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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5003 Introduced in House (IH)]

<DOC>

114th CONGRESS
  2d Session
                                H. R. 5003

    To reauthorize child nutrition programs, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 20, 2016

  Mr. Rokita introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
Committee on the Budget, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
    To reauthorize child nutrition programs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Improving Child 
Nutrition and Education Act of 2016''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
                   TITLE I--NATIONAL SCHOOL LUNCH ACT

Sec. 100. Authorized State agency.
Sec. 101. Apportionments to States.
Sec. 102. Repeal of nutrition promotion.
Sec. 103. Direct Federal expenditures.
Sec. 104. Nutritional and other program requirements.
Sec. 105. Miscellaneous provisions.
Sec. 106. Summer food service program for children.
Sec. 107. Commodity distribution program.
Sec. 108. Child and adult care food program.
Sec. 109. Demonstration projects.
Sec. 110. Fruit and vegetable program.
Sec. 111. Compliance and accountability.
Sec. 112. Repeal of State childhood hunger challenge grants.
Sec. 113. Duties of the Secretary relating to nonprocurement debarment.
Sec. 114. Improvements to school lunch facilities.
Sec. 115. Prohibitions.
                     TITLE II--CHILD NUTRITION ACT

Sec. 201. Special milk program authorization.
Sec. 202. School breakfast program.
Sec. 203. State administrative expenses.
Sec. 204. Regulations.
Sec. 205. Definition of authorized State agency.
Sec. 206. Special supplemental nutrition program for women, infants, 
                            and children.
Sec. 207. Team nutrition network.
                        TITLE III--MISCELLANEOUS

Sec. 301. Reviews.
Sec. 302. Program delivery.
Sec. 303. Product availability.
Sec. 304. Procurement.
Sec. 305. School Nutrition Advisory Committee.
Sec. 306. Paperwork reduction.
Sec. 307. Technology.
Sec. 308. Technical corrections.
Sec. 309. Budgetary effects.
Sec. 310. Effective date.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of 
Agriculture.

                   TITLE I--NATIONAL SCHOOL LUNCH ACT

SEC. 100. AUTHORIZED STATE AGENCY.

    In each of the following Acts, strike ``State Educational Agency'' 
each place such term appears and insert ``authorized State agency'':
            (1) The Richard B. Russell National School Lunch Act (42 
        U.S.C. 1751 et seq.).
            (2) The Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.).

SEC. 101. APPORTIONMENTS TO STATES.

    Section 4(b) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1753(b)) is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (B), by striking ``Beginning 
                on'' and all that follows through ``the Secretary'' and 
                inserting ``The Secretary'';
                    (B) in subparagraph (E), by striking ``Beginning 
                on'' and all that follows through ``school food 
                authorities'' and inserting ``School food 
                authorities''; and
                    (C) in subparagraph (F)--
                            (i) in clause (iii)(I), by inserting ``(as 
                        in effect on the day before the date of the 
                        enactment of the Improving Child Nutrition and 
                        Education Act of 2016)'' after ``subparagraph 
                        (A)(i)''; and
                            (ii) by adding at the end the following:
                            ``(III) Sunset.--The Secretary shall return 
                        to the general fund of the Treasury any funds 
                        that were made available under this 
                        subparagraph but not obligated by a State 
                        agency as of September 30, 2016.''; and
            (2) by adding at the end the following:
            ``(4) Announcements.--With respect to reimbursement rates 
        described in this subsection, the Secretary shall announce the 
        rates and, to the maximum extent practicable, any associated 
        guidance by February 15 of the school year prior to the school 
        year for which the rates and guidance will become effective.''.

SEC. 102. REPEAL OF NUTRITION PROMOTION.

    Section 5 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1754) is repealed.

SEC. 103. DIRECT FEDERAL EXPENDITURES.

    Section 6 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1755) is amended--
            (1) in subsection (c)--
                    (A) by striking ``(c)(1)(A) The national average'' 
                and all that follows through ``(D) Among those 
                commodities'' and inserting the following:
    ``(c) Calculation of Total Assistance.--
            ``(1) National average value.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), the national average value of donated foods, or 
                cash payments in lieu thereof, shall be equal to the 
                quotient obtained by dividing, not later than February 
                15 of each year for the upcoming school year--
                            ``(i) the total funds available in the 
                        preceding school year under section 4, this 
                        section, and section 11; by
                            ``(ii) the number of lunches served in the 
                        preceding school year in all schools 
                        participating in the school lunch program under 
                        this Act.
                    ``(B) Adjustment.--
                            ``(i) In general.--The value determined 
                        under subparagraph (A) shall be adjusted by the 
                        annual percentage change in a 3-month average 
                        value of the Producer Price Index for Foods 
                        Used in Schools and Institutions of the Bureau 
                        of Labor Statistics (in this subparagraph 
                        referred to as the `Index') for the preceding 
                        September, October, and November.
                            ``(ii) Requirement.--An adjustment under 
                        clause (i) shall be computed to the nearest \1/
                        4\ cent.
                            ``(iii) Index.--
                                    ``(I) In general.--The Index shall 
                                be computed using 5 major food 
                                components in the Index (cereal and 
                                bakery products, meats, poultry and 
                                fish, dairy products, processed fruits 
                                and vegetables, and fats and oils).
                                    ``(II) Components.--Each component 
                                described in subclause (I) shall be 
                                weighted using the same relative weight 
                                as determined by the Bureau of Labor 
                                Statistics.
                            ``(iv) Minimum amount of commodity 
                        assistance.--Not less than 12 percent of the 
                        value adjusted in accordance with this 
                        subparagraph shall be provided in the form of 
                        commodity assistance.
                    ``(C) Insufficient amounts.--If amounts available 
                to carry out section 4, this section, and section 11 
                are insufficient to meet the requirements of such 
                sections for a school year, the Secretary shall, to the 
                extent necessary, use the authority provided under 
                section 14(a) to meet the requirements for the school 
                year.
                    ``(D) Amount for each state.--For each school year, 
                the total commodity assistance or cash in lieu thereof 
                available to a State for the school lunch program shall 
                be equal to the product obtained by multiplying--
                            ``(i) the number of lunches served in such 
                        State in the most recent school year for which 
                        data are available; by
                            ``(ii) the rate determined under 
                        subparagraphs (A) and (B).
                    ``(E) Special emphasis.--Among those commodities''; 
                and
                    (B) in paragraph (1), by striking ``(E) 
                Notwithstanding'' and inserting the following:
                    ``(F) Minimum quantity of donated foods.--
                Notwithstanding'';
            (2) by striking subsection (e); and
            (3) by redesignating subsection (f) as subsection (e).

SEC. 104. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

    Section 9 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758) is amended--
            (1) by striking the section heading and designation and all 
        that follows through the end of paragraph (1) in subsection (a) 
        and inserting the following:

``SEC. 9. NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS.

    ``(a) Requirements.--
            ``(1) Technical assistance and training.--The Secretary 
        shall provide--
                    ``(A) technical assistance and training to schools 
                participating in the school lunch program to assist the 
                schools in complying with the nutritional requirements 
                prescribed by the Secretary pursuant to subsection (f) 
                and in providing appropriate meals to children with 
                medically certified special dietary needs, including 
                food allergies or other special dietary needs of 
                individual children, including religious dietary 
                restrictions; and
                    ``(B) additional technical assistance to schools 
                that are having difficulty maintaining compliance with 
                the requirements.'';
            (2) in subsection (a)--
                    (A) in paragraph (2), by adding at the end the 
                following:
                    ``(D) Fluid milk considerations.--In determining 
                varieties of fluid milk that shall be available with 
                school meals programs under this Act and section 4 of 
                the Child Nutrition Act of 1966 (42 U.S.C. 1773) and 
                outside of the school meal programs, the Secretary, not 
                later than 90 days after the date of enactment of the 
                Improving Child Nutrition and Education Act of 2016, 
                shall carry out the following:
                            ``(i) Consider the critical nutrient needs 
                        of children who may be at risk for inadequate 
                        intake of the recommended daily servings of 
                        milk and dairy products under the most recent 
                        Dietary Guidelines described in subparagraph 
                        (A)(i) and conform the applicable regulations 
                        to such guidelines.
                            ``(ii) Analyze milk consumption data and 
                        trends for school-aged children, and to the 
                        extent practicable, increase actual milk 
                        consumption in schools in a manner consistent 
                        with the number of servings recommended under 
                        such Dietary Guidelines, and ensure that 
                        schools may offer any type of milk, including 
                        milk with fat levels that are in compliance 
                        with such Dietary Guidelines.
                    ``(E) Milk variety considerations.--In determining 
                milk varieties eligible for schools to offer, the 
                Secretary shall consider the most commonly available 
                types, sizes, containers, and varieties of milk in 
                local, regional, and national markets to promote 
                competition and reduce milk waste.'';
                    (B) by striking ``(4) Provision of information'' 
                and all that follows through ``(C) Procurement and 
                processing of food service products and commodities.--
                The Secretary'' and inserting the following:
            ``(4) Procurement and processing of food service products 
        and commodities.--The Secretary''; and
                    (C) in paragraph (4) (as so designated)--
                            (i) by redesignating clauses (i) through 
                        (iii) as subparagraphs (A) through (C), 
                        respectively, and indenting appropriately; and
                            (ii) by redesignating subclauses (I) and 
                        (II) as clauses (i) and (ii), respectively, and 
                        indenting appropriately;
            (3) in subsection (b)--
                    (A) in paragraph (2)(B)--
                            (i) in clause (i), by striking ``, and 
                        shall contain only the family size income 
                        levels for reduced price meal eligibility with 
                        the explanation that households with incomes 
                        less than or equal to these values would be 
                        eligible for free or reduced price lunches'';
                            (ii) in clause (ii), by inserting ``or 
                        reduced price'' after ``free'';
                            (iii) in clause (iii)(I)--
                                    (I) in item (aa), by striking 
                                ``and'' at the end;
                                    (II) in item (bb), by striking the 
                                period at the end and inserting ``; 
                                and''; and
                                    (III) by adding at the end the 
                                following:
                                            ``(cc) individuals may 
                                        report alleged fraud to the 
                                        Office of the Inspector General 
                                        of the Department of 
                                        Agriculture.''; and
                            (iv) by adding at the end the following:
                            ``(iv) Reporting of fraud.--The Secretary 
                        shall ensure that the Internet website of the 
                        Department of Agriculture prominently displays 
                        a link to the Internet website of the Office of 
                        the Inspector General of the Department and the 
                        phone number of the Office of the Inspector 
                        General through which an individual may report 
                        any alleged fraud.
                            ``(v) Application forms.--Not later than 
                        120 days after the date of the enactment of the 
                        Improving Child Nutrition and Education Act of 
                        2016, the Secretary shall--
                                    ``(I) review the most current 
                                application forms, including paper and 
                                digital, used to apply for 
                                participation in the school lunch 
                                program authorized under this Act and 
                                the school breakfast program 
                                established by section 4 of the Child 
                                Nutrition Act of 1966 (42 U.S.C. 1773);
                                    ``(II) provide to States guidance 
                                relating to best practices, including 
                                at a minimum a standard application 
                                form for use by local educational 
                                agencies or schools;
                                    ``(III) provide to States guidance 
                                relating to how to improve the 
                                application to ensure families 
                                understand and can enroll in the school 
                                lunch program and the school breakfast 
                                program; and
                                    ``(IV) provide to States such 
                                information as is necessary to ensure 
                                that States understand school food 
                                authorities may not--
                                            ``(aa) require or mandate 
                                        families apply for either 
                                        program;
                                            ``(bb) request that a 
                                        family apply for the program 
                                        after the parent or guardian 
                                        has informed the school that 
                                        the family does not want to 
                                        participate in the program or 
                                        receive additional information 
                                        about the program in that 
                                        school year; or
                                            ``(cc) in the case of a 
                                        family that has not informed 
                                        the school about their choice, 
                                        request more than twice in that 
                                        school year that such family 
                                        apply for the program if such 
                                        family has not submitted an 
                                        application, except that 
                                        providing information about the 
                                        application (including how and 
                                        when the application will be 
                                        sent to parents and how to fill 
                                        out the application) shall not 
                                        count as a request to apply.'';
                    (B) in paragraph (3)--
                            (i) by striking subparagraph (D) and 
                        inserting the following:
                    ``(D) Verification.--
                            ``(i) Standard verification of 
                        applications.--
                                    ``(I) In general.--Beginning with 
                                the second school year that begins 
                                after the date of the enactment of the 
                                Improving Child Nutrition and Education 
                                Act of 2016, each school year, each 
                                local educational agency shall verify 
                                the eligibility of the children in a 
                                portion of the household applications 
                                approved for the school year by the 
                                local educational agency, as of 
                                November 1 of the school year, as 
                                determined by the Secretary in 
                                accordance with this subsection.
                                    ``(II) Sample size.--
                                            ``(aa) In general.--The 
                                        portion for a local educational 
                                        agency for a school year shall 
                                        equal the lesser of--

                                                    ``(AA) 10,000; or

                                                    ``(BB) 10 percent 
                                                of approved household 
                                                applications.

                                            ``(bb) Calculation.--Not 
                                        later than July 1 of each year, 
                                        the Secretary shall calculate 
                                        the sample size under this 
                                        subparagraph for each local 
                                        educational agency based on 
                                        data from the 2 most recent 
                                        school years available.
                                    ``(III) Sample selection.--
                                Applications shall be selected for 
                                verification by the local educational 
                                agency based on indications that 
                                information relevant to eligibility is 
                                inconsistent with the information 
                                provided on the application, including 
                                at a minimum the following:
                                            ``(aa) The household has 
                                        submitted information in 
                                        writing to the local 
                                        educational agency that is 
                                        inconsistent with the 
                                        information on the application.
                                            ``(bb) The information 
                                        provided on the application is 
                                        consistent with a pattern of 
                                        error or fraud detected by the 
                                        local educational agency, the 
                                        State agency, or the Secretary.
                                            ``(cc) For not more than 
                                        \1/4\ of the sample, students 
                                        who are directly certified or 
                                        the application provides a case 
                                        number (in lieu of income 
                                        information) showing 
                                        participation in--

                                                    ``(AA) the 
                                                supplemental nutrition 
                                                assistance program 
                                                established under the 
                                                Food and Nutrition Act 
                                                of 2008 (7 U.S.C. 2011 
                                                et seq.); or

                                                    ``(BB) a State 
                                                program funded under 
                                                the program of block 
                                                grants to States for 
                                                temporary assistance 
                                                for needy families 
                                                established under part 
                                                A of title IV of the 
                                                Social Security Act (42 
                                                U.S.C. 601 et seq.) 
                                                that the Secretary 
                                                determines complies 
                                                with standards 
                                                established by the 
                                                Secretary that ensure 
                                                that the eligibility 
                                                requirements under the 
                                                State program are 
                                                comparable to the 
                                                requirements for 
                                                participation in 
                                                accordance with this 
                                                Act and the Child 
                                                Nutrition Act of 1966 
                                                (42 U.S.C. 1771 et 
                                                seq.).

                                            ``(dd) For not more than 
                                        \1/4\ of the sample, the income 
                                        information provided on the 
                                        application is close to the 
                                        income limit for free or 
                                        reduced price meals, as 
                                        determined by the local 
                                        educational agency each year.
                                            ``(ee) Such other criteria 
                                        as is determined by the State.
                                    ``(IV) Additional verification of 
                                applications.--If the number of 
                                applications that match the criteria 
                                described in subclause (III) is 
                                insufficient to meet the number of 
                                applications determined under subclause 
                                (II), the local educational agency 
                                shall select additional applications at 
                                random.
                            ``(ii) Verification for cause.--In addition 
                        to conducting verification of a sample of 
                        applications as described in clause (i), a 
                        local educational agency may verify any 
                        household application at any point in the 
                        school year if the household application meets 
                        the criteria described in item (aa), (bb), or 
                        (cc) of clause (i)(III) or such other criteria 
                        as is determined by the Secretary.
                            ``(iii) Compliance.--In conducting 
                        verification under this subparagraph, a State 
                        agency or local educational agency shall not 
                        select applications in a manner that violates 
                        section 12(l)(4)(M).'';
                            (ii) in subparagraph (F)--
                                    (I) in clause (i), in the matter 
                                preceding subclause (I), by striking 
                                ``may'' and inserting ``shall''; and
                                    (II) by striking clauses (iv) and 
                                (v) and inserting the following:
                            ``(iv) Direct certification.--If 
                        eligibility for a household application is 
                        confirmed using direct verification, each child 
                        in the household shall be considered directly 
                        certified.'';
                            (iii) in subparagraph (G)--
                                    (I) in clause (iii), by striking 
                                ``1 attempt'' and inserting ``2 
                                attempts''; and
                                    (II) by adding at the end the 
                                following:
                            ``(v) Validity of verification results.--
                                    ``(I) Definitions.--In this clause:
                                            ``(aa) Approved 
                                        application.--The term 
                                        `approved application' includes 
                                        each student on a paper or 
                                        electronic application approved 
                                        by the local educational agency 
                                        for free or reduced price 
                                        lunches for the school year.
                                            ``(bb) Response rate.--The 
                                        term `response rate' means the 
                                        percentage of the approved 
                                        household applications of the 
                                        local educational agency for 
                                        which verification information 
                                        was obtained after attempted 
                                        verification under this 
                                        section.
                                            ``(cc) Nonresponse rate.--
                                        The term `nonresponse rate' 
                                        means the percentage of the 
                                        approved household applications 
                                        of the local educational agency 
                                        for which verification 
                                        information was not obtained 
                                        after attempted verification 
                                        under this section.
                                            ``(dd) Confirmation rate.--
                                        The term `confirmation rate' 
                                        means the percentage of 
                                        approved household applications 
                                        and directly certified students 
                                        selected by the local 
                                        educational agency for 
                                        verification under this 
                                        subparagraph that had the level 
                                        of benefits confirmed as a 
                                        result of information obtained 
                                        during the verification 
                                        process.
                                    ``(II) Reductions.--
                                            ``(aa) In general.--The 
                                        sample under subparagraph 
                                        (D)(i)(II) may be reduced by 
                                        not more than the lesser of 
                                        2,500 applications or 2.5 
                                        percentage points for each of 
                                        the criteria described in 
                                        subclause (III) that are met by 
                                        the local educational agency.
                                            ``(bb) Limitation.--
                                        Reductions under item (aa) may 
                                        result in a sample of not less 
                                        than 2.5 percent of approved 
                                        applications.
                                    ``(III) Criteria.--The criteria 
                                referred to in subclause (II)(aa) are 
                                as follows:
                                            ``(aa) Response rate.--For 
                                        the preceding school year the 
                                        response rate was more than 85 
                                        percent.
                                            ``(bb) Nonresponse rate 
                                        reduction.--The nonresponse 
                                        rate was at least 15 percent 
                                        below the nonresponse rate for 
                                        the second preceding school 
                                        year.
                                            ``(cc) Confirmation rate.--
                                        The confirmation rate is 100 
                                        percent or has increased by at 
                                        least 5 percent over the two 
                                        most recent school years for 
                                        which data is available.
                                            ``(dd) Administrative 
                                        burden reduction.--

                                                    ``(AA) In 
                                                general.--The local 
                                                educational agency 
                                                receives a 
                                                determination from the 
                                                Secretary that 
                                                compliance with 
                                                subparagraph (D)(i)(II) 
                                                would render the local 
                                                educational agency 
                                                unable to administer 
                                                the program.

