200 
tion Act of 1966 (42 U.S.C. 1776(a)) for 
State administrative expenses during a fis-
cal year for the second finding of 1 or 
more program violations under subpara-
graph (A); and 
‘‘(iii) 10 percent of funds made avail-
able under section 7(a) of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1776(a)) for 
State administrative expenses during a fis-
cal year for the third or subsequent finding 
of 1 or more program violations under sub-
paragraph (A). 
‘‘(3) SOURCE OF FUNDING.—Funds to pay a 
fine imposed under paragraph (1) or (2) shall be de-
rived from non-Federal sources.’’. 
SEC. 310. INDEPENDENT REVIEW OF APPLICATIONS. 
Section 22(b) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1769c(b)) is amended by 
adding at the end the following: 
‘‘(6) ELIGIBILITY DETERMINATION REVIEW FOR 
SELECTED LOCAL EDUCATIONAL AGENCIES.— 
‘‘(A) IN
GENERAL.—A local educational 
agency that has demonstrated a high level of, or 
a high risk for, administrative error associated 
with certification, verification, and other admin-
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istrative processes, as determined by the Sec-
retary, shall ensure that the initial eligibility de-
termination for each application is reviewed for 
accuracy prior to notifying a household of the 
eligibility or ineligibility of the household for 
free or reduced price meals. 
‘‘(B) TIMELINESS.—The review of initial 
eligibility determinations— 
‘‘(i) shall be completed in a timely 
manner; and 
‘‘(ii) shall not result in the delay of an 
eligibility determination for more than 10 
operating days after the date on which the 
application is submitted. 
‘‘(C) ACCEPTABLE
TYPES
OF
REVIEW.— 
Subject to standards established by the Sec-
retary, the system used to review eligibility de-
terminations for accuracy shall be conducted by 
an individual or entity that did not make the 
initial eligibility determination. 
‘‘(D) NOTIFICATION
OF
HOUSEHOLD.— 
Once the review of an eligibility determination 
has been completed under this paragraph, the 
household shall be notified immediately of the 
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determination of eligibility or ineligibility for 
free or reduced price meals. 
‘‘(E) REPORTING.— 
‘‘(i) 
LOCAL
EDUCATIONAL
AGEN-
CIES.—In accordance with procedures es-
tablished by the Secretary, each local edu-
cational agency required to review initial 
eligibility determinations shall submit to 
the relevant State agency a report describ-
ing the results of the reviews, including— 
‘‘(I) the number and percentage 
of reviewed applications for which the 
eligibility determination was changed 
and the type of change made; and 
‘‘(II) such other information as 
the Secretary determines to be nec-
essary. 
‘‘(ii) STATE
AGENCIES.—In accord-
ance with procedures established by the 
Secretary, each State agency shall submit 
to the Secretary a report describing the re-
sults of the reviews of initial eligibility de-
terminations, including— 
‘‘(I) the number and percentage 
of reviewed applications for which the 
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eligibility determination was changed 
and the type of change made; and 
‘‘(II) such other information as 
the Secretary determines to be nec-
essary. 
‘‘(iii) 
TRANSPARENCY.—The 
Sec-
retary shall publish annually the results of 
the reviews of initial eligibility determina-
tions by State, number, percentage, and 
type of error.’’. 
SEC. 311. PROGRAM EVALUATION. 
Section 28 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769i) is amended by adding at 
the end the following: 
‘‘(c) COOPERATION WITH PROGRAM RESEARCH AND 
EVALUATION.—States, State educational agencies, local 
educational agencies, schools, institutions, facilities, and 
contractors participating in programs authorized under 
this Act and the Child Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.) shall cooperate with officials and contractors 
acting on behalf of the Secretary, in the conduct of evalua-
tions and studies under those Acts.’’. 
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Subtitle B—Summer Food Service 
Program 
SEC. 321. SUMMER FOOD SERVICE PROGRAM PERMANENT 
OPERATING AGREEMENTS. 
Section 13(b) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1761(b)) is amended by 
striking paragraph (3) and inserting the following: 
‘‘(3) PERMANENT
OPERATING
AGREEMENTS 
AND BUDGET FOR ADMINISTRATIVE COSTS.— 
‘‘(A) PERMANENT
OPERATING
AGREE-
MENTS.— 
‘‘(i) IN GENERAL.—Subject to clauses 
(ii) and (iii), to participate in the program, 
a service institution that meets the condi-
tions of eligibility described in this section 
and in regulations promulgated by the Sec-
retary, shall be required to enter into a 
permanent agreement with the applicable 
State agency. 
‘‘(ii) AMENDMENTS.—A permanent 
agreement described in clause (i) may be 
amended as necessary to ensure that the 
service institution is in compliance with all 
requirements established in this section or 
by the Secretary. 
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‘‘(iii) TERMINATION.—A permanent 
agreement described in clause (i)— 
‘‘(I) may be terminated for con-
venience by the service institution and 
State agency that is a party to the 
permanent agreement; and 
‘‘(II) shall be terminated— 
‘‘(aa) for cause by the appli-
cable State agency in accordance 
with subsection (q) and with reg-
ulations promulgated by the Sec-
retary; or 
‘‘(bb) on termination of par-
ticipation of the service institu-
tion in the program. 
