Richard Russell national School Lunch Act

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RICHARD B. RUSSELL NATIONAL SCHOOL
LUNCH ACT
[As Amended Through P.L. 111–80, Effective October 21, 2009]
TABLE OF CONTENTS

U.S.C.
42 U.S.C.
1751 note

Act Sec.
1. Short title ........................................................

3–2

1751

2. Declaration of policy .......................................

3–2

1752

3. Appropriations authorized .............................

3–2

1753

4. Apportionments to States ..............................

3–2

1754

5. Nutrition promotion .......................................

3–4

1755

6. Direct Federal expenditures ..........................

3–5

1756

7. Payments to States .........................................

3–7

1757

8. State disbursement to schools .......................

3–8

1758

9. Nutritional and other program requirements.

3–9

1759

10. Disbursement to schools by the Secretary

3–27

1759a

11. Special assistance .........................................

3–27

1760

12. Miscellaneous provisions and definitions ...

3–32

1761

13. Summer food service program for children

3–38

1762a

14. Commodity distribution program ................

3–47

1765

16. Election to receive cash payments ..............

3–50

1766

17. Child and adult care food program .............

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1766a

17A. Meal supplements for children in afterschool care.

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1769

18. Pilot projects .................................................

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1769a

19. Fresh fruit and vegetable program .............

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1769b

20. Department of Defense overseas dependents’ schools.

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1769b–1

21. Training, technical assistance, and food
service management institute.

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1769c

22. Compliance and accountability ....................

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1769f

25. Duties of the Secretary relating to nonprocurement debarment.

3–89

1769g

26. Information clearinghouse ...........................

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1769h

27. Accommodation of the special dietary
needs of individuals with disabilities.

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October 21, 2009

Page

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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT
TABLE OF CONTENTS—Continued

1769i
28. Program evaluation ......................................
3–94
Table of contents, bracketed material, and footnotes did not appear
in Acts.

October 21, 2009

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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

Sec. 4

[Chapter 281]

AN ACT
To provide assistance to the States in the establishment, maintenance, operation, and expansion of school lunch programs,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, ø42 U.S.C. 1751
note¿ That this Act may be cited as the ‘‘Richard B. Russell National School Lunch Act’’. 1–1
DECLARATION OF POLICY

SEC. 2. ø42 U.S.C. 1751¿ It is hereby declared to be the policy
of Congress, as a measure of national security, to safeguard the
health and well-being of the Nation’s children and to encourage the
domestic consumption of nutritious agricultural commodities and
other food, by assisting the States, through grants-in-aid and other
means, in providing an adequate supply of foods and other facilities
for the establishment, maintenance, operation, and expansion of
nonprofit school lunch programs.
APPROPRIATIONS AUTHORIZED

SEC. 3. ø42 U.S.C. 1752¿ For each fiscal year there is hereby
authorized to be appropriated, out of money in the Treasury not
otherwise appropriated, such sums as may be necessary to enable
the Secretary of Agriculture (hereinafter referred to as the ‘‘Secretary’’) to carry out the provisions of this Act, other than sections
13 and 17. Appropriations to carry out the provisions of this Act
and of the Child Nutrition Act of 1966 [(42 U.S.C. 1771 et seq.)]
for any fiscal year are authorized to be made a year in advance of
the beginning of the fiscal year in which the funds will become
available for disbursement to the States. Notwithstanding any
other provision of law, any funds appropriated to carry out the provisions of such Acts shall remain available for the purposes of the
Act for which appropriated until expended.
APPORTIONMENTS TO STATES

SEC. 4. ø42 U.S.C. 1753¿ (a) The sums appropriated for any fiscal year pursuant to the authorizations contained in section 3 of
this Act shall be available to the Secretary for supplying agricultural commodities and other food for the program in accordance
with the provisions of this Act.
(b)(1) The Secretary shall make food assistance payments to
each State educational agency each fiscal year, at such times as the
Secretary may determine, from the sums appropriated for such purpose, in a total amount equal to the product obtained by
multiplying—
(A) the number of lunches (consisting of a combination of
foods which meet the minimum nutritional requirements prescribed by the Secretary under section 9(a) of this Act) served
during such fiscal year in schools in such State which participate in the school lunch program under this Act under agreements with such State educational agency; by
1–1 P.L.

October 21, 2009

79–396, 60 Stat. 230, June 4, 1946.

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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

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(B) the national average lunch payment prescribed in paragraph (2) of this subsection.
(2) The national average lunch payment for each lunch served
shall be 10.5 cents (as adjusted pursuant to section 11(a) of this
Act) except that for each lunch served in school food authorities in
which 60 percent or more of the lunches served in the school lunch
program during the second preceding school year were served free
or at a reduced price, the national average lunch payment shall be
2 cents more.
SEC. 5. ø42 U.S.C. 1754¿ NUTRITION PROMOTION.

(a) IN GENERAL.—Subject to the availability of funds made
available under subsection (g), the Secretary shall make payments
to State agencies for each fiscal year, in accordance with this section, to promote nutrition in food service programs under this Act
and the school breakfast program established under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
(b) TOTAL AMOUNT FOR EACH FISCAL YEAR.—The total amount
of funds available for a fiscal year for payments under this section
shall equal not more than the product obtained by multiplying—
(1) 1⁄2 cent; by
(2) the number of lunches reimbursed through food service
programs under this Act during the second preceding fiscal
year in schools, institutions, and service institutions that participate in the food service programs.
(c) PAYMENTS TO STATES.—
(1) ALLOCATION.—Subject to paragraph (2), from the
amount of funds available under subsection (g) for a fiscal year,
the Secretary shall allocate to each State agency an amount
equal to the greater of—
(A) a uniform base amount established by the Secretary; or
(B) an amount determined by the Secretary, based on
the ratio that—
(i) the number of lunches reimbursed through food
service programs under this Act in schools, institutions, and service institutions in the State that participate in the food service programs; bears to
(ii) the number of lunches reimbursed through the
food service programs in schools, institutions, and service institutions in all States that participate in the food
service programs.
(2) REDUCTIONS.—The Secretary shall reduce allocations to
State agencies qualifying for an allocation under paragraph
(1)(B), in a manner determined by the Secretary, to the extent
necessary to ensure that the total amount of funds allocated
under paragraph (1) is not greater than the amount appropriated under subsection (g).
(d) USE OF PAYMENTS.—
(1) USE BY STATE AGENCIES.—A State agency may reserve,
to support dissemination and use of nutrition messages and
material developed by the Secretary, up to—
(A) 5 percent of the payment received by the State for
a fiscal year under subsection (c); or
(B) in the case of a small State (as determined by the
Secretary), a higher percentage (as determined by the Secretary) of the payment.
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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

Sec. 6

(2) DISBURSEMENT TO SCHOOLS AND INSTITUTIONS.—Subject
to paragraph (3), the State agency shall disburse any remaining amount of the payment to school food authorities and institutions participating in food service programs described in subsection (a) to disseminate and use nutrition messages and material developed by the Secretary.
(3) SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.—In addition to any amounts reserved under paragraph (1), in the
case of the summer food service program for children established under section 13, the State agency may—
(A) retain a portion of the funds made available under
subsection (c) (as determined by the Secretary); and
(B) use the funds, in connection with the program, to
disseminate and use nutrition messages and material developed by the Secretary.
(e) DOCUMENTATION.—A State agency, school food authority,
and institution receiving funds under this section shall maintain
documentation of nutrition promotion activities conducted under
this section.
(f) REALLOCATION.—The Secretary may reallocate, to carry out
this section, any amounts made available to carry out this section
that are not obligated or expended, as determined by the Secretary.
(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this section, to remain available until expended.
DIRECT FEDERAL EXPENDITURES

SEC. 6. ø42 U.S.C. 1755¿ (a) The funds provided by appropriation or transfer from other accounts for any fiscal year for carrying
out the provisions of this Act, and for carrying out the provisions
of the Child Nutrition Act of 1966 [(42 U.S.C. 1771 et seq.)], other
than section 3 thereof [(42 U.S.C. 1772)], less
(1) not to exceed 31⁄2 per centum thereof which per centum
is hereby made available to the Secretary for the Secretary’s
administrative expenses under this Act and under the Child
Nutrition Act of 1966;
(2) the amount apportioned by the Secretary pursuant to
section 4 of this Act and the amount appropriated pursuant to
sections 11 and 13 of this Act and sections 4 and 7 of the Child
Nutrition Act of 1966 [(42 U.S.C. 1773 and 1776)]; and
(3) not to exceed 1 per centum of the funds provided for
carrying out the programs under this Act and the programs
under the Child Nutrition Act of 1966, other than section 3,
which per centum is hereby made available to the Secretary to
supplement the nutritional benefits of these programs through
grants to States and other means for nutritional training and
education for workers, cooperators, and participants in these
programs, for pilot projects and the cash-in-lieu of commodities
study required to be carried out under section 18 of this Act,
and for necessary surveys and studies of requirements for food
service programs in furtherance of the purposes expressed in
section 2 of this Act and section 2 of the Child Nutrition Act
of 1966 [(42 U.S.C. 1771)],
shall be available to the Secretary during such year for direct expenditure by the Secretary for agricultural commodities and other
foods to be distributed among the States and schools and service inOctober 21, 2009

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Sec. 6

RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

3–6

stitutions participating in the food service programs under this Act
and under the Child Nutrition Act of 1966 in accordance with the
needs as determined by the local school and service institution authorities. Except as provided in the next 2 sentences, any school
participating in food service programs under this Act may refuse to
accept delivery of not more than 20 percent of the total value of agricultural commodities and other foods tendered to it in any school
year; and if a school so refuses, that school may receive, in lieu of
the refused commodities, other commodities to the extent that other
commodities are available to the State during that year. Any school
food authority may refuse some or all of the fresh fruits and vegetables offered to the school food authority in any school year and shall
receive, in lieu of the offered fruits and vegetables, other more desirable fresh fruits and vegetables that are at least equal in value
to the fresh fruits and vegetables refused by the school food authority. The value of any fresh fruits and vegetables refused by a school
under the preceding sentence for a school year shall not be used to
determine the 20 percent of the total value of agricultural commodities and other foods tendered to the school food authority in the
school year under the second sentence. The provisions of law contained in the proviso of the Act of June 28, 1937 [; 15 U.S.C. 713c],
facilitating operations with respect to the purchase and disposition
of surplus agricultural commodities under section 32 of the Act approved August 24, 1935, [; 7 U.S.C. 612c] shall, to the extent not
inconsistent with the provisions of this Act, also be applicable to expenditures of funds by the Secretary under this Act. In making purchases of such agricultural commodities and other foods, the Secretary shall not issue specifications which restrict participation of
local producers unless such specifications will result in significant
advantages to the food service programs authorized by this Act and
the Child Nutrition Act of 1966.
(b) The Secretary shall deliver, to each State participating in
the school lunch program under this Act, commodities valued at the
total level of assistance authorized under subsection (c) for each
school year for the school lunch program in the State, not later
than September 30 of the following school year.
(c)(1)(A) The national average value of donated foods, or cash
payments in lieu thereof, shall be 11 cents, adjusted on July 1,
1982, and each July 1 thereafter to reflect changes in the Price
Index for Food Used in Schools and Institutions. The Index shall be
computed using 5 major food components in the Bureau of Labor
Statistics’ Producer Price Index (cereal and bakery products, meats,
poultry and fish, dairy products, processed fruits and vegetables,
and fats and oils). Each component shall be weighed using the same
relative weight as determined by the Bureau of Labor Statistics.
(B) The value of food assistance for each meal shall be adjusted
each July 1 by the annual percentage change in a 3-month average
value of the Price Index for Foods Used in Schools and Institutions
for March, April, and May each year. Such adjustment shall be
computed to the nearest 1⁄4 cent.
(C) For each school year, the total commodity assistance or
cash in lieu thereof available to a State for the school lunch program shall be calculated by multiplying the number of lunches
served in the preceding school year by the rate established by subparagraph (B). After the end of each school year, the Secretary
shall reconcile the number of lunches served by schools in each
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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

Sec. 7

State with the number of lunches served by schools in each State
during the preceding school year and increase or reduce subsequent
commodity assistance or cash in lieu thereof provided to each State
based on such reconciliation.
(D) Among those commodities delivered under this section, the
Secretary shall give special emphasis to high protein foods, meat,
and meat alternates (which may include domestic seafood commodities and their products).
(E) Notwithstanding any other provision of this section, not less
than 75 percent of the assistance provided under this subsection
shall be in the form of donated foods for the school lunch program.
(2) To the maximum extent feasible, each State agency shall
offer to each school food authority under its jurisdiction that participates in the school lunch program and receives commodities, agricultural commodities and their products, the per meal value of
which is not less than the national average value of donated foods
established under paragraph (1). Each such offer shall include the
full range of such commodities and products that are available from
the Secretary to the extent that quantities requested are sufficient
to allow efficient delivery to and within the State.
(d) Beginning with the school year ending June 30, 1981, the
Secretary shall not offer commodity assistance based upon the number of breakfasts served to children under section 4 of the Child
Nutrition Act of 1966 [(42 U.S.C. 1773)].
(e)(1) Subject to paragraph (2), in each school year the Secretary shall ensure that not less than 12 percent of the assistance
provided under section 4, this section, and section 11 shall be in the
form of—
(A) commodity assistance provided under this section, including cash in lieu of commodities and administrative costs for
procurement of commodities under this section; or
(B) during the period beginning October 1, 2003, and ending September 30, 2010, commodities provided by the Secretary
under any provision of law.
(2) If amounts available to carry out the requirements of the
sections described in paragraph (1) are insufficient to meet the requirement contained in paragraph (1) for a school year, the Secretary shall, to the extent necessary, use the authority provided
under section 14(a) to meet the requirement for the school year.
PAYMENTS TO STATES

SEC. 7. ø42 U.S.C. 1756¿ (a)(1) Funds appropriated to carry out
section 4 of this Act during any fiscal year shall be available for
payment to the States for disbursement by State educational agencies in accordance with such agreements, not inconsistent with the
provisions of this Act, as may be entered into by the Secretary and
such State educational agencies for the purpose of assisting schools
within the States in obtaining agricultural commodities and other
foods for consumption by children in furtherance of the school lunch
program authorized under this Act. For any school year, such payments shall be made to a State only if, during such school year, the
amount of the State revenues (excluding State revenues derived
from the operation of the program) appropriated or used specifically
for program purposes (other than any State revenues expended for
salaries and administrative expenses of the program at the State
level) is not less than 30 percent of the funds made available to
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such State under section 4 of this Act for the school year beginning
July 1, 1980.
(2) If, for any school year, the per capita income of a State is
less than the average per capita income of all the States, the
amount required to be expended by a State under paragraph (1) for
such year shall be an amount bearing the same ratio to the amount
equal to 30 percent of the funds made available to such State under
section 4 of this Act for the school year beginning July 1, 1980, as
the per capita income of such State bears to the average per capita
income of all the States.
(b) The State revenues provided by any State to meet the requirement of subsection (a) shall, to the extent the State deems
practicable, be disbursed to schools participating in the school lunch
program under this Act. No State in which the State educational
agency is prohibited by law from disbursing State appropriated
funds to private schools shall be required to match Federal funds
made available for meals served in such schools, or to disburse, to
such schools, any of the State revenues required to meet the requirements of subsection (a).
(c) The Secretary shall certify to the Secretary of the Treasury,
from time to time, the amounts to be paid to any State under this
section and shall specify when such payments are to be made. The
Secretary of the Treasury shall pay to the State, at the time or
times fixed by the Secretary, the amounts so certified.
(d) Notwithstanding any other provision of law, the Secretary
may enter into an agreement with a State agency, acting on the request of a school food service authority, under which funds payable
to the State under section 4 or 11 may be used by the Secretary
for the purpose of purchasing commodities for use by the school
food service authority in meals served under the school lunch program under this Act.
STATE DISBURSEMENT TO SCHOOLS