                                                    ``(BB) 
                                                Requirement.--The 
                                                Secretary shall develop 
                                                a system by which to 
                                                measure cost and 
                                                administrative burden 
                                                associated with 
                                                compliance with 
                                                subparagraph (D)(i)(II) 
                                                and shall consider 
                                                requests from local 
                                                educational agencies 
                                                based on that 
                                                system.'';

                            (iv) in subparagraph (H)(i)--
                                    (I) in subclause (I), by striking 
                                ``November'' and inserting 
                                ``December''; and
                                    (II) in subclause (II), by striking 
                                ``December'' and inserting ``January'';
                            (v) in subparagraph (K)(i), in the matter 
                        preceding subclause (I), by striking ``data 
                        mining'' and inserting ``analyses of data'';
                            (vi) by amending subparagraph (K)(ii) to 
                        read as follows:
                            ``(ii) Report.--Not later than two years 
                        after the date of the enactment of the 
                        Improving Child Nutrition and Education Act of 
                        2016, the Secretary shall submit to the 
                        Committee on Education and the Workforce of the 
                        House of Representatives and Committee on 
                        Agriculture, Nutrition, and Forestry of the 
                        Senate a report describing--
                                    ``(I) the results of the 
                                feasibility study conducted under this 
                                subsection;
                                    ``(II) how a computer system--
                                            ``(aa) used to reduce 
                                        verification and certification 
                                        errors can be adapted to 
                                        further reduce errors; and
                                            ``(bb) using technology 
                                        described in clause (i) could 
                                        be implemented; and
                                    ``(III) a plan to adapt or 
                                implement such system.'';
                            (vii) by adding at the end the following:
                    ``(L) Enhanced verification methods.--
                            ``(i) Requirements.--
                                    ``(I) In general.--The Secretary 
                                shall help local educational agencies 
                                engage in alternative and enhanced 
                                methods of certification and 
                                verification to increase the 
                                effectiveness of the process, reduce 
                                certification errors, and produce more 
                                meaningful management information to 
                                facilitate local educational agency, 
                                State, and Federal oversight with 
                                respect to program integrity in the 
                                school meal programs.
                                    ``(II) Best practices.--The 
                                Secretary shall encourage local 
                                educational agencies to adopt proven 
                                best practices with regard to 
                                verification.
                                    ``(III) Selection for 
                                implementation.--To the extent 
                                necessary to refine alternative 
                                verification methods or assess the 
                                feasibility, impact, or efficacy of the 
                                methods prior to recommending the 
                                methods, the Secretary shall select 
                                States and local educational agencies 
                                that have requested to participate in 
                                the development of best practices to 
                                implement methods subject to clause 
                                (iii).
                            ``(ii) Requirements.--The certification and 
                        verification methods shall--
                                    ``(I) meet such terms and 
                                conditions as the Secretary considers 
                                appropriate; and
                                    ``(II) except as otherwise provided 
                                in this subparagraph, be conducted in 
                                accordance with this subsection.
                            ``(iii) Selection criteria.--In selecting 
                        methods, including methods for implementation 
                        under clause (i)(III), the Secretary shall--
                                    ``(I) consider the degree to which 
                                the method would improve certification 
                                accuracy and program integrity within 
                                the school meal programs;
                                    ``(II) consider whether there is 
                                evidence that the method could be 
                                replicated easily by other local 
                                educational agencies or political 
                                subdivisions;
                                    ``(III) consider whether the method 
                                would increase the efficiency and 
                                effectiveness of the verification 
                                process;
                                    ``(IV) consider whether the local 
                                educational agency or State agency has 
                                a demonstrated capacity to undertake 
                                the method and to produce the data 
                                necessary to support the evaluation; 
                                and
                                    ``(V) ensure the methods 
                                implemented under clause (i)(III) are 
                                implemented across a range of 
                                geographic areas and States, including 
                                rural and urban areas, and, when 
                                considered as a group, allow for an 
                                assessment of a range of strategies 
                                regarding verification sample 
                                selection, obtaining eligibility 
                                documentation, and the entity 
                                conducting verification, including 
                                strategies that--
                                            ``(aa) use analyses of 
                                        data, particularly in large 
                                        local educational agencies to 
                                        develop algorithms to select 
                                        error-prone applications for 
                                        verification;
                                            ``(bb) use third-party data 
                                        sources to confirm eligibility 
                                        prior to conducting household 
                                        verification under subparagraph 
                                        (G);
                                            ``(cc) rely on alternative 
                                        methods, including message 
                                        testing, of communicating with 
                                        households to assess which 
                                        methods most effectively result 
                                        in household responses;
                                            ``(dd) rely on agencies or 
                                        organizations other than the 
                                        local educational agency to 
                                        conduct verification, including 
                                        at a minimum the State agency 
                                        or a State health and human 
                                        services agency; and
                                            ``(ee) could reduce the 
                                        administrative burden of 
                                        conducting verification for a 
                                        consortia of local educational 
                                        agencies, including shared 
                                        online applications and shared 
                                        verification procedures.
                            ``(iv) Reduction.--Notwithstanding the 
                        limitation in subparagraph (D)(v)(II)(bb), a 
                        local educational agency that uses the 
                        strategies described in clause (iii)(V) may 
                        qualify for a reduction of additional 0.25 
                        percentage points under such subparagraph, 
                        creating a floor of 2.25 percent for the 
                        verification sample size.'';
                    (C) in paragraph (4)--
                            (i) by striking subparagraph (E);
                            (ii) by redesignating subparagraphs (F) and 
                        (G) as subparagraphs (E) and (F), respectively; 
                        and
                            (iii) in subparagraph (E) (as so 
                        redesignated)--
                                    (I) in clause (i), by striking 
                                ``means--'' and all that follows 
                                through ``for each school year 
                                thereafter'' in subclause (III) and 
                                inserting ``means, for the school 
                                year'';
                                    (II) in clause (ii)--
                                            (aa) in subclause (II), by 
                                        striking ``and'' at the end;
                                            (bb) in subclause (III), by 
                                        striking the period at the end 
                                        and inserting a semicolon; and
                                            (cc) by adding at the end 
                                        the following:
                                    ``(IV) include in the report 
                                required under section 4301 of the 
                                Food, Conservation, and Energy Act of 
                                2008 (42 U.S.C. 1758a), a description 
                                of technical assistance provided to and 
                                progress of States identified under 
                                subclause (I) toward implementing the 
                                measures and meeting the goals 
                                established by the State as required 
                                under clause (iii)(II); and
                                    ``(V) provide guidance to schools 
                                on providing meals and collecting 
                                payment for any student who is no 
                                longer able to receive meals because 
                                the student did not provide a response 
                                to the verification request for the 
                                student's school meal application.''; 
                                and
                                    (III) in clause (iii)(II)(bb), by 
                                inserting ``within 3 school years'' 
                                after ``those measures'';
                    (D) in paragraph (15)--
                            (i) in subparagraph (B)(i), by striking 
                        ``section 9(b)(1)(A) of this Act'' and 
                        inserting ``paragraph (1)(A)''; and
                            (ii) in subparagraphs (C)(ii) and (D), by 
                        striking ``paragraph (4)(G)'' both places it 
                        appears and inserting ``paragraph (4)(F)'';
            (4) in subsection (f)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(C) meet minimum nutritional requirements 
                prescribed by the Secretary on the basis of tested 
                nutritional research specifically conducted to 
                understand the impact for children, except that the 
                minimum nutritional requirements--
                            ``(i) may not prohibit the substitution of 
                        foods to accommodate the medical, including 
                        allergies, or other special dietary needs of 
                        individual students, including religious 
                        dietary restrictions; and
                            ``(ii) shall, as possible in accommodating 
                        the medical or other special dietary needs of 
                        such students, be based on the weekly average 
                        of the nutrient content of school lunches.'';
                    (B) in paragraph (3)(A)(ii), by striking 
                ``paragraph (3)'' and inserting ``paragraph (2)'';
                    (C) by striking paragraph (4) and inserting the 
                following:
            ``(4) Regulations, review, and relief.--
                    ``(A) Review regulations.--The Secretary shall, at 
                least every 3 years--
                            ``(i) review the regulations promulgated in 
                        accordance with this Act for the school meal 
                        programs described in paragraph (1) (in this 
                        paragraph referred to as the `school meal 
                        programs');
                            ``(ii) with consultation from stakeholders 
                        in schools (including school leaders, school 
                        boards, local educational agency 
                        administrators, and school food nutrition 
                        directors), certify that the regulations are--
                                    ``(I) appropriate for the age of 
                                children participating in the school 
                                meal programs, including for the health 
                                of children;
                                    ``(II) in compliance with the 
                                preponderance of the latest high-
                                quality research based on school-aged 
                                children conducted to examine the 
                                health and safety of children 
                                participating in the school meal 
                                programs;
                                    ``(III) not increasing the cost to 
                                implement the requirements of the 
                                school meal programs; and
                                    ``(IV) not discouraging students 
                                from participating in the school meal 
                                programs;
                            ``(iii) if necessary to meet the 
                        requirements of clause (ii), revise the 
                        regulations to meet such requirements;
                            ``(iv) not later than 30 days prior to 
                        publication under clause (v)(II) of the revised 
                        regulations--
                                    ``(I) submit the revised 
                                regulations for comment to the 
                                Committee on Education and the 
                                Workforce of the House of 
                                Representatives and the Committee on 
                                Agriculture, Nutrition, and Forestry of 
                                the Senate; and
                                    ``(II) review any comments provided 
                                under subclause (I), and further revise 
                                the regulations, if necessary to ensure 
                                the revised regulations are in 
                                compliance with clause (i); and
                            ``(v) publish in the Federal Register, and 
                        submit to the Committee on Education and the 
                        Workforce of the House of Representatives and 
                        the Committee on Agriculture, Nutrition, and 
                        Forestry of the Senate--
                                    ``(I) a notice that no changes to 
                                the regulations are required with the 
                                certification described in clause (ii); 
                                or
                                    ``(II) the revised regulations 
                                described in clause (iv) with the 
                                certification described in clause (ii).
                    ``(B) First review.--The first review required 
                under subparagraph (A) after the date of enactment of 
                the Improving Child Nutrition and Education Act of 2016 
                shall--
                            ``(i) be concluded not later than December 
                        31, 2016;
                            ``(ii) include a review of the sodium and 
                        whole grain requirements under the regulations 
                        for the school meal programs; and
                            ``(iii) ensure that such requirements--
                                    ``(I) allow for cultural foods to 
                                be served under the school meal 
                                programs;
                                    ``(II) maintain the sodium target 
                                requirements established for the school 
                                lunch program and school breakfast 
                                program under sections 210.10(f) and 
                                220.8(f) of title 7, Code of Federal 
                                Regulations, respectively (as such 
                                regulations are in effect on the day 
                                before the date of the enactment of the 
                                Improving Child Nutrition and Education 
                                Act of 2016) until such requirements 
                                are revised in accordance with 
                                subclause (III); and
                                    ``(III) in a case in which the 
                                sodium target requirements are revised 
                                as a result of the review described in 
                                this subparagraph, ensure that such a 
                                revision--
                                            ``(aa) is based on health 
                                        requirements for children;
                                            ``(bb) is supported by a 
                                        majority of research focused on 
                                        school-aged children that 
                                        directly establishes, through 
                                        well-controlled randomized 
                                        trials or well-designed, long-
                                        term observational studies, 
                                        that sodium reductions are both 
                                        safe and produce beneficial 
                                        health outcomes for such 
                                        children;
                                            ``(cc) is able to support 
                                        food safety and be produced in 
                                        a manner that does not 
                                        significantly increase the cost 
                                        of food; and
                                            ``(dd) does not take effect 
                                        until 3 years after the 
                                        revision has been published in 
                                        the Federal Register.
                    ``(C) Special rule for regulation relief for family 
                meal days.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary shall issue guidance, or 
                        promulgate new rules as necessary, to ensure 
                        each State agency provides guidance to school 
                        food authorities with respect to the allowance 
                        of up to 4 family meal days, as designated by a 
                        school, which shall be exempt from the meal 
                        pattern rules specified under the regulations 
                        for the school meal programs, during which the 
                        school may--
                                    ``(I) invite parents to participate 
                                in special meals, such as a 
                                Thanksgiving meal or a parents' day 
                                meal; and
                                    ``(II) provide additional nutrition 
                                education, such as recipe building or 
                                healthy cooking classes to parents and 
                                families on making healthy meal options 
                                at home, which may be provided by an 
                                entity or individual other than a 
                                school food service director or food 
                                service personnel.
                            ``(ii) Clarification.--In issuing guidance 
                        or promulgating rules under clause (i), the 
                        Secretary shall not establish requirements for 
                        family meal days, other than to ensure that 
                        schools have the authority to hold up to 4 
                        family meal days per school year.
                    ``(D) Regulation flexibility.--The Secretary shall 
                provide guidance, when there is difficulty in procuring 
                food to comply with the regulations, to allow a school 
                food authority to substitute food items across food 
                groups and subgroups, including in-season, locally 
                produced fruits and vegetables, notwithstanding the 
                food-based meal patterns and menu planning requirements 
                of this subsection, provided that the school food 
                authority continues to meet applicable daily and weekly 
                nutrient and dietary requirements under this 
                subsection.'';
            (5) by striking subsections (g) and (k);
            (6) by redesignating subsections (h), (i), (j), and (l) as 
        subsections (g), (h), (i), and (j), respectively; and
            (7) in subsection (g) (as so redesignated), by striking 
        ``2011 through 2015'' each place it appears in paragraphs (3) 
        and (4) and inserting ``2017 through 2021''.

SEC. 105. MISCELLANEOUS PROVISIONS.

    (a) Universal Meal Service in High Poverty Areas Threshold.--
Section 11(a)(1)(F) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 17659a(a)(1)(F)) is amended--
            (1) in clause (ii)(I), in the matter preceding item (aa), 
        by inserting ``(including a subset of schools within the local 
        educational agency if the result obtained by dividing the total 
        number of the identified students enrolled in such schools by 
        the total number of all students enrolled in such schools, is 
        above the threshold in clause (viii))'' after ``on behalf of 
        certain schools'';
            (2) in clause (vi), by inserting ``(except in the case of a 
        nonpublic school that has requested information for the sole 
        purpose of verifying eligibility of students for free or 
        reduced price lunch)'' after this ``subparagraph'';
            (3) by striking clause (viii) and inserting the following:
            ``(viii) Threshold.--
                    ``(I) In general.--For each school year beginning 
                on or after July 1, 2017, the Secretary shall use a 
                threshold that is not less than 60 percent.
                    ``(II) Community eligibility selection 
                transition.--In the case of a school that received 
                special assistance payments under this subparagraph 
                during the school year immediately prior to the school 
                year in which the Improving Child Nutrition and 
                Education Act of 2016 was enacted, such school shall, 
                not later than June 30, 2018--
                            ``(aa) meet the threshold described in 
                        subclause (I); or
                            ``(bb) transition from receiving payments 
                        under this subparagraph in accordance with 
                        subclause (III).
                    ``(III) Technical assistance.--In the case of 
                schools described in subclause (II)(bb), the Secretary 
                shall provide technical assistance to ensure that such 
                schools are able to effectively and efficiently 
                transition from receiving payments under this 
                subparagraph to receiving special assistance payments 
                otherwise made available under this paragraph, 
                including communicating the application process to 
                families in a timely manner to ensure continuity of 
                services for eligible families.''; and
            (4) in clause (xi)--
                    (A) in subclause (II), by striking ``Not later than 
                December 31, 2013'' and inserting ``Not later than one 
                year after the date of enactment of the Improving Child 
                Nutrition and Education Act of 2016''; and
                    (B) in subclause (III), by striking ``If the 
                Secretary uses the authority provided in clause 
                (vii)(II)(bb) to use a different multiplier for 
                different schools or local educational agencies, for 
                each school year beginning on or after July 1, 2014, 
                not later than April 1, 2014'' and inserting ``If the 
                Secretary uses the authority provided in clause (vii), 
                for each school year beginning on or after July 1, 
                2017, not less than one year prior to the Secretary 
                electing to use such authority,''.
    (b) Reimbursement Rate.--Section 11(a)(3)(A) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 17659a(a)(3)(A)) is 
amended by striking ``July 1'' and inserting ``February 15''.
    (c) Definition of Authorized State Agency.--Paragraph (9) of 
section 12(d) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760(d)(9)) is amended to read as follows:
            ``(9) Authorized state agency.--The term `authorized State 
        agency' means--
                    ``(A) the chief State school officer (such as the 
                State superintendent of public instruction, 
                commissioner of education, or similar officer);
                    ``(B) a board of education controlling the State 
                department of education;
                    ``(C) the State Commissioner or individual who 
                administers agricultural programs in the State; or
                    ``(D) a State official the State legislature 
                designates to administer the programs under this 
                Act.''.
    (d) Procurement Training.--Section 12(m)(4) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1760) is amended by 
striking ``2015'' and inserting ``2021''.
    (e) Price for a Paid Lunch.--Section 12 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1760) is further amended by 
striking subsection (p) and redesignating subsections (q) and (r) as 
subsections (p) and (q), respectively.

