145 
ing ‘‘cultural eating patterns, 
commercial availability, and par-
ticipant demand, except that any 
changes made under this clause 
shall not limit the overall fruit in-
take of children’’; and 
(bb) by striking the period at 
the end and inserting ‘‘; and’’; 
and 
(III) by adding at the end the fol-
lowing: 
‘‘(iii) consider accommodations for 
medical, including food allergies, or other 
special dietary needs of individuals, includ-
ing religious dietary restrictions.’’; 
(ii) by adding at the end the following: 
‘‘(D) PRODUCT PACKAGE SIZES.—In pro-
mulgating or revising regulations under this 
paragraph, the Secretary shall allow a range of 
product package sizes to be selected by partici-
pants. 
‘‘(E) CASH VALUE VOUCHERS.—In adjust-
ing annually for food cost inflation in the food 
package under this paragraph, the Secretary 
shall round to the nearest dollar increment. 
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146 
‘‘(F) PARTICIPANT CHOICE OPTIONS.—The 
Secretary shall maximize opportunities for State 
agency flexibility to ensure adequate and appro-
priate 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 author-
ized to be appropriated to carry out this section 
$6,350,000,000 for each of fiscal years 2017 
through 2021.’’; and 
(7) in subsection (h)— 
(A) in paragraph (8)(A)— 
(i) in clause (vi)— 
(I) by striking ‘‘Effective begin-
ning’’ and inserting the following: 
‘‘(I) IN
GENERAL.—Effective be-
ginning’’; and 
(II) by adding at the end the fol-
lowing: 
‘‘(II) INFANT
FORMULA.—Effec-
tive beginning on the date of the enact-
ment of the Improving Child Nutrition 
and Education Act of 2016, a State 
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147 
agency that has fully implemented elec-
tronic 
benefits 
transfer 
systems 
throughout the State shall have in ef-
fect a system to ensure that infant for-
mula rebate invoices, under competi-
tive bidding, provide an actual count 
of the number of units sold to partici-
pants in the program under this sec-
tion.’’; and 
(ii) by adding at the end the following: 
‘‘(xi) CONTRACT DURATION.—The con-
tracts 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 preg-
nant women or infants is substantially 
increased, the contractor may termi-
nate 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— 
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148 
‘‘(AA) adopting State 
legislation; 
‘‘(BB) issuing a State 
executive order or adminis-
trative rule; or 
‘‘(CC) any other appli-
cable State process, as deter-
mined by the Secretary; and 
‘‘(bb) the first day of the 
month during which the increase 
takes effect; and 
‘‘(II) if a contractor elects to ter-
minate a contract pursuant to sub-
clause (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: 
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149 
‘‘(III) limit the term of any con-
tract (including any extension or re-
newal period) to a maximum of 5 
years, subject to the condition that any 
such extension or renewal shall be ap-
proved 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 in-
voices by a contractor; and 
‘‘(bb) to provide to each con-
tractor accurate monthly redemp-
tion files; and 
‘‘(VI) agree not to provide any 
State preference to any bidder in eval-
uating bids;’’; 
(II) in clause (iii), by striking 
‘‘and’’ at the end; 
(III) in clause (iv)— 
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150 
(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), respec-
tively; 
(V) by inserting after clause (ii) 
the following: 
‘‘(iii) for any State agency that has 
fully implemented electronic benefits trans-
fer systems throughout the State, have a sys-
tem to ensure that rebate invoices under 
competitive bidding provide an actual count 
of the number of units lawfully sold to par-
ticipants in the program under this sec-
tion;’’; and 
(VI) by adding at the end the fol-
lowing: 
‘‘(vi) provide a process to negotiate the 
amount of funds to be returned to the bidder 
by the State agency, and the method of re-
turn, on determining and verifying that re-
bates were paid on any food, including in-
fant formula, sold under fraudulent means; 
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