SEC. 8. ø42 U.S.C. 1757¿ (a) Funds paid to any State during
any fiscal year pursuant to section 4 shall be disbursed by the State
educational agency, in accordance with such agreements approved
by the Secretary as may be entered into by such State agency and
the schools in the State, to those schools in the State which the
State educational agency, taking into account need and attendance,
determines are eligible to participate in the school lunch program.
(b) The agreements described in subsection (a) shall be permanent agreements that may be amended as necessary.
(c) The State educational agency may suspend or terminate any
such agreement in accordance with regulations prescribed by the
Secretary.
(d) Use of funds paid to States may include, in addition to the
purchase price of agricultural commodities and other foods, the cost
of processing, distributing, transporting, storing, or handling thereof.
(e) In no event shall such disbursement for food to any school
for any fiscal year exceed an amount determined by multiplying the
number of lunches served in the school in the school lunch program
under this Act during such year by the maximum per meal reimbursement rate for the State, for the type of lunch served, as prescribed by the Secretary.
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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

Sec. 9

(f) In any fiscal year in which the national average payment
per lunch determined under section 4 is increased above the
amount prescribed in the previous fiscal year, the maximum per
meal reimbursement rate for the type of lunch served, shall be increased by a like amount.
(g) Lunch assistance disbursements to schools under this section and under section 11 of this Act may be made in advance or
by way of reimbursement in accordance with procedures prescribed
by the Secretary.
NUTRITIONAL AND OTHER PROGRAM REQUIREMENTS

SEC. 9. ø42 U.S.C. 1758¿ (a)(1)(A) Lunches served by schools
participating in the school lunch program under this Act shall meet
minimum nutritional requirements prescribed by the Secretary on
the basis of tested nutritional research, except that the minimum
nutritional requirements—
(i) shall not be construed to prohibit the substitution of
foods to accommodate the medical or other special dietary
needs of individual students; and
(ii) shall, at a minimum, be based on the weekly average
of the nutrient content of school lunches.
(B) The Secretary shall provide technical assistance and training, including technical assistance and training in the preparation
of lower-fat versions of foods commonly used in the school lunch
program under this Act, to schools participating in the school lunch
program to assist the schools in complying with the nutritional requirements prescribed by the Secretary pursuant to subparagraph
(A) and in providing appropriate meals to children with medically
certified special dietary needs. The Secretary shall provide additional technical assistance to schools that are having difficulty
maintaining compliance with the requirements.
(2) FLUID MILK.—
(A) IN GENERAL.—Lunches served by schools participating in the school lunch program under this Act—
(i) shall offer students fluid milk in a variety of fat
contents;
(ii) may offer students flavored and unflavored
fluid milk and lactose-free fluid milk; and
(iii) shall provide a substitute for fluid milk for
students whose disability restricts their diet, on receipt
of a written statement from a licensed physician that
identifies the disability that restricts the student’s diet
and that specifies the substitute for fluid milk.
(B) SUBSTITUTES.—
(i) STANDARDS FOR SUBSTITUTION.—A school may
substitute for the fluid milk provided under subparagraph (A), a nondairy beverage that is nutritionally
equivalent to fluid milk and meets nutritional standards established by the Secretary (which shall, among
other requirements to be determined by the Secretary,
include fortification of calcium, protein, vitamin A, and
vitamin D to levels found in cow’s milk) for students
who cannot consume fluid milk because of a medical or
other special dietary need other than a disability described in subparagraph (A)(iii).
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Sec. 9

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(ii) NOTICE.—The substitutions may be made if the
school notifies the State agency that the school is implementing a variation allowed under this subparagraph, and if the substitution is requested by written
statement of a medical authority or by a student’s parent or legal guardian that identifies the medical or
other special dietary need that restricts the student’s
diet, except that the school shall not be required to
provide beverages other than beverages the school has
identified as acceptable substitutes.
(iii) EXCESS EXPENSES BORNE BY SCHOOL FOOD AUTHORITY.—Expenses incurred in providing substitutions under this subparagraph that are in excess of
expenses covered by reimbursements under this Act
shall be paid by the school food authority.
(C) RESTRICTIONS ON SALE OF MILK PROHIBITED.—A
school that participates in the school lunch program under
this Act shall not directly or indirectly restrict the sale or
marketing of fluid milk products by the school (or by a person approved by the school) at any time or any place—
(i) on the school premises; or
(ii) at any school-sponsored event.
(3) Students in senior high schools that participate in the
school lunch program under this Act (and, when approved by the
local school district or nonprofit private schools, students in any
other grade level) shall not be required to accept offered foods they
do not intend to consume, and any such failure to accept offered
foods shall not affect the full charge to the student for a lunch
meeting the requirements of this subsection or the amount of payments made under this Act to any such school for such lunch.
(4) PROVISION OF INFORMATION.—
(A) GUIDANCE.—Prior to the beginning of the school
year beginning July 2004, the Secretary shall issue guidance to States and school food authorities to increase the
consumption of foods and food ingredients that are recommended for increased serving consumption in 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).
(B) RULES.—Not later than 2 years after the date of
enactment of this paragraph, the Secretary shall promulgate rules, based on the most recent Dietary Guidelines for
Americans, that reflect specific recommendations, expressed in serving recommendations, for increased consumption of foods and food ingredients offered in school nutrition programs under this Act and the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.).
(b)(1)(A) Not later than June 1 of each fiscal year, the Secretary
shall prescribe income guidelines for determining eligibility for free
and reduced price lunches during the 12-month period beginning
July 1 of such fiscal year and ending June 30 of the following fiscal
year. The income guidelines for determining eligibility for free
lunches shall be 130 percent of the applicable family size income
levels contained in the nonfarm income poverty guidelines prescribed by the Office of Management and Budget, as adjusted annually in accordance with subparagraph (B). The income guidelines for
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Sec. 9

determining eligibility for reduced price lunches for any school year
shall be 185 percent of the applicable family size income levels contained in the nonfarm income poverty guidelines prescribed by the
Office of Management and Budget, as adjusted annually in accordance with subparagraph (B). The Office of Management and Budget
guidelines shall be revised at annual intervals, or at any shorter interval deemed feasible and desirable.
(B) The revision required by subparagraph (A) of this paragraph shall be made by multiplying—
(i) the official poverty line (as defined by the Office of Management and Budget); by
(ii) the percentage change in the Consumer Price Index
during the annual or other interval immediately preceding the
time at which the adjustment is made.
Revisions under this subparagraph shall be made not more than 30
days after the date on which the consumer price index data required to compute the adjustment becomes available.
(2)(A) Following the determination by the Secretary under
paragraph (1) of this subsection of the income eligibility guidelines
for each school year, each State educational agency shall announce
the income eligibility guidelines, by family size, to be used by
schools in the State in making determinations of eligibility for free
and reduced price lunches. Local school authorities shall, each year,
publicly announce the income eligibility guidelines for free and reduced price lunches on or before the opening of school.
(B) APPLICATIONS AND DESCRIPTIVE MATERIAL.—
(i) IN GENERAL.—Applications for free and reduced
price lunches, in such form as the Secretary may prescribe or approve, and any descriptive material, shall
be distributed to the parents or guardians of children
in attendance at the school, and shall contain only the
family size income levels for reduced price meal eligibility with the explanation that households with incomes less than or equal to these values would be eligible for free or reduced price lunches.
(ii) INCOME ELIGIBILITY GUIDELINES.—Forms and
descriptive material distributed in accordance with
clause (i) may not contain the income eligibility guidelines for free lunches.
(iii) CONTENTS OF DESCRIPTIVE MATERIAL.—
(I) IN GENERAL.—Descriptive material distributed in accordance with clause (i) shall contain a
notification that—
(aa) participants in the programs listed in
subclause (II) may be eligible for free or reduced price meals; and
(bb) documentation may be requested for
verification of eligibility for free or reduced
price meals.
(II) PROGRAMS.—The programs referred to in
subclause (I)(aa) are—
(aa) 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);
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(bb) the supplemental nutrition assistance
program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);
(cc) the food distribution program on Indian reservations established under section
4(b) of the Food and Nutrition Act of 2008 (7
U.S.C. 2013(b)); and
(dd) a State program funded under the
program of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).
(3) HOUSEHOLD APPLICATIONS.—
(A) DEFINITION OF HOUSEHOLD APPLICATION.—In this
paragraph, the term ‘‘household application’’ means an application for a child of a household to receive free or reduced price school lunches under this Act, or free or reduced price school breakfasts under the Child Nutrition
Act of 1966 (42 U.S.C. 1771 et seq.), for which an eligibility
determination is made other than under paragraph (4) or
(5).
(B) ELIGIBILITY DETERMINATION.—
(i) IN GENERAL.—An eligibility determination shall
be made on the basis of a complete household application executed by an adult member of the household or
in accordance with guidance issued by the Secretary.
(ii) ELECTRONIC SIGNATURES AND APPLICATIONS.—A
household application may be executed using an electronic signature if—
(I) the application is submitted electronically;
and
(II) the electronic application filing system
meets confidentiality standards established by the
Secretary.
(C) CHILDREN IN HOUSEHOLD.—
(i) IN GENERAL.—The household application shall
identify the names of each child in the household for
whom meal benefits are requested.
(ii) SEPARATE APPLICATIONS.—A State educational
agency or local educational agency may not request a
separate application for each child in the household
that attends schools under the same local educational
agency.
(D) VERIFICATION OF SAMPLE.—
(i) DEFINITIONS.—In this subparagraph:
(I) ERROR PRONE APPLICATION.—The term
‘‘error prone application’’ means an approved
household application that—
(aa) indicates monthly income that is
within $100, or an annual income that is within $1,200, of the income eligibility limitation
for free or reduced price meals; or
(bb) in lieu of the criteria established
under item (aa), meets criteria established by
the Secretary.
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(II) NON-RESPONSE RATE.—The term ‘‘non-response rate’’ means (in accordance with guidelines
established by the Secretary) the percentage of approved
household
applications
for
which
verification information has not been obtained by
a local educational agency after attempted
verification under subparagraphs (F) and (G).
(ii) VERIFICATION OF SAMPLE.—Each school year, a
local educational agency shall verify eligibility of the
children in a sample of household applications approved for the school year by the local educational
agency, as determined by the Secretary in accordance
with this subsection.
(iii) SAMPLE SIZE.—Except as otherwise provided in
this paragraph, the sample for a local educational
agency for a school year shall equal the lesser of—
(I) 3 percent of all applications approved by
the local educational agency for the school year, as
of October 1 of the school year, selected from error
prone applications; or
(II) 3,000 error prone applications approved by
the local educational agency for the school year, as
of October 1 of the school year.
(iv) ALTERNATIVE SAMPLE SIZE.—
(I) IN GENERAL.—If the conditions described in
subclause (IV) are met, the verification sample size
for a local educational agency shall be the sample
size described in subclause (II) or (III), as determined by the local educational agency.
(II) 3,000/3 PERCENT OPTION.—The sample size
described in this subclause shall be the lesser of
3,000, or 3 percent of, applications selected at random from applications approved by the local educational agency for the school year, as of October
1 of the school year.
(III) 1,000/1 PERCENT PLUS OPTION.—
(aa) IN GENERAL.—The sample size described in this subclause shall be the sum of—
(AA) the lesser of 1,000, or 1 percent
of, all applications approved by the local
educational agency for the school year, as
of October 1 of the school year, selected
from error prone applications; and
(BB) the lesser of 500, or 1⁄2 of 1 percent of, applications approved by the local
educational agency for the school year, as
of October 1 of the school year, that provide a case number (in lieu of income information) showing participation in a program described in item (bb) selected from
those approved applications that provide a
case number (in lieu of income information) verifying the participation.
(bb) PROGRAMS.—The programs described
in this item are—
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(AA) the supplemental nutrition assistance program established under the
Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.);
(BB) the food distribution program on
Indian reservations established under section 4(b) of the Food and Nutrition Act of
2008 (7 U.S.C. 2013(b)); and
(CC) a State program funded under
the program of block grants to States for
temporary assistance for needy families
established under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.)
that the Secretary determines complies
with standards established by the Secretary that ensure that the standards
under the State program are comparable
to or more restrictive than those in effect
on June 1, 1995.
(IV) CONDITIONS.—The conditions referred to
in subclause (I) shall be met for a local educational
agency for a school year if—
(aa) the nonresponse rate for the local
educational agency for the preceding school
year is less than 20 percent; or
(bb) the local educational agency has more
than 20,000 children approved by application
by the local educational agency as eligible for
free or reduced price meals for the school year,
as of October 1 of the school year, and—
(AA) the nonresponse rate for the preceding school year is at least 10 percent
below the nonresponse rate for the second
preceding school year; or
(BB) in the case of the school year beginning July 2005, the local educational
agency attempts to verify all approved
household
applications
selected
for
verification through use of public agency
records from at least 2 of the programs or
sources of information described in subparagraph (F)(i).
(v) ADDITIONAL SELECTED APPLICATIONS.—A sample for a local educational agency for a school year
under clauses (iii) and (iv)(III)(AA) shall include the
number of additional randomly selected approved
household applications that are required to comply
with the sample size requirements in those clauses.
(E) PRELIMINARY REVIEW.—
(i) REVIEW FOR ACCURACY.—
(I) IN GENERAL.—Prior to conducting any other
verification activity for approved household applications selected for verification, the local educational agency shall ensure that the initial eligibility determination for each approved household
application is reviewed for accuracy by an indiOctober 21, 2009