SEC. 106. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    Section 13 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1761) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (4), by adding at the end the 
                following:
                    ``(C) Educational and enrichment activities.--In 
                determining participation under subparagraph (A), the 
                State shall prioritize applications that include an 
                educational or enrichment activity, or demonstrate a 
                partnership with an entity providing such activity.'';
                    (B) by amending paragraph (8) to read as follows:
            ``(8) Streamlining.--
                    ``(A) Seamless summer.--Except as otherwise 
                determined by the Secretary, a service institution that 
                is a public or private nonprofit school food authority 
                may provide summer or school vacation food service in 
                accordance with applicable provisions of law governing 
                the school lunch program established under this Act or 
                the school breakfast program established under the 
                Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
                    ``(B) Summer and cacfp at-risk streamlining.--
                            ``(i) In general.--Notwithstanding 
                        subsections (b)(2) and (c)(1), a State may 
                        elect to streamline and simplify program 
                        operations by reducing paperwork and other 
                        administrative burdens while retaining 
                        appropriate measures of program integrity, 
                        which may include the utilization of technical 
                        assistance provided to the State under clause 
                        (iv) for service institutions that--
                                    ``(I) are described in paragraphs 
                                (6) or (7);
                                    ``(II) provide care to at-risk 
                                school children (as defined in section 
                                17(r)(2)), and may be eligible child 
                                care centers or homes (as defined under 
                                section 17(a)(2)); and
                                    ``(III) are not public schools.
                            ``(ii) Streamlined reimbursement.--States 
                        that demonstrate streamlined and simplified 
                        program operations under clause (i) for service 
                        institutions, and that are selected by the 
                        Secretary under clause (v), shall streamline 
                        reimbursement for such service institutions by 
                        providing reimbursement for--
                                    ``(I) lunch and either breakfast or 
                                a supplement served to at-risk school 
                                children--
                                            ``(aa) during each day of 
                                        operation during the months of 
                                        May through September; and
                                            ``(bb) in the case of a 
                                        service institution that 
                                        provides meal service to such 
                                        children who are not in school 
                                        for a period during the school 
                                        year due to a natural disaster, 
                                        building repair, court order, 
                                        or similar cause, at any time 
                                        during such period in that 
                                        school year; and
                                    ``(II) up to 1 meal and 1 
                                supplement served to children during 
                                each day of operation outside of school 
                                hours during the regular school 
                                calendar, including after school, 
                                weekends, and school holidays.
                            ``(iii) Rate of reimbursement.--The State 
                        shall reimburse service institutions seeking 
                        reimbursement under this subparagraph at a rate 
                        that is consistent with section 17(r)(4)(B).
                            ``(iv) Technical assistance.--
                                    ``(I) In general.--Not later than 
                                December 31, 2016, the Secretary shall 
                                develop guidance and provide technical 
                                assistance for States and service 
                                institutions to assist in the 
                                implementation of this subparagraph, 
                                including by identifying areas of 
                                programmatic overlap in the program 
                                under this section and the child and 
                                adult care food program under section 
                                17 so that States may simplify the 
                                administration of each such program.
                                    ``(II) Guidance.--Such guidance 
                                shall include information on possible 
                                ways States may ensure participation 
                                under this subparagraph will lead to 
                                reduced paperwork and other 
                                administrative burdens, including 
                                recommendations for streamlined program 
                                applications, reporting requirements, 
                                inspections, and other areas of 
                                potential duplication, while retaining 
                                appropriate measures of program 
                                integrity.
                                    ``(III) Other states.--Information 
                                provided under this clause shall be 
                                provided in such a manner that any 
                                State may identify areas of 
                                programmatic overlap, and reduce 
                                paperwork and other burdens, even if 
                                such State has not yet been selected to 
                                provide reimbursements to service 
                                institutions in accordance with this 
                                subparagraph.
                            ``(v) Successful implementation.--
                                    ``(I) In general.--A State seeking 
                                to provide reimbursements in accordance 
                                this subparagraph shall demonstrate to 
                                the Secretary the ways in which the 
                                State has used the election under 
                                clause (i) to reduce paperwork and 
                                other administrative burdens while 
                                retaining appropriate measures of 
                                program integrity, which may include 
                                the utilization of technical assistance 
                                provided to the State under clause 
                                (iv).
                                    ``(II) Initial selection of 
                                states.--
                                            ``(aa) In general.--The 
                                        Secretary shall select not more 
                                        than 5 States to provide 
                                        reimbursements in accordance 
                                        with this subparagraph, 
                                        beginning in May 2017, if such 
                                        States have the capacity to 
                                        effectively implement this 
                                        subparagraph, as demonstrated 
                                        by streamlining and simplifying 
                                        program operations in 
                                        accordance with subclause (I).
                                            ``(bb) Update.--When 
                                        appropriate, but not later than 
                                        May 31, 2018, and consistent 
                                        with subclause (V)(bb), the 
                                        Secretary shall update the 
                                        information under clause (iv).
                                    ``(III) Next selection of states.--
                                            ``(aa) In general.--If the 
                                        Secretary determines that 
                                        additional States have the 
                                        capacity described in subclause 
                                        (I) and additional best 
                                        practices could be provided, 
                                        the Secretary may select not 
                                        more than 5 such States to 
                                        provide reimbursements in 
                                        accordance with this 
                                        subparagraph beginning in 
                                        October 2018.
                                            ``(bb) Update.--Not later 
                                        than September 30, 2019, and 
                                        consistent with subclause 
                                        (V)(bb), the Secretary shall 
                                        update the information under 
                                        clause (iv).
                                    ``(IV) Additional selection of 
                                states.--The Secretary may select 
                                additional States to provide 
                                reimbursements in accordance with this 
                                subparagraph beginning in May 2020, and 
                                each year thereafter, if such States 
                                have the capacity described in 
                                subclause (I).
                                    ``(V) Best practices.--
                                            ``(aa) In general.--As a 
                                        condition of being selected 
                                        under this clause, a State 
                                        shall provide, in such time and 
                                        in such manner as the Secretary 
                                        may reasonably require, 
                                        information to the Secretary 
                                        regarding best practices of 
                                        successful implementation of 
                                        this subparagraph.
                                            ``(bb) Update.--The 
                                        Secretary shall continue to 
                                        periodically update the 
                                        information under clause (iv) 
                                        to include the best practices 
                                        provided under item (aa) for 
                                        continued successful 
                                        implementation of this 
                                        subparagraph.'';
                    (C) by striking paragraphs (9), (10), and (12);
                    (D) by redesignating paragraph (11) as paragraph 
                (9); and
                    (E) by adding at the end the following:
            ``(10) Temporary allowance for off-site consumption.--
                    ``(A) In general.--Beginning in May 2017, the 
                Secretary shall grant requests made by a State to allow 
                children who are participating in the program but for 
                whom an operation under paragraph (12) is not 
                available, to consume meals away from a congregate 
                feeding site when the program is available to such 
                children at the site, but--
                            ``(i) the site is closed due to extreme 
                        weather conditions;
                            ``(ii) violence or other public safety 
                        concerns in the area temporarily prevent 
                        children from traveling safely to the site; or
                            ``(iii) other emergency circumstances, as 
                        defined by the State, prevent access to the 
                        site.
                    ``(B) Limitations.--In granting a request under 
                subparagraph (A), the Secretary shall ensure that--
                            ``(i) allowances are issued by a State only 
                        between the months of May through September;
                            ``(ii) allowances are granted in the most 
                        efficient and effective manner to ensure 
                        programs and States can quickly respond and 
                        adapt to the circumstances described in clauses 
                        (i) through (iii) of subparagraph (A); and
                            ``(iii) once an allowance is issued, any 
                        meal in which a component is offered but not 
                        served is not reimbursed under subsection (b).
                    ``(C) State plan.--As part of the management and 
                administration plan described in subsection (n), a 
                State shall describe--
                            ``(i) the approval process, including the 
                        timeline, the State would undertake to issue an 
                        allowance;
                            ``(ii) standards for what circumstances 
                        merit an allowance, how long an allowance will 
                        last, and when an allowance may be extended; 
                        and
                            ``(iii) how the program would operate once 
                        an allowance is issued.
            ``(11) Off-site consumption.--
                    ``(A) In general.--Beginning in May of 2017, a 
                State may elect for service institutions to carry out 
                an off-site consumption operation in the State to 
                provide summer food service program meals to children 
                eligible to participate in the program that such 
                children may consume away from a congregate feeding 
                site.
                    ``(B) Availability.--The operation described in 
                subparagraph (A) shall be available to a child 
                described in subparagraph (A) only if the child lives 
                in an area that is eligible to participate in the 
                summer food service program, but that is not currently 
                being served, and such area--
                            ``(i) is rural, as defined by the State; or
                            ``(ii) is not rural, and is an area in 
                        which more than 80 percent of students are 
                        certified as eligible for free or reduced price 
                        meals.
                    ``(C) Administration.--
                            ``(i) In general.--The following shall 
                        apply to an operation described in subparagraph 
                        (A):
                                    ``(I) The number of meals served to 
                                each child in a single meal service is 
                                limited to 2 meals, and the number of 
                                meals in a seven-day period shall be 
                                limited to 10 meals.
                                    ``(II) Any meal served shall meet 
                                the same standards for nutrition, 
                                safety, and quality as a meal served at 
                                a congregate feeding site.
                                    ``(III) Any meal in which a 
                                component is offered but not served 
                                shall not be reimbursed under 
                                subsection (b).
                                    ``(IV) Each State shall give 
                                priority to children who are living 
                                where congregate feeding sites are not 
                                accessible.
                                    ``(V) Nothing in this section shall 
                                be construed to allow congregate 
                                feeding sites to cease from operating 
                                in order to be replaced by off-site 
                                consumption operations under this 
                                paragraph.
                                    ``(VI) A State shall not--
                                            ``(aa) operate an off-site 
                                        consumption operation 
                                        simultaneously in the same 
                                        service area with a congregate 
                                        feeding site;
                                            ``(bb) use more than 10 
                                        percent of funds received for 
                                        administrative expenses to 
                                        carry out this paragraph; or
                                            ``(cc) implement an off-
                                        site consumption operation in 
                                        all service areas in the State.
                            ``(ii) State plan.--Each State choosing to 
                        provide summer food service program meals 
                        through an off-site consumption operation under 
                        this paragraph shall describe how the State 
                        plans to implement the operation in the 
                        management and administration plan in 
                        subsection (n), which shall include information 
                        on how the State will--
                                    ``(I) document operation, including 
                                implementation;
                                    ``(II) determine the method for 
                                selecting eligible areas and eligible 
                                service institutions to most 
                                effectively deliver summer food service 
                                program meals in the manner described 
                                in this paragraph;
                                    ``(III) design mechanisms by which 
                                households with children eligible to 
                                participate in the program could 
                                indicate a need for meal service 
                                through such an operation;
                                    ``(IV) develop an appropriate 
                                maintenance of effort requirement for 
                                service institutions currently 
                                operating congregate feeding sites;
                                    ``(V) develop requirements for 
                                implementing safety and security 
                                measures to ensure that safety and 
                                security through such an operation is 
                                equivalent to such measures at a 
                                congregate feeding site; and
                                    ``(VI) periodically reevaluate the 
                                potential for children to be served at 
                                a congregate feeding site.'';
            (2) in subsection (f)(2), by inserting before the period at 
        the end the following: ``and in providing appropriate meals to 
        children with medically certified special dietary needs, 
        including food allergies or other special dietary needs of 
        individual children, including religious dietary 
        restrictions'';
            (3) in subsection (k)(3)--
                    (A) by striking ``(3) To provide'' and inserting 
                the following:
            ``(3) Nutritional and food quality monitoring.--
                    ``(A) In general.--To provide''; and
                    (B) by adding at the end the following:
                    ``(B) Insufficient funds.--
                            ``(i) In general.--If funds provided under 
                        subparagraph (A) are insufficient to pay for 
                        State or local health department inspections, 
                        and to reinspect facilities and deliveries to 
                        test meal quality, as required under this Act 
                        or the Child Nutrition Act of 1966 (42 U.S.C. 
                        1771 et seq.), State agencies may elect to use 
                        funds described in paragraph (1) for those 
                        activities.
                            ``(ii) Limitation.--Funds described in 
                        clause (i) shall not exceed the lesser of--
                                    ``(I) actual costs; or
                                    ``(II) 1 percent of program 
                                funds.'';
            (4) by amending subsection (n) to read as follows:
    ``(n) State Plan.--Each State desiring to participate in the 
program shall notify the Secretary by January 1 of each year of its 
intent to administer the program and shall submit, by February 15, a 
management and administration plan for the program for the fiscal year, 
which shall include, at a minimum--
            ``(1) the State's administrative budget for the fiscal 
        year; and
            ``(2) the State's plans for--
                    ``(A) use of program funds and additional State or 
                private funds to reach children with the greatest need, 
                to the maximum extent practicable;
                    ``(B) strengthening the congregate feeding model 
                for program delivery, including a process for 
                identifying gaps in service and barriers to access;
                    ``(C) administrative and fiscal plans for using the 
                allowance described in subsection (a)(11) and, if 
                applicable, the option described in subsection (a)(12) 
                to assist service institutions in reaching children 
                with the greatest need;
                    ``(D) providing technical assistance and training 
                for eligible service institutions;
                    ``(E) monitoring and inspecting service 
                institutions, feeding sites, and food service 
                management companies and ensuring that such companies 
                do not enter into contracts for more meals than they 
                can provide effectively and efficiently, and in 
                compliance with the program;
                    ``(F) timely and effective action against program 
                violators; and
                    ``(G) ensuring fiscal integrity by auditing service 
                institutions not subject to auditing requirements 
                prescribed by the Secretary.''; and
            (5) in subsection (r), by striking ``2015'' and inserting 
        ``2021''.

SEC. 107. COMMODITY DISTRIBUTION PROGRAM.

    Section 14 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1762a) is amended--
            (1) in subsection (f), in the third sentence--
                    (A) by striking ``section 9(a) of this Act'' and 
                inserting ``section 9(f)''; and
                    (B) by striking ``represent the four basic food 
                groups, including'' and inserting ``include''; and
            (2) by striking subsection (h).

SEC. 108. CHILD AND ADULT CARE FOOD PROGRAM.

    (a) In General.--Section 17 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (B), in the matter 
                        preceding clause (i), by striking ``if'' and 
                        inserting ``if, during the month preceding the 
                        date of submission of the applicable initial 
                        application or reapplication'';
                            (ii) in subparagraph (E), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (F), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                            (iv) by adding at the end the following:
                    ``(G) any public or licensed nonprofit private 
                residential child care institution (as defined in 
                subsection (v)(1)) that is not concurrently receiving 
                reimbursement under the school lunch program under this 
                Act or the school breakfast program under the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); and
                    ``(H) any boarding school funded by the Bureau of 
                Indian Education that is not concurrently receiving 
                reimbursement under the school lunch or the school 
                breakfast program.'';
                    (B) in paragraph (3), by striking ``subsection 
                (r)'' and inserting ``subsections (r) and (v)''; and
                    (C) by adding at the end the following:
            ``(7) Duration of determination.--With respect to an 
        institution described in paragraph (2)(B), an eligibility 
        determination under this subsection shall remain in effect for 
        a period of 4 months after the date such institution is 
        approved by the State under subsection (d).'';
            (2) in subsection (b), by striking ``For the fiscal year 
        ending September 30, 1979, and for each subsequent fiscal year, 
        the'' and inserting ``The'';
            (3) in subsection (d)--
                    (A) in paragraph (4)--
                            (i) by striking ``In consultation'' and 
                        inserting the following:
                    ``(A) In general.--In consultation''; and
                            (ii) by adding at the end the following:
                    ``(B) Reports.--Each sponsoring organization shall, 
                on an annual basis, submit to the applicable State 
                agency a report that describes, with respect to the 
                preceding fiscal year--
                            ``(i) the expenditures of program funds by 
                        the sponsoring organization; and
                            ``(ii) the amount of meal reimbursements 
                        retained by the sponsoring organization for 
                        administrative costs, if applicable.''; and
                    (B) in paragraph (5), by adding at the end the 
                following:
                    ``(F) Serious deficiency process.--
                            ``(i) In general.--Not later than 1 year 
                        after the date of the enactment of the 
                        Improving Child Nutrition and Education Act of 
                        2016, the Secretary shall review the serious 
                        deficiency process for the program under this 
                        section.
                            ``(ii) Review.--In carrying out clause (i), 
                        the Secretary shall review the processes for, 
                        and those involved in--
                                    ``(I) a finding of serious 
                                deficiency, including--
                                            ``(aa) what measures 
                                        automatically result in a 
                                        finding of serious deficiency; 
                                        and
                                            ``(bb) how differentiation 
                                        is being made between--

                                                    ``(AA) a reasonable 
                                                margin of human error 
                                                and systematic or 
                                                intentional 
                                                noncompliance; and

                                                    ``(BB) State-
                                                specific requirements 
                                                and Federal law and 
                                                regulations, if 
                                                applicable;