‘‘(B) 
BUDGET
FOR
ADMINISTRATIVE 
COSTS.— 
‘‘(i) IN GENERAL.—When applying for 
participation in the program, and not less 
frequently than annually thereafter, each 
service institution shall submit a complete 
budget for administrative costs related to 
the program, which shall be subject to ap-
proval by the State. 
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‘‘(A) the participation of the service insti-
tution in the program; or 
‘‘(B) the claim of the service institution for 
reimbursement under this section. 
‘‘(3) LIST OF DISQUALIFIED INSTITUTIONS AND 
INDIVIDUALS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
maintain a list of service institutions and indi-
viduals that have been terminated or otherwise 
disqualified from participation in the program 
under the procedures established pursuant to 
paragraph (1). 
‘‘(B) AVAILABILITY.—The Secretary shall 
make the list available to States for use in ap-
proving or renewing applications by service in-
stitutions for participation in the program.’’. 
Subtitle C—Child and Adult Care 
Food Program 
SEC. 331. RENEWAL OF APPLICATION MATERIALS AND PER-
MANENT OPERATING AGREEMENTS. 
(a) PERMANENT OPERATING AGREEMENTS.—Sec-
tion 17(d)(1) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1766(d)(1)) is amended by adding 
at the end the following: 
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‘‘(E) PERMANENT
OPERATING
AGREE-
MENTS.— 
‘‘(i) IN GENERAL.—Subject to clauses 
(ii) and (iii), to participate in the child and 
adult care food program, an institution 
that meets the conditions of eligibility de-
scribed in this subsection shall be required 
to enter into a permanent agreement with 
the applicable State agency. 
‘‘(ii) AMENDMENTS.—A permanent 
agreement described in clause (i) may be 
amended as necessary to ensure that the 
institution is in compliance with all re-
quirements established in this section or by 
the Secretary. 
‘‘(iii) TERMINATION.—A permanent 
agreement described in clause (i)— 
‘‘(I) may be terminated for con-
venience by the institution or State 
agency that is a party to the perma-
nent agreement; and 
‘‘(II) shall be terminated— 
‘‘(aa) for cause by the appli-
cable State agency in accordance 
with paragraph (5); or 
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‘‘(bb) on termination of par-
ticipation of the institution in the 
child and adult care food pro-
gram.’’. 
(b) APPLICATIONS AND REVIEWS.—Section 17(d) of 
the Richard B. Russell National School Lunch Act (42 
U.S.C. 1766(d)) is amended by striking paragraph (2) and 
inserting the following: 
‘‘(2) PROGRAM APPLICATIONS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
develop a policy under which each institution 
providing child care that participates in the 
program under this section shall— 
‘‘(i) submit to the State agency an ini-
tial application to participate in the pro-
gram that meets all requirements estab-
lished by the Secretary by regulation; 
‘‘(ii) annually confirm to the State 
agency that the institution, and any facili-
ties of the institution in which the program 
is operated by a sponsoring organization, is 
in compliance with subsection (a)(5); and 
‘‘(iii) annually submit to the State 
agency any additional information nec-
essary to confirm that the institution is in 
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compliance with all other requirements to 
participate in the program, as established 
in this Act and by the Secretary by regula-
tion. 
‘‘(B) REQUIRED REVIEWS OF SPONSORED 
FACILITIES.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall develop a policy under which each 
sponsoring organization participating in 
the program under this section shall con-
duct— 
‘‘(I) periodic unannounced site 
visits at not less than 3-year intervals 
to sponsored child and adult care cen-
ters and family or group day care 
homes to identify and prevent man-
agement deficiencies and fraud and 
abuse under the program; and 
‘‘(II) at least 1 scheduled site 
visit each year to sponsored child and 
adult care centers and family or group 
day care homes to identify and pre-
vent management deficiencies and 
fraud and abuse under the program 
and to improve program operations. 
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‘‘(ii) VARIED TIMING.—Sponsoring or-
ganizations shall vary the timing of unan-
nounced reviews under clause (i)(I) in a 
manner that makes the reviews unpredict-
able to sponsored facilities. 
‘‘(C) REQUIRED
REVIEWS
OF
INSTITU-
TIONS.—The Secretary shall develop a policy 
under which each State agency shall conduct— 
‘‘(i) at least 1 scheduled site visit at 
not less than 3-year intervals to each insti-
tution under the State agency participating 
in the program under this section— 
‘‘(I) to identify and prevent man-
agement deficiencies and fraud and 
abuse under the program; and 
‘‘(II) to improve program oper-
ations; and 
‘‘(ii) more frequent reviews of any in-
stitution that— 
‘‘(I) sponsors a significant share 
of the facilities participating in the 
program; 
‘‘(II) conducts activities other 
than the program authorized under 
this section; 
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‘‘(III) has serious management 
problems, as identified in a prior re-
view, or is at risk of having serious 
management problems; or 
‘‘(IV) meets such other criteria 
as are defined by the Secretary. 
‘‘(D) DETECTION
AND
DETERRENCE
OF 
ERRONEOUS PAYMENTS AND FALSE CLAIMS.— 
‘‘(i) IN
GENERAL.—The Secretary 
may develop a policy to detect and deter, 
and recover erroneous payments to, and 
false claims submitted by, institutions, 
sponsored child and adult care centers, and 
family or group day care homes partici-
pating in the program under this section. 