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vidual other than the individual making the initial
eligibility determination, unless otherwise determined by the Secretary.
(II) WAIVER.—The requirements of subclause
(I) shall be waived for a local educational agency
if the local educational agency is using a technology-based solution that demonstrates a high
level of accuracy, to the satisfaction of the Secretary, in processing an initial eligibility determination in accordance with the income eligibility
guidelines of the school lunch program.
(ii) CORRECT ELIGIBILITY DETERMINATION.—If the
review indicates that the initial eligibility determination is correct, the local educational agency shall verify
the approved household application.
(iii) INCORRECT ELIGIBILITY DETERMINATION.—If
the review indicates that the initial eligibility determination is incorrect, the local educational agency
shall (as determined by the Secretary)—
(I) correct the eligibility status of the household;
(II) notify the household of the change;
(III) in any case in which the review indicates
that the household is not eligible for free or reduced-price meals, notify the household of the reason for the ineligibility and that the household
may reapply with income documentation for free
or reduced-price meals; and
(IV) in any case in which the review indicates
that the household is eligible for free or reducedprice meals, verify the approved household application.
(F) DIRECT VERIFICATION.—
(i) IN GENERAL.—Subject to clauses (ii) and (iii), to
verify eligibility for free or reduced price meals for approved household applications selected for verification,
the local educational agency may (in accordance with
criteria established by the Secretary) first obtain and
use income and program participation information
from a public agency administering—
(I) the supplemental nutrition assistance program established under the Food and Nutrition
Act of 2008 (7 U.S.C. 2011 et seq.);
(II) the food distribution program on Indian
reservations established under section 4(b) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));
(III) the temporary assistance for needy families program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
(IV) the State medicaid program under title
XIX of the Social Security Act (42 U.S.C. 1396 et
seq.); or
(V) a similar income-tested program or other
source of information, as determined by the Secretary.
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(ii) FREE MEALS.—Public agency records that may
be obtained and used under clause (i) to verify eligibility for free meals for approved household applications selected for verification shall include the most recent available information (other than information reflecting program participation or income before the
180-day period ending on the date of application for
free meals) that is relied on to administer—
(I) a program or source of information described in clause (i) (other than clause (i)(IV)); or
(II) the State plan for medical assistance
under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) in—
(aa) a State in which the income eligibility
limit applied under section 1902(l)(2)(C) of
that Act (42 U.S.C. 1396a(l)(2)(C)) is not more
than 133 percent of the official poverty line
described in section 1902(l)(2)(A) of that Act
(42 U.S.C. 1396a(l)(2)(A)); or
(bb) a State that otherwise identifies
households that have income that is not more
than 133 percent of the official poverty line
described in section 1902(l)(2)(A) of that Act
(42 U.S.C. 1396a(l)(2)(A)).
(iii) REDUCED PRICE MEALS.—Public agency records
that may be obtained and used under clause (i) to
verify eligibility for reduced price meals for approved
household applications selected for verification shall
include the most recent available information (other
than information reflecting program participation or
income before the 180-day period ending on the date of
application for reduced price meals) that is relied on to
administer—
(I) a program or source of information described in clause (i) (other than clause (i)(IV)); or
(II) the State plan for medical assistance
under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) in—
(aa) a State in which the income eligibility
limit applied under section 1902(l)(2)(C) of
that Act (42 U.S.C. 1396a(l)(2)(C)) is not more
than 185 percent of the official poverty line
described in section 1902(l)(2)(A) of that Act
(42 U.S.C. 1396a(l)(2)(A)); or
(bb) a State that otherwise identifies
households that have income that is not more
than 185 percent of the official poverty line
described in section 1902(l)(2)(A) of that Act
(42 U.S.C. 1396a(l)(2)(A)).
(iv) EVALUATION.—Not later than 3 years after the
date of enactment of this subparagraph, the Secretary
shall complete an evaluation of—
(I) the effectiveness of direct verification carried out under this subparagraph in decreasing
the portion of the verification sample that must be
verified under subparagraph (G) while ensuring
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that adequate verification information is obtained;
and
(II) the feasibility of direct verification by
State agencies and local educational agencies.
(v) EXPANDED USE OF DIRECT VERIFICATION.—If the
Secretary determines that direct verification significantly decreases the portion of the verification sample
that must be verified under subparagraph (G), while
ensuring that adequate verification information is obtained, and can be conducted by most State agencies
and local educational agencies, the Secretary may require a State agency or local educational agency to implement direct verification through 1 or more of the
programs described in clause (i), as determined by the
Secretary, unless the State agency or local educational
agency demonstrates (under criteria established by the
Secretary) that the State agency or local educational
agency lacks the capacity to conduct, or is unable to
implement, direct verification.
(G) HOUSEHOLD VERIFICATION.—
(i) IN GENERAL.—If an approved household application is not verified through the use of public agency
records, a local educational agency shall provide to the
household written notice that—
(I) the approved household application has
been selected for verification; and
(II) the household is required to submit
verification information to confirm eligibility for
free or reduced price meals.
(ii) PHONE NUMBER.—The written notice in clause
(i) shall include a toll-free phone number that parents
and legal guardians in households selected for
verification can call for assistance with the verification
process.
(iii) FOLLOWUP ACTIVITIES.—If a household does
not respond to a verification request, a local educational agency shall make at least 1 attempt to obtain
the necessary verification from the household in accordance with guidelines and regulations promulgated
by the Secretary.
(iv) CONTRACT AUTHORITY FOR SCHOOL FOOD AUTHORITIES.—A local educational agency may contract
(under standards established by the Secretary) with a
third party to assist the local educational agency in
carrying out clause (iii).
(H) VERIFICATION DEADLINE.—
(i) GENERAL DEADLINE.—
(I) IN GENERAL.—Subject to subclause (II), not
later than November 15 of each school year, a local
educational agency shall complete the verification
activities required for the school year (including
followup activities).
(II) EXTENSION.—Under criteria established by
the Secretary, a State may extend the deadline established under subclause (I) for a school year for
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a local educational agency to December 15 of the
school year.
CHANGES.—Based
on
the
(ii)
ELIGIBILITY
verification activities, the local educational agency
shall make appropriate modifications to the eligibility
determinations made for household applications in accordance with criteria established by the Secretary.
(I) LOCAL CONDITIONS.—In the case of a natural disaster, civil disorder, strike, or other local condition (as determined by the Secretary), the Secretary may substitute
alternatives for—
(i) the sample size and sample selection criteria established under subparagraph (D); and
(ii) the verification deadline established under subparagraph (H).
(J) INDIVIDUAL REVIEW.—In accordance with criteria
established by the Secretary, the local educational agency
may, on individual review—
(i) decline to verify no more than 5 percent of approved household applications selected under subparagraph (D); and
(ii) replace the approved household applications
with other approved household applications to be
verified.
(K) FEASIBILITY STUDY.—
(i) IN GENERAL.—The Secretary shall conduct a
study of the feasibility of using computer technology
(including data mining) to reduce—
(I) overcertification errors in the school lunch
program under this Act;
(II) waste, fraud, and abuse in connection with
this paragraph; and
(III) errors, waste, fraud, and abuse in other
nutrition programs, as determined to be appropriate by the Secretary.
(ii) REPORT.—Not later than 180 days after the
date of enactment of this paragraph, the Secretary
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—
(I) the results of the feasibility study conducted under this subsection;
(II) how a computer system using technology
described in clause (i) could be implemented;
(III) a plan for implementation; and
(IV) proposed legislation, if necessary, to implement the system.
(4) DIRECT CERTIFICATION FOR CHILDREN IN FOOD STAMP
HOUSEHOLDS.— 9–1
(A) IN GENERAL.—Subject to subparagraph (D), each
State agency shall enter into an agreement with the State
9–1 Effective October 1, 2008, sec. 4002(b)(2)(Z) of the Food, Conservation, and Energy
Act of 2008 (P.L. 110–246; 122 Stat. XXXX) amended this Act by striking and replacing
references to ‘‘food stamps’’, ‘‘food stamp program’’, and the ‘‘Food Stamp Act of 1977’’. The
phrase ‘‘food stamp households’’ in the paragraph header should probably be struck and
replaced with ‘‘supplemental nutrition assistance program households’’.

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agency conducting eligibility determinations for the supplemental nutrition assistance program established under the
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
(B) PROCEDURES.—Subject to paragraph (6), the agreement shall establish procedures under which a child who
is a member of a household receiving assistance under the
supplemental nutrition assistance program shall be certified as eligible for free lunches under this Act and free
breakfasts under the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.), without further application.
(C) CERTIFICATION.—Subject to paragraph (6), under
the agreement, the local educational agency conducting eligibility determinations for a school lunch program under
this Act and a school breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall certify
a child who is a member of a household receiving assistance under the supplemental nutrition assistance program
as eligible for free lunches under this Act and free breakfasts under the Child Nutrition Act of 1966 (42 U.S.C. 1771
et seq.), without further application.
(D) APPLICABILITY.—This paragraph applies to—
(i) in the case of the school year beginning July
2006, a school district that had an enrollment of
25,000 students or more in the preceding school year;
(ii) in the case of the school year beginning July
2007, a school district that had an enrollment of
10,000 students or more in the preceding school year;
and
(iii) in the case of the school year beginning July
2008 and each subsequent school year, each local educational agency.
(5) 9–2 DISCRETIONARY CERTIFICATION.—Subject to paragraph (6), any local educational agency may certify any child as
eligible for free lunches or breakfasts, without further application, by directly communicating with the appropriate State or
local agency to obtain documentation of the status of the child
as—
(A) a member of a family that is receiving assistance
under the temporary assistance for needy families program
funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.) that the Secretary determines complies with standards established by the Secretary that ensure that the standards under the State program are comparable to or more restrictive than those in effect on June
1, 1995;
(B) a homeless child or youth (defined as 1 of the individuals described in section 725(2) of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11434a(2)); 9–3
(C) served by the runaway and homeless youth grant
program established under the Runaway and Homeless
Youth Act (42 U.S.C. 5701 et seq.); or
9–2 Effective July 1, 2005, paragraphs (5) through (8) added by section 104(b)(1) of P.L.
108–265, 118 Stat. 734, June 30, 2004. End quotation marks and the following period at
the end of paragraph (5)(A) were struck to effectuate the probable intent of Congress.
9–3 So in original. Probably should be an additional closed parenthesis.

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(D) a migratory child (as defined in section 1309 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6399)).
(6) USE OR DISCLOSURE OF INFORMATION.—
(A) IN GENERAL.—The use or disclosure of any information obtained from an application for free or reduced price
meals, or from a State or local agency referred to in paragraph (3)(F), (4), or (5), shall be limited to—
(i) a person directly connected with the administration or enforcement of this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) (including a
regulation promulgated under either Act);
(ii) a person directly connected with the administration or enforcement of—
(I) a Federal education program;
(II) a State health or education program administered by the State or local educational agency
(other than a program carried out under title XIX
or XXI of the Social Security Act (42 U.S.C. 1396
et seq.; 42 U.S.C. 1397aa et seq.)); or
(III) a Federal, State, or local means-tested
nutrition program with eligibility standards comparable to the school lunch program under this
Act;
(iii)(I) the Comptroller General of the United
States for audit and examination authorized by any
other provision of law; and
(II) notwithstanding any other provision of law, a
Federal, State, or local law enforcement official for the
purpose of investigating an alleged violation of any
program covered by this paragraph or paragraph
(3)(F), (4), or (5);
(iv) a person directly connected with the administration of the State medicaid program under title XIX
of the Social Security Act (42 U.S.C. 1396 et seq.) or
the State children’s health insurance program under
title XXI of that Act (42 U.S.C. 1397aa et seq.) solely
for the purposes of—
(I) identifying children eligible for benefits
under, and enrolling children in, those programs,
except that this subclause shall apply only to the
extent that the State and the local educational
agency or school food authority so elect; and
(II) verifying the eligibility of children for programs under this Act or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.); and
(v) a third party contractor described in paragraph
(3)(G)(iv).
(B) LIMITATION ON INFORMATION PROVIDED.—Information provided under clause (ii) or (v) of subparagraph (A)
shall be limited to the income eligibility status of the child
for whom application for free or reduced price meal benefits is made or for whom eligibility information is provided
under paragraph (3)(F), (4), or (5), unless the consent of the
parent or guardian of the child for whom application for
benefits was made is obtained.
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(C) CRIMINAL PENALTY.—A person described in subparagraph (A) who publishes, divulges, discloses, or makes
known in any manner, or to any extent not authorized by
Federal law (including a regulation), any information obtained under this subsection shall be fined not more than
$1,000 or imprisoned not more than 1 year, or both.
(D) REQUIREMENTS FOR WAIVER OF CONFIDENTIALITY.—
A State that elects to exercise the option described in subparagraph (A)(iv)(I) shall ensure that any local educational
agency or school food authority acting in accordance with
that option—
(i) has a written agreement with 1 or more State
or local agencies administering health programs for
children under titles XIX and XXI of the Social Security Act (42 U.S.C. 1396 et seq. and 1397aa et seq.)
that requires the health agencies to use the information obtained under subparagraph (A) to seek to enroll
children in those health programs; and
(ii)(I) notifies each household, the information of
which shall be disclosed under subparagraph (A), that
the information disclosed will be used only to enroll
children in health programs referred to in subparagraph (A)(iv); and
(II) provides each parent or guardian of a child in
the household with an opportunity to elect not to have
the information disclosed.
(E) USE OF DISCLOSED INFORMATION.—A person to
which information is disclosed under subparagraph
(A)(iv)(I) shall use or disclose the information only as necessary for the purpose of enrolling children in health programs referred to in subparagraph (A)(iv).
(7) FREE AND REDUCED PRICE POLICY STATEMENT.—
(A) IN GENERAL.—After the initial submission, a local
educational agency shall not be required to submit a free
and reduced price policy statement to a State educational
agency under this Act unless there is a substantive change
in the free and reduced price policy of the local educational
agency.
(B) ROUTINE CHANGE.—A routine change in the policy
of a local educational agency (such as an annual adjustment of the income eligibility guidelines for free and reduced price meals) shall not be sufficient cause for requiring the local educational agency to submit a policy statement.
(8) COMMUNICATIONS.—
(A) IN GENERAL.—Any communication with a household under this subsection or subsection (d) shall be in an
understandable and uniform format and, to the maximum
extent practicable, in a language that parents and legal
guardians can understand.
(B) ELECTRONIC AVAILABILITY.—In addition to the distribution of applications and descriptive material in paper
form as provided for in this paragraph, the applications
and material may be made available electronically via the
Internet.
(9) ELIGIBILITY FOR FREE AND REDUCED PRICE LUNCHES.—
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(A) FREE LUNCHES.—Any child who is a member of a
household whose income, at the time the application is submitted, is at an annual rate which does not exceed the applicable family size income level of the income eligibility
guidelines for free lunches, as determined under paragraph
(1), shall be served a free lunch.
(B) REDUCED PRICE LUNCHES.—
(i) IN GENERAL.—Any child who is a member of a
household whose income, at the time the application is
submitted, is at an annual rate greater than the applicable family size income level of the income eligibility
guidelines for free lunches, as determined under paragraph (1), but less than or equal to the applicable family size income level of the income eligibility guidelines
for reduced price lunches, as determined under paragraph (1), shall be served a reduced price lunch.
(ii) MAXIMUM PRICE.—The price charged for a reduced price lunch shall not exceed 40 cents.
(C) DURATION.—Except as otherwise specified in paragraph (3)(E), (3)(H)(ii), and section 11(a), eligibility for free
or reduced price meals for any school year shall remain in
effect—
(i) beginning on the date of eligibility approval for
the current school year; and
(ii) ending on a date during the subsequent school
year determined by the Secretary.
(10) No physical segregation of or other discrimination against
any child eligible for a free lunch or a reduced price lunch under
this subsection shall be made by the school nor shall there be any
overt identification of any child by special tokens or tickets, announced or published list of names, or by other means.
(11) Any child who has a parent or guardian who (A) is responsible for the principal support of such child and (B) is unemployed
shall be served a free or reduced price lunch, respectively, during
any period (i) in which such child’s parent or guardian continues to
be unemployed and (ii) the income of the child’s parents or guardians during such period of unemployment falls within the income
eligibility criteria for free lunches or reduced price lunches, respectively, based on the current rate of income of such parents or
guardians. Local educational agencies shall publicly announce that
such children are eligible for free or reduced price lunch, and shall
make determinations with respect to the status of any parent or
guardian of any child under clauses (A) and (B) of the preceding
sentence on the basis of a statement executed in such form as the
Secretary may prescribe by such parent or guardian. No physical
segregation of, or other discrimination against, any child eligible for
a free or reduced price lunch under this paragraph shall be made
by the school nor shall there be any overt identification of any such
child by special tokens or tickets, announced or published lists of
names, or by any other means.
(12)(A) A child shall be considered automatically eligible for a
free lunch and breakfast under this Act and the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.), respectively, without further application or eligibility determination, if the child is—
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(i) a member of a household receiving assistance under the
supplemental nutrition assistance program authorized under
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);
(ii) a member of a family (under the State program funded
under part A of title IV of the Social Security Act (42 U.S.C.
601 et seq.)) that the Secretary determines complies with
standards established by the Secretary that ensure that the
standards under the State program are comparable to or more
restrictive than those in effect on June 1, 1995;
(iii) enrolled as a participant in a Head Start program authorized under the Head Start Act (42 U.S.C. 9831 et seq.), on
the basis of a determination that the child meets the eligibility
criteria prescribed under section 645(a)(1)(B) of the Head Start
Act (42 U.S.C. 9840(a)(1)(B));
(iv) a homeless child or youth (defined as 1 of the individuals described in section 725(2) of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11434a(2)); 9–4
(v) served by the runaway and homeless youth grant
program established under the Runaway and Homeless
Youth Act (42 U.S.C. 5701 et seq.); or
(vi) a migratory child (as defined in section 1309 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6399)).
(B) Proof of receipt of supplemental nutrition assistance program benefitss or assistance under the State program funded under
part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)
that the Secretary determines complies with standards established
by the Secretary that ensure that the standards under the State
program are comparable to or more restrictive than those in effect
on June 1, 1995, or of enrollment or participation in a Head Start
program on the basis described in subparagraph (A)(iii), shall be
sufficient to satisfy any verification requirement imposed under this
subsection.
(13) EXCLUSION OF CERTAIN MILITARY HOUSING ALLOWANCES.—The amount of a basic allowance provided under section 403 of title 37, United States Code, on behalf of a member
of a uniformed service for housing that is acquired or constructed under subchapter IV of chapter 169 of title 10, United
States Code, or any related provision of law, shall not be considered to be income for the purpose of determining the eligibility of a child who is a member of the household of the member of a uniformed service for free or reduced price lunches
under this Act.
(14) COMBAT PAY.—
(A) DEFINITION OF COMBAT PAY.—In this paragraph,
the term ‘‘combat pay’’ means any additional payment
under chapter 5 of title 37, United States Code, or otherwise designated by the Secretary to be appropriate for exclusion under this paragraph, that is received by or from
a member of the United States Armed Forces deployed to
a designated combat zone, if the additional pay—
(i) is the result of deployment to or service in a
combat zone; and
(ii) was not received immediately prior to serving
in a combat zone.
9–4 So

October 21, 2009

in original. Probably should be an additional closed parenthesis.

