in subsection (a)(11) 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 in-
stitutions, feeding sites, and food service manage-
ment companies and ensuring that such compa-
nies 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 re-
quirements prescribed by the Secretary.’’; and 
(4) in subsection (r), by striking ‘‘2015’’ and in-
serting ‘‘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 
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(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. Rus-
sell National School Lunch Act (42 U.S.C. 1766) is amend-
ed— 
(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 ini-
tial 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 semi-
colon; and 
(iv) by adding at the end the following: 
‘‘(G) any public or licensed nonprofit pri-
vate residential child care institution (as defined 
in subsection (v)(1)) that is not concurrently re-
ceiving reimbursement under the school lunch 
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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 Bu-
reau of Indian Education that is not concur-
rently receiving reimbursements under such 
school lunch program or school breakfast pro-
gram.’’; and 
(B) in paragraph (3), by striking ‘‘sub-
section (r)’’ and inserting ‘‘subsections (r) and 
(v)’’; and 
(C) by adding at the end the following: 
‘‘(7) DURATION OF DETERMINATION.—With re-
spect 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 subse-
quent fiscal year, the’’ and inserting ‘‘The’’; 
(3) in subsection (d)— 
(A) in paragraph (4)— 
(i) by striking ‘‘In consultation’’ and 
inserting the following: 
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‘‘(A) IN GENERAL.—In consultation’’; and 
(ii) by adding at the end the following: 
‘‘(B) REPORTS.—Each sponsoring organiza-
tion shall, on an annual basis, submit to the ap-
plicable 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 reimburse-
ments retained by the sponsoring organiza-
tion for administrative costs, if applica-
ble.’’; 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— 
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‘‘(I) a finding of serious defi-
ciency, including— 
‘‘(aa) what measures auto-
matically 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 re-
quirements and Federal law 
and regulations, if applica-
ble; 
‘‘(II) appeals and mediation in 
any case in which there is a finding of 
serious deficiency; 
‘‘(III) 
determining 
the 
cir-
cumstances under which a corrective 
action plan is acceptable; 
‘‘(IV) information sharing be-
tween Departments of Agriculture and 
Health and Human Services; and 
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‘‘(V) termination and disquali-
fication, including maintenance of the 
list under subparagraph (E). 
‘‘(iii) GUIDANCE AND REGULATIONS.— 
‘‘(I) IN
GENERAL.—After con-
ducting the review under this subpara-
graph, the Secretary shall use findings 
from such review to assist sponsoring 
organizations, State agencies, and the 
Food and Nutrition Service in ensur-
ing a fair, uniform, and effective ad-
ministration of the serious deficiency 
process, while retaining program integ-
rity, by issuing guidance, and, as ap-
propriate, regulations, on the fol-
lowing: 
‘‘(aa) Clarity on the different 
measures for noncompliance. 
‘‘(bb) Parameters for an ap-
peals process to review a finding 
of serious deficiency or a deter-
mination that a corrective action 
plan is inadequate. 
‘‘(cc) Adequate timeframes 
under a corrective action plan for 
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