‘‘(ii) BLOCK CLAIMS.— 
‘‘(I) 
DEFINITION
OF
BLOCK 
CLAIM.—In this clause, the term block 
claim has the meaning given the term 
in section 226.2 of title 7, Code of 
Federal Regulations (or successor reg-
ulations). 
‘‘(II) PROGRAM EDIT CHECKS.— 
The Secretary may not require any 
State agency, sponsoring organization, 
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213 
or other institution to perform edit 
checks or on-site reviews relating to 
the detection of block claims by any 
child care facility. 
‘‘(III) 
ALLOWANCE.—Notwith-
standing subclause (II), the Secretary 
may require any State agency, spon-
soring organization, or other institu-
tion to collect, store, and transmit to 
the appropriate entity information 
necessary to develop any other policy 
developed under clause (i).’’. 
(c) AGREEMENTS.—Section 17(j)(1) of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 
1766(j)(1)) is amended— 
(1) by striking ‘‘may’’ and inserting ‘‘shall’’; 
(2) by striking ‘‘family or group day care’’ the 
first place it appears; and 
(3) by inserting ‘‘or sponsored day care cen-
ters’’ before ‘‘participating’’. 
SEC. 332. STATE LIABILITY FOR PAYMENTS TO AGGRIEVED 
CHILD CARE INSTITUTIONS. 
Section 17(e) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(e)) is amended— 
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(1) in paragraph (3), by striking ‘‘(3) If a 
State’’ and inserting the following: 
‘‘(5) SECRETARIAL HEARING.—If a State’’; and 
(2) by striking ‘‘(e) Except as provided’’ and all 
that follows through ‘‘(2) A State’’ and inserting the 
following: 
‘‘(e) HEARINGS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (4), each State agency shall provide, in ac-
cordance with regulations promulgated by the Sec-
retary, an opportunity for a fair hearing and a 
prompt determination to any institution aggrieved 
by any action of the State agency that affects— 
‘‘(A) the participation of the institution in 
the program authorized by this section; or 
‘‘(B) the claim of the institution for reim-
bursement under this section. 
‘‘(2) REIMBURSEMENT.—In accordance with 
paragraph (3), a State agency that fails to meet 
timeframes for providing an opportunity for a fair 
hearing and a prompt determination to any institu-
tion under paragraph (1) in accordance with regula-
tions promulgated by the Secretary, shall pay, from 
non-Federal sources, all valid claims for reimburse-
ment to the institution and the facilities of the insti-
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tution during the period beginning on the day after 
the end of any regulatory deadline for providing the 
opportunity and making the determination and end-
ing on the date on which a hearing determination is 
made. 
‘‘(3) NOTICE
TO
STATE
AGENCY.—The Sec-
retary shall provide written notice to a State agency 
at least 30 days prior to imposing any liability for 
reimbursement under paragraph (2). 
‘‘(4) FEDERAL
AUDIT
DETERMINATION.—A 
State’’. 
SEC. 333. APPLICATION SUBMISSION BY SPONSORED FAM-
ILY OR GROUP DAY CARE HOMES. 
Section 17(f)(3)(A)(iii)(III) of the Richard B. Russell 
National 
School 
Lunch 
Act 
(42 
U.S.C. 
1766(f)(3)(A)(iii)(III)) is amended by adding at the end 
the following: 
‘‘(dd) APPLICATION SUBMIS-
SION.—If a family or group day 
care home elects to be provided 
reimbursement factors described 
in subclause (II), the family or 
group day care home may assist 
in the transmission of necessary 
household income information to 
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the family or group day care 
home sponsoring organization in 
accordance with the policy de-
scribed in item (ee). 
‘‘(ee) 
POLICY.—The 
Sec-
retary shall develop a policy 
under which a sponsored family 
or group day care home described 
in item (dd) may, under terms 
and conditions specified by the 
Secretary and with the written 
consent of the parents or guard-
ians of a child in a family or 
group day care home partici-
pating in the program, assist in 
the transmission of the income 
information of the family to the 
family or group day care home 
sponsoring organization.’’. 
SEC. 334. ADMINISTRATIVE PAYMENTS TO SPONSORING 
ORGANIZATIONS. 
Section 17(f)(3)(B) of the Richard B. Russell Na-
tional School Lunch Act (42 U.S.C. 1766(f)(3)(B)) is 
amended to read as follows: 
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‘‘(B) 
ADMINISTRATIVE
REIMBURSE-
MENTS.— 
‘‘(i) IN GENERAL.—In addition to re-
imbursement provided under subparagraph 
(A), family or group day care home spon-
soring organizations shall receive reim-
bursement for the administrative expenses 
in amounts not less than the sum of the 
product obtained by multiplying— 
‘‘(I) the number of family and 
group day care homes of the spon-
soring organization submitting a claim 
for reimbursement in each month; by 
‘‘(II) the administrative reim-
bursement rate prescribed by the Sec-
retary. 
‘‘(ii) ADMINISTRATIVE
REIMBURSE-
MENT RATE.—Effective July 1, 2011, the 
Secretary shall increase the administrative 
reimbursement rate prescribed by the Sec-
retary under clause (i)(II) by $5 for each 
family and group day care home of the 
sponsoring organization submitting a claim 
for reimbursement. 
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‘‘(iii) ANNUAL ADJUSTMENT.—The re-
imbursement levels specified in clause (i) 
shall be adjusted July 1 of each year to re-
flect changes in the Consumer Price Index 
for All Urban Consumers published by the 
Bureau of Labor Statistics of the Depart-
ment of Labor for all items for the most 
recent 12-month period for which data are 
available. 