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(B) EXCLUSION.—Combat pay shall not be considered
to be income for the purpose of determining the eligibility
for free or reduced price meals of a child who is a member
of the household of a member of the United States Armed
Forces.
(c) School lunch programs under this Act shall be operated on
a nonprofit basis. Commodities purchased under the authority of
section 32 of the Act of August 24, 1935, [(7 U.S.C. 612c)] may be
donated by the Secretary to schools, in accordance with the needs
as determined by local school authorities, for utilization in the
school lunch program under this Act as well as to other schools carrying out nonprofit school lunch programs and institutions authorized to receive such commodities. The requirements of this section
relating to the service of meals without cost or at a reduced cost
shall apply to the lunch program of any school utilizing commodities donated under any provision of law.
(d)(1) The Secretary shall require as a condition of eligibility for
receipt of free or reduced price lunches that the member of the
household who executes the application furnish the social security
account number of the parent or guardian who is the primary wage
earner responsible for the care of the child for whom the application
is made, or that of another appropriate adult member of the child’s
household, as determined by the Secretary. The Secretary shall require that social security account numbers of all adult members of
the household be provided if verification of the data contained in
the application is sought under subsection (b)(3)(G).
(2) No member of a household may be provided a free or reduced price lunch under this Act unless—
(A) appropriate documentation relating to the income of
such household (as prescribed by the Secretary) has been provided to the appropriate local educational agency so that the
local educational agency may calculate the total income of such
household;
(B) documentation showing that the household is participating in the supplemental nutrition assistance program under
the Food and Nutrition Act of 2008 [(7 U.S.C. 2011 et seq.)] has
been provided to the appropriate local educational agency;
(C) documentation has been provided to the appropriate
local educational agency showing that the family is receiving
assistance under the State program funded under part A of
title IV of the Social Security Act that the Secretary determines
complies with standards established by the Secretary that ensure that the standards under the State program are comparable to or more restrictive than those in effect on June 1,
1995;
(D) documentation has been provided to the appropriate
local educational agency showing that the child meets the criteria specified in clauses (iv) or (v) of subsection (b)(12)(A); or
(E) documentation has been provided to the appropriate
local educational agency showing the status of the child as a
migratory child (as defined in section 1309 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6399)).
(e) A school or school food authority participating in a program
under this Act may not contract with a food service company to provide a la carte food service unless the company agrees to offer free,
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reduced price, and full-price reimbursable meals to all eligible children.
(f) 9–5
(1) NUTRITIONAL REQUIREMENTS.—Except as provided in
paragraph (2), not later than the first day of the 1996–1997
school year, schools that are participating in the school lunch
or school breakfast program shall serve lunches and breakfasts
under the program that—
(A) are consistent with the goals 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
(B) provide, on the average over each week, at least—
(i) with respect to school lunches, 1⁄3 of the daily
recommended dietary allowance established by the
Food and Nutrition Board of the National Research
Council of the National Academy of Sciences; and
(ii) with respect to school breakfasts, 1⁄4 of the
daily recommended dietary allowance established by
the Food and Nutrition Board of the National Research
Council of the National Academy of Sciences.
(2) State educational agencies may grant waivers from the requirements of paragraph (1) subject to criteria established by the
appropriate State educational agency. The waivers shall not permit
schools to implement the requirements later than July 1, 1998, or
a later date determined by the Secretary.
(3) To assist schools in meeting the requirements of this subsection, the Secretary—
(A) shall—
(i) develop, and provide to schools, standardized recipes, menu cycles, and food product specification and preparation techniques; and
(ii) provide to schools information regarding nutrient
standard menu planning, assisted nutrient standard menu
planning, and food-based menu systems; and
(B) may provide to schools information regarding other approaches, as determined by the Secretary.
(4) USE OF ANY REASONABLE APPROACH.—
(A) IN GENERAL.—A school food service authority may use
any reasonable approach, within guidelines established by the
Secretary in a timely manner, to meet the requirements of this
subsection, including—
(i) using the school nutrition meal pattern in effect for
the 1994–1995 school year; and
(ii) using any of the approaches described in paragraph
(3).
(B) NUTRIENT ANALYSIS.—The Secretary may not require a
school to conduct or use a nutrient analysis to meet the requirements of this subsection.
(5) WAIVER OF REQUIREMENT FOR WEIGHTED AVERAGES FOR
NUTRIENT ANALYSIS.—During the period ending on September
30, 2010, the Secretary shall not require the use of weighted
averages for nutrient analysis of menu items and foods offered
or served as part of a meal offered or served under the school
9–5 Subsection left without a header by amendments made by section 702(c)(1) of P.L.
104–193, 110 Stat. 2288.

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lunch program under this Act or the school breakfast program
under section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773).
(g) Not later than 1 year after the date of enactment of this
subsection, the Secretary shall provide a notification to Congress
that justifies the need for production records required under section
210.10(b) of title 7, Code of Federal Regulations, and describes how
the Secretary has reduced paperwork relating to the school lunch
and school breakfast programs.
(h) FOOD SAFETY.—
(1) IN GENERAL.—A school participating in the school lunch
program under this Act or the school breakfast program under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773)
shall—
(A) at least twice during each school year, obtain a
food safety inspection conducted by a State or local governmental agency responsible for food safety inspections;
(B) post in a publicly visible location a report on the
most recent inspection conducted under subparagraph (A);
and
(C) on request, provide a copy of the report to a member of the public.
(2) STATE AND LOCAL GOVERNMENT INSPECTIONS.—Nothing
in paragraph (1) prevents any State or local government from
adopting or enforcing any requirement for more frequent food
safety inspections of schools.
(3) AUDITS AND REPORTS BY STATES.—For each of fiscal
years 2006 through 2010, each State shall annually—
(A) audit food safety inspections of schools conducted
under paragraphs (1) and (2); and
(B) submit to the Secretary a report of the results of
the audit.
(4) AUDIT BY THE SECRETARY.—For each of fiscal years
2006 through 2010, the Secretary shall annually audit State reports of food safety inspections of schools submitted under
paragraph (3).
(5) SCHOOL FOOD SAFETY PROGRAM.—Each school food authority shall implement a school food safety program, in the
preparation and service of each meal served to children, that
complies with any hazard analysis and critical control point
system established by the Secretary.
(i) SINGLE PERMANENT AGREEMENT BETWEEN STATE AGENCY
AND SCHOOL FOOD AUTHORITY; COMMON CLAIMS FORM.—
(1) IN GENERAL.—If a single State agency administers any
combination of the school lunch program under this Act, the
school breakfast program under section 4 of the Child Nutrition
Act of 1966 (42 U.S.C. 1773), the summer food service program
for children under section 13 of this Act, or the child and adult
care food program under section 17 of this Act, the agency
shall—
(A) require each school food authority to submit to the
State agency a single agreement with respect to the operation by the authority of the programs administered by the
State agency; and
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(B) use a common claims form with respect to meals
and supplements served under the programs administered
by the State agency.
(2) ADDITIONAL REQUIREMENT.—The agreement described
in paragraph (1)(A) shall be a permanent agreement that may
be amended as necessary.
(j) PURCHASES OF LOCALLY PRODUCED FOODS.—The Secretary
shall—
(1) encourage institutions receiving funds under this Act
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to
purchase unprocessed agricultural products, both locally grown
and locally raised, to the maximum extent practicable and appropriate;
(2) advise institutions participating in a program described
in paragraph (1) of the policy described in that paragraph and
paragraph (3) and post information concerning the policy on the
website maintained by the Secretary; and
(3) allow institutions receiving funds under this Act and
the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), including the Department of Defense Fresh Fruit and Vegetable Program, to use a geographic preference for the procurement of unprocessed agricultural products, both locally grown and locally
raised.
DISBURSEMENT TO SCHOOLS BY THE SECRETARY

SEC. 10. ø42 U.S.C. 1759¿ (a) The Secretary shall withhold
funds payable to a State under this Act and disburse the funds directly to schools, institutions, or service institutions within the
State for the purposes authorized by this Act to the extent that the
Secretary has so withheld and disbursed such funds continuously
since October 1, 1980, but only to such extent (except as otherwise
required by subsection (b)). Any funds so withheld and disbursed by
the Secretary shall be used for the same purposes, and shall be subject to the same conditions, as applicable to a State disbursing
funds made available under this Act. If the Secretary is administering (in whole or in part) any program authorized under this
Act, the State in which the Secretary is administering the program
may, upon request to the Secretary, assume administration of that
program.
(b) If a State educational agency is not permitted by law to disburse the funds paid to it under this Act to any of the nonpublic
schools in the State, the Secretary shall disburse the funds directly
to such schools within the State for the same purposes and subject
to the same conditions as are authorized or required with respect
to the disbursements to public schools within the State by the State
educational agency.
SPECIAL ASSISTANCE

SEC. 11. ø42 U.S.C. 1759a¿ (a)(1)(A) Except as provided in section 10 of this Act, in each fiscal year each State educational agency
shall receive special assistance payments in an amount equal to the
sum of the product obtained by multiplying the number of lunches
(consisting of a combination of foods which meet the minimum nutritional requirements prescribed by the Secretary pursuant to subsection 9(a) of this Act) served free to children eligible for such
lunches in schools within that State during such fiscal year by the
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special assistance factor for free lunches prescribed by the Secretary for such fiscal year and the product obtained by multiplying
the number of lunches served at a reduced price to children eligible
for such reduced price lunches in schools within that State during
such fiscal year by the special assistance factor for reduced price
lunches prescribed by the Secretary for such fiscal year.
(B) Except as provided in subparagraph (C), (D), or (E), in the
case of any school which determines that at least 80 percent of the
children in attendance during a school year (hereinafter in this sentence referred to as the ‘‘first school year’’) are eligible for free
lunches or reduced price lunches, special assistance payments shall
be paid to the State educational agency with respect to that school,
if that school so requests for the school year following the first
school year, on the basis of the number of free lunches or reduced
priced lunches, as the case may be, that are served by that school
during the school year for which the request is made, to those children who were determined to be so eligible in the first school year
and the number of free lunches and reduced price lunches served
during that year to other children determined for that year to be
eligible for such lunches.
(C)(i) Except as provided in subparagraph (D), in the case of
any school or school district that—
(I) elects to serve all children in the school or school district free lunches under the school lunch program during any
period of 4 successive school years, or in the case of a school
or school district that serves both lunches and breakfasts,
elects to serve all children in the school or school district free
lunches and free breakfasts under the school lunch program
and the school breakfast program established under section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773) during any
period of 4 successive school years; and
(II) pays, from sources other than Federal funds, for the
costs of serving the lunches or breakfasts that are in excess of
the value of assistance received under this Act and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) with respect to
the number of lunches or breakfasts served during the period;
special assistance payments shall be paid to the State educational
agency with respect to the school or school district during the period on the basis of the number of lunches or breakfasts determined
under clause (ii) or (iii).
(ii) For purposes of making special assistance payments under
clause (i), except as provided in clause (iii), the number of lunches
or breakfasts served by a school or school district to children who
are eligible for free lunches or breakfasts or reduced price lunches
or breakfasts during each school year of the 4-school-year period
shall be considered to be equal to the number of lunches or breakfasts served by the school or school district to children eligible for
free lunches or breakfasts or reduced price lunches or breakfasts
during the first school year of the period.
(iii) For purposes of computing the amount of the payments, a
school or school district may elect to determine on a more frequent
basis the number of children who are eligible for free or reduced
price lunches or breakfasts who are served lunches or breakfasts
during the 4-school-year period.
(D)(i) In the case of any school or school district that is receiving special assistance payments under this paragraph for a 4October 21, 2009

