Sec. 206. Special supplemental nutrition program for women, infants, and children
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Section 17 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1786 ) is amended— in subsection (a), in the second sentence, by striking promotion and inserting counseling, promotion, ; in subsection (b)(14), by striking the paragraph designation and all that follows through means those foods and inserting the following: The term supplemental food means any food ; in subsection (d)— in paragraph (2)— in subparagraph (B)— in the matter preceding clause (i), by striking may choose to and inserting shall ; in clause (i)(II), by striking and at the end; in clause (ii), by striking the period at the end and inserting ; and ; and by adding at the end the following: any basic allowance for subsistence provided under section 402 of title 37, United States Code, to a member of a uniformed service. ; and by adding at the end the following:
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 in paragraph (3), by adding at the end the following: 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— necessary categories of information that State agencies operating related programs are required under applicable law to electronically exchange with another State agency; and Federal reporting and data exchange required under applicable law.
The data exchange standards required by clause
(i)shall, to the maximum extent practicable— incorporate a widely accepted, nonproprietary, searchable, computer-readable format; contain interoperable standards developed and maintained by intergovernmental partnerships, such as the National Information Exchange Model; incorporate interoperable standards developed and maintained by Federal entities with authority regarding contracting and financial assistance; be consistent with, and implement, applicable accounting principles; be implemented in a manner that— is cost effective; and improves program efficiency and effectiveness; be capable of being upgraded as necessary; and protects the privacy of any personally identifiable information from being accessed by individuals who do not need access to such information. Nothing in this subparagraph requires any change to an existing data exchange standard for Federal reporting that is determined to be effective and efficient. 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. The proposed rule under this clause shall— identify all federally required data exchanges; include specification and timing for the exchanges to be standardized; address the factors used in determining whether and when to standardize data exchanges; specify State implementation options; and describe future milestones. ; in subsection (e)— 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: A State agency shall ; in paragraph
(1)(as amended by subparagraph (A)), by adding at the end the following: 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. The education under this subparagraph shall include information regarding— the safety hazards of purchasing infant formula from an unauthorized vendor; and 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 by striking paragraph
(3)and inserting the following: 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. 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. ; in subsection (f)— by striking (f)(1)(A) Each State agency and all that follows through change in the plan. and inserting the following: Each State agency shall submit to the Secretary a plan of operation and administration of the program authorized under this section. Each State agency shall submit— an initial plan not later than such date as is specified by the Secretary; and 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. ; in paragraph (1)(B), by striking submitted for and inserting submitted covering ; in paragraph (1)(C)— in clause (x), by striking and at the end; by redesignating clause
(xi)as clause (xiii); and by inserting after clause
(x)the following: 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; a plan detailing the methods to be used by all local agencies to ensure compliance with subsection (d)(2); and ; in paragraph (5)— by striking
(5)State and local and inserting the following: State and local ; and by adding at the end the following: The Secretary shall periodically review State and local agency compliance with the approved plan of operation and administration of the applicable State. ; in paragraph (10)— by striking
(10)The Secretary and inserting the following: The Secretary ; and by adding at the end the following: 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— a timeframe under which the moratorium will be issued, including any renewal or lifting of the moratorium; a process to approve vendors for the State in a manner that does not impede— the sale of a business; or the establishment of any new business; and 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. ; in paragraph (11)— in subparagraph (C)— 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 ; and 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 ( 7 U.S.C. 5341 )), and an examination of the consumption and redemption rates of milk beginning on May 5, 2014 by striking and at the end; in clause (ii)— by striking and cultural eating patterns and inserting cultural eating patterns, commercial availability, and participant demand, except that any changes made under this clause shall not limit the overall fruit intake of children ; and by striking the period at the end and inserting ; and ; and by adding at the end the following: consider accommodations for medical, including food allergies, or other special dietary needs of individuals, including religious dietary restrictions. ; by adding at the end the following: In promulgating or revising regulations under this paragraph, the Secretary shall allow a range of product package sizes to be selected by participants. In adjusting annually for food cost inflation in the food package under this paragraph, the Secretary shall round to the nearest dollar increment. 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. ; in subsection (g), by striking paragraph (1)(A) and inserting the following: There are authorized to be appropriated to carry out this section $6,350,000,000 for each of fiscal years 2017 through 2021. ; and in subsection (h)— in paragraph (8)(A)— in clause (vi)— by striking Effective beginning and inserting the following: Effective beginning ; and by adding at the end the following: 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 by adding at the end the following: The contracts awarded under clause
(iii)shall specify that— 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— 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— adopting State legislation; issuing a State executive order or administrative rule; or any other applicable State process, as determined by the Secretary; and the first day of the month during which the increase takes effect; and 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. ; in paragraph (9)— in subparagraph (B)— in clause (i)— in subclause (I), by striking and at the end; and by adding at the end the following: 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; agree to provide, by not later than 180 days before exercising any termination for convenience clause, a written notice to each affected contractor; agree— to receive an annual audit of infant formula rebate invoices by a contractor; and to provide to each contractor accurate monthly redemption files; and agree not to provide any State preference to any bidder in evaluating bids; ; in clause (iii), by striking and at the end; in clause (iv)— by striking 30 and inserting 45 ; and by striking the period at the end and inserting a semicolon; by redesignating clauses