                                    ``(II) appeals and mediation in any 
                                case in which there is a finding of 
                                serious deficiency;
                                    ``(III) determining the 
                                circumstances under which a corrective 
                                action plan is acceptable;
                                    ``(IV) information sharing between 
                                Departments of Agriculture and Health 
                                and Human Services; and
                                    ``(V) termination and 
                                disqualification, including maintenance 
                                of the list under subparagraph (E).
                            ``(iii) Guidance and regulations.--
                                    ``(I) In general.--After conducting 
                                the review under this subparagraph, the 
                                Secretary shall use findings from the 
                                information collected to issue 
                                guidance, and, as appropriate, 
                                regulations, from such findings that 
                                will assist sponsoring organizations, 
                                State agencies, and the Food and 
                                Nutrition Service in ensuring a fair, 
                                uniform, and effective administration 
                                of the serious deficiency process, 
                                while retaining program integrity.
                                    ``(II) Scope.--Such guidance shall 
                                include--
                                            ``(aa) clarity on the 
                                        different measures for 
                                        noncompliance;
                                            ``(bb) parameters for an 
                                        appeals process to review a 
                                        finding of serious deficiency 
                                        or a determination that a 
                                        corrective action plan is 
                                        inadequate; and
                                            ``(cc) adequate timeframes 
                                        under a corrective action plan 
                                        for compliance that are 
                                        consistent for all types of 
                                        institutions participating in 
                                        the program, including family 
                                        or group day care homes.
                                    ``(III) Information sharing.--
                                Within such guidance or regulation, and 
                                as soon as practicable, the Secretary 
                                shall ensure information about findings 
                                are shared with the Secretary of Health 
                                and Human Services as to allow for 
                                maximum health, safety, oversight, and 
                                monitoring of child care and Head Start 
                                facilities.'';
            (4) in subsection (f)--
                    (A) in paragraph (2)(C), by adding at the end the 
                following:
                            ``(iii) Carryover funds.--Not more than 10 
                        percent of the amount reserved by sponsoring 
                        organizations under clause (i) for 
                        administrative expenses for a fiscal year may 
                        remain available for obligation or expenditure 
                        in the succeeding fiscal year for 
                        administrative purposes.''; and
                    (B) in paragraph (3)--
                            (i) by striking subparagraph (C); and
                            (ii) by redesignating subparagraphs (D) and 
                        (E) as subparagraphs (C) and (D), respectively;
            (5) in subsection (g), by striking paragraph (6) and 
        inserting the following:
            ``(6) Use of donated foods.--To the maximum extent 
        practicable, each institution shall use in its food service 
        foods that are donated by the Secretary.'';
            (6) in subsection (h)(1), by adding at the end the 
        following:
                    ``(E) Engagement with state and local agencies.--
                            ``(i) In general.--Subject to clause (ii), 
                        institutions participating in the program under 
                        this section may engage with authorized State 
                        agencies and local educational agencies to use 
                        existing infrastructure to enhance the use of, 
                        and increase access to, donated commodities.
                            ``(ii) Effect of subparagraph.--Nothing in 
                        this subparagraph shall compel a local 
                        educational agency unwillingly to serve any 
                        institution participating in the program under 
                        this section.'';
            (7) in subsection (i)(2)(B)(i), by striking ``if the State 
        agency demonstrates'' and all that follows through the period 
        at the end and inserting ``if the State agency demonstrates 
        that the State agency can use funds to improve program 
        management, oversight, and integrity, including by working with 
        other State agencies involved with the monitoring of 
        institutions under this section in order to streamline and 
        coordinate the efforts of such State agencies.'';
            (8) in subsection (r), by striking paragraphs (5) and (6);
            (9) in subsection (s)(2)(C), by striking ``parents of 
        enrolled children at enrollment'' and inserting ``parents or 
        legal guardians of enrolled children in an easily accessible 
        manner'';
            (10) in subsection (u)(3)--
                    (A) in subparagraph (A), by inserting before the 
                period at the end the following: ``and in providing 
                appropriate meals to children with medically certified 
                special dietary needs, including food allergies or 
                other special dietary needs of individual students, 
                including religious dietary restrictions'';
                    (B) in subparagraph (C)(i), by inserting ``for 
                distribution to participants and families of 
                participants'' after ``nutrition education''; and
                    (C) in subparagraph (H), by adding at the end the 
                following:
                            ``(iii) Sunset.--The Secretary shall return 
                        to the general fund of the Treasury any funds 
                        that were--
                                    ``(I) made available under this 
                                subparagraph; and
                                    ``(II) not obligated as of the date 
                                of the enactment of the Improving Child 
                                Nutrition and Education Act of 2016.''; 
                                and
            (11) by adding at the end the following:
    ``(v) Participation by Residential Child Care Institutions.--
            ``(1) Definition of residential child care institution.--In 
        this subsection, the term `residential child care institution' 
        means any public or nonprofit private residential child care 
        institution, or distinct part of such an institution, that--
                    ``(A) operates principally for the care of 
                children; and
                    ``(B) if private, is licensed to provide 
                residential child care services under the appropriate 
                licensing code by the State or local agency.
            ``(2) Administration.--Except as otherwise provided in this 
        subsection, a residential child care institution shall be 
        considered eligible for reimbursement for meals or supplements 
        served to eligible children residing at the residential child 
        care institution, so long as the institution does not 
        simultaneously participate in the school lunch program under 
        this Act or the school breakfast program under the Child 
        Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
            ``(3) Meal or supplement reimbursement.--
                    ``(A) Limitations.--A residential child care 
                institution may claim reimbursement under this 
                section--
                            ``(i) only for a meal or supplement served 
                        to children residing at the residential child 
                        care institution, who are--
                                    ``(I) not more than 18 years of 
                                age; or
                                    ``(II) children with disabilities; 
                                and
                            ``(ii) for not more than--
                                    ``(I) 1 breakfast, 1 lunch, and 1 
                                supplement per child per day; or
                                    ``(II) 1 breakfast, 1 supper, and 1 
                                supplement per child per day.
                    ``(B) Rate.--A meal or supplement eligible for 
                reimbursement under this subsection shall be reimbursed 
                at the rate at which free, reduced price, and paid 
                meals and supplements, respectively, are reimbursed 
                under subsection (c).''.
    (b) Advisory Committee.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary shall establish and 
        convene an advisory committee--
                    (A) to examine the feasibility of reducing 
                unnecessary or duplicative paperwork resulting from 
                regulations and recordkeeping requirements, including 
                paperwork resulting from additional State requirements, 
                for individuals and entities participating or seeking 
                to participate in the child and adult care food program 
                under section 17 of the Richard B. Russell National 
                School Lunch Act (42 U.S.C. 1766) (as amended by 
                subsection (a)), including (within the meaning of that 
                Act (42 U.S.C. 1751 et seq.))--
                            (i) State agencies;
                            (ii) family child care homes;
                            (iii) child care centers;
                            (iv) sponsoring organizations; and
                            (v) families.
                    (B) to provide recommendations to reduce 
                unnecessary or duplicative paperwork for those program 
                participants while ensuring that proper accountability 
                and program integrity are maintained.
            (2) Representation.--The advisory committee under this 
        subsection shall include representation from each of the 
        following (within the meaning of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1751 et seq.), as 
        applicable):
                    (A) Public and private nonprofit organizations.
                    (B) Home-based day care providers.
                    (C) Head Start centers.
                    (D) For-profit proprietary organizations.
                    (E) Shelters for homeless families.
                    (F) Adult day care centers.
                    (G) State agencies.
                    (H) Sponsor organizations that provide 
                administrative support to multiple providers.
            (3) Considerations.--In developing the recommendations 
        under this subsection, the advisory committee shall take into 
        consideration, as appropriate--
                    (A) any existing information, recommendations, and 
                reports from the paperwork reduction work group 
                convened by the Food and Nutrition Service in response 
                to section 119(i) of the Child Nutrition and WIC 
                Reauthorization Act of 2004 (42 U.S.C. 1766 note; 118 
                Stat. 755);
                    (B) the use of technology for electronic 
                recordkeeping to reduce paperwork burdens on program 
                participants and providers; and
                    (C) input from additional advocates and 
                stakeholders for a broader knowledge base, if the 
                advisory committee determines necessary.
            (4) Secretarial action.--
                    (A) Guidance or regulations.--
                            (i) Issuance.--Not later than 1 year after 
                        the date of the enactment of this Act, the 
                        Secretary shall issue guidance or regulations, 
                        as appropriate, based on the recommendations of 
                        the advisory committee under paragraph (1) 
                        regarding streamlined and consolidated 
                        paperwork and recordkeeping requirements, 
                        including applications, monitoring and auditing 
                        requirements, and any other areas recommended 
                        by the advisory committee intended to reduce 
                        administrative burden.
                            (ii) Implementation.--Not later than 18 
                        months after the date of the enactment of this 
                        Act, the Secretary shall implement any changes 
                        resulting from the guidance or regulations 
                        described in clause (i).
                    (B) Report.--After issuing any guidance or 
                regulations under subparagraph (A), the Secretary shall 
                submit to the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate and the Committee on Education 
                and the Workforce of the House of Representatives a 
                report describing any recommendations for legislative 
                changes to further strengthen and streamline the 
                application and monitoring process and reduce 
                administrative burden on grantees, participants, local 
                and State governments, and the Federal Government.

SEC. 109. DEMONSTRATION PROJECTS.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended--
            (1) by striking subsections (d) through (h), (j), and (k);
            (2) by redesignating subsection (i) as subsection (g);
            (3) in subsection (g)(5), as so redesignated, by striking 
        ``2011through 2015'' and inserting ``2017 through 2021''; and
            (4) by inserting after subsection (c) the following:
    ``(d) Access to Local Foods: Farm to School Program.--
            ``(1) Program.--The Secretary shall carry out a program to 
        assist eligible schools, State and local agencies, Indian 
        tribal organizations, agricultural producers or groups of 
        agricultural producers, and nonprofit entities through grants, 
        technical assistance, and research to implement farm to school 
        programs that improve access to local foods and improve 
        nutrition education in eligible schools.
            ``(2) Definitions.--In this subsection:
                    ``(A) Agricultural producer.--The term 
                `agricultural producer' means a farmer, rancher, or 
                fisher (including of farm-raised fish).
                    ``(B) Eligible school.--The term `eligible school' 
                means a school or institution that participates in--
                            ``(i) a program under this Act, including 
                        the summer food service program for children 
                        under section 13 and the early care and 
                        afterschool portions of the child and adult 
                        care food program under section 17; or
                            ``(ii) the school breakfast program 
                        established under section 4 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1773).
            ``(3) Grants.--
                    ``(A) In general.--The Secretary shall award 
                competitive grants under this subsection to be used for 
                implementing farm to school programs for the purposes 
                of improving access to local foods and improving 
                nutrition education, through--
                            ``(i) research, training, and technical 
                        assistance;
                            ``(ii) supporting operations;
                            ``(iii) planning;
                            ``(iv) purchasing equipment;
                            ``(v) developing school gardens; and
                            ``(vi) developing partnerships to 
                        facilitate nutrition education and healthy 
                        eating.
                    ``(B) Regional balance.--In making awards under 
                this subsection, the Secretary shall, to the maximum 
                extent practicable, ensure--
                            ``(i) geographical diversity; and
                            ``(ii) equitable treatment of urban, rural, 
                        and tribal communities.
                    ``(C) Improved procurement and distribution.--Funds 
                provided under this subsection may be used to improve 
                local food procurement and distribution options between 
                agricultural producers and eligible schools, including 
                innovative approaches to aggregation, processing, 
                transportation, and distribution.
                    ``(D) Awards.--
                            ``(i) Maximum amount.--The total amount 
                        provided to a grant recipient under this 
                        subsection shall not exceed $150,000.
                            ``(ii) Term.--The term of an award shall 
                        not exceed 3 years.
                            ``(iii) Limitation.--The Secretary shall 
                        not award any entity more than 1 grant at any 
                        given time.
                            ``(iv) Purpose and scope.--In carrying out 
                        this subsection, the Secretary shall make 
                        awards of diverse amounts and duration so as to 
                        best match a variety of purposes, scopes, and 
                        needs of the project proposals.
                    ``(E) Limitation.--The Secretary shall not award a 
                grant under this subsection if the majority of grant 
                funds would be used solely for the purpose of carrying 
                out a conference.
            ``(4) Federal share.--
                    ``(A) In general.--The Federal share of costs for a 
                project funded through a grant awarded under this 
                subsection shall not exceed 75 percent of the total 
                cost of the project.
                    ``(B) Federal matching.--As a condition of 
                receiving a grant under this subsection, a grant 
                recipient shall provide matching support in the form of 
                cash or in-kind contributions, including facilities, 
                equipment, or services provided by State and local 
                governments, nonprofit organizations, and private 
                sources.
            ``(5) Criteria for selection.--
                    ``(A) In general.--To the maximum extent 
                practicable, in providing assistance under this 
                subsection, the Secretary shall give priority to 
                proposals to--
                            ``(i) serve a high proportion of children 
                        who are eligible for free or reduced price 
                        meals;
                            ``(ii) incorporate nutrition education 
                        activities that encourage the participation of 
                        school children in farm and garden-based 
                        agricultural education activities;
                            ``(iii) provide families the opportunity to 
                        participate in educational programming, 
                        including through materials and engagement 
                        activities, to improve nutrition outside the 
                        school environment;
                            ``(iv) demonstrate collaboration between 
                        eligible schools, nongovernmental and 
                        community-based organizations, agricultural 
                        producer groups, and other community partners;
                            ``(v) make local food products available on 
                        the menu of reimbursable meals under this Act 
                        at the eligible school;
                            ``(vi) demonstrate the potential for long-
                        term program sustainability with non-Federal 
                        funds; and
                            ``(vii) expand the selection of local 
                        commodities available for eligible schools.
                    ``(B) Tribal community projects.--In the case of 
                projects serving tribal communities, the Secretary 
                shall, to the maximum extent practicable, give highest 
                priority to projects that propose to use products from 
                tribal agricultural producers, in addition to the 
                priorities under subparagraph (A).
            ``(6) Evaluation.--As a condition of receiving a grant 
        under this subsection, each grant recipient shall agree to 
        cooperate in an evaluation of the program by the Secretary.
            ``(7) Technical assistance and research.--
                    ``(A) In general.--The Secretary shall provide 
                technical assistance, research, and information through 
                amounts reserved under this subsection for such 
                purposes, to assist schools, State and local agencies, 
                Indian tribal organizations, agricultural producers, 
                and nonprofit entities--
                            ``(i) to facilitate the coordination and 
                        sharing of information and resources that may 
                        be applicable to the farm to school program;
                            ``(ii) to collect and share information on 
                        best practices;
                            ``(iii) to disseminate research and data on 
                        existing farm to school programs and the 
                        potential for programs to begin in underserved 
                        areas; and
                            ``(iv) to increase awareness of, and 
                        participation in, farm to school programs among 
                        agricultural and aquiculture producers or 
                        agricultural producer groups, including 
                        beginning, veteran, and socially disadvantaged 
                        farmers and ranchers.
                    ``(B) Review.--Not later than 1 year after the date 
                of the enactment of the Improving Child Nutrition and 
                Education Act of 2016 and every 3 years thereafter, the 
                Secretary shall review and submit to the Committee on 
                Agriculture and the Committee on Education and the 
                Workforce of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate a report that describes the regulatory and 
                other barriers related to including locally or 
                regionally produced food products in school food 
                programs, including any progress that has been made in 
                identifying and eliminating such barriers through 
                examining--
                            ``(i) barriers to the development and 
                        implementation of successful farm to school 
                        programs;
                            ``(ii) the direct and indirect costs 
                        affecting the production and marketing of 
                        locally or regionally produced agricultural 
                        food products for school food programs;
                            ``(iii) the costs local school food 
                        programs incur by acquiring such local foods 
                        for school meal programs in comparison to the 
                        costs for other foods in such school meal 
                        programs; and
                            ``(iv) local and regional market access for 
                        such food products, partnerships, small-scale 
                        production, and any barriers to and long-term 
                        feasibility of such access.
            ``(8) Funding.--
                    ``(A) In general.--On October 1, 2016, and each 
                October 1 thereafter, out of any funds in the Treasury 
                not otherwise appropriated, the Secretary of the 
                Treasury shall transfer to the Secretary to carry out 
                this subsection $10,000,000, to remain available until 
                expended.
                    ``(B) Receipt and acceptance.--The Secretary shall 
                be entitled to receive, shall accept, and shall use to 
                carry out this subsection the funds transferred under 
                subparagraph (A), without further appropriation.
                    ``(C) Administration.--Of the funds made available 
                to the Secretary under subparagraph (A), not more than 
                5 percent may be used to pay administrative costs 
                incurred by the Secretary in carrying out this 
                subsection and evaluating the program in accordance 
                with paragraph (6).
    ``(e) Summer Meal Service Through Business Partnership.--
            ``(1) In general.--From the funds made available under the 
        summer food service program under section 13, the Secretary 
        shall award grants on a competitive basis to not more than 4 
        State agencies to improve delivery of such summer food service 
        program for low-income children in underserved areas during 
        summer through sustainable, scalable, business-driven 
        solutions.
                    ``(A) Duration.--A grant awarded under this section 
                shall be for a period of not more than 3 years.
                    ``(B) Priority.--In awarding grants under this 
                section, the Secretary shall give priority to State 
                agencies that have met the application requirements 
                under this subsection and which demonstrate a severe 
                unmet need for serving children in additional eligible 
                areas in the State through the summer food service 
                program under section 13.
                    ``(C) Limitation.--Funds under this section will--
                            ``(i) be intended to reduce childhood 
                        hunger and allow parents to better participate 
                        in the labor force or an education or workforce 
                        development program; and
                            ``(ii) not preempt or prevent operation of 
                        the summer food service program as it operates 
                        through requirements of section 13.
            ``(2) State application.--A State seeking to operate a 
        demonstration award under this subsection shall submit an 
        application at such time and in such manner as the Secretary 
        may reasonably require. The application shall contain--
                    ``(A) State plans to implement and manage the 
                program in accordance with other applicable Federal 
                requirements under this Act;
                    ``(B) a determination of the eligible areas in the 
                State in which poor economic conditions exist in 
                accordance with the program, but where an eligible 
                service institution is not currently in operation, 
                where the State may reimburse a vendor;
                    ``(C) identified eligible vendors which the State 
                has determined to be qualified to provide meals in 
                accordance with this section;
                    ``(D) a proposed timeline for entering into 
                contracts with eligible vendors and strategies for 
                effective communication; and
                    ``(E) an assurance that funds will be used to 
                provide meals to the most vulnerable, underserved, and 
                rural populations, as determined by the State.
            ``(3) Eligible vendor.--Under this section, an eligible 
        vendor is a food vendor which the State determines has the 
        administrative capacity and proven operating performance to 
        provide eligible meals to children in underserved areas in 
        accordance with this subsection and with the limitations and 
        requirements set forth in the summer food service program 
        regulations regarding management responsibilities of sponsors 
        and self-preparation sites, including the vendor--
                    ``(A) accepts final administrative and financial 
                responsibility for management of an effective food 
                service, including auditing and reporting 
                responsibilities, but will not receive administrative 
                funding from the State to do so;
                    ``(B) has not been determined ineligible to 
                participate in any other program under this Act or the 
                Child Nutrition Act of 1966 by reason of violation of 
                the requirements of that program;
                    ``(C) will provide adequate supervisory and 
                operational personnel for monitoring and management of 
                a self-preparation site;
                    ``(D) contracts directly with the State as a 
                sponsor;
                    ``(E) ensures that meals are inspected periodically 
                as required under existing program regulations;
                    ``(F) participates in applicable State and Federal 
                reporting and auditing requirements under this Act as 
                appropriate, including to provide other information 
                determined relevant by the Comptroller General in 
                accordance with paragraph (5);
                    ``(G) has State or local health certification for 
                the facilities in which meals will be prepared and 
                distributed for use in the program, and ensures that 
                State and local health and sanitation requirements are 
                met at all times; and
                    ``(H) has the organizational capacity to offer 
                meals in underserved communities, including preparation 
                and delivery logistics.
            ``(4) State disbursement.--A State shall reimburse an 
        eligible vendor for meals served to eligible children in 
        accordance with the summer food service program under section 
        13 and with this subsection, as follows:
                    ``(A) Reimbursements shall be available for an 
                eligible vendor operating in an eligible area in which 
                poor economic conditions exist where no sponsor is 
                currently operating the program under section 13.
                    ``(B) To the extent practicable, a State shall give 
                priority to eligible vendors that--
                            ``(i) demonstrate partnerships with 
                        entities providing summer enrichment activities 
                        such as schools, local government agencies, and 
                        nonprofit agencies; and
                            ``(ii) provide meals at a congregate site, 
                        although such vendor shall not be required to 
                        do so.
                    ``(C) A State shall follow established procedures 
                in entering into contracts with a vendor, such as 
                through a Request for Proposal, Invitation for Sealed 
                Bid, Small Purchase Procedure, or other common method.
            ``(5) Auditing.--Not later than 1 year after the end of 
        each grant period for each grant under awarded under this 
        subsection, the Comptroller General of the United States shall 
        provide a report to Congress, including information about the 
        impacts on children, families, and eligible service 
        institutions during the summer in each State receiving such 
        grant, including--
                    ``(A) the impact on parents' abilities to 
                participate in the labor force or an education or 
                workforce development program;
                    ``(B) the reduction of childhood hunger and food 
                insecurity;
                    ``(C) the ability for such business-driven models 
                to be sustainable and scalable, including the costs 
                associated in doing so; and
                    ``(D) the extent to which such funds under this 
                section encouraged partnerships with schools, local 
                government agencies, and nonprofit agencies.
            ``(6) Limitations.--The following rules shall apply with 
        respect to this subsection:
                    ``(A) No commodities shall be provided to 
                businesses or vendors under this subsection.
                    ``(B) Vendors shall assume all administrative costs 
                under this subsection.
                    ``(C) Meals shall be provided to children eligible 
                for the summer food service program under section 13.
                    ``(D) A vendor receiving reimbursements shall not 
                profit directly from such reimbursements under this 
                subsection.
                    ``(E) The Secretary shall include payments to 
                States under this subsection in its calculations for 
                administrative costs incurred by States under 
                subsection (k)(1) of section 13.
    ``(f) Summer Electronic Benefit Transfer for Children.--
            ``(1) Purpose.--The purposes of the provision of electronic 
        benefits provided through this subsection are to assess the use 
        of alternate methods of providing access to food for children 
        during the summer months when school is not in regular session 
        that are intended to--
                    ``(A) increase summer food service program 
                effectiveness and efficiency;
                    ``(B) reduce or eliminate the food insecurity and 
                hunger of children; and
                    ``(C) improve the nutritional status of children.
            ``(2) Demonstration.--
                    ``(A) Election.--A State that, as of the date of 
                enactment of the Improving Child Nutrition and 
                Education Act of 2016, is operating, or has operated, a 
                summer electronic benefit transfer for children 
                demonstration may elect to continue operating such 
                demonstration in accordance with the requirements of 
                this subsection as an alternative to other delivery 
                models of providing meals to children during the summer 
                months when school is not in regular session.
                    ``(B) State requirements.--As a condition of 
                participating in the demonstration under this 
                subsection, a State shall--
                            ``(i) be in full compliance with the 
                        electronic benefit transfer systems 
                        requirements of section 17(g)(12) of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1786(g)(12));
                            ``(ii) comply with the requirements under 
                        this subsection; and
                            ``(iii) agree to provide such information 
                        the Comptroller General of the United States 
                        may require for the evaluation of the 
                        demonstration as required under this 
                        subsection.
            ``(3) Definitions.--In this subsection:
                    ``(A) Eligible household.--The term `eligible 
                household' means a household that includes 1 or more 
                school-aged child determined as eligible to receive 
                free or reduced price school meals during the prior 
                school year, but such child is not participating in a 
                program that provides food during the summer through 
                the summer food service program under section 13.
                    ``(B) State.--The term `State' includes a tribal 
                entity.
                    ``(C) Summer electronic benefit transfer for 
                children demonstration.--The term `summer electronic 
                benefit transfer for children demonstration' means an 
                electronic benefit transfer demonstration project under 
                section 748(g)(1) of the Agriculture, Rural 
                Development, Food and Drug Administration, and Related 
                Appropriations Act, 2010 (Public Law 111-80; 123 Stat. 
                2132) that uses the electronic benefit systems 
                implemented in a State under section 17(g)(12) of the 
                Child Nutrition Act of 1966 (42 U.S.C. 1786(g)(12)).
            ``(4) Benefit levels.--
                    ``(A) In general.--The Secretary shall approve 
                States seeking to make an election under paragraph 
                (2)(A) that will evaluate the impact of providing a 
                variety of differentiated benefit levels to eligible 
                children as a way to reach such children to the 
                greatest extent practicable. The values of such 
                benefits shall be determined by the State, but shall be 
                between $15 and $30 per month for each school-aged 
                child in an eligible household.
                    ``(B) Rate determination.--In determining the 
                values under subparagraph (A), a State may consider 
                differentiating rates based on the need for such 
                benefits, which may be determined through factors such 
                as--
                            ``(i) the proportion of applicants that are 
                        eligible for free price meals;
                            ``(ii) total number of households and 
                        children seeking to participate;
                            ``(iii) food security in children across 
                        communities in such State;
                            ``(iv) average redemption rates of 
                        benefits;
                            ``(v) impact of such values at improving 
                        food security in children;
                            ``(vi) availability of other community 
                        programs that provide meals to children during 
                        the summer months when school is not in regular 
                        session where children might otherwise receive 
                        nutrition assistance; and
                            ``(vii) any other information a State sees 
                        useful at determining such rates.
                    ``(C) Limitations.--
                            ``(i) Time.--No child may receive more than 
                        3 months of benefits under this paragraph in 
                        any 12-month period.
                            ``(ii) Amount.--No child may receive more 
                        than $30 of benefits under this paragraph per 
                        month.
                    ``(D) Cost sharing.--Nothing in this paragraph 
                shall be construed to prohibit States or local entities 
                from providing additional non-Federal resources for the 
                purposes of this subsection.
            ``(5) Effective implementation.--
                    ``(A) In general.--In administering this subsection 
                and providing benefits to children in accordance with 
                this subsection, a State shall consider previous State 
                experiences and best practices in implementing the 
                summer electronic benefit transfer for children 
                demonstration carried out before the date of enactment 
                of the Improving Child Nutrition and Education Act of 
                2016, including information evaluating findings of the 
                demonstration (including the 2013 final report 
                published by the Department of Agriculture).
                    ``(B) Technical assistance.--The Secretary shall 
                provide, and periodically update, technical assistance 
                to States for purposes of this paragraph.
            ``(6) Use of benefits.--
                    ``(A) In general.--Benefits issued to families 
                through the election under paragraph (2)(A) may be used 
                only for the purchase of food for consumption by 
                school-aged children in such family.
                    ``(B) Timing.--Benefits issued through the election 
                described in this subparagraph may be redeemed only 
                when school is out of session for the summer period.
            ``(7) Administration.--In administering this subsection, 
        the State shall--
                    ``(A) ensure that benefits are issued only to 
                eligible households that live--
                            ``(i) in areas with high rates of poverty 
                        or long-term poverty that are rural and have no 
                        congregate feeding sites or access to meals 
                        otherwise provided through the summer food 
                        service program authorized under section 13; or
                            ``(ii) outside an area in which poor 
                        economic conditions exist but in an area with 
                        no access to meals otherwise provided through 
                        the summer food service program authorized 
                        under section 13;
                    ``(B) issue benefits to eligible households only 
                after such household has made an oral or written 
                request to receive electronic benefit transfer benefits 
                under this subsection;
                    ``(C) document how the election will be 
                administered in the management and administration plan 
                described in subsection (n), including the process for 
                identifying areas in which benefits will be issued; and
                    ``(D) ensure full compliance with section 
                17(h)(12)(13) of the Child Nutrition Act of 1966 (42 
                U.S.C. 1786(h)(12)(13)).
            ``(8) Evaluation.--The Secretary shall provide for an 
        ongoing, independent evaluation of the demonstration carried 
        out under this subsection, including quasi-experimental or 
        other methods that are capable of producing scientifically 
        valid information to determine effectiveness in achieving the 
        purposes described in paragraph (1), including examining or 
        assessing--
                    ``(A) feasibility of, or barriers to, successful 
                implementation of, this subsection;
                    ``(B) varied approaches in State implementation of 
                this subsection, including different approaches, 
                challenges, and lessons learned;
                    ``(C) specific levels of use and receipt of 
                benefits;
                    ``(D) impact on children's food security and 
                nutritional impacts, including by the different impacts 
                on children in a variety of geographical areas such as 
                rural, urban, and suburban areas, localities, and 
                States;
                    ``(E) total cost (including administrative cost) of 
                implementing and operating this subsection, including 
                in comparison to other methods of providing summer meal 
                service to school-aged children;
                    ``(F) impacts and results of such evaluation in 
                comparison to evaluations of the summer electronic 
                benefits transfer for children demonstration published 
                by the Secretary of Agriculture; and
                    ``(G) the potential for benefits provided under 
                this subsection to improve effectiveness and efficiency 
                of the summer food service program in comparison to 
                other methods of providing summer meal service to 
                school-aged children.
            ``(9) Report.--Not later than one year after amounts are 
        first appropriated under paragraph (10), and each year 
        thereafter, the Comptroller General of the United States shall 
        submit to Congress a report that--
                    ``(A) includes the information resulting from the 
                most recent evaluation under paragraph (8); and
                    ``(B) takes into consideration evaluations of the 
                summer electronic benefits transfer for children 
                demonstration published by the Secretary of 
                Agriculture.
            ``(10) Authorization of appropriations.--
                    ``(A) In general.--There is authorized to be 
                appropriated to carry out this subsection not more than 
                $10,000,000 for each of fiscal years 2018 through 2020, 
                to remain available until expended.
                    ``(B) Limitations.--Of such appropriations, for 
                each fiscal year--
                            ``(i) each State shall utilize a portion 
                        for administrative funds that shall be equal to 
                        the levels necessary to effectively and 
                        efficiently administer the State's 
                        demonstration under this subsection, as 
                        determined by the State;
                            ``(ii) not more than 1 percent may be spent 
                        on administrative funds by the Secretary; and
                            ``(iii) not more than $499,999 shall be 
                        available for the Secretary to comply with 
                        paragraph (8).
            ``(11) Guidance.--Not later than December 31, 2016, the 
        Secretary shall provide guidance to States to implement this 
        subsection, including recommendations for States to 
        successfully continue to implement the summer electronic 
        benefit transfer for children demonstration while complying 
        with the new or additional requirements of this subsection.''.

