SEC. 19A. LOCAL WELLNESS POLICY; HEALTHY HABITS CHALLENGE PROGRAM.

    ``(a) Local Wellness Policy.--
            ``(1) In general.--Not later than the first day of the 
        school year beginning after June 30, 2010, each local 
        educational agency participating in a program authorized by the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.) or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.) shall establish or expand a local school wellness policy 
        for schools under the local educational agency that, at a 
        minimum--
                    ``(A) includes goals for nutrition education, 
                physical activity, and other school-based activities 
                that are designed to promote student wellness in a 
                manner that the local educational agency determines is 
                appropriate;
                    ``(B) includes nutrition guidelines selected by the 
                local educational agency for all foods available on 
                each school campus under the local educational agency 
                during the school day with the objectives of promoting 
                student health and reducing childhood obesity;
                    ``(C) provides an assurance that guidelines for 
                reimbursable school meals shall not be less restrictive 
                than regulations and guidance issued by the Secretary 
                pursuant to subsections (a) and (b) of section 10 of 
                this Act and sections 9(f)(1) and 17(a) of the Richard 
                B. Russell National School Lunch Act (42 U.S.C. 
                1758(f)(1), 1766(a)), as those regulations and guidance 
                apply to schools;
                    ``(D) establishes a plan for measuring 
                implementation of the local wellness policy, including 
                designation of 1 or more persons within the local 
                educational agency or at each school, as appropriate, 
                charged with operational responsibility for ensuring 
                that the school meets the local wellness policy; and
                    ``(E) involves parents, students, representatives 
                of the school food authority, the school board, school 
                administrators, and the public in the development of 
                the school wellness policy.
            ``(2) Technical assistance and best practices.--
                    ``(A) In general.--From the amounts appropriated to 
                carry out this paragraph, the Secretary, in 
                coordination with the Secretary of Education and in 
                consultation with the Secretary of Health and Human 
                Services, acting through the Centers for Disease 
                Control and Prevention, shall make available to local 
                educational agencies, school food authorities, and 
                State educational agencies, on request, information and 
                technical assistance for use in--
                            ``(i) establishing healthy school nutrition 
                        environments;
                            ``(ii) reducing childhood obesity; and
                            ``(iii) preventing diet-related chronic 
                        diseases.
                    ``(B) Content.--Technical assistance provided by 
                the Secretary under this paragraph shall--
                            ``(i) include relevant and applicable 
                        examples of schools and local educational 
                        agencies that have taken steps to offer healthy 
                        options for foods sold or served in schools;
                            ``(ii) include such other technical 
                        assistance as is required to carry out the 
                        goals of promoting sound nutrition and 
                        establishing healthy school nutrition 
                        environments that are consistent with this 
                        subsection;
                            ``(iii) be provided in such a manner as to 
                        be consistent with the specific needs and 
                        requirements of local educational agencies;
                            ``(iv) providing examples of model local 
                        school wellness policies developed by the 
                        Secretary; and
                            ``(v) be for guidance purposes only and not 
                        be construed as binding or as a mandate to 
                        schools, local educational agencies, school 
                        food authorities, or State educational 
                        agencies.
    ``(b) Healthy Habits School Challenge Program.--
            ``(1) Program established.--From the amounts appropriated 
        to carry out this section, not later than 180 days after the 
        date of the enactment of this section, the Secretary shall 
        establish the Healthy Habits School Challenge Program (in this 
        subsection referred to as the `Program') to reduce childhood 
        obesity by recognizing schools that are creating healthier 
        school environments for children by promoting good nutrition 
        and physical activity.
            ``(2) Participation requirements.--In order to receive 
        recognition under the Program, a school shall--
                    ``(A) demonstrate to the Secretary, at such time 
                and in such manner as the Secretary may require, that 
                the school--
                            ``(i) has adopted and is carrying out the 
                        model local school wellness policy described by 
                        the Secretary under subsection (a)(2)(B)(iv);
                            ``(ii) provides nutrition education--
                                    ``(I) in the case of an elementary 
                                school that offers more than 1 grade 
                                level, to students in at least half, 
                                but not fewer than 2, of the grade 
                                levels offered by the school;
                                    ``(II) in the case an elementary 
                                school that offers only 1 grade level, 
                                to all students enrolled in the school;
                                    ``(III) in the case of a middle 
                                school, to students in at least 1 grade 
                                level as part of a required year round 
                                instruction; and
                                    ``(IV) in the case of a high 
                                school, in at least 2 courses required 
                                for graduation;
                            ``(iii) in the case of an elementary school 
                        or middle school, provides students with 
                        structured physical education classes and 
                        unstructured daily opportunities for physical 
                        activity;
                            ``(iv) in the case of a high school--
                                    ``(I) offers structured physical 
                                education classes to students in at 
                                least 2 grade levels; and
                                    ``(II) provides all students 
                                enrolled in the school opportunities to 
                                participate in physical activity 
                                throughout the school year; and
                            ``(v) adheres to the most recent nutrition 
                        rules promulgated by the Secretary--
                                    ``(I) under section 9(a)(4) of the 
                                Richard B. Russell National School 
                                Lunch Act (42 U.S.C. 1758(a)(4)) for 
                                foods and food ingredients offered in 
                                school nutrition programs under the 
                                Richard B. Russell National School 
                                Lunch Act (42 U.S.C. 1751 et seq.) and 
                                this Act; and
                                    ``(II) for foods and food 
                                ingredients offered by schools outside 
                                of the programs; and
                    ``(B) maintain a record of the participation of 
                students in the activities under the benchmarks 
                developed by the Secretary under paragraph (3) and the 
                number of the benchmarks achieved by the school, and 
                submit a report of such record to the Secretary at such 
                time and in such manner as the Secretary may require.
            ``(3) Benchmarks.--Not later than 90 days after the date of 
        the enactment of this subsection, the Secretary shall develop 
        demonstrable benchmarks for schools participating in the 
        Program under this subsection, which shall take into account--
                    ``(A) the consumption by students at participating 
                schools of a certain number of fresh fruits and 
                vegetables per a certain number of weeks; and
                    ``(B) the availability of healthy alternatives for 
                meals and snacks in the cafeteria of participating 
                schools, including whole wheat bread products and fresh 
                fruits and vegetables.
            ``(4) Performance awards.--The Secretary and the Secretary 
        of Education shall, jointly, determine which benchmarks should 
        be achieved to receive distinction under the Program, and the 
        levels of distinction available under the Program.
            ``(5) Definitions.--In this subsection:
                    ``(A) Elementary school.--The term `elementary 
                school' has the meaning given such term in section 9101 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7801).
                    ``(B) Middle school.--The term `middle school' 
                means a public school in which the entering grade is 
                not lower than grade 6 and the highest grade is not 
                higher than grade 8, as determined under State law.
                    ``(C) High school.--The term `high school' means a 
                public school in which the entering grade is not lower 
                than grade 9 and the highest grade is grade 12, as 
                determined under State law.''.

