WIC PROGRAM MANAGEMENT.

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”.(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 received, 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 paragraph (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 bidding, rebate, direct distribution, or home delivery system implemented by a State agency as described in the approved State plan of operation and administration of the State agency.124 STAT. 3255“(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 alliance between the date of the bid solicitation and the end of the contract;“(ii) have a system to ensure that rebate invoices under competitive bidding provide a reasonable estimate or an actual count of the number of units sold to participants in the program under this section;“(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 solicitation and the date on which the bids are due.“(C) State alliances for authorized foods other than infant formula.—Program 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 inserting the following:“(12) Electronic benefit transfer.—“(A) Definitions.—In this paragraph:“(i) Electronic benefit transfer.—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.—“(i) In general.—Not later than October 1, 2020, each State agency shall be required to implement electronic benefit transfer systems throughout the State, unless the Secretary grants an exemption under subparagraph (C) for a State agency that is facing unusual barriers to implement an electronic benefit transfer system.“(ii) Responsibility.—The State agency shall be responsible for the coordination 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 implementation requirements of subparagraph (B)(i), a State agency shall demonstrate to the satisfaction of the Secretary 1 or more of the following:124 STAT. 3256“(I) There are unusual technological barriers to implementation.“(II) Operational costs are not affordable within the nutrition services and administration grant of the State agency.“(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 implementation 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 toward statewide implementation.“(ii) Consultation.—If a State agency plans to incorporate additional programs in the electronic benefit transfer system of the State, the State agency shall consult with the State agency officials responsible for administering the programs prior to submitting the planning documents to the Secretary for approval.“(iii) Requirements.—At a minimum, a status report submitted under clause (i) shall contain—“(I) an annual outline of the electronic benefit transfer implementation goals and objectives of the State;“(II) appropriate updates in accordance 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 vendors.—“(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 equipment or system required for electronic benefit transfers on any authorized vendor in order to transact electronic benefit transfers 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 associated with any equipment or system that is not solely dedicated to transacting electronic benefit transfers for the program.“(iii) Fees.—“(I) In general.—A vendor that elects to accept electronic benefit transfers using multifunction equipment shall pay commercial transaction processing costs and fees imposed by a third-party processor that the vendor elects to use to connect to the electronic benefit transfer system of the State.“(II) Interchange fees.—No interchange fees shall apply to electronic benefit transfer transactions under this paragraph.124 STAT. 3257“(iv) Statewide operations.—After completion of statewide expansion of a system for transaction of electronic benefit transfers—“(I) a State agency may not be required to incur ongoing maintenance costs for vendors using multifunction systems and equipment to support electronic benefit transfers; and“(II) any retail store in the State that applies for authorization to become a program vendor shall be required to demonstrate the capability to accept program benefits electronically prior to authorization, unless the State agency determines that the vendor is necessary for participant access.“(F) Minimum lane coverage.—“(i) In general.—The Secretary shall establish minimum lane coverage guidelines for vendor equipment and systems used to support electronic benefit transfers.“(ii) Provision of equipment.—If a vendor does not elect to accept electronic benefit transfers using its own multifunction equipment, the State agency shall provide such equipment as is necessary to solely support the program to meet the established minimum lane coverage guidelines.“(G) Technical standards.—The Secretary shall—“(i) establish technical standards and operating rules for electronic benefit transfer systems; and“(ii) require each State agency, contractor, and authorized vendor participating in the program to demonstrate compliance with the technical standards and operating rules.”.(e) Universal Product Codes Database.—Section 17(h) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(h)) is amended by striking paragraph (13) and inserting the following:“(13) Universal product codes database.—“(A) In general.—Not later than 2 years after the date of enactment of the Healthy, Hunger-Free Kids Act of 2010, the Secretary shall establish a national universal product code database to be used by all State agencies in carrying out the requirements of paragraph (12).“(B) Funding.—“(i) In general.—On October 1, 2010, and on each October 1 thereafter, out of any funds in the Treasury not otherwise 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).”.124 STAT. 3258(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 Secretary may authorize a State agency to expend more than the amount otherwise authorized under paragraph (3)(C) for expenses incurred under this section for supplemental foods during the preceding fiscal 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 participants.”.