SEC. 110. FRUIT AND VEGETABLE PROGRAM.

    Section 19 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769a) is amended--
            (1) in the heading, by striking ``fresh'';
            (2) by striking ``fresh'' each place it appears in 
        subsections (a), (b), and (e); and
            (3) in subsection (i)--
                    (A) by striking paragraphs (5) and (7);
                    (B) by redesignating paragraph (6) as paragraph 
                (5); and
                    (C) by adding at the end the following:
            ``(6) Clarification.--The Secretary shall issue guidance 
        that clarifies to States that funds under this program may be 
        used on all forms of fruits and vegetables and is no longer 
        limited to only fresh fruits and vegetables.''.

SEC. 111. COMPLIANCE AND ACCOUNTABILITY.

    Section 22 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769c) is amended--
            (1) in subsection (a)--
                    (A) by striking ``(1) In general.--There shall be'' 
                and inserting ``There shall be''; and
                    (B) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively, and indenting 
                appropriately;
            (2) in subsection (b)--
                    (A) in paragraph (1)(C)(i), by striking ``3-year 
                cycle'' and inserting ``5-year cycle'';
                    (B) by redesignating paragraphs (4) through (6) as 
                paragraphs (5) through (7), respectively;
                    (C) by striking paragraph (3) and inserting the 
                following:
            ``(3) Error reduction plans.--
                    ``(A) In general.--Each State agency shall work 
                with the local educational agencies that have the 
                highest rates of certification errors according to the 
                verification process under section 9(a)(D) to develop 
                an error reduction plan and monitor implementation of 
                the plan over the remainder of the review cycle.
                    ``(B) Plan components.--Each error reduction plan 
                shall include--
                            ``(i) specific measures that the local 
                        educational agency shall take to reduce 
                        certification errors, including at a minimum--
                                    ``(I) increasing the standard 
                                verification sample size, except such 
                                increase shall not result in a 
                                verification sample size of more than 
                                15 percent;
                                    ``(II) improvements in the 
                                application;
                                    ``(III) the use of technology to 
                                minimize opportunities for error; and
                                    ``(IV) enhanced training and 
                                oversight of staff involved in the 
                                certification and verification process;
                            ``(ii) a timeline for the local educational 
                        agency to implement those measures within the 
                        review cycle;
                            ``(iii) annual goals for reductions in 
                        certification errors;
                            ``(iv) technical assistance to be provided 
                        by the State agency; and
                            ``(v) working with an educational service 
                        agency to help conduct the verification process 
                        and other aspects of the program as necessary 
                        to help reduce errors in the administration of 
                        the program.
                    ``(C) State agency responsibilities.--Each State 
                agency shall--
                            ``(i) assist the local educational agencies 
                        identified under subparagraph (D) with 
                        developing an error reduction plan that 
                        complies with subparagraph (B);
                            ``(ii) provide technical assistance as 
                        described in the error reduction plan under 
                        subparagraph (B)(iv);
                            ``(iii) conduct annual reviews focused on 
                        the direct certification, application, 
                        certification, verification, meal counting, and 
                        meal claiming processes; and
                            ``(iv) report annually to the Secretary on 
                        the progress of the State in reducing errors.
                    ``(D) Selection of local educational agencies.--
                            ``(i) In general.--Each State agency shall 
                        select up to 10 percent of the local 
                        educational agencies in the State to develop an 
                        error reduction plan.
                            ``(ii) Limitation.--The percentage of local 
                        educational agencies selected under clause (i) 
                        shall not be comprised of more than 50 percent 
                        of small local educational agencies, as 
                        determined by the Secretary.
                            ``(iii) Assessment of certification 
                        error.--In selecting local educational agencies 
                        under this paragraph, certification error shall 
                        be assessed based on a measure determined by 
                        the Secretary that considers--
                                    ``(I) the results of the reviews 
                                conducted under paragraph (1); and
                                    ``(II) the percentage of household 
                                applications verified under section 
                                9(b)(3)(D)(i) that had the level of 
                                benefits changed as a result of 
                                information obtained during the 
                                verification process, excluding benefit 
                                terminations resulting from not 
                                obtaining information during household 
                                verification conducted under section 
                                9(b)(3)(G).
            ``(4) High performance.--
                    ``(A) In general.--If a local educational agency is 
                determined to be in the top 20 percent of local 
                educational agencies in the State, as determined by the 
                State under subparagraph (B), the sample size under 
                section 9(b)(3)(D)(i)(II) shall be a verification 
                sample size of 2.5 percent.
                    ``(B) Considerations.--The State shall determine 
                whether a local educational agency is in the top 20 
                percent of local educational agencies in the State by 
                considering error rates, confirmation rates, 
                nonresponse rates, response rates, and other factors as 
                necessary to make such determination.''; and
                    (D) in paragraph (6) (as redesignated by 
                subparagraph (B)), in subparagraph (A), by striking 
                ``paragraph (4)'' each place it appears and inserting 
                ``paragraph (5)''; and
            (3) in subsection (d), by striking ``2011 through 2015'' 
        and inserting ``2017 through 2021''.

SEC. 112. REPEAL OF STATE CHILDHOOD HUNGER CHALLENGE GRANTS.

    Section 24 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769e) is repealed.

SEC. 113. DUTIES OF THE SECRETARY RELATING TO NONPROCUREMENT DEBARMENT.

    Section 25 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769f) is amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following:
    ``(g) Fines.--
            ``(1) In general.--In a situation in which a contractor is 
        found guilty in any criminal proceeding or found liable in any 
        civil or administrative proceeding, of the activities listed in 
        paragraph (2), in connection with the supplying, providing, or 
        selling of goods or services to any local agency in connection 
        with a child nutrition program, the Secretary shall impose a 
        civil penalty of not more than $100,000,000, as determined by 
        the Secretary, to provide restitution to the program for harm 
        done to the program.
            ``(2) Included activities.--Activities include, at a 
        minimum--
                    ``(A) an anticompetitive activity, including bid-
                rigging, price-fixing, the allocation of customers 
                between competitors, or other violation of Federal or 
                State antitrust laws;
                    ``(B) fraud, bribery, theft, forgery, or 
                embezzlement;
                    ``(C) knowingly receiving stolen property;
                    ``(D) making a false claim or statement; or
                    ``(E) any other obstruction of justice.
            ``(3) Use of funds.--Any funds collected under this 
        subsection shall be credited to the child nutrition programs 
        appropriations account.''.

SEC. 114. IMPROVEMENTS TO SCHOOL LUNCH FACILITIES.

    The Richard B. Russell National School Lunch Act is amended by 
inserting after section 26 (42 U.S.C. 1769g) the following:

``SEC. 27. IMPROVEMENTS TO SCHOOL LUNCH FACILITIES.

    ``(a) Definitions.--In this section:
            ``(1) Durable equipment.--The term `durable equipment' 
        means durable food preparation, handling, cooking, serving, and 
        storage equipment greater than $500 in value.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a local educational agency or a school food 
                authority administering or operating a school lunch 
                program under this Act;
                    ``(B) a tribal organization; or
                    ``(C) a consortium that includes a local 
                educational agency or school food authority described 
                in subparagraph (A), a tribal organization, or both.
            ``(3) Infrastructure.--The term `infrastructure' means a 
        food storage facility, kitchen, food service facility, 
        cafeteria, dining room, or food preparation facility.
            ``(4) Local educational agency.--The term `local 
        educational agency' has the meaning given the term in section 
        8101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801).
            ``(5) School food authority.--The term `school food 
        authority' has the meaning given the term in section 210.2 of 
        title 7, Code of Federal Regulations (or a successor 
        regulation).
            ``(6) Tribal organization.--The term `tribal organization' 
        has the meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
    ``(b) Loan Guarantees.--
            ``(1) Authority.--The Secretary shall issue a loan 
        guarantee to an eligible lender for purposes of financing the 
        construction, remodeling, or expansion of infrastructure or the 
        purchase of durable equipment that will assist the eligible 
        entity in providing healthy meals through the school lunch 
        program authorized under this Act.
            ``(2) Preference.--In issuing a loan guarantee under this 
        subsection, the Secretary shall give a preference to an 
        eligible entity that, as compared with other eligible entities 
        seeking a loan guarantee under this subsection, demonstrates 
        substantial or disproportionate--
                    ``(A) need for infrastructure improvement or 
                durable equipment; or
                    ``(B) impairment in durable equipment.
            ``(3) Oversight.--The Secretary, acting through the Under 
        Secretary for Rural Development, shall establish procedures to 
        oversee any project or purchase for which a loan guarantee is 
        issued under this subsection.
            ``(4) Guarantee amount.--A loan guarantee issued under this 
        subsection may not guarantee more than 80 percent of the 
        principal amount of the loan.
            ``(5) Fees and costs.--
                    ``(A) In general.--The Secretary shall establish 
                fees for loan guarantees under this subsection that 
                are, to the maximum extent practicable, equal to all 
                costs of the loan guarantees as determined under the 
                Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
                seq.), as determined by the Secretary.
                    ``(B) Fee shortfall.--To the extent that the 
                Secretary determines that fees described in 
                subparagraph (A) are not sufficient to pay for all of 
                the costs for the loan guarantees pursuant to the 
                Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
                seq.), the Secretary may use funds described in 
                paragraph (6) to pay for the costs of loan guarantees 
                not paid for by the fees.
            ``(6) Funding.--Subject to the availability of 
        appropriations provided in advance in an appropriations Act 
        specifically for the purpose of carrying out this subsection, 
        there is authorized to be appropriated $5,000,000 for fiscal 
        year 2016 and each fiscal year thereafter.
    ``(c) Grants.--
            ``(1) Authority.--Beginning in fiscal year 2017 and subject 
        to the availability of appropriations provided in advance in an 
        appropriations Act specifically for the purpose of carrying out 
        this subsection, the Secretary shall make grants, on a 
        competitive basis, to eligible entities for the purchase of 
        durable equipment and infrastructure needed to serve healthier 
        meals and improve food safety.
            ``(2) Priority.--In awarding grants under this subsection, 
        the Secretary shall give priority to eligible entities that--
                    ``(A) are located in States that have enacted 
                comparable statutory grant funding mechanisms or that 
                have otherwise appropriated funds for the purpose 
                described in paragraph (1); and
                    ``(B) have identified and are reasonably expected 
                to meet an unmet local or community need--
                            ``(i) through a public-private partnership 
                        or partnership with a food pantry or other low-
                        income assistance agency; or
                            ``(ii) by allowing related community 
                        organizations to use kitchen or cafeteria 
                        space.
            ``(3) Federal share.--
                    ``(A) In general.--The Federal share of costs for 
                assistance funded through a grant awarded under this 
                subsection shall not exceed 80 percent of the total 
                cost of the durable equipment or infrastructure.
                    ``(B) Matching.--To receive a grant under this 
                subsection, an eligible entity shall provide matching 
                support in the form of cash or in-kind contributions.
                    ``(C) Waiver.--The Secretary may waive or vary the 
                requirements of subparagraphs (A) and (B) if the 
                Secretary determines that undue hardship or effective 
                exclusion from participation would otherwise result.
            ``(4) Authorization of appropriations.--
                    ``(A) In general.--There is authorized to be 
                appropriated $25,000,000 to carry out this subsection 
                for fiscal year 2017 through fiscal year 2019.
                    ``(B) Limit.--The Secretary may use not more than 5 
                percent of the funds made available under subparagraph 
                (A) to provide technical assistance.
    ``(d) Salad Bars.--Not later than 180 days after the date of the 
enactment of the Improving Child Nutrition and Education Act of 2016, 
the Secretary shall review or revise any guidance in existence on that 
date of enactment so as to ensure that school food authorities have 
flexibility in the establishment and implementation of salad bars.''.

SEC. 115. PROHIBITIONS.

    The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
seq.) is further amended by adding at the end the following:

``SEC. 30. PROHIBITIONS.

    ``Nothing in this Act, the Child Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.), the Health, Hunger-Free Kids Act of 2010, or the 
Improving Child Nutrition and Education Act of 2016 shall--
            ``(1) authorize the Secretary to issue or establish any 
        regulations or requirements not explicitly authorized under any 
        such Act; or
            ``(2) authorize the Secretary to require, as a condition of 
        participation in any program under any such Act--
                    ``(A) any curriculum or education requirements for 
                participating schools or child care providers; or
                    ``(B) the adoption of any specific education 
                standards for nutrition education.''.