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school-year period described in subparagraph (C), the State may
grant, at the end of the 4-school-year period, an extension of the period for an additional 4 school years, if the State determines,
through available socioeconomic data approved by the Secretary,
that the income level of the population of the school or school district has remained stable.
(ii) A school or school district described in clause (i) may reapply to the State at the end of the 4-school-year period, and at the
end of each 4-school-year period thereafter for which the school or
school district receives special assistance payments under this paragraph, for the purpose of continuing to receive the payments for a
subsequent 4-school-year period.
(iii) If the Secretary determines after considering the best available socioeconomic data that the income level of families of children
enrolled in a school or school district has not remained stable, the
Secretary may require the submission of applications for free and
reduced price lunches, or for free and reduced price lunches and
breakfasts, in the first school year of any 4-school-year period for
which the school or school district receives special assistance payments under this paragraph, for the purpose of calculating the special assistance payments.
(iv) For the purpose of updating information and reimbursement levels, a school or school district described in clause (i) that
carries out a school lunch or school breakfast program may at any
time require submission of applications for free and reduced price
lunches or for free and reduced price lunches and breakfasts.
(E)(i) In the case of any school or school district that—
(I) elects to serve all children in the school or school district free lunches under the school lunch program during any
period of 4 successive school years, or in the case of a school
or school district that serves both lunches and breakfasts,
elects to serve all children in the school or school district free
lunches and free breakfasts under the school lunch program
and the school breakfast program during any period of 4 successive school years; and
(II) pays, from sources other than Federal funds, for the
costs of serving the lunches or breakfasts that are in excess of
the value of assistance received under this Act and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) with respect to
the number of lunches or breakfasts served during the period;
total Federal cash reimbursements and total commodity assistance
shall be provided to the State educational agency with respect to
the school or school district at a level that is equal to the total Federal cash reimbursements and total commodity assistance received
by the school or school district in the last school year for which the
school or school district accepted applications under the school
lunch or school breakfast program, adjusted annually for inflation
in accordance with paragraph (3)(B) and for changes in enrollment,
to carry out the school lunch or school breakfast program.
(ii) A school or school district described in clause (i) may reapply to the State at the end of the 4-school-year period described
in clause (i), and at the end of each 4-school-year period thereafter
for which the school or school district receives reimbursements and
assistance under this subparagraph, for the purpose of continuing
to receive the reimbursements and assistance for a subsequent 4school-year period. The State may approve an application under
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this clause if the State determines, through available socioeconomic
data approved by the Secretary, that the income level of the population of the school or school district has remained consistent with
the income level of the population of the school or school district in
the last school year for which the school or school district accepted
the applications described in clause (i).
(2) The special assistance factor prescribed by the Secretary for
free lunches shall be 98.75 cents and the special assistance factor
for reduced price lunches shall be 40 cents less than the special assistance factor for free lunches.
(3)(A) The Secretary shall prescribe on July 1, 1982, and on
each subsequent July 1, an annual adjustment in the following:
(i) The national average payment rates for lunches (as established under section 4 of this Act).
(ii) the special assistance factor for lunches (as established
under paragraph (2) of this subsection).
(iii) The national average payment rates for breakfasts (as
established under section 4(b) of the Child Nutrition Act of
1966 [(42 U.S.C. 1773(b))]).
(iv) The national average payment rates for supplements
(as established under section 17(c) of this Act).
(B) COMPUTATION OF ADJUSTMENT.—
(i) IN GENERAL.—The annual adjustment under
this paragraph shall reflect changes in the cost of operating meal programs under this Act and the Child Nutrition Act of 1966 [(42 U.S.C. 1771 et seq.)], as indicated by the change in the series for food away from
home of the Consumer Price Index for all Urban Consumers, published by the Bureau of Labor Statistics of
the Department of Labor.
(ii) BASIS.—Each annual adjustment shall reflect
the changes in the series for food away from home for
the most recent 12-month period for which such data
are available.
(iii) ROUNDING.—
(I) THROUGH JUNE 30, 1999.—For the period
ending June 30, 1999, the adjustments made
under this paragraph shall be computed to the
nearest one-fourth cent, except that adjustments
to payment rates for meals and supplements
served to individuals not determined to be eligible
for free or reduced price meals and supplements
shall be computed to the nearest lower cent increment and based on the unrounded amount for the
preceding 12-month period.
(II) JULY 1, 1999, AND THEREAFTER.—On July 1,
1999, and on each subsequent July 1, the national
average payment rates for meals and supplements
shall be adjusted to the nearest lower cent increment and shall be based on the unrounded
amounts for the preceding 12-month period.
(b) Except as provided in section 10 of the Child Nutrition Act
of 1966 [(42 U.S.C. 1779)], the special assistance payments made
to each State agency during each fiscal year under the provisions
of this section shall be used by such State agency to assist schools
of that State in providing free and reduced price lunches served to
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children pursuant to subsection 9(b) of this Act. The amount of such
special assistance funds that a school shall from time to time receive, within a maximum per lunch amount established by the Secretary for all States, shall be based on the need of the school for
such special assistance. Such maximum per lunch amount established by the Secretary shall not be less than 60 cents.
(c) Special assistance payments to any State under this section
shall be made as provided in the last sentence of section 7 of this
Act.
(d)(1) The Secretary, when appropriate, may request each
school participating in the school lunch program under this Act to
report monthly to the State educational agency the average number
of children in the school who received free lunches and the average
number of children who received reduced price lunches during the
immediately preceding month.
(2) On request of the Secretary, the State educational agency
of each State shall report to the Secretary the average number of
children in the State who received free lunches and the average
number of children in the State who received reduced price lunches
during the immediately preceding month.
(e) Commodity only schools shall also be eligible for special assistance payments under this section. Such schools shall serve
meals free to children who meet the eligibility requirements for free
meals under section 9(b) of this Act, and shall serve meals at a reduced price, not exceeding the price specified in section 9(b)(9) of
this Act, to children meeting the eligibility requirements for reduced price meals under such section. No physical segregation of,
or other discrimination against, any child eligible for a free or reduced priced lunch shall be made by the school, nor shall there by
any overt identification of any such child by any means.
(f) INFORMATION AND ASSISTANCE CONCERNING REIMBURSEMENT OPTIONS.—
(1) IN GENERAL.—From funds made available under paragraph (3), the Secretary shall provide grants to not more than
10 State agencies in each of fiscal years 2000 and 2001 to enable the agencies, in accordance with criteria established by the
Secretary, to—
(A) identify separately in a list—
(i) schools that are most likely to benefit from
electing to receive special assistance under subparagraph (C) or (E) of subsection (a)(1); and
(ii) schools that may benefit from electing to receive special assistance under subparagraph (C) or (E)
of subsection (a)(1);
(B) make the list of schools identified under this subsection available to each school district within the State
and to the public;
(C) provide technical assistance to schools, or school
districts containing the schools, to enable the schools to
evaluate and receive special assistance under subparagraph (C) or (E) of subsection (a)(1);
(D) take any other actions the Secretary determines
are consistent with receiving special assistance under subparagraph (C) or (E) of subsection (a)(1) and receiving a
grant under this subsection; and
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(E) as soon as practicable after receipt of the grant, but
not later than September 30, 2003, take the actions described in subparagraphs (A) through (D).
(2) REPORT.—
(A) IN GENERAL.—The Secretary 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—
(i) not later than January 1, 2003, an interim report on the activities of the State agencies receiving
grants under this subsection; and
(ii) not later than January 1, 2004, a final report
on the activities of the State agencies receiving grants
under this subsection.
(B) CONTENTS.—In the reports, the Secretary shall
specify—
(i) the number of schools identified as likely to
benefit from electing to receive special assistance
under subparagraph (C) or (E) of subsection (a)(1);
(ii) the number of schools identified under this
subsection that have elected to receive special assistance under subparagraph (C) or (E) of subsection
(a)(1); and
(iii) a description of how the funds and technical
assistance made available under this subsection have
been used.
(3) FUNDING.—Out of any moneys in the Treasury not otherwise appropriated, the Secretary of the Treasury shall provide to the Secretary $2,250,000 for each of fiscal years 2000
and 2001 to carry out this subsection. The Secretary shall be
entitled to receive the funds and shall accept the funds, without
further appropriation.
MISCELLANEOUS PROVISIONS AND DEFINITIONS

SEC. 12. ø42 U.S.C. 1760¿ (a) States, State educational agencies, and schools participating in the school lunch program under
this Act shall keep such accounts and records as may be necessary
to enable the Secretary to determine whether the provisions of this
Act are being complied with. Such accounts and records shall be
available at any reasonable time for inspection and audit by representatives of the Secretary and shall be preserved for such period
of time, not in excess of five years, as the Secretary determines is
necessary.
(b) The Secretary shall incorporate, in the Secretary’s agreements with the State educational agencies, the express requirements under this Act with respect to the operation of the school
lunch program under this Act insofar as they may be applicable and
such other provisions as in the Secretary’s opinion are reasonably
necessary or appropriate to effectuate the purpose of this Act.
(c) In carrying out the provisions of this Act, the Secretary
shall not impose any requirement with respect to teaching personnel, curriculum, instruction, methods of instruction, and materials of instruction in any school.
(d) For the purposes of this Act—
(1) CHILD.—
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(A) IN GENERAL.—The term ‘‘child’’ includes an individual, regardless of age, who—
(i) is determined by a State educational agency, in
accordance with regulations prescribed by the Secretary, to have one or more disabilities; and
(ii) is attending any institution, as defined in section 17(a), or any nonresidential public or nonprofit
private school of high school grade or under, for the
purpose of participating in a school program established for individuals with disabilities.
(B) RELATIONSHIP TO CHILD AND ADULT CARE FOOD
PROGRAM.—No institution that is not otherwise eligible to
participate in the program under section 17 shall be considered eligible because of this paragraph.
(2) ‘‘Commodity only schools’’ means schools that do not
participate in the school lunch program under this Act, but
which receive commodities made available by the Secretary for
use by such schools in nonprofit lunch programs.
(3) 12–1 DISABILITY.—The term ‘disability’ has the meaning
given the term in the Rehabilitation Act of 1973 for purposes
of title II of that Act (29 U.S.C 760 et seq.).
(4) LOCAL EDUCATIONAL AGENCY.—
(A) IN GENERAL.—The term ‘‘local educational agency’’
has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
(B) INCLUSION.—The term ‘‘local educational agency’’
includes, in the case of a private nonprofit school, an appropriate entity determined by the Secretary.
(5) ‘‘School’’ means (A) any public or nonprofit private
school of high school grade or under, and (B) any public or licensed nonprofit private residential child care institution (including, but not limited to, orphanages and homes for the mentally retarded, but excluding Job Corps Centers funded by the
Department of Labor). For purposes of this paragraph, the term
‘‘nonprofit’’, when applied to any such private school or institution, means any such school or institution which is exempt
from tax under section 501(c)(3) of the Internal Revenue Code
of 1986.
(6) ‘‘School year’’ means the annual period from July 1
through June 30.
(7) ‘‘Secretary’’ means the Secretary of Agriculture.
(8) ‘‘State’’ means any of the fifty States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, or the Commonwealth of the Northern
Mariana Islands.
(9) ‘‘State educational agency’’ means, as the State legislature may determine, (A) the chief State school officer (such as
the State superintendent of public instruction, commissioner of
education, or similar officer), or (B) a board of education controlling the State department of education.
(e) The value of assistance to children under this Act shall not
be considered to be income or resources for any purposes under any
12–1 This definition added by section 107(j)(3)(A)(ii) of P.L. 105–336, 112 Stat. 3153, Oct.
31, 1998. Omission of period after ‘‘U.S.C’’ is so in original.

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Federal or State laws, including laws relating to taxation and welfare and public assistance programs.
(f) In providing assistance for breakfasts, lunches, suppers, and
supplements served in Alaska, Hawaii, Guam, American Samoa,
Puerto Rico, the Virgin Islands of the United States, and the Commonwealth of the Northern Mariana Islands, the Secretary may establish appropriate adjustments for each such State to the national
average payment rates prescribed under sections 4, 11, 13, and 17
of this Act and section 4 of the Child Nutrition Act of 1966 [(42
U.S.C. 1773)], to reflect the differences between the costs of providing meals and supplements in those States and the costs of providing meals and supplements in all other States.
(g) Whoever embezzles, willfully misapplies, steals, or obtains
by fraud any funds, assets, or property that are the subject of a
grant or other form of assistance under this Act or the Child Nutrition Act of 1966 [(42 U.S.C. 1771 et seq.)], whether received directly
or indirectly from the United States Department of Agriculture, or
whoever receives, conceals, or retains such funds, assets, or property to personal use or gain, knowing such funds, assets, or property have been embezzled, willfully misapplied, stolen, or obtained
by fraud shall, if such funds, assets, or property are of the value
of $100 or more, be fined not more than $25,000 or imprisoned not
more than five years, or both, or, if such funds, assets, or property
are of a value of less than $100, shall be fined not more than $1,000
or imprisoned for not more than one year, or both.
(h) No provision of this Act or of the Child Nutrition Act of
1966 [(42 U.S.C. 1771 et seq.)] shall require any school receiving
funds under this Act and the Child Nutrition Act of 1966 to account
separately for the cost incurred in the school lunch and school
breakfast programs.
(i) Facilities, equipment, and personnel provided to a school
food authority for a program authorized under this Act or the Child
Nutrition Act of 1966 [(42 U.S.C. 1771 et seq.)] may be used, as determined by a local educational agency, to support a nonprofit nutrition program for the elderly, including a program funded under
the Older Americans Act of 1965 [(42 U.S.C. 3001 et seq.)].
(j)(1) Except as provided in paragraph (2), the Secretary may
provide reimbursements for final claims for service of meals, supplements, and milk submitted to State agencies by eligible schools,
summer camps, family day care homes, institutions, and service institutions only if—
(A) the claims have been submitted to the State agencies
not later than 60 days after the last day of the month for which
the reimbursement is claimed; and
(B) the final program operations report for the month is
submitted to the Secretary not later than 90 days after the last
day of the month.
(2) The Secretary may waive the requirements of paragraph (1)
at the discretion of the Secretary.
(k)(1) Not later than June 1, 1995, the Secretary shall issue
final regulations to conform the nutritional requirements of the
school lunch and breakfast programs with the guidelines contained
in the most recent ‘‘Dietary Guidelines for Americans’’ that is published under section 301 of the National Nutrition Monitoring and
Related Research Act of 1990 (7 U.S.C. 5341). The final regulations
shall include—
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(A) rules permitting the use of food-based menu systems;
and
(B) adjustments to the rule on nutrition objectives for
school meals published in the Federal Register on June 10,
1994 (59 Fed. Reg. 30218).
(2) No school food service authority shall be required to implement final regulations issued pursuant to this subsection until the
regulations have been final for at least 1 year.
(l)(1)(A) Except as provided in paragraph (4), the Secretary may
waive any requirement under this Act or the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.), or any regulation issued under either such Act, for a State or eligible service provider that requests
a waiver if—
(i) the Secretary determines that the waiver of the requirement would facilitate the ability of the State or eligible service
provider to carry out the purpose of the program;
(ii) the State or eligible service provider has provided notice and information to the public regarding the proposed waiver; and
(iii) the State or eligible service provider demonstrates to
the satisfaction of the Secretary that the waiver will not increase the overall cost of the program to the Federal Government, and, if the waiver does increase the overall cost to the
Federal Government, the cost will be paid from non-Federal
funds.
(B) The notice and information referred to in subparagraph
(A)(ii) shall be provided in the same manner in which the State or
eligible service provider customarily provides similar notices and information to the public.
(2)(A) To request a waiver under paragraph (1), a State or eligible service provider (through the appropriate administering State
agency) shall submit an application to the Secretary that—
(i) identifies the statutory or regulatory requirements that
are requested to be waived;
(ii) in the case of a State requesting a waiver, describes actions, if any, that the State has undertaken to remove State
statutory or regulatory barriers;
(iii) describes the goal of the waiver to improve services
under the program and the expected outcomes if the waiver is
granted; and
(iv) includes a description of the impediments to the efficient operation and administration of the program.
(B) An application described in subparagraph (A) shall be developed by the State or eligible service provider and shall be submitted to the Secretary by the State.
(3) The Secretary shall act promptly on a waiver request contained in an application submitted under paragraph (2) and shall
either grant or deny the request. The Secretary shall state in writing the reasons for granting or denying the request.
(4) The Secretary may not grant a waiver under this subsection
that increases Federal costs or that relates to—
(A) the nutritional content of meals served;
(B) Federal reimbursement rates;
(C) the provision of free and reduced price meals;
(D) limits on the price charged for a reduced price meal;
(E) maintenance of effort;
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(F) equitable participation of children in private schools;
(G) distribution of funds to State and local school food service authorities and service institutions participating in a program under this Act and the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.);
(H) the disclosure of information relating to students receiving free or reduced price meals and other recipients of benefits;
(I) prohibiting the operation of a profit producing program;
(J) the sale of competitive foods;
(K) the commodity distribution program under section 14;
(L) the special supplemental nutrition program authorized
under section 17 of the Child Nutrition Act of 1966 (42 U.S.C.
1786); or
(M) enforcement of any constitutional or statutory right of
an individual, including any right under—
(i) title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.);
(ii) section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794);
(iii) title IX of the Education Amendments of 1972 (20
U.S.C. 1681 et seq.);
(iv) the Age Discrimination Act of 1975 (42 U.S.C. 6101
et seq.);
(v) the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.); and
(vi) the Individuals with Disabilities Education Act (20
U.S.C. 1400 et seq.).
(5) The Secretary shall periodically review the performance of
any State or eligible service provider for which the Secretary has
granted a waiver under this subsection and shall terminate the
waiver if the performance of the State or service provider has been
inadequate to justify a continuation of the waiver. The Secretary
shall terminate the waiver if, after periodic review, the Secretary
determines that the waiver has resulted in an increase in the overall cost of the program to the Federal Government and the increase
has not been paid for in accordance with paragraph (1)(A)(iii).
(6) The Secretary shall annually submit to the Committee on
Education and Labor of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, a
report—
(A) summarizing the use of waivers by the State and eligible service providers;
(B) describing whether the waivers resulted in improved
services to children;
(C) describing the impact of the waivers on providing nutritional meals to participants; and
(D) describing how the waivers reduced the quantity of paperwork necessary to administer the program.
(7) As used in this subsection, the term ‘‘eligible service provider’’ means—
(A) a local school food service authority;
(B) a service institution or private nonprofit organization
described in section 13; or
(C) a family or group day care home sponsoring organization described in section 17.
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(m) PROCUREMENT TRAINING.—
(1) IN GENERAL.—Subject to the availability of funds made
available under paragraph (4), the Secretary shall provide technical assistance and training to States, State agencies, schools,
and school food authorities in the procurement of goods and
services for programs under this Act or the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.) (other than section 17 of that
Act (42 U.S.C. 1786)).
(2) BUY AMERICAN TRAINING.—Activities carried out under
paragraph (1) shall include technical assistance and training to
ensure compliance with subsection (n).
(3) PROCURING SAFE FOODS.—Activities carried out under
paragraph (1) shall include technical assistance and training on
procuring safe foods, including the use of model specifications
for procuring safe foods.
(4) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $1,000,000
for each of fiscal years 2005 through 2009, to remain available
until expended.
(n) BUY AMERICAN.—
(1) DEFINITION OF DOMESTIC COMMODITY OR PRODUCT.—In
this subsection, the term ‘‘domestic commodity or product’’
means—
(A) an agricultural commodity that is produced in the
United States; and
(B) a food product that is processed in the United
States substantially using agricultural commodities that
are produced in the United States.
(2) REQUIREMENT.—
(A) IN GENERAL.—Subject to subparagraph (B), the
Secretary shall require that a school food authority purchase, to the maximum extent practicable, domestic commodities or products.
(B) LIMITATIONS.—Subparagraph (A) shall apply
only to—
(i) a school food authority located in the
contiguous United States; and
(ii) a purchase of a domestic commodity or product
for the school lunch program under this Act or the
school breakfast program under section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773).
(3) APPLICABILITY TO HAWAII.—Paragraph (2)(A) shall apply
to a school food authority in Hawaii with respect to domestic
commodities or products that are produced in Hawaii in sufficient quantities to meet the needs of meals provided under the
school lunch program under this Act or the school breakfast
program under section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773).
(4) APPLICABILITY TO PUERTO RICO.—Paragraph (2)(A) shall
apply to a school food authority in the Commonwealth of Puerto Rico with respect to domestic commodities or products that
are produced in the Commonwealth of Puerto Rico in sufficient
quantities to meet the needs of meals provided under the school
lunch program under this Act or the school breakfast program
under section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773).
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(o) PROCUREMENT CONTRACTS.—In acquiring a good or service
for programs under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.) (other than section 17 of that Act (42 U.S.C.
1786)), a State, State agency, school, or school food authority may
enter into a contract with a person that has provided specification
information to the State, State agency, school, or school food authority for use in developing contract specifications for acquiring
such good or service.
SUMMER FOOD SERVICE PROGRAM FOR CHILDREN