(iii)and
(iv)as clauses
(iv)and (v), respectively; by inserting after clause
(ii)the following: 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 by adding at the end the following: 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; 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; agree to provide to contractors supporting documentation for monthly invoices, subject to the participant and vendor confidentiality protections under program rules; and 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 by adding at the end the following: 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— consider— the impact of the contract on— participation or redemption rates; costs to the State agency for infant fruits, vegetables, cereal, or meat, including product, administrative, and procurement costs; and the ability of the State agency— to achieve the purpose described in subsection (a); to provide infants with a variety of developmentally appropriate infant fruits, vegetables, cereal, or meat; and to serve the nutritional needs of program participants; and 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 whether the contract is compatible with— the management information and food instrument system of the State agency; eligible vendors; and the capacity of the manufacturer to meet technical specifications; and provide to the Secretary— 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 not later than 15 months after the start of such contract, a report that shall include— the net savings to date from the contract; an assessment of the impact on eligible stores, non-participants, and retail prices for infant fruits, vegetables, cereal, and meat; and an analysis of the costs and benefits of the contract, including an examination of retail prices of infant fruits, vegetables, cereal, and meat. ; in paragraph (11)(E)— by striking If a State and inserting the following: If a State ; and by adding at the end the following: 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. ; in paragraph (12)— in subparagraph (A)(i), by striking food delivery system that provides and inserting method to deliver ; and by adding at the end the following: As State agencies transition to electronic benefit transfer for the program, the Secretary shall update regulations to account for the fact that State agencies— are receiving transaction pricing more frequently than twice a year from vendors; and should adjust vendor reimbursement levels more frequently to reflect program food price changes in the marketplace. There is authorized to be appropriated to carry out this paragraph $25,000,000 for each of fiscal years 2017 through 2019. 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. For any State agency that fails to comply with subparagraph (B), including a State agency receiving an exemption under subparagraph (C), the Secretary shall— 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 direct the amounts withheld for use by the State agency solely for achieving compliance with subparagraph (B). ; and in paragraph (13), by adding at the end the following: 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. ; by striking subsection (k); by redesignating subsections
(l)through
(q)as subsections
(k)through (p), respectively; in subsection
(o)(as so redesignated)— in paragraphs
(1)and (2)(B), by striking subsection (o)(1)(A) each place it appears and inserting subsection (n)(1)(A) ; in paragraph (5)— in subparagraph (C), by striking and at the end; in subparagraph (D), by striking the period at the end and inserting ; and ; and by adding at the end the following: 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 by adding at the end the following: 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. 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— the number of units, if any, for which rebates may have been issued as a result of the violation; and the total dollar amount of the rebates. ; and by adding at the end the following: 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. The review under paragraph
(1)shall include a review of issues relating to— excess and unused infant formula; invoices pertaining to products subject to rebate; the sale of infant formula by unauthorized entities; and the purchase of infant formula from unauthorized entities. 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— to minimize fraud; and to ensure the safety of participants. 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. Subject to paragraph (2), the Secretary may conduct pilot projects to test alternative certification and food delivery procedures under this section. 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. The Secretary shall evaluate each pilot project carried out under this subsection after the pilot project has been in operation for 3 years. . Section 17(l)(9)(A) of the Child Nutrition Act of 1966 ( 42 U.S.C. 1786(m)(9)(A) ), as redesignated by section 206(a)(9), is amended to read as follows: There are authorized to be appropriated to carry out this subsection $18,548,000 for each of fiscal years 2017 through 2021. . In this subsection: 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) ). The term Comptroller General means the Comptroller General of the United States. The term Medicaid means the Medicaid program under title XIX of the Social Security Act ( 42 U.S.C. 1396 et seq. ). The term poverty line means the most recent annual Federal Poverty Income Guidelines published by the Department of Health and Human Services. 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 ). 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. 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. The Comptroller General shall collect data to determine— the total number of pregnant women, postpartum women, breastfeeding women, infants, and children participating in WIC; 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 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. The Comptroller General shall collect the information described in clause
(i)from— WIC program data for subclauses
(I)and
(II)of that clause; and 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). 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. 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. 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. The Comptroller General shall assess— 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— income as a share of the poverty level for purposes of Medicaid eligibility; or Medicaid enrollment and income below a specified level; 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 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. The Comptroller General shall assess— 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— income as a share of the poverty level for purposes of Medicaid eligibility; or whether a Medicaid recipient has income below a specified level; 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 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. 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— the data collected under paragraph (3); the assessments made under paragraph (4); and the feasibility, costs, and benefits of a new requirement that would only permit adjunctive eligibility for individuals with household income below a specified level.
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Sec. 206
Special supplemental nutrition program for women, infants, and children
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