                     TITLE II--CHILD NUTRITION ACT

SEC. 201. SPECIAL MILK PROGRAM AUTHORIZATION.

    Section 3(a)(7) of the Child Nutrition Act of 1966 (42 U.S.C. 
1772(a)(7)) is amended by striking ``on an annual basis each'' and 
inserting ``annually by February 15 for the upcoming''.

SEC. 202. SCHOOL BREAKFAST PROGRAM.

    Section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) is 
amended--
            (1) in subsection (b)(1), by adding at the end the 
        following:
                    ``(F) Increased reimbursement.--(i) For school year 
                2018-2019, the Secretary shall increase by 2 cents the 
                annually adjusted payment for each breakfast (free, 
                reduced price, and paid) described in subparagraph (B).
                    ``(ii) For school year 2019-2020, the national 
                average payment for each breakfast referred to in 
                clause (i) of this subparagraph shall equal the result 
                obtained under such clause (i) applicable to such 
                breakfast, as annually adjusted for the school year in 
                accordance with subparagraph (B).
                    ``(iii) For school year 2020-2021, the national 
                average payment for each breakfast referred to in 
                clause (i) of this subparagraph shall equal the 
                annually adjusted payment for such breakfast, as 
                determined under clause (ii) of this subparagraph, plus 
                1 cent.
                    ``(iv) For school year 2021-2022, and each 
                succeeding school year, the national average payment 
                for each breakfast referred to in clause (i) of this 
                subparagraph shall equal the result obtained under 
                clause (iii) of this subparagraph applicable to such 
                breakfast, as annually adjusted for the school year in 
                accordance with subparagraph (B).''; and
            (2) in subsection (e)(1)(B), by striking ``, including 
        technical'' and all that follows through ``established under 
        this section,''.

SEC. 203. STATE ADMINISTRATIVE EXPENSES.

    Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 1776) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (3), in the second sentence, by 
                striking ``, except as provided in paragraph (5)'';
                    (B) by striking paragraph (5); and
                    (C) by redesignating paragraphs (6) through (9) as 
                paragraphs (5) through (8), respectively;
            (2) in subsection (b)--
                    (A) by striking ``expenses, for administrative'' 
                and inserting the following: ``expenses for--''
            ``(1) administrative''; and
                    (B) by striking ``for support'' and all that 
                follows through ``for staff'' and inserting the 
                following:
            ``(2) support services;
            ``(3) office equipment;
            ``(4) State-operated purchasing programs; and
            ``(5) staff'';
            (3) in subsection (g)(2)(B), by amending clause (iii) to 
        read as follows:
                            ``(iii) Minimizing disruptions.--The 
                        Secretary shall encourage school food 
                        authorities to consider--
                                    ``(I) providing the training 
                                required under this subparagraph to 
                                local food service personnel during 
                                paid, regular hours; and
                                    ``(II) that to the extent that 
                                training must occur during nonwork 
                                hours, it is minimally disruptive to 
                                employees' other work obligations if 
                                employees are provided with sufficient 
                                notice of training.'';
            (4) in subsection (i)--
                    (A) in paragraph (3)--
                            (i) in subparagraph (A), by inserting 
                        before the period at the end the following: 
                        ``and for the purposes described in section 
                        749(h) of the Agriculture, Rural Development, 
                        Food and Drug Administration, and Related 
                        Agencies Appropriations Act, 2010 (Public Law 
                        111-80; 123 Stat. 2133)''; and
                            (ii) by adding at the end the following:
                    ``(C) Priority.--In awarding funds to States under 
                this paragraph, the Secretary shall give priority to 
                States in which local educational agencies, school food 
                authorities, or schools submit a plan under 
                subparagraph (B) that includes the use of technology or 
                information management systems to provide assistance to 
                tribal organizations administering the food 
                distribution program on Indian reservations established 
                under section 4(b) of the Food and Nutrition Act of 
                2008 (7 U.S.C. 2013(b)) for purposes of improving the 
                rate of direct certification of children in households 
                participating in that program.''; and
                    (B) in paragraph (4), by striking ``2015'' and 
                inserting ``2020'';
            (5) in subsection (j), by striking ``2015'' and inserting 
        ``2020'';
            (6) by redesignating subsection (j) as subsection (k); and
            (7) by inserting after subsection (i) the following:
    ``(j) Centralized Exchange Network.--
            ``(1) Establishment.--The Secretary shall establish a 
        centralized exchange network to facilitate State exchange of 
        information and best practices, for programs authorized under 
        this Act or the Richard B. Russell National School Lunch Act 
        (42 U.S.C. 1751 et seq.).
            ``(2) Network topics.--State exchanges of information and 
        best practices described in paragraph (1) may include, at a 
        minimum, research methods and data related to--
                    ``(A) improved efficiency in the delivery of 
                benefits;
                    ``(B) improved compliance in the programs; and
                    ``(C) reduction of fraud, waste, and abuse in the 
                programs.
            ``(3) Administrative funds.--The Secretary shall not use 
        more than $450,000 for such network.''.

SEC. 204. REGULATIONS.

    Section 10(b)(1)(C) of the Child Nutrition Act of 1966 (42 U.S.C. 
1779(b)(1)(C)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) by striking the period at the end of clause (ii) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                            ``(iii) ensuring that the nutrition 
                        standards under this paragraph do not apply to 
                        fundraisers held by student groups or 
                        organizations; and
                            ``(iv) ensure that the nutrition standards 
                        under this paragraph allow any foods that may 
                        be served as part of a reimbursable meal served 
                        under the school meal programs to be sold in 
                        schools as described in subparagraph (B).''.

SEC. 205. DEFINITION OF AUTHORIZED STATE AGENCY.

    Section 15 of the Child Nutrition Act of 1966 (42 U.S.C. 1784) is 
amended by striking paragraph (2) and inserting the following:
            ``(2) Authorized state agency.--The term `authorized State 
        agency' means--
                    ``(A) the chief State school officer (such as the 
                State superintendent of public instruction, 
                commissioner of education, or similar officer);
                    ``(B) a board of education controlling the State 
                department of education;
                    ``(C) the State Commissioner or individual who 
                administers agricultural programs in the State; or
                    ``(D) a State official the State legislature 
                designates to administer the programs under this 
                Act.''.

SEC. 206. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, 
              AND CHILDREN.

    (a) In General.--Section 17 of the Child Nutrition Act of 1966 (42 
U.S.C. 1786) is amended--
            (1) in subsection (a), in the second sentence, by inserting 
        ``counseling,'' before ``promotion,'';
            (2) in subsection (b)(14), by striking the paragraph 
        designation and all that follows through ``means those foods'' 
        and inserting the following:
            ``(14) Supplemental food.--The term `supplemental food' 
        means any food'';
            (3) in subsection (d)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (B)--
                                    (I) in the matter preceding clause 
                                (i), by striking ``may choose to'' and 
                                inserting ``shall'';
                                    (II) in clause (i)(II), by striking 
                                ``and'' at the end;
                                    (III) in clause (ii), by striking 
                                the period at the end and inserting ``; 
                                and''; and
                                    (IV) by adding at the end the 
                                following:
                            ``(iii) any basic allowance for subsistence 
                        provided under section 402 of title 37, United 
                        States Code, to a member of a uniformed 
                        service.''; and
                            (ii) by adding at the end the following:
                    ``(E) Child support payments.--For the purpose of 
                determining income eligibility under this section, a 
                State agency shall exclude from income any child 
                support payment for an applicant who is legally 
                obligated to pay child support for any noncustodial 
                child.''; and
                    (B) in paragraph (3), by adding at the end the 
                following:
                    ``(G) Data exchange standards for improved 
                interoperability.--
                            ``(i) Designation.--The Secretary, in 
                        consultation with an interagency work group 
                        established by the Office of Management and 
                        Budget, and taking into consideration State 
                        government perspectives, shall designate data 
                        exchange standards to govern, under this 
                        section--
                                    ``(I) necessary categories of 
                                information that State agencies 
                                operating related programs are required 
                                under applicable law to electronically 
                                exchange with another State agency; and
                                    ``(II) Federal reporting and data 
                                exchange required under applicable law.
                            ``(ii) Requirements.--The data exchange 
                        standards required by clause (i) shall, to the 
                        maximum extent practicable--
                                    ``(I) incorporate a widely 
                                accepted, nonproprietary, searchable, 
                                computer-readable format;
                                    ``(II) contain interoperable 
                                standards developed and maintained by 
                                intergovernmental partnerships, such as 
                                the National Information Exchange 
                                Model;
                                    ``(III) incorporate interoperable 
                                standards developed and maintained by 
                                Federal entities with authority 
                                regarding contracting and financial 
                                assistance;
                                    ``(IV) be consistent with, and 
                                implement, applicable accounting 
                                principles;
                                    ``(V) be implemented in a manner 
                                that--
                                            ``(aa) is cost effective; 
                                        and
                                            ``(bb) improves program 
                                        efficiency and effectiveness;
                                    ``(VI) be capable of being upgraded 
                                as necessary; and
                                    ``(VII) protects the privacy of any 
                                personally identifiable information 
                                from being accessed by individuals who 
                                do not need access to such information.
                            ``(iii) Effect of subparagraph.--Nothing in 
                        this subparagraph requires any change to an 
                        existing data exchange standard for Federal 
                        reporting that is determined to be effective 
                        and efficient.
                            ``(iv) Implementation.--
                                    ``(I) In general.--Not later than 2 
                                years after the date of the enactment 
                                of the Improving Child Nutrition and 
                                Education Act of 2016, the Secretary 
                                shall issue a proposed rule to 
                                implement this subparagraph.
                                    ``(II) Requirements.--The proposed 
                                rule under this clause shall--
                                            ``(aa) identify all 
                                        federally required data 
                                        exchanges;
                                            ``(bb) include 
                                        specification and timing for 
                                        the exchanges to be 
                                        standardized;
                                            ``(cc) address the factors 
                                        used in determining whether and 
                                        when to standardize data 
                                        exchanges;
                                            ``(dd) specify State 
                                        implementation options; and
                                            ``(ee) describe future 
                                        milestones.'';
            (4) in subsection (e)--
                    (A) by striking the subsection designation and all 
                that follows through ``The State agency shall'' in the 
                first sentence of paragraph (1) and inserting the 
                following:
    ``(e) Nutrition and Drug Abuse Education.--
            ``(1) Education.--
                    ``(A) In general.--A State agency shall'';
                    (B) in paragraph (1) (as amended by subparagraph 
                (A)), by adding at the end the following:
                    ``(B) Disposal of certain infant formula.--
                            ``(i) In general.--The State agency shall 
                        ensure that all pregnant, postpartum, and 
                        breastfeeding participants in the program, and 
                        parents or caretakers of infant and child 
                        participants in the program, are provided 
                        education regarding proper disposal of unused 
                        or excess infant formula obtained with food 
                        instruments issued under the program under this 
                        section.
                            ``(ii) Inclusions.--The education under 
                        this subparagraph shall include information 
                        regarding--
                                    ``(I) the safety hazards of 
                                purchasing infant formula from an 
                                unauthorized vendor; and
                                    ``(II) the penalties associated 
                                with the gifting, trading, sale, or 
                                resale of infant formula or other 
                                supplemental foods obtained with food 
                                instruments issued under the program 
                                under this section, in accordance with 
                                subsection (o).''; and
                    (C) by striking paragraph (3) and inserting the 
                following:
            ``(3) Nutrition education materials.--
                    ``(A) In general.--The Secretary, after submitting 
                proposed nutrition education materials to the Secretary 
                of Health and Human Services for comment, shall issue 
                the materials for use in the program under this 
                section.
                    ``(B) Sharing of materials with child and adult 
                care food program.--A State agency may allow the local 
                agencies or clinics operating under the State agency to 
                share nutrition educational materials with institutions 
                participating in the Child and Adult Care Food Program 
                established under section 17 of the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1766) at no cost 
                to that program, if a written materials-sharing 
                agreement exists between the relevant agencies.'';
            (5) in subsection (f)--
                    (A) by striking ``(f)(1)(A) Each State agency'' and 
                all that follows through the end of paragraph (1)(A) 
                and inserting the following:
    ``(f) Plan of Operation and Administration by State Agency.--
            ``(1) Requirements.--
                    ``(A) Submission.--
                            ``(i) In general.--Each State agency shall 
                        submit to the Secretary a plan of operation and 
                        administration of the program authorized under 
                        this section.
                            ``(ii) Deadlines.--Each State agency shall 
                        submit--
                                    ``(I) an initial plan not later 
                                than such date as is specified by the 
                                Secretary; and
                                    ``(II) an update to the plan every 
                                3 years thereafter or, if the 
                                requirements of this section continue 
                                to be met by current plan, an assurance 
                                that the current plan continues to meet 
                                such requirements.'';
                    (B) in paragraph (1)(B), by striking ``submitted 
                for'' and inserting ``submitted covering'';
                    (C) in paragraph (1)(C)--
                            (i) in clause (x), by striking ``and'' at 
                        the end;
                            (ii) by redesignating clause (xi) as clause 
                        (xiii); and
                            (iii) by inserting after clause (x) the 
                        following:
                            ``(xi) a plan to allow, during an emergency 
                        or disaster period, for different foods to be 
                        obtained with program benefits in lieu of, or 
                        in addition to, the supplemental foods 
                        available to be obtained with such benefits;
                            ``(xii) a plan detailing the methods to be 
                        used by all local agencies to ensure compliance 
                        with subsection (d)(2); and'';
                    (D) in paragraph (5)--
                            (i) by striking ``(5) State and local'' and 
                        inserting the following:
            ``(5) Accounts, records, and review.--
                    ``(A) In general.--State and local''; and
                            (ii) by adding at the end the following:
                    ``(B) Review.--The Secretary shall periodically 
                review State and local agency compliance with the 
                approved plan of operation and administration of the 
                applicable State.'';
                    (E) in paragraph (10)--
                            (i) by striking ``(10) The Secretary'' and 
                        inserting the following:
            ``(10) Standards for administration.--
                    ``(A) In general.--The Secretary''; and
                            (ii) by adding at the end the following:
                    ``(B) Notification to state authority.--If, on 
                reviewing the administration by a State of the program, 
                the Secretary determines there is a need to temporarily 
                halt the State from approving new vendors to address 
                deficiencies in proper administration, the Secretary 
                may issue a moratorium on the authority of the State to 
                approve new vendors, subject to the condition that the 
                Secretary shall provide the State with reasoning behind 
                such determination and shall establish--
                            ``(i) a timeframe under which the 
                        moratorium will be issued, including any 
                        renewal or lifting of the moratorium;
                            ``(ii) a process to approve vendors for the 
                        State in a manner that does not impede--
                                    ``(I) the sale of a business; or
                                    ``(II) the establishment of any new 
                                business; and
                            ``(iii) a review process to be conducted by 
                        the Secretary to ensure that participants, 
                        nonparticipants, and vendors are not adversely 
                        impacted by the implementation of the 
                        moratorium.'';
                    (F) in paragraph (11)--
                            (i) in subparagraph (C)--
                                    (I) in clause (i), by inserting 
                                before the semicolon at the end the 
                                following: ``which, beginning not later 
                                than 60 days after the date of 
                                enactment of the Improving Child 
                                Nutrition and Education Act of 2016, 
                                shall include an examination of 
                                criteria relating to fluid milk (in 
                                consideration of the most recent 
                                Dietary Guidelines for Americans 
                                published under section 301 of the 
                                National Nutrition Monitoring and 
                                Related Research Act of 1990 (719 
                                U.S.C. 5341)), and an examination of 
                                the consumption and redemption rates of 
                                milk beginning on May 5, 2014''; and
                                    (II) in clause (ii), by striking 
                                ``and cultural eating patterns'' and 
                                inserting ``cultural eating patterns, 
                                commercial availability, and 
                                participant demand''; and
                            (ii) by adding at the end the following:
                    ``(D) Product package sizes.--In promulgating or 
                revising regulations under this paragraph, the 
                Secretary shall allow a range of product package sizes 
                to be selected by participants.
                    ``(E) Cash value vouchers.--In adjusting annually 
                for food cost inflation in the food package under this 
                paragraph, the Secretary shall round to the nearest 
                dollar increment.
                    ``(F) Participant choice options.--The Secretary 
                shall maximize opportunities for State agency 
                flexibility to ensure adequate and appropriate 
                participant choice to meet participant needs and 
                cultural preferences in supplemental foods made 
                available under this section.'';
            (6) in subsection (g), by striking paragraph (1)(A) and 
        inserting the following:
                    ``(A) Authorization.--There are authorized to be 
                appropriated to carry out this section $6,350,000,000 
                for each of fiscal years 2017 through 2021.'';
            (7) in subsection (h)--
                    (A) in paragraph (8)(A)--
                            (i) in clause (vi)--
                                    (I) by striking ``Effective 
                                beginning'' and inserting the 
                                following:
                                    ``(I) In general.--Effective 
                                beginning''; and
                                    (II) by adding at the end the 
                                following:
                                    ``(II) Infant formula.--Effective 
                                beginning on the date of the enactment 
                                of the Improving Child Nutrition and 
                                Education Act of 2016, a State agency 
                                that has fully implemented electronic 
                                benefits transfer systems throughout 
                                the State shall have in effect a system 
                                to ensure that infant formula rebate 
                                invoices, under competitive bidding, 
                                provide an actual count of the number 
                                of units sold to participants in the 
                                program under this section.''; and
                            (ii) by adding at the end the following:
                            ``(xi) Contract duration.--The contracts 
                        awarded under clause (iii) shall specify that--
                                    ``(I) if the income eligibility 
                                limit under title XIX of the Social 
                                Security Act (42 U.S.C. 1396 et seq.) 
                                for pregnant women or infants is 
                                substantially increased, the contractor 
                                may terminate the existing contract 
                                effective on the later of--
                                            ``(aa) the date that is 1 
                                        year after the date on which 
                                        the State decision to increase 
                                        the eligibility limit by 
                                        amending the State plan is made 
                                        by--

                                                    ``(AA) adopting 
                                                State legislation;

                                                    ``(BB) issuing a 
                                                State executive order 
                                                or administrative rule; 
                                                or

                                                    ``(CC) any other 
                                                applicable State 
                                                process, as determined 
                                                by the Secretary; and