SEC. 13. ø42 U.S.C. 1761¿ (a)(1) The Secretary is authorized to
carry out a program to assist States, through grants-in-aid and
other means, to initiate and maintain nonprofit food service programs for children in service institutions. For purposes of this section, (A) ‘‘program’’ means the summer food service program for
children authorized by this section; (B) ‘‘service institutions’’ means
public or private nonprofit school food authorities, local, municipal,
or county governments, public or private nonprofit higher education
institutions participating in the National Youth Sports Program,
and residential public or private nonprofit summer camps, that develop special summer or school vacation programs providing food
service similar to that made available to children during the school
year under the school lunch program under this Act or the school
breakfast program under the Child Nutrition Act of 1966 [(42
U.S.C. 1771 et seq.); (C) ‘‘areas in which poor economic conditions
exist’’ means areas in which at least 50 percent of the children are
eligible for free or reduced price school meals under this Act and
the Child Nutrition Act of 1966, as determined by information provided from departments of welfare, zoning commissions, census
tracts, by the number of free and reduced price lunches or breakfasts served to children attending public and nonprofit private
schools located in the area of program food service sites, or from
other appropriate sources, including statements of eligibility based
upon income for children enrolled in the program; (D) ‘‘children’’
means individuals who are eighteen years of age and under, and individuals who are older than eighteen who are (i) determined by a
State educational agency or a local public educational agency of a
State, in accordance with regulations prescribed by the Secretary,
to have a disability, and (ii) participating in a public or nonprofit
private school program established for individuals who have a disability; and (E) ‘‘State’’ means any of the fifty States, the District
of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands
of the United States, Guam, American Samoa, and the Northern
Mariana Islands.
(2) To the maximum extent feasible, consistent with the purposes of this section, any food service under the program shall use
meals prepared at the facilities of the service institution or at the
food service facilities of public and nonprofit private schools. The
Secretary shall assist States in the development of information and
technical assistance to encourage increased service of meals prepared at the facilities of service institutions and at public and nonprofit private schools.
(3) Eligible service institutions entitled to participate in the
program shall be limited to those that—
(A) demonstrate adequate administrative and financial responsibility to manage an effective food service;
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(B) have not been seriously deficient in operating under the
program;
(C)(i) conduct a regularly scheduled food service for children from areas in which poor economic conditions exist; or
(ii) qualify as camps; and
(D) provide an ongoing year-round service to the community to be served under the program (except that an otherwise
eligible service institution shall not be disqualified for failure
to meet this requirement for ongoing year-round service if the
State determines that its disqualification would result in an
area in which poor economic conditions exist not being served
or in a significant number of needy children not having reasonable access to a summer food service program).
(4) The following order of priority shall be used by the State in
determining participation where more than one eligible service institution proposes to serve the same area:
(A) Local schools.
(B) All other service institutions and private nonprofit organizations eligible under paragraph (7) that have demonstrated successful program performance in a prior year.
(C) New public institutions.
(D) New private nonprofit organizations eligible under
paragraph (7).
The Secretary and the States, in carrying out their respective functions under this section, shall actively seek eligible service institutions located in rural areas, for the purpose of assisting such service
institutions in applying to participate in the program.
(5) Camps that satisfy all other eligibility requirements of this
section shall receive reimbursement only for meals served to children who meet the eligibility requirements for free or reduced price
meals, as determined under this Act and the Child Nutrition Act
of 1966 [(42 U.S.C. 1771 et seq.)].
(6) Service institutions that are local, municipal, or county governments shall be eligible for reimbursement for meals served in
programs under this section only if such programs are operated directly by such governments.
(7)(A) Private nonprofit organizations, as defined in subparagraph (B) (other than organizations eligible under paragraph (1)),
shall be eligible for the program under the same terms and conditions as other service institutions.
(B) As used in this paragraph, the term ‘‘private nonprofit organizations’’ means those organizations that—
(i) operate—
(I) not more than 25 sites, with not more than 300 children being served at any one site; or
(II) with a waiver granted by the State agency under
standards developed by the Secretary, with not more than
500 children being served at any one site;
(ii) exercise full control and authority over the operation of
the program at all sites under their sponsorship;
(iii) provide ongoing year-around activities for children or
families;
(iv) demonstrate that such organizations have adequate
management and the fiscal capacity to operate a program
under this section; and
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(v) meet applicable State and local health, safety, and sanitation standards.
(8) SEAMLESS SUMMER OPTION.—Except as otherwise determined by the Secretary, a service institution that is a public or
private nonprofit school food authority may provide summer or
school vacation food service in accordance with applicable provisions of law governing the school lunch program established
under this Act or the school breakfast program established
under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
(9) EXEMPTION.—
(A) IN GENERAL.—For each of calendar years 2005 and
2006 in rural areas of the State of Pennsylvania (as determined by the Secretary), the threshold for determining
‘‘areas in which poor economic conditions exist’’ under
paragraph (1)(C) shall be 40 percent.
(B) EVALUATION.—
(i) IN GENERAL.—The Secretary, acting through the
Administrator of the Food and Nutrition Service, shall
evaluate the impact of the eligibility criteria described
in subparagraph (A) as compared to the eligibility criteria described in paragraph (1)(C).
(ii) IMPACT.—The evaluation shall assess the impact of the threshold in subparagraph (A) on—
(I) the number of sponsors offering meals
through the summer food service program;
(II) the number of sites offering meals through
the summer food service program;
(III) the geographic location of the sites;
(IV) services provided to eligible children; and
(V) other factors determined by the Secretary.
(iii) REPORT.—Not later than January 1, 2008, the
Secretary 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 results of the
evaluation under this subparagraph.
(iv) FUNDING.—
(I) IN GENERAL.—On January 1, 2005, out of
any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary of Agriculture to carry out this
subparagraph $400,000, 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 subparagraph the funds
transferred under subclause (I), without further
appropriation.
(10) SUMMER FOOD SERVICE RURAL TRANSPORTATION.—
(A) IN GENERAL.—The Secretary shall provide grants,
through not more than 5 eligible State agencies selected by
the Secretary, to not more than 60 eligible service institutions selected by the Secretary to increase participation at
congregate feeding sites in the summer food service program for children authorized by this section through innovative approaches to limited transportation in rural areas.
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(B) ELIGIBILITY.—To be eligible to receive a grant
under this paragraph—
(i) a State agency shall submit an application to
the Secretary, in such manner as the Secretary shall
establish, and meet criteria established by the Secretary; and
(ii) a service institution shall agree to the terms
and conditions of the grant, as established by the Secretary.
(C) DURATION.—A service institution that receives a
grant under this paragraph may use the grant funds during the 3-fiscal year period beginning in fiscal year 2006.
(D) REPORTS.—The Secretary 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—
(i) not later than January 1, 2008, an interim report that describes—
(I) the use of funds made available under this
paragraph; and
(II) any progress made by using funds from
each grant provided under this paragraph; and
(ii) not later than January 1, 2009, a final report
that describes—
(I) the use of funds made available under this
paragraph;
(II) any progress made by using funds from
each grant provided under this paragraph;
(III) the impact of this paragraph on participation in the summer food service program for children authorized by this section; and
(IV) any recommendations by the Secretary
concerning the activities of the service institutions
receiving grants under this paragraph.
(E) FUNDING.—
(i) IN GENERAL.—Out of any funds in the Treasury
not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary of Agriculture to
carry out this paragraph—
(I) on October 1, 2005, $2,000,000; and
(II) on October 1, 2006, and October 1, 2007,
$1,000,000.
(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) AVAILABILITY OF FUNDS.—Funds transferred
under clause (i) shall remain available until expended.
(iv) REALLOCATION.—The Secretary may reallocate
any amounts made available to carry out this paragraph that are not obligated or expended, as determined by the Secretary.
(b) SERVICE INSTITUTIONS.—
(1) PAYMENTS.—
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(A) 13–1 IN GENERAL.—Subject to subparagraph (B) and
in addition to amounts made available under paragraph
(3), payments to service institutions shall be—
(i) $1.97 for each lunch and supper served;
(ii) $1.13 for each breakfast served; and
(iii) 46 cents for each meal supplement served.
(B) ADJUSTMENTS.—Amounts specified in subparagraph (A) shall be adjusted on January 1, 1997, and each
January 1 thereafter, to the nearest lower cent increment
to reflect changes for the 12-month period ending the preceding November 30 in the series for food away from home
of the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department
of Labor. Each adjustment shall be based on the
unrounded adjustment for the prior 12-month period.
(C) SEAMLESS SUMMER REIMBURSEMENTS.—A service
institution described in subsection (a)(8) shall be reimbursed for meals and meal supplements in accordance with
the applicable provisions under this Act (other than subparagraphs (A) and (B) of this paragraph and paragraph
(4)) and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.), as determined by the Secretary.
(2) Any service institution may only serve lunch and either
breakfast or a meal supplement during each day of operation, except that any service institution that is a camp or that serves meals
primarily to migrant children may serve up to 3 meals, or 2 meals
and 1 supplement, during each day of operation, if (A) the service
institution has the administrative capability and the food preparation and food holding capabilities (where applicable) to serve more
than one meal per day, and (B) the service period of different meals
does not coincide or overlap.
(3) Every service institution, when applying for participation in
the program, shall submit a complete budget for administrative
costs related to the program, which shall be subject to approval by
the State. Payment to service institutions for administrative costs
shall equal the levels determined by the Secretary pursuant to the
study prescribed in paragraph (4) of this subsection.
(4)(A) The Secretary shall conduct a study of the food service
operations carried out under the program. Such study shall include,
but shall not be limited to—
(i) an evaluation of meal quality as related to costs; and
(ii) a determination whether adjustments in the maximum
reimbursement levels for food service operation costs prescribed
in paragraph (1) of this subsection should be made, including
whether different reimbursement levels should be established
for self-prepared meals and vendored meals and which site-related costs, if any, should be considered as part of administrative costs.
(B) The Secretary shall also study the administrative costs of
service institutions participating in the program and shall thereafter prescribe maximum allowable levels for administrative payments that reflect the costs of such service institutions, taking into
13–1 Effective Jan. 1, 2008, sec. 738(a)(1)(C) of division A of P.L. 110-161, Dec. 26, 2007,
amended this subpara. by striking ‘‘(B)’’ and all that follows through ‘‘shall not exceed’’
and inserting ’’(A)’’ and all that follows through ‘‘shall be’’. Although this subpara. was already previously redesignated as subparagraph (A) by sec. 738(a)(1)(B) of division A of
P.L. 110–161, the amendment was executed to effectuate the probable intent of Congress.

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account the number of sites and children served, and such other
factors as the Secretary determines appropriate to further the goals
of efficient and effective administration of the program.
(C) The Secretary shall report the results of such studies to
Congress not later than December 1, 1977.
(c)(1) Payments shall be made to service institutions only for
meals served during the months of May through September, except
in the case of service institutions that operate food service programs for children on school vacation at any time under a continuous school calendar or that provide meal service at non-school
sites to children who are not in school for a period during the
months of October through April due to a natural disaster, building
repair, court order, or similar cause.
(2) Children participating in National Youth Sports Programs
operated by higher education institutions shall be eligible to participate in the program under this paragraph on showing residence in
areas in which poor economic conditions exist or on the basis of income eligibility statements for children enrolled in the program.
(d) Not later than April 15, May 15, and July 1 of each year,
the Secretary shall forward to each State a letter of credit (advance
program payment) that shall be available to each State for the payment of meals to be served in the month for which the letter of
credit is issued. The amount of the advance program payment shall
be an amount which the State demonstrates, to the satisfaction of
the Secretary, to be necessary for advance program payments to
service institutions in accordance with subsection (e) of this section.
The Secretary shall also forward such advance program payments,
by the first day of the month prior to the month in which the program will be conducted, to States that operate the program in
months other than May through September. The Secretary shall
forward any remaining payments due pursuant to subsection (b) of
this section not later than sixty days following receipt of valid
claims therefor.
(e)(1) Not later than June 1, July 15, and August 15 of each
year, or, in the case of service institutions that operate under a continuous school calendar, the first day of each month of operation,
the State shall forward advance program payments to each service
institution. The State shall not release the second month’s advance
program payment to any service institution (excluding a school)
that has not certified that it has held training sessions for its own
personnel and the site personnel with regard to program duties and
responsibilities. No advance program payment may be made for any
month in which the service institution will operate under the program for less than ten days.
(2) The amount of the advance program payment for any month
in the case of any service institution shall be an amount equal to
(A) the total program payment for meals served by such service institution in the same calendar month of the preceding calendar
year, (B) 50 percent of the amount established by the State to be
needed by such service institution for meals if such service institution contracts with a food service management company, or (C) 65
percent of the amount established by the State to be needed by
such service institution for meals if such service institution prepares its own meals, whichever amount is greatest: Provided, That
the advance program payment may not exceed the total amount estimated by the State to be needed by such service institution for
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meals to be served in the month for which such advance program
payment is made or $40,000, whichever is less, except that a State
may make a larger advance program payment to such service institution where the State determines that such larger payment is necessary for the operation of the program by such service institution
and sufficient administrative and management capability to justify
a larger payment is demonstrated. The State shall forward any remaining payment due a service institution not later than seventyfive days following receipt of valid claims. If the State has reason
to believe that a service institution will not be able to submit a
valid claim for reimbursement covering the period for which an advance program payment has been made, the subsequent month’s
advance program payment shall be withheld until such time as the
State has received a valid claim. Program payments advanced to
service institutions that are not subsequently deducted from a valid
claim for reimbursement shall be repaid upon demand by the State.
Any prior payment that is under dispute may be subtracted from
an advance program payment.
(f)(1) Service institutions receiving funds under this section
shall serve meals consisting of a combination of foods and meeting
minimum nutritional standards prescribed by the Secretary on the
basis of tested nutritional research.
(2) The Secretary shall provide technical assistance to service
institutions and private nonprofit organizations participating in the
program to assist the institutions and organizations in complying
with the nutritional requirements prescribed by the Secretary pursuant to this subsection.
(3) Meals described in paragraph (1) shall be served without
cost to children attending service institutions approved for operation under this section, except that, in the case of camps, charges
may be made for meals served to children other than those who
meet the eligibility requirements for free or reduced price meals in
accordance with subsection (a)(5) of this section.
(4) To assure meal quality, States shall, with the assistance of
the Secretary, prescribe model meal specifications and model food
quality standards, and ensure that all service institutions contracting for the preparation of meals with food service management
companies include in their contracts menu cycles, local food safety
standards, and food quality standards approved by the State.
(5) Such contracts shall require (A) periodic inspections, by an
independent agency or the local health department for the locality
in which the meals are served, of meals prepared in accordance
with the contract in order to determine bacteria levels present in
such meals, and (B) conformance with standards set by local health
authorities.
(6) Such inspections and any testing resulting therefrom shall
be in accordance with the practices employed by such local health
authority.
(7) OFFER VERSUS SERVE.—A school food authority participating as a service institution may permit a child to refuse one
or more items of a meal that the child does not intend to consume, under rules that the school uses for school meals programs. A refusal of an offered food item shall not affect the
amount of payments made under this section to a school for the
meal.
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(g) The Secretary shall publish proposed regulations relating to
the implementation of the program by November 1 of each fiscal
year, final regulations by January 1 of each fiscal year, and guidelines, applications and handbooks by February 1 of each fiscal year.
In order to improve program planning, the Secretary may provide
that service institutions be paid as startup costs not to exceed 20
percent of the administrative funds provided for in the administrative budget approved by the State under subsection (b)(3) of this
section. Any payments made for startup costs shall be subtracted
from amounts otherwise payable for administrative costs subsequently made to service institutions under subsection (b)(3) of this
section.
(h) Each service institution shall, insofar as practicable, use in
its food service under the program foods designated from time to
time by the Secretary as being in abundance. The Secretary is authorized to donate to States, for distribution to service institutions,
food available under section 416 of the Agricultural Act of 1949 [(7
U.S.C. 1431)], or purchased under section 32 of the Act of August
24, 1935 [(7 U.S.C. 612c)] or section 709 of the Food and Agriculture Act of 1965 [(7 U.S.C. 1446a–1)]. Donated foods may be distributed only to service institutions that can use commodities efficiently and effectively, as determined by the Secretary.
[(i) Repealed 13–2]
(j) Expenditures of funds from State and local sources for the
maintenance of food programs for children shall not be diminished
as a result of funds received under this section.
(k)(1) The Secretary shall pay to each State for its administrative costs incurred under this section in any fiscal year an amount
equal to (A) 20 percent of the first $50,000 in funds distributed to
that State for the program in the preceding fiscal year; (B) 10 percent of the next $100,000 distributed to that State for the program
in the preceding fiscal year; (C) 5 percent of the next $250,000 in
funds distributed to that State for the program in the preceding fiscal year, and (D) 21⁄2 percent of any remaining funds distributed to
that State for the program in the preceding fiscal year: Provided,
That such amounts may be adjusted by the Secretary to reflect
changes in the size of that State’s program since the preceding fiscal year.
(2) The Secretary shall establish standards and effective dates
for the proper, efficient, and effective administration of the program
by the State. If the Secretary finds that the State has failed without
good cause to meet any of the Secretary’s standards or has failed
without good cause to carry out the approved State management
and administration plan under subsection (n) of this section, the
Secretary may withhold from the State such funds authorized
under this subsection as the Secretary determines to be appropriate.
(3) To provide for adequate nutritional and food quality monitoring, and to further the implementation of the program, an additional amount, not to exceed the lesser of actual costs or 1 percent
of program funds, shall be made available by the Secretary to
States to pay for State or local health department inspections, and
to reinspect facilities and deliveries to test meal quality.
13–2 Section 817(b) of P.L. 97–35, 95 Stat. 532, Aug. 13, 1981, eliminated subsection (i)
concerning the Secretary’s authority to directly administer the program.