‘‘(iv) CARRYOVER FUNDS.—The Sec-
retary shall develop procedures under 
which not more than 10 percent of the 
amount made available to sponsoring orga-
nizations for a fiscal year under this sec-
tion for administrative expenses for a fiscal 
year may remain available to such organi-
zations for obligation or expenditure for 
the succeeding fiscal year for such pur-
pose.’’. 
SEC. 335. CHILD AND ADULT CARE FOOD PROGRAM AUDIT 
FUNDING. 
Section 17(i) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(i)) is amended by 
striking paragraph (2) and inserting the following: 
‘‘(2) FUNDING.— 
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‘‘(A) IN
GENERAL.—The Secretary shall 
make available for each fiscal year to each 
State agency administering the child and adult 
care food program, for the purpose of con-
ducting audits of participating institutions, an 
amount of up to 1.5 percent of the funds used 
by each State in the program under this sec-
tion, during the second preceding fiscal year. 
‘‘(B) ADDITIONAL FUNDING.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), for fiscal year 2016 and each fiscal 
year thereafter, the Secretary may increase 
the amount of funds made available to any 
State agency under subparagraph (A), if 
the State agency demonstrates that the 
State agency can effectively use the funds 
to improve program management under 
criteria established by the Secretary. 
‘‘(ii) LIMITATION.—The total amount 
of funds made available to any State agen-
cy under this paragraph shall not exceed 2 
percent of the funds used by each State 
agency in the program under this section, 
during the second preceding fiscal year.’’. 
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SEC. 336. REDUCING PAPERWORK AND IMPROVING PRO-
GRAM ADMINISTRATION. 
Section 17 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1751 et seq.) is amended by adding 
at the end the following: 
‘‘(u) REDUCING PAPERWORK AND IMPROVING PRO-
GRAM ADMINISTRATION.— 
‘‘(1) ESTABLISHMENT.—The Secretary, in con-
junction with States and participating institutions, 
shall continue to examine the feasibility of reducing 
unnecessary or duplicative paperwork resulting from 
regulations and recordkeeping requirements for 
State agencies, institutions, family and group day 
care homes, and sponsored centers participating in 
the program 
‘‘(2) DUTIES.—At a minimum, the examination 
shall include— 
‘‘(A) review and evaluation of the rec-
ommendations, guidance, and regulatory prior-
ities developed and issued to comply with sec-
tion 119(i) of the Child Nutrition and WIC Re-
authorization Act of 2004 (42 U.S.C. 1766 
note; Public Law 108–265); 
‘‘(B) examination of additional paperwork 
and administrative requirements that have been 
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established since February 23, 2007, that could 
be reduced or simplified; and 
‘‘(C) examination of any other aspect re-
garding the administration of the program, as 
determined by the Secretary. 
‘‘(3) REPORT.—Not later than 4 years after the 
date of enactment of this Act, the Secretary shall 
submit to the Committee on Education and Labor of 
the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a 
report that describes the actions that have been 
taken to carry out this section, including— 
‘‘(A) actions taken to address administra-
tive and paperwork burdens identified as a re-
sult of compliance with section 119(i) of the 
Child Nutrition and WIC Reauthorization Act 
of 2004 (42 U.S.C. 1766 note; Public Law 
108–265); 
‘‘(B) administrative and paperwork bur-
dens identified as a result of compliance with 
section 119(i) of that Act for which no regu-
latory action or policy guidance has been taken; 
‘‘(C) additional steps that the Secretary is 
taking or plans to take to address any adminis-
trative and paperwork burdens identified under 
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paragraph (2)(B) and subparagraph (B), in-
cluding— 
‘‘(i) new or updated regulations, pol-
icy, guidance, or technical assistance; and 
‘‘(ii) a timeframe for the completion 
of those steps; and 
‘‘(D) recommendations to Congress for 
modifications to existing statutory authorities 
needed to address identified administrative and 
paperwork burdens.’’. 
Subtitle D—Special Supplemental 
Nutrition Program for Women, 
Infants, and Children 
SEC. 351. SHARING OF MATERIALS WITH OTHER PRO-
GRAMS. 
Section 17(e)(3) of the Child Nutrition Act (42 
U.S.C. 1786(e)(3)) is amended by striking subparagraph 
(B) and inserting the following: 
‘‘(B) 
SHARING
OF
MATERIALS
WITH 
OTHER PROGRAMS.— 
‘‘(i) 
COMMODITY
SUPPLEMENTAL 
FOOD PROGRAM.—The Secretary may pro-
vide, in bulk quantity, nutrition education 
materials (including materials promoting 
breastfeeding) developed with funds made 
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available for the program authorized under 
this section to State agencies administering 
the commodity supplemental food program 
established under section 5 of the Agri-
culture and Consumer Protection Act of 
1973 (7 U.S.C. 612c note; Public Law 93– 
86) at no cost to that program. 
‘‘(ii) CHILD AND ADULT CARE FOOD 
PROGRAM.—A State agency may allow the 
local agencies or clinics under the State 
agency to share nutrition educational ma-
terials with institutions participating in the 
child and adult care food program estab-
lished 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.’’. 
SEC. 352. WIC PROGRAM MANAGEMENT. 