                                            ``(bb) the first day of the 
                                        month during which the increase 
                                        takes effect; and
                                    ``(II) if a contractor elects to 
                                terminate a contract pursuant to 
                                subclause (I), the contractor shall 
                                notify the State agency by not later 
                                than the date that is 1 year before the 
                                proposed date of termination.'';
                    (B) in paragraph (9)--
                            (i) in subparagraph (B)--
                                    (I) in clause (i)--
                                            (aa) in subclause (I), by 
                                        striking ``and'' at the end; 
                                        and
                                            (bb) by adding at the end 
                                        the following:
                                    ``(III) limit the term of any 
                                contract (including any extension or 
                                renewal period) to a maximum of 5 
                                years, subject to the condition that 
                                any such extension or renewal shall be 
                                approved only on mutual consent of the 
                                contractor and the State agency;
                                    ``(IV) agree to provide, by not 
                                later than 180 days before exercising 
                                any termination for convenience clause, 
                                a written notice to each affected 
                                contractor;
                                    ``(V) agree--
                                            ``(aa) to receive an annual 
                                        audit of infant formula rebate 
                                        invoices by a contractor; and
                                            ``(bb) to provide to each 
                                        contractor accurate monthly 
                                        redemption files; and
                                    ``(VI) agree not to provide any 
                                State preference to any bidder in 
                                evaluating bids;'';
                                    (II) in clause (iii), by striking 
                                ``and'' at the end;
                                    (III) in clause (iv)--
                                            (aa) by striking ``30'' and 
                                        inserting ``45''; and
                                            (bb) by striking the period 
                                        at the end and inserting a 
                                        semicolon;
                                    (IV) by redesignating clauses (iii) 
                                and (iv) as clauses (iv) and (v), 
                                respectively;
                                    (V) by inserting after clause (ii) 
                                the following:
                            ``(iii) for any State agency that has fully 
                        implemented electronic benefits transfer 
                        systems throughout the State, have a system to 
                        ensure that rebate invoices under competitive 
                        bidding provide an actual count of the number 
                        of units lawfully sold to participants in the 
                        program under this section;''; and
                                    (VI) by adding at the end the 
                                following:
                            ``(vi) provide a process to negotiate the 
                        amount of funds to be returned to the bidder by 
                        the State agency, and the method of return, on 
                        determining and verifying that rebates were 
                        paid on any food, including infant formula, 
                        sold under fraudulent means;
                            ``(vii) open bids and enter into a contract 
                        under paragraph (8)(A)(iii) only after making a 
                        reasonable effort to confirm in writing, via 
                        email or other means, that the manufacturers on 
                        the list the State agency maintains under 
                        paragraph (8)(A)(ix) received the initial 
                        request for proposals or other bid solicitation 
                        document by not later than the date that is 45 
                        days before the date on which the bids are due;
                            ``(viii) agree to provide to contractors 
                        supporting documentation for monthly invoices, 
                        subject to the participant and vendor 
                        confidentiality protections under program 
                        rules; and
                            ``(ix) not later than the date that is 90 
                        days after the date for opening bids, submit to 
                        the Secretary a copy of the bid solicitation 
                        and any other contract documents.''; and
                            (ii) by adding at the end the following:
                    ``(D) Certain food for infants.--Before any State 
                agency solicits bids for a contract for infant fruits, 
                vegetables, cereal, or meat under a competitive bidding 
                system, the State agency shall--
                            ``(i) consider--
                                    ``(I) the impact of the contract 
                                on--
                                            ``(aa) participation or 
                                        redemption rates;
                                            ``(bb) costs to the State 
                                        agency for infant fruits, 
                                        vegetables, cereal, or meat, 
                                        including product, 
                                        administrative, and procurement 
                                        costs; and
                                            ``(cc) the ability of the 
                                        State agency--

                                                    ``(AA) to achieve 
                                                the purpose described 
                                                in subsection (a);

                                                    ``(BB) to provide 
                                                infants with a variety 
                                                of developmentally 
                                                appropriate infant 
                                                fruits, vegetables, 
                                                cereal, or meat; and

                                                    ``(CC) to serve the 
                                                nutritional needs of 
                                                program participants; 
                                                and

                                            ``(dd) consumers who are 
                                        not participants, including the 
                                        availability of alternate 
                                        brands and potential effects on 
                                        retail pricing of infant 
                                        fruits, vegetables, cereal, or 
                                        meat; and
                                    ``(II) whether the contract is 
                                compatible with--
                                            ``(aa) the management 
                                        information and food instrument 
                                        system of the State agency;
                                            ``(bb) eligible vendors; 
                                        and
                                            ``(cc) the capacity of the 
                                        manufacturer to meet technical 
                                        specifications; and
                            ``(ii) provide to the Secretary--
                                    ``(I) a written explanation of how 
                                the considerations described in clause 
                                (i) affected the decision of the State 
                                agency to solicit bids for a contract; 
                                and
                                    ``(II) not later than 15 months 
                                after the start of such contract, a 
                                report that shall include--
                                            ``(aa) the net savings to 
                                        date from the contract;
                                            ``(bb) an assessment of the 
                                        impact on eligible stores, 
                                        nonparticipants, and retail 
                                        prices for infant fruits, 
                                        vegetables, cereal, and meat; 
                                        and
                                            ``(cc) an analysis of the 
                                        costs and benefits of the 
                                        contract, including an 
                                        examination of retail prices of 
                                        infant fruits, vegetables, 
                                        cereal, and meat.'';
                    (C) in paragraph (11)(E)--
                            (i) by striking ``If a State'' and 
                        inserting the following:
                            ``(i) In general.--If a State''; and
                            (ii) by adding at the end the following:
                            ``(ii) Requirement.--Effective not later 
                        than 120 days after the date of the enactment 
                        the Improving Child Nutrition and Education Act 
                        of 2016, in calculating average payments per 
                        voucher under clause (i), a State agency shall 
                        exclude food instruments not fully redeemed, 
                        based on an actual count or a reasonable 
                        estimate.'';
                    (D) in paragraph (12)--
                            (i) in subparagraph (A)(i), by striking 
                        ``food delivery system that provides'' and 
                        inserting ``method to deliver''; and
                            (ii) by adding at the end the following:
                    ``(H) Regulations.--As State agencies transition to 
                electronic benefit transfer for the program, the 
                Secretary shall update regulations to account for the 
                fact that State agencies--
                            ``(i) are receiving transaction pricing 
                        more frequently than twice a year from vendors; 
                        and
                            ``(ii) should adjust vendor reimbursement 
                        levels more frequently to reflect program food 
                        price changes in the marketplace.
                    ``(I) Authorization of appropriations.--
                            ``(i) In general.--There is authorized to 
                        be appropriated to carry out this paragraph 
                        $25,000,000 for each of fiscal years 2017 
                        through 2019.
                            ``(ii) Use.--The Secretary shall allocate 
                        the funds made available under this 
                        subparagraph to States for purposes of 
                        enhancing and accelerating the implementation 
                        of electronic benefit transfer systems.
                    ``(J) Penalty for noncompliance.--For any State 
                agency that fails to comply with subparagraph (B), 
                including a State agency receiving an exemption under 
                subparagraph (C), the Secretary shall--
                            ``(i) withhold such amounts otherwise 
                        required to be allocated to the State agency 
                        for nutrition services and administration as 
                        the Secretary determines to be appropriate; and
                            ``(ii) direct the amounts withheld for use 
                        by the State agency solely for achieving 
                        compliance with subparagraph (B).''; and
                    (E) in paragraph (13), by adding at the end the 
                following:
                    ``(C) Access.--The Secretary shall make available 
                upon request the national universal product code 
                database to vendors approved for participation in the 
                special supplemental food program established under 
                this section.'';
            (8) by striking subsection (k);
            (9) by redesignating subsections (l) through (q) as 
        subsections (k) through (p), respectively;
            (10) in subsection (o) (as so redesignated)--
                    (A) in paragraphs (1) and (2)(B), by striking 
                ``subsection (o)(1)(A)'' each place it appears and 
                inserting ``subsection (n)(1)(A)'';
                    (B) in paragraph (5)--
                            (i) in subparagraph (C), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (D), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(E) fifth, to reimburse any WIC infant formula 
                manufacturer for any rebate provided to the State 
                agency on WIC infant formula unlawfully trafficked 
                under a provision of law described in paragraph (2).''; 
                and
                    (C) by adding at the end the following:
            ``(6) Notice of investigation.--
                    ``(A) In general.--For any investigation into the 
                trafficking of WIC infant formula pursuant to this 
                subsection, the Secretary shall provide notice of 
                resolution of the disposition of an unlawful action 
                resulting from the investigation to all contracted 
                manufacturers of the trafficked infant formula.
                    ``(B) Estimates.--Not later than 60 days after the 
                date on which notice is provided under subparagraph 
                (A), the State shall submit to the contracted 
                manufacturer an estimate of--
                            ``(i) the number of units, if any, for 
                        which rebates may have been issued as a result 
                        of the violation; and
                            ``(ii) the total dollar amount of the 
                        rebates.''; and
            (11) by adding at the end the following:
    ``(q) Fraud and Safety Review.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of the Improving Child Nutrition and Education 
        Act of 2016, the Secretary shall review current guidance, 
        regulations, and practices regarding fraud and safety for 
        purposes of this section.
            ``(2) Inclusions.--The review under paragraph (1) shall 
        include a review of issues relating to--
                    ``(A) excess and unused infant formula;
                    ``(B) invoices pertaining to products subject to 
                rebate;
                    ``(C) the sale of infant formula by unauthorized 
                entities; and
                    ``(D) the purchase of infant formula from 
                unauthorized entities.
            ``(3) Updates.--Based on the findings of the review under 
        paragraph (1), the Secretary shall update current regulations 
        and guidance and issue additional regulations and guidance, as 
        necessary--
                    ``(A) to minimize fraud; and
                    ``(B) to ensure the safety of participants.
    ``(r) Cooperation With Law Enforcement Agencies.--Notwithstanding 
any other provision of law, State agencies and law enforcement agencies 
shall share WIC vendor information relating to investigations or 
prosecutions under the program under this section, as determined by the 
Secretary.
    ``(s) Pilot Projects.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        may conduct pilot projects to test alternative certification 
        and food delivery procedures under this section.
            ``(2) Prohibition.--In conducting pilot projects under 
        paragraph (1), the Secretary may not waive or modify the 
        application of program eligibility, supplemental foods, or cost 
        containment requirements.
            ``(3) Evaluation.--The Secretary shall evaluate each pilot 
        project carried out under this subsection after the pilot 
        project has been in operation for 3 years.''.
    (b) WIC Farmer's Market.--Section 17(m)(9)(A) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(m)(9)(A)) is amended to read as 
follows:
                    ``(A) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                subsection $18,548,000 for each of fiscal years 2017 
                through 2021.''.
    (c) Review of Adjunctive Eligibility for WIC.--
            (1) Definitions.--In this subsection:
                    (A) Adjunctively eligible.--The term ``adjunctively 
                eligible'' with respect to an individual, means an 
                individual who is eligible for WIC under section 
                17(d)(2)(A)(iii) of the Child Nutrition Act of 1966 (42 
                U.S.C. 1786(d)(2)(A)(iii)).
                    (B) Comptroller general.--The term ``Comptroller 
                General'' means the Comptroller General of the United 
                States.
                    (C) Medicaid.--The term ``Medicaid'' means the 
                Medicaid program under title XIX of the Social Security 
                Act (42 U.S.C. 1396 et seq.).
                    (D) Poverty line.--The term ``poverty line'' means 
                the most recent annual Federal Poverty Income 
                Guidelines published by the Department of Health and 
                Human Services.
                    (E) WIC.--The term ``WIC'' means the special 
                supplemental nutrition program for women, infants, and 
                children established by section 17 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1786).
            (2) Study.--The Comptroller General shall conduct a study 
        to examine the impact of adjunctive eligibility on WIC 
        participation, including the administrative burden, number of 
        participants in WIC, and other impacts on the participants.
            (3) Adjunctive eligibility and income of wic 
        participants.--
                    (A) In general.--In conducting the study described 
                in paragraph (2), the Comptroller General shall examine 
                the extent to which individuals certified as 
                adjunctively eligible to receive supplemental foods and 
                services through WIC have income above 185 percent of 
                the poverty line.
                    (B) Data.--
                            (i) Data collection.--The Comptroller 
                        General shall collect data to determine--
                                    (I) the total number of pregnant 
                                women, postpartum women, breastfeeding 
                                women, infants, and children 
                                participating in WIC;
                                    (II) an estimate of the share of 
                                individuals described in subclause (I) 
                                who are certified as adjunctively 
                                eligible under section 17(d)(2)(A)(iii) 
                                of the Child Nutrition Act of 1966 (42 
                                U.S.C. 1786(d)(2)(A)(iii)); and
                                    (III) an estimate of the share of 
                                individuals described in subclause (II) 
                                for whom income (for purposes of 
                                Medicaid eligibility) is above 185 
                                percent of the poverty line, above 250 
                                percent of the poverty line, above 300 
                                percent of the poverty line, and above 
                                any other demarcation thresholds as 
                                determined by the Comptroller General.
                            (ii) Sources.--The Comptroller General 
                        shall collect the information described in 
                        clause (i) from--
                                    (I) WIC program data for subclauses 
                                (I) and (II) of that clause; and
                                    (II) a review of the income of a 
                                representative sample of WIC 
                                participants (for purposes of Medicaid 
                                eligibility) at the time of WIC 
                                certification (for subclause (III) of 
                                that clause).
                            (iii) Other.--The estimate developed under 
                        clause (i)(III) shall be based on data 
                        collected in selected States in which the 
                        income eligibility limit for infants under 1 
                        year of age for Medicaid is at or above 185 
                        percent of the poverty line.
            (4) Use of income data to inform medicaid adjunctive 
        eligibility determinations.--
                    (A) In general.--Following collection of the data 
                described in paragraph (3), the Comptroller General 
                shall assess the feasibility, benefits, and costs of 
                requiring that WIC use an automated process to document 
                that only applicants with income below a specified 
                threshold may be certified as adjunctively eligible 
                based solely on Medicaid receipt.
                    (B) Scope.--The assessment described in 
                subparagraph (A) shall include an evaluation of the 
                capacity of the management information systems for both 
                WIC and Medicaid, including the ability of the systems 
                to exchange data.
                    (C) WIC management information systems.--The 
                Comptroller General shall assess--
                            (i) which State agencies and tribal 
                        organizations operating WIC use management 
                        information systems with the capacity, via an 
                        automated process, for local WIC clinics to 
                        document--
                                    (I) income as a share of the 
                                poverty level for purposes of Medicaid 
                                eligibility; or
                                    (II) Medicaid enrollment and income 
                                below a specified level;
                            (ii) the steps necessary to prepare all 
                        local WIC clinics to obtain and to access that 
                        income information as a part of the WIC 
                        application process as well as part of the 
                        associated costs of modifying WIC automated 
                        systems and training staff; and
                            (iii) other information determined relevant 
                        by the Comptroller General, such as the impact 
                        of the identified steps on administrative 
                        costs, clinical services, and waiting times for 
                        appointments.
                    (D) Medicaid management information systems.--The 
                Comptroller General shall assess--
                            (i) whether State's mechanized claims 
                        processing and information retrieval systems 
                        under section 1903(a)(3)(A)(i) of the Social 
                        Security Act (42 U.S.C. 1396b(a)(3)(A)(i)) have 
                        the capacity to provide, at the time of WIC 
                        certification and via an automated process, 
                        data to an agency or tribal organization 
                        operating WIC regarding--
                                    (I) income as a share of the 
                                poverty level for purposes of Medicaid 
                                eligibility; or
                                    (II) whether a Medicaid recipient 
                                has income below a specified level;
                            (ii) the steps necessary to ensure that 
                        mechanized claims processing and information 
                        retrieval systems in States for which the 
                        income eligibility limit for infants under 1 
                        year of age under Medicaid is above 185 percent 
                        of the poverty line have the capacity to 
                        provide the information described in clause (i) 
                        to local WIC clinics for the purpose of 
                        documenting adjunctive eligibility under an 
                        option that would limit that eligibility to 
                        individuals with income below a specific 
                        threshold; and
                            (iii) other information determined relevant 
                        by the Comptroller General and the Secretary of 
                        Health and Human Services, including the impact 
                        of the identified steps on administrative 
                        costs.
            (5) Report.--Not later than 18 months after the date of the 
        enactment of this Act, the Comptroller General shall submit to 
        the Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report describing--
                    (A) the data collected under paragraph (3);
                    (B) the assessments made under paragraph (4); and
                    (C) the feasibility, costs, and benefits of a new 
                requirement that would only permit adjunctive 
                eligibility for individuals with household income below 
                a specified level.

SEC. 207. TEAM NUTRITION NETWORK.

    Section 19 of the Child Nutrition Act of 1966 (42 U.S.C. 1788) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by inserting ``evidence-based'' before 
                        ``team nutrition messages''; and
                            (ii) by striking ``developed by the 
                        Secretary'';
                    (B) in paragraph (2), by inserting ``under this Act 
                and the Richard B. Russell National School Lunch Act 
                (42 U.S.C. 1751 et seq.)'' before the period at the 
                end;
                    (C) in paragraph (4), by striking ``purposes; and'' 
                and inserting the following: ``purposes, including if 
                appropriate--
                    ``(A) State and local nutrition education programs, 
                health and wellness policies, nutrition and health 
                education resources, and other State resources; and
                    ``(B) Federal nutrition education efforts, 
                including those programs under this Act and the Richard 
                B. Russell National School Lunch Act (42 U.S.C. 1751 et 
                seq.);''; and
                    (D) in paragraph (5)--
                            (i) by striking ``helping children to 
                        maintain a healthy weight by''; and
                            (ii) by inserting ``in and out of school'' 
                        before the period at the end;
            (2) in subsection (b), by striking ``(b)'' and all that 
        follows through ``In this section, the term'' and inserting the 
        following:
    ``(b) Definitions.--In this section:
            ``(1) Nutrition education.--The term `nutrition education' 
        means the provision of individual or group learning 
        opportunities and materials for children and families that--
                    ``(A) emphasize the relationship between nutrition, 
                physical activity, and health with a goal of improving 
                long-term dietary and physical health and increasing 
                food security; and
                    ``(B) include learning about food preparation.
            ``(2) Team nutrition network.--The term'';
            (3) in subsection (c)--
                    (A) by striking the subsection heading and 
                inserting ``State Network Grants.--''; and
                    (B) by adding at the end the following:
            ``(4) Allocation.--Subject to the availability of funds for 
        use in carrying out this subsection, the total amount of funds 
        made available for a fiscal year for grants under this 
        subsection shall equal not more than the sum of--
                    ``(A) the product obtained by multiplying \1/2\ 
                cent by the number of lunches reimbursed through food 
                service programs under the Richard B. Russell National 
                School Lunch Act (42 U.S.C. 1751 et seq.) during the 
                second preceding fiscal year in schools, institutions, 
                and service institutions that participate in the food 
                service programs; and
                    ``(B) the total value of funds received by the 
                Secretary in support of this subsection from 
                nongovernmental sources.
            ``(5) Requirements for state participation.--To be eligible 
        to receive a grant under this subsection, a State agency shall 
        submit to the Secretary a plan, at such time and in such manner 
        as the Secretary may require, including--
                    ``(A) a description of the goals and proposed State 
                plan for addressing the nutrition of children;
                    ``(B) a description of the means by which the State 
                agency will use and disseminate the team nutrition 
                messages and material to children and, if appropriate, 
                families of such children;
                    ``(C) an explanation of the ways in which the State 
                agency will use the funds from the grant to work toward 
                the goals required under clause (i), and to promote 
                healthy eating in schools throughout the State;
                    ``(D) a description of the ways in which the State 
                team nutrition network messages and activities will be 
                coordinated at the State and local level with other 
                community health promotion and education activities;
                    ``(E) an annual summary of the team nutrition 
                network activities and their effectiveness;
                    ``(F) a description of the ways in which school 
                environments might support healthy eating and physical 
                activity; and
                    ``(G) a description of how all communications to 
                parents and legal guardians of students who are members 
                of a household receiving information under the program 
                shall be in an understandable and uniform format and, 
                to the maximum extent practicable, in a language that 
                parents and legal guardians can understand.
            ``(6) State coordinator.--Each State that receives a grant 
        under this subsection may appoint a team nutrition network 
        coordinator. Such coordinator shall implement comprehensive, 
        coordinated nutrition education programming through the team 
        nutrition network, including to assist schools, school food 
        authorities, and other child nutrition program providers in the 
        State to administer and coordinate the team nutrition network 
        activities.
            ``(7) Authorized activities.--A State agency that receives 
        a grant under this section may use funds from the grant to--
                    ``(A) identify the programs and services available 
                to meet the health and nutritional needs of children 
                and families in the State;
                    ``(B) disseminate team nutrition network messages 
                and material that provide comprehensive, coordinated 
                nutrition and physical fitness awareness and obesity 
                prevention education;
                    ``(C) implement demonstration projects in schools 
                to promote physical activity and to enhance the 
                nutritional education provided to students;
                    ``(D) improve access to local foods through 
                coordinating with farm-to-school grant activities that 
                include the provision of nutrition education;
                    ``(E) encourage schools to develop healthy eating 
                and lifestyle policies;
                    ``(F) provide training and technical assistance to 
                teachers and school food service professionals 
                consistent with the purposes of this subsection; and
                    ``(G) collaborate with public and private and 
                faith-based organizations, including community-based 
                organizations, State medical associations, and public 
                health groups, to provide nutrition and physical 
                education targeting lower income children, ethnic 
                minorities, and youth at a greater risk for obesity or 
                malnourishment.'';
            (4) by striking subsections (e) through (g) and (k);
            (5) by redesignating subsections (h) through (j) as 
        subsections (e) through (f), respectively;
            (6) by redesignating subsection (l) as subsection (g);
            (7) in subsection (e) (as so redesignated)--
                    (A) in the subsection heading, by inserting 
                ``Education'' after ``Nutrition''; and
                    (B) in paragraph (5)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i), by striking 
                                ``and'' at the end; and
                                    (II) by adding at the end the 
                                following:
                            ``(iii) incorporate nutrition education 
                        into physical and health education, and, if 
                        appropriate, afterschool programs, including 
                        athletics; and''; and
                            (ii) in subparagraph (B)--
                                    (I) by striking clause (iv);
                                    (II) in clause (vii), by striking 
                                ``a variety of healthy foods'' and all 
                                that follows through ``fruit bars'' and 
                                inserting ``a variety of healthy foods, 
                                including through initiatives to 
                                creatively market such foods'';
                                    (III) in clause (viii), by striking 
                                ``low-fat and nutrient dense'' and 
                                inserting ``healthy''; and
                                    (IV) by redesignating clauses (v) 
                                through (ix) as clauses (iv) through 
                                (viii), respectively;
            (8) in subsection (e) (as so redesignated), by striking 
        ``may provide for technical assistance and grants'' and 
        inserting ``shall provide for technical assistance''; and
            (9) in subsection (g) (as so redesignated) by striking 
        ``such sums'' and all that follows through the period at the 
        end and inserting ``to carry out this section $17,000,000 for 
        each fiscal year.''.

