Review of serious deficiency process

Section 17(d)(5) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(d)(5)) is amended by adding at the end the following: (F) Serious deficiency process (i) In general Not later than 1 year after the date of enactment of this subparagraph, the Secretary shall review and issue guidance and, as appropriate, regulations regarding the serious deficiency process for the program under this section. (ii) Review In carrying out clause (i), the Secretary shall review, at a minimum, the processes for, and the individuals involved in— (I) determining when there exists a serious deficiency with respect to an institution or a family or group day care home, including— (aa) the measures that will automatically result in a finding of serious deficiency; and (bb) the means of differentiating between— (AA) a reasonable margin of human error and systematic or intentional noncompliance; and (BB) State-specific requirements and Federal regulations; (II) appealing and mediating a finding of serious deficiency with respect to an institution or a family or group day care home, including— (aa) findings relating to State-specific requirements; and (bb) processes for ensuring that the officials involved in appeals and mediation are fair and impartial; (III) determining the circumstances under which a corrective action plan is acceptable; (IV) the termination and disqualification of institutions, family or group day care homes, and individuals under this paragraph, including maintenance of the list under subparagraph (E); and (V) determining opportunities for strengthening the processes intended to reduce the imposition of additional State agency requirements on institutions or family or group day care homes in addition to applicable requirements under Federal law, including— (aa) State evaluation of practices used at the time of review; (bb) regional approval of those additional State agency requirements; and (cc) oversight through the management evaluation process. (iii) State-specific requirements The Secretary may not consider State-specific requirements in determining noncompliance or serious deficiency under this paragraph. (iv) Guidance and regulations (I) In general After conducting the review under clause (i), the Secretary shall— (aa) make findings from the information collected; (bb) issue guidance and, as appropriate, regulations from those findings that will— (AA) streamline and modernize the program under this section; and (BB) reduce the paperwork burden on parents; and (cc) assist sponsoring organizations, State agencies, and the Food and Nutrition Service in ensuring a fair, uniform, and effective administration of the serious deficiency process under this paragraph, while retaining program integrity. (II) Scope The guidance and regulations issued pursuant to subclause (I) shall include— (aa) provisions to ensure clarity with respect to required measures for noncompliance, including— (AA) an allowance for a reasonable margin of human error; and (BB) a distinction between a reasonable margin of human error and systematic or intentional noncompliance; (bb) a formal appeals and mediation process that— (AA) is conducted by a trained official who is independent from, and not affiliated with, any person or agency involved in the determination being appealed or mediated; (BB) provides an opportunity for a fair hearing for any institution or family or group day care home determined to have a serious deficiency finding or inadequate corrective action plan; and (CC) provides for the evaluation and resolution of disputes regarding State agency requirements applicable to institutions or family or group day care homes that are in addition to applicable requirements under Federal law; (cc) timeframes for acceptable corrective action plans for group or family day care homes that are consistent with corrective action timeframes for child care centers; and (dd) a process to dismiss a serious deficiency on correction of the deficiency..