(a) WIC EVALUATION FUNDS.—Section 17(g)(5) of 
the Child Nutrition Act of 1966 (42 U.S.C. 1786(g)(5)) 
is amended by striking ‘‘$5,000,000’’ and inserting 
‘‘$15,000,000’’. 
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(b) WIC REBATE PAYMENTS.—Section 17(h)(8) of 
the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)(8)) 
is amended by adding at the end the following: 
‘‘(K) 
REPORTING.—Effective 
beginning 
October 1, 2011, each State agency shall report 
rebate payments received from manufacturers 
in the month in which the payments are re-
ceived, rather than in the month in which the 
payments were earned.’’. 
(c) COST CONTAINMENT MEASURE.—Section 17(h) 
of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) 
is amended— 
(1) in paragraph (8)(A)(iv)(III), by striking 
‘‘Any’’ and inserting ‘‘Except as provided in para-
graph (9)(B)(i)(II), any’’; and 
(2) by striking paragraph (9) and inserting the 
following: 
‘‘(9) COST CONTAINMENT MEASURE.— 
‘‘(A) DEFINITION OF COST CONTAINMENT 
MEASURE.—In this subsection, the term cost 
containment measure means a competitive bid-
ding, rebate, direct distribution, or home deliv-
ery system implemented by a State agency as 
described in the approved State plan of oper-
ation and administration of the State agency. 
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‘‘(B) SOLICITATION AND REBATE BILLING 
REQUIREMENTS.—Any State agency instituting 
a cost containment measure for any authorized 
food, including infant formula, shall— 
‘‘(i) in the bid solicitation— 
‘‘(I) identify the composition of 
State alliances for the purposes of a 
cost containment measure; and 
‘‘(II) verify that no additional 
States shall be added to the State alli-
ance between the date of the bid solic-
itation and the end of the contract; 
‘‘(ii) have a system to ensure that re-
bate invoices under competitive bidding 
provide a reasonable estimate or an actual 
count of the number of units sold to par-
ticipants in the program under this sec-
tion; 
‘‘(iii) open and read aloud all bids at 
a public proceeding on the day on which 
the bids are due; and 
‘‘(iv) unless otherwise exempted by 
the Secretary, provide a minimum of 30 
days between the publication of the solici-
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tation and the date on which the bids are 
due. 
‘‘(C) STATE ALLIANCES FOR AUTHORIZED 
FOODS OTHER THAN INFANT FORMULA.—Pro-
gram requirements relating to the size of State 
alliances under paragraph (8)(A)(iv) shall apply 
to cost containment measures established for 
any authorized food under this section.’’. 
(d) ELECTRONIC
BENEFIT
TRANSFER.—Section 
17(h) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(h)) is amended by striking paragraph (12) and in-
serting the following: 
‘‘(12) ELECTRONIC BENEFIT TRANSFER.— 
‘‘(A) DEFINITIONS.—In this paragraph: 
‘‘(i) ELECTRONIC
BENEFIT
TRANS-
FER.—The term electronic benefit transfer 
means a food delivery system that provides 
benefits using a card or other access device 
approved by the Secretary that permits 
electronic access to program benefits. 
‘‘(ii) PROGRAM.—The term program 
means the special supplemental nutrition 
program established by this section. 
‘‘(B) REQUIREMENTS.— 
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‘‘(i) IN GENERAL.—Not later than Oc-
tober 1, 2020, each State agency shall be 
required to implement electronic benefit 
transfer systems throughout the State, un-
less the Secretary grants an exemption 
under subparagraph (C) for a State agency 
that is facing unusual barriers to imple-
ment an electronic benefit transfer system. 
‘‘(ii) 
RESPONSIBILITY.—The 
State 
agency shall be responsible for the coordi-
nation and management of the electronic 
benefit transfer system of the agency. 
‘‘(C) EXEMPTIONS.— 
‘‘(i) IN GENERAL.—To be eligible for 
an exemption from the statewide imple-
mentation requirements of subparagraph 
(B)(i), a State agency shall demonstrate to 
the satisfaction of the Secretary 1 or more 
of the following: 
‘‘(I) There are unusual techno-
logical barriers to implementation. 
‘‘(II) Operational costs are not 
affordable within the nutrition serv-
ices and administration grant of the 
State agency. 
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‘‘(III) It is in the best interest of 
the program to grant the exemption. 
‘‘(ii) SPECIFIC DATE.—A State agency 
requesting an exemption under clause (i) 
shall specify a date by which the State 
agency anticipates statewide implementa-
tion described in subparagraph (B)(i). 
‘‘(D) REPORTING.— 
‘‘(i) IN GENERAL.—Each State agency 
shall submit to the Secretary electronic 
benefit transfer project status reports to 
demonstrate the progress of the State to-
ward statewide implementation. 
‘‘(ii) 
CONSULTATION.—If 
a 
State 
agency plans to incorporate additional pro-
grams in the electronic benefit transfer 
system of the State, the State agency shall 
consult with the State agency officials re-
sponsible for administering the programs 
prior to submitting the planning docu-
ments to the Secretary for approval. 
‘‘(iii) REQUIREMENTS.—At a min-
imum, a status report submitted under 
clause (i) shall contain— 
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‘‘(I) an annual outline of the 
electronic benefit transfer implemen-
tation goals and objectives of the 
State; 
‘‘(II) appropriate updates in ac-
cordance with approval requirements 
for active electronic benefit transfer 
State agencies; and 
‘‘(III) such other information as 
the Secretary may require. 