                        TITLE III--MISCELLANEOUS

SEC. 301. REVIEWS.

    (a) Tribal Foods.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Secretary shall review--
                    (A) the barriers to including tribally produced, 
                traditional, and culturally appropriate foods in child 
                nutrition programs (as defined in section 25(b) of the 
                Richard B. Russell National School Lunch Act (42 U.S.C. 
                1769f(b)) within tribal schools; and
                    (B) the means of encouraging and assisting enhanced 
                inclusion of foods described in subparagraph (A) in 
                child nutrition programs.
            (2) Scope.--In carrying out the review described in 
        paragraph (1), the Secretary shall--
                    (A) survey and compile resources of the Department 
                of Agriculture on the issue described in paragraph 
                (1)(A);
                    (B) if necessary, clarify relevant Federal 
                regulations governing schools and tribal producers, 
                including regulations relating to procurement, 
                reimbursement, and food safety;
                    (C) involve all relevant agencies, including the 
                Food and Nutrition Service and Office of Tribal 
                Relations of the Department of Agriculture; and
                    (D) submit to Congress a report describing the 
                results of the review.
    (b) Use of Program Data.--
            (1) In general.--The Secretary, jointly with the Secretary 
        of Education, shall--
                    (A) review information regarding available 
                alternative data sets for use in programs that are 
                using free and reduced price meals data; and
                    (B) determine the appropriateness of using such 
                alternative data sets in place of free and reduced 
                price meal program data by other programs to reduce the 
                burden on local school food authorities.
            (2) Report to congress.--Not later than 1 year after the 
        date of the enactment of this Act, the Secretaries shall submit 
        to the Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report that describes the results 
        of the review and any recommendations of the Secretaries.
    (c) Crediting and Labeling Program.--
            (1) In general.--The Secretary shall review and update the 
        system of crediting and the voluntary child nutrition labeling 
        program used in administering--
                    (A) the school lunch program established under the 
                Richard B. Russell National School Lunch Act (42 U.S.C. 
                1751 et seq.); and
                    (B) the school breakfast program established by 
                section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
                1773).
            (2) Scope.--The review described in paragraph (1) shall 
        include, at a minimum--
                    (A) the treatment of food products within 
                previously established food categories and new products 
                that have entered the commercial marketplace since the 
                system of crediting and the voluntary child nutrition 
                labeling program were developed; and
                    (B) the timeliness in which applications for labels 
                under the voluntary child nutrition labeling program 
                are reviewed and are granted or denied.
            (3) Report to congress.--Not later than 1 year after the 
        date of the enactment of this Act, the Secretary shall submit 
        to the Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report that describes the results 
        of the review and any recommendations of the Secretary.
    (d) Nutritional Analysis.--The Secretary shall--
            (1) review the practicability and feasibility of--
                    (A) conducting a nutritional analysis, using 
                publicly and commercially available nutritional 
                information, of food products that are voluntarily 
                submitted for use in child nutrition programs, outside 
                of the reimbursable school meal; and
                    (B) aggregating and making the information obtained 
                through that nutritional analysis publicly available 
                for use by school food authorities, food manufacturers, 
                and other interested parties; and
            (2) if found practicable and feasible, proceed with the 
        analysis, aggregation, and public availability.
    (e) Other.--
            (1) In general.--The Secretary shall review--
                    (A) the cost differences between--
                            (i) providing meals and supplements under 
                        the Richard B. Russell National School Act (42 
                        U.S.C. 1751 et seq.) and section 4 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1773) in 
                        Palau, Guam, American Samoa, the Commonwealth 
                        of Puerto Rico, the United States Virgin 
                        Islands, and the Commonwealth of the Northern 
                        Mariana Islands, respectively; and
                            (ii) the average cost of providing meals 
                        and supplements under those provisions of law 
                        in the 50 States and the District of Columbia; 
                        and
                    (B) the relation of the cost differences determined 
                under subparagraph (A) to the national average payment 
                rates for meals and supplements prescribed under 
                sections 4, 11, 13, and 17 of the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1753, 1759a, 1761, 
                1766) and section 4(b) of the Child Nutrition Act of 
                1966 (42 U.S.C. 1773(b)).
            (2) Report to congress.--Not later than 1 year after the 
        date of the enactment of this Act, the Secretary shall submit 
        to the Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report that describes the results 
        of the review and any recommendations of the Secretary.
    (f) Unlawful Activity.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Secretary shall review--
                    (A) the number of instances and types of unlawful 
                activity that occurred in the preceding 3 years, 
                including, at a minimum, instances of fraud, bid-
                rigging, and any other anticompetitive activities 
                carried out in connection with supplying, providing, or 
                selling goods or services for a program under 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.); and
                    (B) the practices and procedures currently used by 
                the Department of Agriculture to prevent unlawful 
                activity described in subparagraph (A).
            (2) Secretarial response.--Following completion of the 
        review described in paragraph (1), the Secretary shall respond, 
        if appropriate, by taking action to reduce such unlawful 
        activity, including, at a minimum--
                    (A) revising any relevant guidance and regulations;
                    (B) issuing fines authorized under subsection (g) 
                of section 25 of the Richard B. Russell National School 
                Lunch Act (42 U.S.C. 1769f) (as amended by section 
                115); and
                    (C) submitting to the appropriate committees of 
                Congress recommendations for any legislative changes 
                needed to enhance program oversight.
            (3) Scope.--The actions described in paragraph (2) shall be 
        designed to reduce--
                    (A) anticompetitive activities, including bid-
                rigging, price-fixing, the allocation of customers 
                between competitors, or other violation of Federal or 
                State antitrust laws;
                    (B) fraud, bribery, theft, forgery, or 
                embezzlement;
                    (C) knowingly receiving stolen property;
                    (D) making a false claim or statement; or
                    (E) any other obstruction of justice.
    (g) Infant Formula.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall--
            (1) review the current regulations regarding caloric 
        density standards for infant formula made available in the 
        special supplemental nutrition program for women, infants, and 
        children established by section 17 of the Child Nutrition Act 
        of 1966 (42 U.S.C. 1786); and
            (2) as appropriate, update the regulations based on the 
        most recent scientific knowledge available.

SEC. 302. PROGRAM DELIVERY.

    The Secretary shall work with States participating in programs 
authorized under the Richard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.) and the Child Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.) to encourage--
            (1) streamlining of program administration, including data 
        collection and reporting requirements, at the State level;
            (2) communication among State agencies administering the 
        programs;
            (3) coordination of administration of Federal benefits at 
        the State level to ensure efficiency of program delivery and 
        improved access to participants; and
            (4) consolidation and elimination of duplicative or 
        unnecessary Federal and State reporting requirements.

SEC. 303. PRODUCT AVAILABILITY.

    (a) In General.--The Secretary shall, to the extent practicable, 
make available lactose-free milk with an extended shelf life for use in 
the commodity distribution program authorized under section 14 of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1762a).
    (b) Size and Form.--The milk described in subsection (a) shall, to 
the extent practicable, be made available in a size and form acceptable 
for and conducive to consumption by school-aged children.

SEC. 304. PROCUREMENT.

    In administering the summer food service program for children 
established under section 13 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1761) and the child and adult care food program 
established under section 17 of such Act (42 U.S.C. 1766), the 
Secretary shall ensure that--
            (1) service institutions participating in the programs have 
        flexibility in determining the frequency of procurement and 
        food items included in each solicitation; and
            (2) any procurement procedure implemented by a State agency 
        is cost effective and efficient in meeting the relevant meal 
        pattern requirements.

SEC. 305. SCHOOL NUTRITION ADVISORY COMMITTEE.

    (a) Establishment.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary shall establish a School Nutrition 
Advisory Committee (referred to in this section as the ``Committee'') 
to provide input in the administration of the school lunch program 
authorized under the Richard B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.) and the school breakfast program established by 
section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) (referred 
to in this section as ``child nutrition programs'').
    (b) Membership.--
            (1) Composition.--Members of the Committee shall be 
        appointed by the Secretary from recommendations made by the 
        chair and ranking member of the Committee on Education and the 
        Workforce of the House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate. Membership 
        on the committee shall represent the following stakeholders:
                    (A) An organization that conducts research and 
                advocates on issues relating to child nutrition.
                    (B) An organization that advocates for cardiac 
                health.
                    (C) A professional organization representing 
                dietitians.
                    (D) A trade association representing fruit and 
                vegetable growers.
                    (E) A coalition of large urban school food 
                authorities.
                    (F) 2 representatives from State agencies that 
                administer the child nutrition programs.
                    (G) A professional organization representing school 
                food employees.
                    (H) A professional organization representing school 
                board members.
                    (I) A council representing large school districts.
                    (J) A professional association representing school 
                administrators.
                    (K) An entity that processes and manufactures meat 
                products.
                    (L) An entity that processes and manufactures dairy 
                products.
                    (M) An entity that processes and manufactures grain 
                products.
                    (N) An entity that assists suppliers and school 
                food authorities in selling and obtaining food 
                products.
                    (O) A school food authority located in each of the 
                7 regions established for activities of the Food and 
                Nutrition Service, including--
                            (i) 3 representatives from districts 
                        located in rural areas;
                            (ii) 2 representatives from districts 
                        located in urban areas; and
                            (iii) 2 representatives from districts 
                        located in urban cluster areas as defined by 
                        census tract data.
                    (P) A council that represents public officials who 
                head departments of elementary and secondary education.
                    (Q) A professional organization representing 
                pediatricians.
            (2) Terms.--The members will serve on the Committee for a 
        3-year term. The chairmen of each congressional committee, 
        under paragraph (1) shall alternate in appointing a chair and 
        vice chair of the committee.
    (c) Function.--The Committee shall--
            (1) provide a venue for communication between stakeholders 
        and the Department of Agriculture regarding child nutrition 
        programs;
            (2) give insight into child nutrition program 
        implementation;
            (3) review and make recommendations to the Secretary on 
        policy development involving child nutrition programs; and
            (4) evaluate methods for programmatic and administrative 
        improvement of child nutrition programs.
    (d) Meetings.--The Committee shall meet quarterly.
    (e) Staffing.--The Secretary shall provide such staff personnel as 
may be required to assist the Committee in carrying out the duties of 
the Committee, but such staff shall not interfere in the discussions or 
conclusions reached by the Committee.
    (f) Termination.--The authority of the Committee shall terminate on 
September 30, 2025.

SEC. 306. PAPERWORK REDUCTION.

    (a) In General.--For any program authorized under 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.), the Secretary shall--
            (1) periodically review regulations, guidance, and other 
        requirements to evaluate the volume of information required to 
        be reported to the Department of Agriculture by program 
        participants; and
            (2) if appropriate, streamline or otherwise reduce any 
        unnecessary or duplicative paperwork, reporting requirements, 
        and other administrative burdens while maintaining program 
        integrity.
    (b) Report.--Not later than 2 years after the date of the enactment 
of this Act and every 3 years thereafter, and upon any publishing of 
guidance or updated Federal requirements the Secretary shall submit to 
the Committee on Education and the Workforce of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report that describes any action the Secretary 
has taken under subsection (a) during the preceding 3 calendar years, 
or in the case of a report submitted based on publishing updated 
guidance or requirements, a report on such action, including a 
determination of appropriateness under subsection (a)(2).

SEC. 307. TECHNOLOGY.

    (a) Use of Technology.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary shall--
            (1) review the current use of technology in the school 
        lunch program established under the Richard B. Russell National 
        School Lunch Act (42 U.S.C. 1751 et seq.) and the school 
        breakfast program established by section 4 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1773);
            (2) identify opportunities in which enhanced use of 
        technology would reduce the rate of errors in administration of 
        the programs by State agencies and local educational agencies; 
        and
            (3) encourage State agencies and local educational agencies 
        to use technology in the areas identified under paragraph (2).
    (b) Identification.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall--
            (1) review the feasibility and evaluate the benefits of 
        using a unique student identifier in the school lunch program 
        established under the Richard B. Russell National School Lunch 
        Act (42 U.S.C. 1751 et seq.) and the school breakfast program 
        established by section 4 of the Child Nutrition Act of 1966 (42 
        U.S.C. 1773);
            (2) submit to the Committee on Education and the Workforce 
        of the House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a report 
        describing the results of the review under paragraph (1); and
            (3) initiate implementation of a system for using a unique 
        student identifier, unless implementation is not in the best 
        interest of the programs described in paragraph (1), or does 
        not adequately protect student privacy.

SEC. 308. TECHNICAL CORRECTIONS.

    (a) Richard B. Russell National School Lunch Act.--
            (1) The Richard B. Russell National School Lunch Act is 
        amended in each of sections 4, 9, 9A, 12, 19, 23, 24, and 25 
        (42 U.S.C. 1753, 1758, 1758b, 1760, 1796a, 1769d, 1769e, 1769f) 
        by striking ``Committee on Education and Labor'' each place it 
        appears and inserting ``Committee on Education and the 
        Workforce''.
            (2) Section 9 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1758) is amended--
                    (A) by striking ``foster child'' each place it 
                appears and inserting ``foster youth''; and
                    (B) in subsection (b)(5)(B), by striking ``(42 
                U.S.C. 11434a(2))'' and inserting ``(42 U.S.C. 
                11434a(2)))''.
            (3) Section 12 of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1760) is amended--
                    (A) in subsection (d)(3), by striking ``U.S.C'' and 
                inserting ``U.S.C.'';
                    (B) in subsection (m)(2), in the paragraph heading, 
                by striking ``american'' and inserting ``American''; 
                and
                    (C) in subsection (n)--
                            (i) in paragraph (3), in the paragraph 
                        heading, by striking ``hawaii'' and inserting 
                        ``Hawaii''; and
                            (ii) in paragraph (4), in the paragraph 
                        heading, by striking ``puerto rico'' and 
                        inserting ``Puerto rico''.
            (4) Section 14(c) of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1762a(c)) is amended--
                    (A) by striking ``section 311(a)(4) of the Older 
                Americans Act of 1965 (42 U.S.C. 3030(a)(4))'' and 
                inserting ``section 311(c)(4) of the Older Americans 
                Act of 1965 (42 U.S.C. 3030a(c)(4))''; and
                    (B) by striking ``(42 U.S.C. 3030(b)(1))'' and 
                inserting ``(42 U.S.C. 3030a(b)(1))''.
    (b) Child Nutrition Act of 1966.--
            (1) The Child Nutrition Act of 1966 is amended in each of 
        sections 10 and 17 (42 U.S.C. 1779, 1786) by striking 
        ``Committee on Education and Labor'' each place it appears and 
        inserting ``Committee on Education and the Workforce''.
            (2) Section 7(a)(2)(B)(i) of the Child Nutrition Act of 
        1966 (42 U.S.C. 1776(a)(2)(B)(i)) is amended by striking 
        ``clause (ii)'' and inserting ``clause (ii))''.
            (3) Section 17 of the Child Nutrition Act of 1966 (42 
        U.S.C. 1786) is amended--
                    (A) in subsection (b)(21), in the paragraph 
                heading, by striking ``indian or native'' and inserting 
                ``Indian or native'';
                    (B) in subsection (h)--
                            (i) in paragraph (4)--
                                    (I) in subparagraph (A)(vi), by 
                                striking ``and'' at the end; and
                                    (II) in subparagraph (C)(iv), by 
                                striking ``; and'' at the end and 
                                inserting a period;
                            (ii) in paragraph (5)(D), in the 
                        subparagraph heading, by striking ``indian or 
                        native'' and inserting ``Indian or native''; 
                        and
                            (iii) in paragraph (8)(A)(iv)--
                                    (I) in the clause heading, by 
                                striking ``state'' and inserting 
                                ``State''; and
                                    (II) in subclause (III), in the 
                                subclause heading, by striking ``state 
                                agencies and indian state agencies'' 
                                and inserting ``State agencies and 
                                indian state agencies''; and
                    (C) in subsection (m)(6)(C)(iv), by striking 
                ``(G)(i)'' each place it appears and inserting 
                ``(F)(i)''.

SEC. 309. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the chairman of the Senate Committee on the Budget, provided 
that such statement has been submitted prior to the vote on passage.

SEC. 310. EFFECTIVE DATE.

    Except as otherwise specifically provided in this Act or any of the 
amendments made by this Act, this Act and the amendments made by this 
Act take effect on October 1, 2016.
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