151 
‘‘(vii) open bids and enter into a con-
tract 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) re-
ceived 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 in-
voices, 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 solicita-
tion 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 
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152 
competitive bidding system, the State agency 
shall— 
‘‘(i) consider— 
‘‘(I) the impact of the contract 
on— 
‘‘(aa) participation or re-
demption rates; 
‘‘(bb) costs to the State agen-
cy for infant fruits, vegetables, ce-
real, or meat, including product, 
administrative, and procurement 
costs; and 
‘‘(cc) the ability of the State 
agency— 
‘‘(AA) to achieve the 
purpose described in sub-
section (a); 
‘‘(BB) to provide in-
fants with a variety of devel-
opmentally appropriate in-
fant fruits, vegetables, cereal, 
or meat; and 
‘‘(CC) to serve the nutri-
tional needs of program par-
ticipants; and 
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153 
‘‘(dd) consumers who are not 
participants, including the avail-
ability of alternate brands and 
potential effects on retail pricing 
of infant fruits, vegetables, cereal, 
or meat; and 
‘‘(II) whether the contract is com-
patible with— 
‘‘(aa) the management infor-
mation and food instrument sys-
tem 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 re-
port that shall include— 
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‘‘(aa) the net savings to date 
from the contract; 
‘‘(bb) an assessment of the 
impact on eligible stores, non-par-
ticipants, and retail prices for in-
fant fruits, vegetables, cereal, and 
meat; and 
‘‘(cc) an analysis of the costs 
and benefits of the contract, in-
cluding an examination of retail 
prices of infant fruits, vegetables, 
cereal, and meat.’’; 
(C) in paragraph (11)(E)— 
(i) by striking ‘‘If a State’’ and insert-
ing 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 en-
actment the Improving Child Nutrition and 
Education Act of 2016, in calculating aver-
age payments per voucher under clause (i), 
a State agency shall exclude food instru-
ments not fully redeemed, based on an ac-
tual count or a reasonable estimate.’’; 
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155 
(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 ven-
dors; and 
‘‘(ii) should adjust vendor reimburse-
ment levels more frequently to reflect pro-
gram food price changes in the marketplace. 
‘‘(I) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.— 
‘‘(i) IN GENERAL.—There is authorized 
to be appropriated to carry out this para-
graph $25,000,000 for each of fiscal years 
2017 through 2019. 
‘‘(ii) USE.—The Secretary shall allo-
cate the funds made available under this 
subparagraph to States for purposes of en-
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hancing and accelerating the implementa-
tion of electronic benefit transfer systems. 
‘‘(J) PENALTY FOR NONCOMPLIANCE.—For 
any State agency that fails to comply with sub-
paragraph (B), including a State agency receiv-
ing 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; 
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