‘‘(E) IMPOSITION
OF
COSTS
ON
VEN-
DORS.— 
‘‘(i) COST
PROHIBITION.—Except as 
otherwise provided in this paragraph, the 
Secretary may not impose, or allow a State 
agency to impose, the costs of any equip-
ment or system required for electronic ben-
efit transfers on any authorized vendor in 
order to transact electronic benefit trans-
fers if the vendor equipment or system is 
used solely to support the program. 
‘‘(ii) COST-SHARING.—The Secretary 
shall establish criteria for cost-sharing by 
State agencies and vendors of costs associ-
ated with any equipment or system that is 
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not solely dedicated to transacting elec-
tronic benefit transfers for the program. 
‘‘(iii) FEES.— 
‘‘(I) IN
GENERAL.—A vendor 
that elects to accept electronic benefit 
transfers using multifunction equip-
ment shall pay commercial transaction 
processing costs and fees imposed by 
a third-party processor that the ven-
dor elects to use to connect to the 
electronic benefit transfer system of 
the State. 
‘‘(II) INTERCHANGE
FEES.—No 
interchange fees shall apply to elec-
tronic benefit transfer transactions 
under this paragraph. 
‘‘(iv) 
STATEWIDE
OPERATIONS.— 
After completion of statewide expansion of 
a system for transaction of electronic ben-
efit transfers— 
‘‘(I) a State agency may not be 
required to incur ongoing mainte-
nance costs for vendors using multi-
function systems and equipment to 
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support electronic benefit transfers; 
and 
‘‘(II) any retail store in the State 
that applies for authorization to be-
come a program vendor shall be re-
quired to demonstrate the capability 
to accept program benefits electroni-
cally prior to authorization, unless the 
State agency determines that the ven-
dor is necessary for participant ac-
cess. 
‘‘(F) MINIMUM LANE COVERAGE.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall establish minimum lane coverage 
guidelines for vendor equipment and sys-
tems used to support electronic benefit 
transfers. 
‘‘(ii) PROVISION OF EQUIPMENT.—If 
a vendor does not elect to accept electronic 
benefit transfers using its own multi-
function equipment, the State agency shall 
provide such equipment as is necessary to 
solely support the program to meet the es-
tablished minimum lane coverage guide-
lines. 
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232 
‘‘(G) TECHNICAL STANDARDS.—The Sec-
retary shall— 
‘‘(i) establish technical standards and 
operating rules for electronic benefit trans-
fer systems; and 
‘‘(ii) require each State agency, con-
tractor, and authorized vendor partici-
pating in the program to demonstrate com-
pliance with the technical standards and 
operating rules.’’. 
(e) UNIVERSAL PRODUCT CODES DATABASE.—Sec-
tion 17(h) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(h)) is amended by striking paragraph (13) and in-
serting the following: 
‘‘(13) UNIVERSAL
PRODUCT
CODES
DATA-
BASE.— 
‘‘(A) IN GENERAL.—Not later than 2 years 
after the date of enactment of the Improving 
Nutrition for America’s Children Act, the Sec-
retary shall establish a national universal prod-
uct code database to be used by all State agen-
cies in carrying out the requirements of para-
graph (12). 
‘‘(B) FUNDING.— 
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‘‘(i) IN
GENERAL.—On October 1, 
2010, and on each October 1 thereafter, 
out of any funds in the Treasury not oth-
erwise appropriated, the Secretary of the 
Treasury shall transfer to the Secretary to 
carry out this paragraph $1,000,000, to 
remain available until expended. 
‘‘(ii) RECEIPT
AND
ACCEPTANCE.— 
The Secretary shall be entitled to receive, 
shall accept, and shall use to carry out this 
paragraph the funds transferred under 
clause (i), without further appropriation. 
‘‘(iii) USE OF FUNDS.—The Secretary 
shall use the funds provided under clause 
(i) for development, hosting, hardware and 
software configuration, and support of the 
database required under subparagraph 
(A).’’. 
(f) TEMPORARY
SPENDING
AUTHORITY.—Section 
17(i) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(i)) is amended by adding at the end the following: 
‘‘(8) TEMPORARY
SPENDING
AUTHORITY.— 
During each of fiscal years 2012 and 2013, the Sec-
retary may authorize a State agency to expend more 
than the amount otherwise authorized under para-
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graph (3)(C) for expenses incurred under this sec-
tion for supplemental foods during the preceding fis-
cal year, if the Secretary determines that— 
‘‘(A) there has been a significant reduction 
in reported infant formula cost containment 
savings for the preceding fiscal year due to the 
implementation of subsection (h)(8)(K); and 
‘‘(B) the reduction would affect the ability 
of the State agency to serve all eligible partici-
pants.’’. 
Subtitle E—Miscellaneous 
SEC. 361. FULL USE OF FEDERAL FUNDS. 
Section 12 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1760) (as amended by section 242) 
is further amended by striking subsection (b) and insert-
ing the following: 
‘‘(b) AGREEMENTS.— 
‘‘(1) IN GENERAL.—The Secretary shall incor-
porate, in the agreement of the Secretary with the 
State agencies administering programs authorized 
under this Act or the Child Nutrition Act of 1966 
(42 U.S.C. 1771 et seq.), the express requirements 
with respect to the operation of the programs to the 
extent applicable and such other provisions as in the 
opinion of the Secretary are reasonably necessary or 
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appropriate to effectuate the purposes of this Act 
and the Child Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.). 