SEC. 2. UPDATING NUTRITION RULES.

    Section 9(a)(4) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(a)(4)) is amended by adding at the end the following:
                    ``(C) Updating nutrition rules.--From the amounts 
                appropriated to carry out this subparagraph, the 
                Secretary shall enter into a contract with the 
                Institute of Medicine to provide recommendations to the 
                Secretary on updating the rules promulgated under 
                subparagraph (B).''.

SEC. 3. CONFORMING AMENDMENT.

    Section 204 of the Child Nutrition and WIC Reauthorization Act of 
2004 (42 U.S.C. 1751 note; Public Law 108-265) is repealed.
Amends the Child Nutrition Act of 1966 to require local educational agencies (LEA) participating in the school lunch or breakfast programs to establish or expand a local school wellness policy for their schools that: (1) includes goals for nutrition education, physical activity, and other school-based activities that promote student wellness; (2) includes nutrition guidelines for all foods in school during the day that promote student health and reduce childhood obesity; (3) ensures that the dietary guidelines for reimbursable school meals are no less restrictive than those issued by the Secretary of Agriculture under the school lunch program; (4) provides for the measurement and oversight of the policy's implementation; and (5) involves parents, students, the school food authority, the school board, school administrators, and the public in its development.

Directs the Secretary to provide LEAs, school food authorities, and states, on request, information and technical assistance in: (1) establishing healthy school nutrition environments; (2) reducing childhood obesity; and (3) preventing diet-related chronic diseases.

Directs the Secretary to establish the Healthy Habits School Challenge program to reduce childhood obesity by recognizing schools that are creating healthier school environments for children by promoting good nutrition and physical activity. Requires such schools to adopt a model school wellness policy developed by the Secretary.

Requires the Secretary to contract with the Institute of Medicine to provide the Secretary with recommendations for updating the nutrition rules for the school lunch and breakfast programs.
To amend the Child Nutrition Act of 1966 to establish the Healthy Habits School Challenge Program to reduce childhood obesity by recognizing schools that are creating healthier school environments for children by promoting good nutrition and physical activity, and for other purposes.