October 21, 2009

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(l)(1) Service institutions may contract on a competitive basis
with food service management companies for the furnishing of
meals or management of the entire food service under the program,
except that a food service management company entering into a
contract with a service institution under this section may not subcontract with a single company for the total meal, with or without
milk, or for the assembly of the meal. The Secretary shall prescribe
additional conditions and limitations governing assignment of all or
any part of a contract entered into by a food service management
company under this section. Any food service management company
shall, in its bid, provide the service institution information as to its
meal capacity.
(2) Each State may provide for the registration of food service
management companies.
(3) In accordance with regulations issued by the Secretary,
positive efforts shall be made by service institutions to use small
businesses and minority-owned businesses as sources of supplies
and services. Such efforts shall afford those sources the maximum
feasible opportunity to compete for contracts using program funds.
(4) Each State, with the assistance of the Secretary, shall establish a standard form of contract for use by service institutions
and food service management companies. The Secretary shall prescribe requirements governing bid and contract procedures for acquisition of the services of food service management companies, including, but not limited to, bonding requirements (which may provide exemptions applicable to contracts of $100,000 or less), procedures for review of contracts by States, and safeguards to prevent
collusive bidding activities between service institutions and food
service management companies.
(m) States and service institutions participating in programs
under this section shall keep such accounts and records as may be
necessary to enable the Secretary to determine whether there has
been compliance with this section and the regulations issued hereunder. Such accounts and records shall be available at any reasonable time for inspection and audit by representatives of the Secretary and shall be preserved for such period of time, not in excess
of five years, as the Secretary determines necessary.
(n) Each State desiring to participate in the program shall notify the Secretary by January 1 of each year of its intent to administer the program and shall submit for approval by February 15 a
management and administration plan for the program for the fiscal
year, which shall include, but not be limited to, (1) the State’s administrative budget for the fiscal year, and the State’s plans to comply with any standards prescribed by the Secretary under subsection (k) of this section; (2) the State’s plans for use of program
funds and funds from within the State to the maximum extent
practicable to reach needy children; (3) the State’s plans for providing technical assistance and training eligible service institutions;
(4) the State’s plans for monitoring and inspecting service institutions, feeding sites, and food service management companies and
for ensuring that such companies do not enter into contracts for
more meals than they can provide effectively and efficiently; (5) the
State’s plan for timely and effective action against program violators; and (6) the State’s plan for ensuring fiscal integrity by auditing service institutions not subject to auditing requirements prescribed by the Secretary.
October 21, 2009

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(o)(1) Whoever, in connection with any application, procurement, recordkeeping entry, claim for reimbursement, or other document or statement made in connection with the program, knowingly
and willfully falsifies, conceals, or covers up by any trick, scheme,
or device a material fact, or makes any false, fictitious, or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious,
or fraudulent statement or entry, or whoever, in connection with
the program, knowingly makes an opportunity for any person to defraud the United States, or does or omits to do any act with intent
to enable any person to defraud the United States, shall be fined
not more than $10,000 or imprisoned not more than five years, or
both.
(2) Whoever being a partner, officer, director, or managing
agent connected in any capacity with any partnership, association,
corporation, business, or organization, either public or private, that
receives benefits under the program, knowingly or willfully embezzles, misapplies, steals, or obtains by fraud, false statement, or forgery, any benefits provided by this section or any money, funds, assets, or property derived from benefits provided by this section,
shall be fined not more than $10,000 or imprisoned for not more
than five years, or both (but, if the benefits, money, funds, assets,
or property involved is not over $200, then the penalty shall be a
fine or not more than $1,000 or imprisonment for not more than
one year, or both).
(3) If two or more persons conspire or collude to accomplish any
act made unlawful under this subsection, and one or more of such
persons to any act to effect the object of the conspiracy or collusion,
each shall be fined not more than $10,000 or imprisoned for not
more than five years, or both.
(p)(1) In addition to the normal monitoring of organizations receiving assistance under this section, the Secretary shall establish
a system under which the Secretary and the States shall monitor
the compliance of private nonprofit organizations with the requirements of this section and with regulations issued to implement this
section.
(2) In the fiscal year 1990 and each succeeding fiscal year, the
Secretary may reserve for purposes of carrying out paragraph (1)
not more than 1⁄2 of 1 percent of amounts appropriated for purposes
of carrying out this section.
(q) For the period beginning October 1, 1977, and ending September 30, 2009, there are hereby authorized to be appropriated
such sums as are necessary to carry out the purposes of this section.
[TEMPORARY EMERGENCY ASSISTANCE TO PROVIDE NUTRITIOUS MEALS
TO NEEDY CHILDREN IN SCHOOLS]

[SEC. 13A. 13A–1 ø42 U.S.C. 1762¿]
COMMODITY DISTRIBUTION PROGRAM

SEC. 14. ø42 U.S.C. 1762a¿ (a) Notwithstanding any other provision of law, the Secretary shall—
(1) use funds available to carry out the provisions of section
32 of the Act of August 24, 1935 (7 U.S.C. 612c) which are not
expended or needed to carry out such provisions, to purchase
13A–1 This

October 21, 2009

section repealed by section 308 of P.L. 101–147, 103 Stat. 915, Nov. 10, 1989.

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Sec. 14

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(without regard to the provisions of existing law governing the
expenditure of public funds) agricultural commodities and their
products of the types customarily purchased under such section
(which may include domestic seafood commodities and their
products), for donation to maintain the annually programmed
level of assistance for programs carried on under this Act, the
Child Nutrition Act of 1966 [(42 U.S.C. 1771 et seq.)], and title
III of the Older Americans Act of 1965 [(42 U.S.C. 3021 et
seq.)]; and
(2) if stocks of the Commodity Credit Corporation are not
available, use the funds of such Corporation to purchase agricultural commodities and their products of the types customarily available under section 416 of the Agricultural Act of 1949
(7 U.S.C. 1431), for such donation.
(b)(1) The Secretary shall maintain and continue to improve
the overall nutritional quality of entitlement commodities provided
to schools to assist the schools in improving the nutritional content
of meals.
(2) The Secretary shall—
(A) require that nutritional content information labels be
placed on packages or shipments of entitlement commodities
provided to the schools; or
(B) otherwise provide nutritional content information regarding the commodities provided to the schools.
(c) The Secretary may use funds appropriated from the general
fund of the Treasury to purchase agricultural commodities and
their products of the types customarily purchased for donation
under section 311(a)(4) of the Older Americans Act of 1965 (42
U.S.C. 3030(a)(4)) or for cash payments in lieu of such donations
under section 311(b)(1) of such Act (42 U.S.C. 3030(b)(1)). 14–1 There
are hereby authorized to be appropriated such sums as are necessary to carry out the purposes of this subsection.
(d) In providing assistance under this Act and the Child Nutrition Act of 1966 [(42 U.S.C. 1771 et seq.)] for school lunch and
breakfast programs, the Secretary shall establish procedures which
will—
(1) ensure that the views of local school districts and private nonprofit schools with respect to the type of commodity assistance needed in schools are fully and accurately reflected in
reports to the Secretary by the State with respect to State commodity preferences and that such views are considered by the
Secretary in the purchase and distribution of commodities and
by the States in the allocation of such commodities among
schools within the States;
(2) solicit the views of States with respect to the acceptability of commodities;
(3) ensure that the timing of commodity deliveries to States
is consistent with State school year calendars and that such deliveries occur with sufficient advance notice;
(4) provide for systematic review of the costs and benefits
of providing commodities of the kind and quantity that are suitable to the needs of local school districts and private nonprofit
schools; and
14–1Citation

October 21, 2009

to 42 U.S.C. 3030(b)(1) probably should be to 42 U.S.C. 3030a(b)(1).

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(5) make available technical assistance on the use of commodities available under this Act and the Child Nutrition Act
of 1966.
Within eighteen months after the date of the enactment of this subsection [enacted on November 10, 1977], the Secretary shall report
to Congress on the impact of procedures established under this subsection, including the nutritional, economic, and administrative
benefits of such procedures. In purchasing commodities for programs carried out under this Act and the Child Nutrition Act of
1966, the Secretary shall establish procedures to ensure that contracts for the purchase of such commodities shall not be entered
into unless the previous history and current patterns of the contracting party with respect to compliance with applicable meat inspection laws and with other appropriate standards relating to the
wholesomeness of food for human consumption are taken into account.
(e) Each State agency that receives food assistance payments
under this section for any school year shall consult with representatives of schools in the State that participate in the school lunch program with respect to the needs of such schools relating to the manner of selection and distribution of commodity assistance for such
program.
(f) Commodity only schools shall be eligible to receive donated
commodities equal in value to the sum of the national average
value of donated foods established under section 6(c) of this Act and
the national average payment established under section 4 of this
Act. Such schools shall be eligible to receive up to 5 cents per meal
of such value in cash for processing and handling expenses related
to the use of such commodities. Lunches served in such schools
shall consist of a combination of foods which meet the minimum nutritional requirements prescribed by the Secretary under section
9(a) of this Act, and shall represent the four basic food groups, including a serving of fluid milk.
(g)(1) As used in this subsection, the term ‘‘eligible school district’’ has the same meaning given such term in section 1581(a) of
the Food Security Act of 1985.
(2) In accordance with the terms and conditions of section 1581
of such Act, the Secretary shall permit an eligible school district to
continue to receive assistance in the form of cash or commodity letters of credit assistance, in lieu of commodities, to carry out the
school lunch program operated in the district.
(h) NOTICE OF IRRADIATED FOOD PRODUCTS.—
(1) IN GENERAL.—The Secretary shall develop a policy and
establish procedures for the purchase and distribution of irradiated food products in school meals programs under this Act and
the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
(2) MINIMUM REQUIREMENTS.—The policy and procedures
shall ensure, at a minimum, that—
(A) irradiated food products are made available only at
the request of States and school food authorities;
(B) reimbursements to schools for irradiated food products are equal to reimbursements to schools for food products that are not irradiated;
(C) States and school food authorities are provided factual information on the science and evidence regarding irradiation technology, including—
October 21, 2009

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Sec. 15

RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

3–50

(i) notice that irradiation is not a substitute for
safe food handling techniques; and
(ii) any other similar information determined by
the Secretary to be necessary to promote food safety in
school meals programs;
(D) States and school food authorities are provided
model procedures for providing to school food authorities,
parents, and students—
(i) factual information on the science and evidence
regarding irradiation technology; and
(ii) any other similar information determined by
the Secretary to be necessary to promote food safety in
school meals;
(E) irradiated food products distributed to the Federal
school meals program under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) are labeled with
a symbol or other printed notice that—
(i) indicates that the product was irradiated; and
(ii) is prominently displayed in a clear and understandable format on the container;
(F) irradiated food products are not commingled in containers with food products that are not irradiated; and
(G) schools that offer irradiated food products are encouraged to offer alternatives to irradiated food products as
part of the meal plan used by the schools.
[NATIONAL ADVISORY COUNCIL]

[SEC. 15. 15–1 ø42 U.S.C. 1763¿ Repealed.]
ELECTION TO RECEIVE CASH PAYMENTS

SEC. 16. ø42 U.S.C. 1765¿ (a) Notwithstanding any other provision of law, where a State phased out its commodity distribution facilities prior to June 30, 1974, such State may, for purposes of the
programs authorized by this Act and the Child Nutrition Act of
1966 [(42 U.S.C. 1771 et seq.)], elect to receive cash payments in
lieu of donated foods. Where such an election is made, the Secretary
shall make cash payments to such State in an amount equivalent
in value to the donated foods that the State would otherwise have
received if it had retained its commodity distribution facilities. The
amount of cash payments in the case of lunches shall be governed
by section 6(c) of this Act.
(b) When such payments are made, the State educational agency shall promptly and equitably disburse any cash it receives in lieu
of commodities to eligible schools and institutions, and such disbursements shall be used by such schools and institutions to purchase United States agricultural commodities and other foods for
their food service programs.
SEC. 17. ø42 U.S.C. 1766¿ CHILD AND ADULT CARE FOOD PROGRAM.

(a) GRANT AUTHORITY AND INSTITUTION ELIGIBILITY.—
(1) GRANT AUTHORITY.—The Secretary may carry out a program to assist States through grants-in-aid and other means to
initiate and maintain nonprofit food service programs for children in institutions providing child care.
15–1 Section 15, which established a National Advisory Council, repealed by section 104
of P.L. 101–147, 103 Stat. 883, Nov. 10, 1989.