‘‘(2) EXPECTATIONS
FOR
USE
OF
FUNDS.— 
Agreements described in paragraph (1) shall include 
a provision that— 
‘‘(A) supports full use of Federal funds 
provided to State agencies for the administra-
tion of programs authorized under this Act or 
the Child Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.); and 
‘‘(B) excludes the Federal funds from 
State budget restrictions or limitations includ-
ing, at a minimum— 
‘‘(i) hiring freezes; 
‘‘(ii) work furloughs; and 
‘‘(iii) travel restrictions.’’. 
SEC. 362. DISQUALIFIED SCHOOLS, INSTITUTIONS, AND IN-
DIVIDUALS. 
Section 12 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1760) (as amended by section 361) 
is further amended by adding at the end the following: 
‘‘(r) DISQUALIFIED SCHOOLS, INSTITUTIONS, AND 
INDIVIDUALS.—Any school, institution, service institution, 
facility, or individual that has been terminated from any 
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program authorized under this Act or the Child Nutrition 
Act of 1966 (42 U.S.C. 1771 et seq.) and is on a list of 
disqualified institutions and individuals under section 13 
or section 17(d)(5)(E) of this Act may not be approved 
to participate in or administer any program authorized 
under this Act or the Child Nutrition Act of 1966 (42 
U.S.C. 1771 et seq.).’’. 
TITLE IV—MISCELLANEOUS 
Subtitle A—Reauthorization of 
Expiring Provisions 
PART 1—RICHARD B. RUSSELL NATIONAL 
SCHOOL LUNCH ACT 
SEC. 401. COMMODITY SUPPORT. 
Section 6(e)(1)(B) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1755(e)(1)(B)) is amended 
by striking ‘‘September 30, 2010’’ and inserting ‘‘Sep-
tember 30, 2020’’. 
SEC. 402. FOOD SAFETY AUDITS AND REPORTS BY STATES. 
Section 9(h) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758(h)) is amended— 
(1) in paragraph (3), by striking ‘‘2006 
through 2010’’ and inserting ‘‘2011 through 2015’’; 
and 
(2) in paragraph (4), by striking ‘‘2006 
through 2010’’ and inserting ‘‘2011 through 2015’’. 
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SEC. 403. AUTHORIZATION OF THE SUMMER FOOD SERVICE 
PROGRAM FOR CHILDREN. 
Subsection (r) of section 13 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1761) (as redesig-
nated by section 322(1)) is amended by striking ‘‘Sep-
tember 30, 2009’’ and inserting ‘‘September 30, 2015’’. 
SEC. 404. YEAR-ROUND SERVICES FOR ELIGIBLE ENTITIES. 
Section 18 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769) is amended by striking sub-
section (j) (as redesignated by section 208(1)). 
SEC. 405. TRAINING, TECHNICAL ASSISTANCE, AND FOOD 
SERVICE MANAGEMENT INSTITUTE. 
Section 21(e) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1769b–1(e)) is amended— 
(1) by striking ‘‘(e) AUTHORIZATION OF AP-
PROPRIATIONS’’ and all that follows through the end 
of paragraph (2)(A) and inserting the following: 
‘‘(e) FOOD SERVICE MANAGEMENT INSTITUTE.— 
‘‘(1) FUNDING.— 
‘‘(A) IN
GENERAL.—In addition to any 
amounts otherwise made available for fiscal 
year 2011, on October 1, 2010, and each Octo-
ber 1 thereafter, out of any funds in the Treas-
ury not otherwise appropriated, the Secretary of 
the Treasury shall transfer to the Secretary to 
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carry out subsection (a)(2) $5,000,000, to re-
main available until expended. 
‘‘(B) RECEIPT
AND
ACCEPTANCE.—The 
Secretary shall be entitled to receive, shall ac-
cept, and shall use to carry out subsection 
(a)(2) the funds transferred under subpara-
graph (A), without further appropriation.’’; 
(2) by redesignating subparagraphs (B) and 
(C) as paragraphs (2) and (3), respectively, and in-
denting appropriately; 
(3) in paragraph (2) (as so redesignated), by 
striking ‘‘subparagraph (A)’’ each place it appears 
and inserting ‘‘paragraph (1)’’; and 
(4) in paragraph (3) (as so redesignated), by 
striking ‘‘subparagraphs (A) and (B)’’ and inserting 
‘‘paragraphs (1) and (2)’’. 
SEC. 406. FEDERAL ADMINISTRATIVE SUPPORT. 
Section 21(g)(1)(A)) of the Richard B. Russell Na-
tional School Lunch Act (42 U.S.C. 1769b–1(g)(1)(A)) is 
amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
(2) in clause (ii), by striking the period at the 
end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
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SEC. 423. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM 
FOR WOMEN, INFANTS, AND CHILDREN. 
Section 17(g)(1)(A) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(g)(1)(A)) is amended by striking 
‘‘each of fiscal years 2004 through 2009’’ and inserting 
‘‘each of fiscal years 2010 through 2015’’. 
SEC. 424. FARMERS MARKET NUTRITION PROGRAM. 
Section 17(m)(9) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(m)(9)) is amended by striking subpara-
graph (A) and inserting the following: 
‘‘(A) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated to carry out this subsection such sums 
as are necessary for each of fiscal years 2010 
through 2015.’’. 
