SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Summer Food Service Program 
Improvement Act of 2003''.

SEC. 2. DEFINITION OF AREAS IN WHICH POOR ECONOMIC CONDITIONS EXIST.

    (a) In General.--Section 13(a)(1)(C) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761(a)(1)(C)) is amended by 
inserting ``(or, in the case of a rural area (as defined in section 
343(a)(13)(A) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1991(a)(13)(A))), 40 percent)'' after ``50 percent''.
    (b) Prospective Repeal.--
            (1) In general.--Section 13(a)(1)(C) of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1761(a)(1)(C)) (as 
        amended by subsection (a)) is amended by striking ``(or,'' and 
        all that follows through 40 percent)''.
            (2) Effective date.--The amendment made by paragraph (1) 
        takes effect on October 1, 2005.

SEC. 3. PAYMENTS.

    (a) Operating Expenses.--Section 13(b)(1) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761(b)(1)) is amended by striking 
subparagraph (A) and inserting the following:
                    ``(A) In general.--A payment to a service 
                institution shall be equal to the maximum amount for 
                food service under subparagraphs (B) and (C).''.
    (b) Administrative Costs.--Section 13(b) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761(b)) is amended by striking 
paragraph (3) and inserting the following:
            ``(3) Administrative costs.--Payment to a service 
        institution for administrative costs shall be equal to the 
        maximum allowable levels determined by the Secretary under the 
        study required under paragraph (4).''.
    (c) Conforming Amendment.--Section 18 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769) is amended by striking 
subsection (f).

SEC. 4. STARTUP GRANTS FOR SUMMER FOOD SERVICE PROGRAMS.

    Section 13 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1761) is amended by inserting after subsection (h) the 
following:
    ``(i) Startup Grants for Summer Food Service Programs.--
            ``(1) Definition of eligible service institution.--In this 
        subsection, the term `eligible service institution' means a 
        service institution that agrees to operate the summer food 
        service program established with the assistance provided under 
        this subsection.
            ``(2) Grants.--The Secretary shall make grants, on a 
        competitive basis, to 10 States, in a total amount of not more 
        than $5,000,000 for each fiscal year from funds made available 
        to the Secretary, to assist eligible service institutions in 
        initiating summer food service program sites.
            ``(3) Uses.--A State shall use a grant made available under 
        this subsection to assist eligible service institutions with 
        expenses incurred in initiating summer food service programs 
        during the first year of the sites.
            ``(4) Supplementary funds.--A grant under this subsection 
        shall supplement any payment to which a State is entitled under 
        this section.
            ``(5) Plan.--To be eligible to receive a grant under this 
        subsection, a State shall submit to the Secretary a plan to 
        initiate summer food service program sites conducted in the 
        State, including a description of the manner in which the State 
        shall provide technical assistance and funding to eligible 
        service institutions in the State to initiate the sites.
            ``(6) State preferences.--In making a grant under this 
        subsection for a fiscal year to initiate summer food service 
        programs sites, the Secretary shall give preference to a State 
        in which not more than 10 lunches under summer food service 
        programs are served on an average day in June and July for each 
        100 free and reduced price lunches served on an average day 
        from September through May of the previous school year, as 
        determined by the Secretary.
            ``(7) Reallocation.--The Secretary shall act in a timely 
        manner to recover and reallocate to other States any amount 
        made available to a State under this subsection that is not 
        used by the agency or State within a reasonable period (as 
        determined by the Secretary).
            ``(8) Application.--The Secretary shall allow application 
        by States on an annual basis for grants under this subsection.
            ``(9) Preferences by states.--In allocating funds within 
        the State, each State shall give preference for assistance 
        under this subsection to an eligible service institution that 
        demonstrates the greatest need for assistance for a summer food 
        service program, as determined by the State.
            ``(10) Maintenance of effort.--The expenditure of funds 
        from State and local sources for the maintenance of the summer 
        food service program shall not be diminished as a result of 
        grants made available under this subsection.''.

SEC. 5. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act and the 
amendments made by this Act take effect on October 1, 2003.
Summer Food Service Program Improvement Act of 2003 - Amends the Richard B. Russell National School Lunch Act to revise requirements for the summer food service program for children.

Provides for a temporary redefinition of rural areas in which poor economic conditions exist.

Revises requirements relating to payments to service institutions for operating expenses and administrative costs.

Directs the Secretary of Agriculture to make competitive startup grants to ten States to assist eligible service institutions in initiating summer food service program sites.
A bill to amend the Richard B. Russell National School Lunch Act to improve the summer food service program for children.