Subtitle B—Technical Amendments 
SEC. 441. TECHNICAL AMENDMENTS. 
(a) RICHARD
B. RUSSELL
NATIONAL
SCHOOL 
LUNCH ACT.— 
(1) 
NUTRITIONAL
REQUIREMENTS.—Section 
9(f) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1758(f)) is amended— 
(A) by striking ‘‘(f)’’ and all that follows 
through the end of paragraph (1) and inserting 
the following: 
‘‘(f) NUTRITIONAL REQUIREMENTS.— 
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‘‘(1) IN
GENERAL.—Schools that are partici-
pating in the school lunch program or school break-
fast program shall serve lunches and breakfasts 
that— 
‘‘(A) are consistent with the goals of the 
most recent Dietary Guidelines for Americans 
published under section 301 of the National 
Nutrition Monitoring and Related Research Act 
of 1990 (7 U.S.C. 5341); and 
‘‘(B) consider the nutrient needs of chil-
dren who may be at risk for inadequate food in-
take and food insecurity.’’; 
(B) by striking paragraph (2); and 
(C) 
by 
redesignating 
paragraphs 
(3) 
through (5) as paragraphs (2) through (4), re-
spectively. 
(2) ROUNDING RULES FOR COMPUTATION OF 
ADJUSTMENT.—Section 11(a)(3)(B) of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 
1759a(a)(3)(B)) is amended by striking ‘‘ROUND-
ING.—’’ and all that follows through ‘‘On July’’ in 
subclause (II) and inserting ‘‘ROUNDING.—On 
July’’. 
(3) 
INFORMATION
AND
ASSISTANCE
CON-
CERNING REIMBURSEMENT OPTIONS.—Section 11 of 
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the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1759a) is amended by striking subsection 
(f). 
(4) 1995 REGULATIONS
TO
IMPLEMENT
DIE-
TARY GUIDELINES.—Section 12 of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 
1760) (as amended by section 362) is further 
amended by striking subsection (k). 
(5) SUMMER
FOOD
SERVICE
PROGRAM
FOR 
CHILDREN.— 
(A) IN GENERAL.—Section 13 of the Rich-
ard B. Russell National School Lunch Act (42 
U.S.C. 1761) is amended by striking the section 
heading and all that follows through the end of 
subsection (a)(1) and inserting the following: 
‘‘SEC. 13. SUMMER FOOD SERVICE PROGRAM FOR CHIL-
DREN. 
‘‘(a) IN GENERAL.— 
‘‘(1) DEFINITIONS.—In this section: 
‘‘(A) AREA
IN
WHICH
POOR
ECONOMIC 
CONDITIONS EXIST.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the term area in which poor economic 
conditions exist, as the term relates to an 
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area in which a program food service site 
is located, means— 
‘‘(I) the attendance area of a 
school in which at least 50 percent of 
the enrolled children have been deter-
mined eligible for free or reduced 
price school meals under this Act and 
the Child Nutrition Act of 1966 (42 
U.S.C. 1771 et seq.); 
‘‘(II) a geographic area, as de-
fined by the Secretary based on the 
most recent census data available, in 
which at least 50 percent of the chil-
dren residing in that area are eligible 
for free or reduced price school meals 
under this Act and the Child Nutri-
tion Act of 1966 (42 U.S.C. 1771 et 
seq.); 
‘‘(III) an area— 
‘‘(aa) for which the program 
food service site documents the 
eligibility of enrolled children 
through the collection of income 
eligibility statements from the 
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families of enrolled children or 
other means; and 
‘‘(bb) at least 50 percent of 
the children enrolled at the pro-
gram food service site meet the 
income standards for free or re-
duced price school meals under 
this Act and the Child Nutrition 
Act of 1966 (42 U.S.C. 1771 et 
seq.); 
‘‘(IV) a geographic area, as de-
fined by the Secretary based on infor-
mation provided from a department of 
welfare or zoning commission, in 
which at least 50 percent of the chil-
dren residing in that area are eligible 
for free or reduced price school meals 
under this Act and the Child Nutri-
tion Act of 1966 (42 U.S.C. 1771 et 
seq.); or 
‘‘(V) an area for which the pro-
gram food service site demonstrates 
through other means approved by the 
Secretary that at least 50 percent of 
the children enrolled at the program 
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food service site are eligible for free or 
reduced price school meals under this 
Act and the Child Nutrition Act of 
1966 (42 U.S.C. 1771 et seq.). 
‘‘(ii) 
DURATION
OF
DETERMINA-
TION.—A determination that an area is an 
area in which poor economic conditions 
exist under clause (i) shall be in effect 
for— 
‘‘(I) in the case of an area de-
scribed in clause (i)(I), 5 years; 
‘‘(II) in the case of an area de-
scribed in clause (i)(II), until more re-
cent census data are available; 
‘‘(III) in the case of an area de-
scribed in clause (i)(III), 1 year; and 
‘‘(IV) in the case of an area de-
scribed in subclause (IV) or (V) of 
clause (i), a period of time to be de-
termined by the Secretary, but not 
less than 1 year. 
‘‘(B) 
CHILDREN.—The 
term 
children 
means— 
‘‘(i) individuals who are 18 years of 
age and under; and 
VerDate Mar 15 2010 
21:12 Jun 11, 2010
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