October 21, 2009

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(2) DEFINITION OF INSTITUTION.—In this section, the term
‘‘institution’’ means—
(A) any public or private nonprofit organization providing nonresidential child care or day care outside school
hours for school children, including any child care center,
settlement house, recreational center, Head Start center,
and institution providing child care facilities for children
with disabilities;
(B) any other private organization providing nonresidential child care or day care outside school hours for
school children, if—
(i) at least 25 percent of the children served by the
organization meet the income eligibility criteria established under section 9(b) for free or reduced price
meals; or
(ii) the organization receives compensation from
amounts granted to the States under title XX of the
Social Security Act (42 U.S.C. 1397 et seq.) (but only
if the organization receives compensation under that
title for at least 25 percent of its enrolled children or
25 percent of its licensed capacity, whichever is less);
(C) any public or private nonprofit organization acting
as a sponsoring organization for one or more of the organizations described in subparagraph (A) or (B) or for an adult
day care center (as defined in subsection (o)(2));
(D) any other private organization acting as a sponsoring organization for, and that is part of the same legal
entity as, one or more organizations that are—
(i) described in subparagraph (B); or
(ii) proprietary title XIX or title XX centers (as defined in subsection (o)(2));
(E) any public or private nonprofit organization acting
as a sponsoring organization for one or more family or
group day care homes; and
(F) any emergency shelter (as defined in subsection
(t)).
(3) AGE LIMIT.—Except as provided in subsection (r), reimbursement may be provided under this section only for meals
or supplements served to children not over 12 years of age (except that such age limitation shall not be applicable for children of migrant workers if 15 years of age or less or for children with disabilities).
(4) ADDITIONAL GUIDELINES.—The Secretary may establish
separate guidelines for institutions that provide care to school
children outside of school hours.
(5) LICENSING.—In order to be eligible, an institution (except a school or family or group day care home sponsoring organization) or family or group day care home shall—
(A)(i) be licensed, or otherwise have approval, by the
appropriate Federal, State, or local licensing authority; or
(ii) be in compliance with appropriate procedures for
renewing participation in the program, as prescribed by the
Secretary, and not be the subject of information possessed
by the State indicating that the license of the institution
or home will not be renewed;
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(B) if Federal, State, or local licensing or approval is
not available—
(i) meet any alternate approval standards established by the appropriate State or local governmental
agency; or
(ii) meet any alternate approval standards established by the Secretary after consultation with the Secretary of Health and Human Services; or
(C) if the institution provides care to school children
outside of school hours and Federal, State, or local licensing or approval is not required for the institution, meet
State or local health and safety standards.
(6) ELIGIBILITY CRITERIA.—No institution shall be eligible
to participate in the program unless it satisfies the following
criteria:
(A) accepts final administrative and financial responsibility for management of an effective food service;
(B) has not been seriously deficient in its operation of
the child and adult care food program, or any other program under this Act or the Child Nutrition Act of 1966 [(42
U.S.C. 1771 et seq.)], or has not been determined to be ineligible to participate in any other publicly funded program
by reason of violation of the requirements of the program,
for a period of time specified by the Secretary;
(C)(i) will provide adequate supervisory and operational personnel for overall monitoring and management
of the child care food program; and
(ii) in the case of a sponsoring organization, the organization shall employ an appropriate number of monitoring
personnel based on the number and characteristics of child
care centers and family or group day care homes sponsored
by the organization, as approved by the State (in accordance with regulations promulgated by the Secretary), to ensure effective oversight of the operations of the child care
centers and family or group day care homes;
(D) in the case of a family or group day care home
sponsoring organization that employs more than one employee, the organization does not base payments to an employee of the organization on the number of family or group
day care homes recruited;
(E) in the case of a sponsoring organization, the organization has in effect a policy that restricts other employment by employees that interferes with the responsibilities
and duties of the employees of the organization with respect to the program; and
(F) in the case of a sponsoring organization that applies for initial participation in the program on or after the
date of the enactment of this subparagraph and that operates in a State that requires such institutions to be bonded
under State law, regulation, or policy, the institution is
bonded in accordance with such law, regulation, or policy.
(b) For the fiscal year ending September 30, 1979, and for each
subsequent fiscal year, the Secretary shall provide cash assistance
to States for meals as provided in subsection (f) of this section, except that, in any fiscal year, the aggregate amount of assistance
provided to a State by the Secretary under this section shall not exOctober 21, 2009

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Sec. 17

ceed the sum of (1) the Federal funds provided by the State to participating institutions within the State for that fiscal year and (2)
any funds used by the State under section 10 of the Child Nutrition
Act of 1966 [(42 U.S.C. 1779)].
(c)(1) For purposes of this section, except as provided in subsection (f)(3), the national average payment rate for free lunches
and suppers, the national average payment rate for reduced price
lunches and suppers, and the national average payment rate for
paid lunches and suppers shall be the same as the national average
payment rates for free lunches, reduced price lunches, and paid
lunches, respectively, under sections 4 and 11 of this Act as appropriate (as adjusted pursuant to section 11(a) of this Act).
(2) For purposes of this section, except as provided in subsection (f)(3), the national average payment rate for free breakfasts,
the national average payment rate for reduced price breakfasts, and
the national average payment rate for paid breakfasts shall be the
same as the national average payment rates for free breakfasts, reduced price breakfasts, and paid breakfasts, respectively, under section 4(b) of the Child Nutrition Act of 1966 [(42 U.S.C. 1773(b)] (as
adjusted pursuant to section 11(a) of this Act).
(3) For purposes of this section, except as provided in subsection (f)(3), the national average payment rate for free supplements shall be 30 cents, the national average payment rate for reduced price supplements shall be one-half the rate for free supplements, and the national average payment rate for paid supplements
shall be 2.75 cents (as adjusted pursuant to section 11(a) of this
Act).
(4) Determinations with regard to eligibility for free and reduced price meals and supplements shall be made in accordance
with the income eligibility guidelines for free lunches and reduced
price lunches, respectively, under section 9 of this Act.
(5) 17–1 A child shall be considered automatically eligible for
benefits under this section without further application or eligibility
determination, if the child is enrolled as a participant in a Head
Start program authorized under the Head Start Act (42 U.S.C. 9831
et seq.), on the basis of a determination that the child meets the
eligibility criteria prescribed under section 645(a)(1)(B) of the Head
Start Act (42 U.S.C. 9840(a)(1)(B)).
(6) A child who has not yet entered kindergarten shall be considered automatically eligible for benefits under this section without further application or eligibility determination if the child is enrolled as a participant in the Even Start program under part B of
chapter 1 of title I of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 2741 et seq.).
(d) INSTITUTION APPROVAL AND APPLICATIONS.—
(1) INSTITUTION APPROVAL.—
(A) ADMINISTRATIVE CAPABILITY.—Subject to subparagraph (B) and except as provided in subparagraph (C), the
State agency shall approve an institution that meets the
requirements of this section for participation in the child
and adult care food program if the State agency determines
that the institution—
17–1 Effective September 25, 1995, this paragraph added by section 109(b) of P.L. 103–
448, 108 Stat. 4705, Nov. 2, 1994. Although such section 109 amended this subsection ‘‘by
adding at the end’’ paragraph (5) and delayed the amendment until after paragraph (6)
was added, paragraph (5) was inserted before paragraph (6) to effectuate the probable intent of Congress.

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(i) is financially viable;
(ii) is administratively capable of operating the
program (including whether the sponsoring organization has business experience and management plans
appropriate to operate the program) described in the
application of the institution; and
(iii) has internal controls in effect to ensure program accountability.
(B) APPROVAL OF PRIVATE INSTITUTIONS.—
(i) IN GENERAL.—In addition to the requirements
established by subparagraph (A) and subject to clause
(ii), the State agency shall approve a private institution that meets the requirements of this section for
participation in the child and adult care food program
only if—
(I) the State agency conducts a satisfactory
visit to the institution before approving the participation of the institution in the program; and
(II) the institution—
(aa) has tax exempt status under the Internal Revenue Code of 1986;
(bb) is operating a Federal program requiring nonprofit status to participate in the
program; or
(cc) is described in subsection (a)(2)(B).
(ii) EXCEPTION FOR FAMILY OR GROUP DAY CARE
HOMES.—Clause (i) shall not apply to a family or group
day care home.
(C) EXCEPTION FOR CERTAIN SPONSORING ORGANIZATIONS.—
(i) IN GENERAL.—The State agency may approve
an eligible institution acting as a sponsoring organization for one or more family or group day care homes
or centers that, at the time of application, is not participating in the child and adult care food program
only if the State agency determines that—
(I) the institution meets the requirements established by subparagraphs (A) and (B); and
(II) the participation of the institution will
help to ensure the delivery of benefits to otherwise
unserved family or group day care homes or centers or to unserved children in an area.
(ii) CRITERIA FOR SELECTION.—The State agency
shall establish criteria for approving an eligible institution acting as a sponsoring organization for one or
more family or group day care homes or centers that,
at the time of application, is not participating in the
child and adult care food program for the purpose of
determining if the participation of the institution will
help ensure the delivery of benefits to otherwise
unserved family or group day care homes or centers or
to unserved children in an area.
(D) NOTIFICATION TO APPLICANTS.—Not later than 30
days after the date on which an applicant institution files
a completed application with the State agency, the State
agency shall notify the applicant institution whether the
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Sec. 17

institution has been approved or disapproved to participate
in the child and adult care food program.
(2)(A) The Secretary shall develop a policy that—
(i) allows institutions providing child care that participate
in the program under this section, at the option of the State
agency, to reapply for assistance under this section at 3-year
intervals;
(ii)(I) requires periodic unannounced site visits at not less
than 3-year intervals to sponsored child care centers and family
or group day care homes to identify and prevent management
deficiencies and fraud and abuse under the program;
(II) requires at least one scheduled site visit each year to
sponsored child care centers and family or group day care
homes to identify and prevent management deficiencies and
fraud and abuse under the program and to improve program
operations; and
(III) requires at least one scheduled site visit at not less
than 3-year intervals to sponsoring organizations and nonsponsored child care centers to identify and prevent management
deficiencies and fraud and abuse under the program and to improve program operations; and
(iii) requires periodic site visits to private institutions that
the State agency determines have a high probability of program
abuse.
(B) Each State agency that exercises the option authorized by
subparagraph (A) shall confirm on an annual basis that each such
institution is in compliance with the licensing or approval provisions of subsection (a)(5).
(3) PROGRAM INFORMATION.—
(A) IN GENERAL.—On enrollment of a child in a sponsored child care center or family or group day care home
participating in the program, the center or home (or its
sponsoring organization) shall provide to the child’s parents or guardians—
(i) information that describes the program and its
benefits; and
(ii) the name and telephone number of the sponsoring organization of the center or home and the
State agency involved in the operation of the program.
(B) FORM.—The information described in subparagraph
(A) shall be in a form and, to the maximum extent practicable, language easily understandable by the child’s parents or guardians.
(4) ALLOWABLE ADMINISTRATIVE EXPENSES FOR SPONSORING
ORGANIZATIONS.—In consultation with State agencies and sponsoring organizations, the Secretary shall develop, and provide
for the dissemination to State agencies and sponsoring organizations of, a list of allowable reimbursable administrative expenses for sponsoring organizations under the program.
(5) TERMINATION OR SUSPENSION OF PARTICIPATING ORGANIZATIONS.—
(A) IN GENERAL.—The Secretary shall establish procedures for the termination of participation by institutions
and family or group day care homes under the program.
(B) STANDARDS.—Procedures established pursuant to
subparagraph (A) shall include standards for terminating
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3–56

the participation of an institution or family or group day
care home that—
(i) engages in unlawful practices, falsifies information provided to the State agency, or conceals a criminal background; or
(ii) substantially fails to fulfill the terms of its
agreement with the State agency.
(C) CORRECTIVE ACTION.—Procedures established pursuant to subparagraph (A)—
(i) shall require an entity described in subparagraph (B) to undertake corrective action; and
(ii) may require the immediate suspension of operation of the program by an entity described in subparagraph (B), without the opportunity for corrective action, if the State agency determines that there is imminent threat to the health or safety of a participant at
the entity or the entity engages in any activity that
poses a threat to public health or safety.
(D) HEARING.—
(i) IN GENERAL.—Except as provided in clause (ii),
an institution or family or group day care home shall
be provided a fair hearing in accordance with subsection (e)(1) prior to any determination to terminate
participation by the institution or family or group day
care home under the program.
(ii) EXCEPTION FOR FALSE OR FRAUDULENT
CLAIMS.—
(I) IN GENERAL.—If a State agency determines
that an institution has knowingly submitted a
false or fraudulent claim for reimbursement, the
State agency may suspend the participation of the
institution in the program in accordance with this
clause.
(II) REQUIREMENT FOR REVIEW.—Prior to any
determination to suspend participation of an institution under subclause (I), the State agency shall
provide for an independent review of the proposed
suspension in accordance with subclause (III).
(III) REVIEW PROCEDURE.—The review shall—
(aa) be conducted by an independent and
impartial official other than, and not accountable to, any person involved in the determination to suspend the institution;
(bb) provide the State agency and the institution the right to submit written documentation relating to the suspension, including State agency documentation of the alleged
false or fraudulent claim for reimbursement
and the response of the institution to the documentation;
(cc) require the reviewing official to determine, based on the review, whether the State
agency has established, based on a preponderance of the evidence, that the institution has
knowingly submitted a false or fraudulent
claim for reimbursement;
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(dd) require the suspension to be in effect
for not more than 120 calendar days after the
institution has received notification of a determination of suspension in accordance with this
clause; and
(ee) require the State agency during the
suspension to ensure that payments continue
to be made to sponsored centers and family
and group day care homes meeting the requirements of the program.
(IV) HEARING.—A State agency shall provide
an institution that has been suspended from participation in the program under this clause an opportunity for a fair hearing on the suspension conducted in accordance with subsection (e)(1).
(E) LIST OF DISQUALIFIED INSTITUTIONS AND INDIVIDUALS.—
(i) IN GENERAL.—The Secretary shall maintain a
list of institutions, sponsored family or group day care
homes, and individuals that have been terminated or
otherwise disqualified from participation in the program.
(ii) AVAILABILITY.—The Secretary shall make the
list available to State agencies for use in approving or
renewing applications by institutions, sponsored family
or group day care homes, and individuals for participation in the program.
(e) Except as provided in paragraph (2), the State shall provide,
in accordance with regulations issued by the Secretary, a fair hearing and a prompt determination to any institution aggrieved by the
action of the State as it affects the participation of such institution
in the program authorized by this section, or its claim for reimbursement under this section.
(2) A State is not required to provide a hearing to an institution concerning a State action taken on the basis of a Federal audit
determination.
(3) If a State does not provide a hearing to an institution concerning a State action taken on the basis of a Federal audit determination, the Secretary, on request, shall afford a hearing to the
institution concerning the action.
(f) STATE DISBURSEMENTS TO INSTITUTIONS.—
(1) IN GENERAL.—
(A) REQUIREMENT.—Funds paid to any State under
this section shall be disbursed to eligible institutions by the
State under agreements approved by the Secretary. Disbursements to any institution shall be made only for the
purpose of assisting in providing meals to children attending institutions, or in family or group day care homes. Disbursement to any institution shall not be dependent upon
the collection of moneys from participating children. All
valid claims from such institutions shall be paid within
forty-five days of receipt by the State. The State shall notify the institution within fifteen days of receipt of a claim
if the claim as submitted is not valid because it is incomplete or incorrect.
(B) FRAUD OR ABUSE.—
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(i) IN GENERAL.—The State may recover funds disbursed under subparagraph (A) to an institution if the
State determines that the institution has engaged in
fraud or abuse with respect to the program or has submitted an invalid claim for reimbursement.
(ii) PAYMENT.—Amounts recovered under clause
(i)—
(I) may be paid by the institution to the State
over a period of one or more years; and
(II) shall not be paid from funds used to provide meals and supplements.
(iii) HEARING.—An institution shall be provided a
fair hearing in accordance with subsection (e)(1) prior
to any determination to recover funds under this subparagraph.
(2)(A) Subject to subparagraph (B) of this paragraph, the disbursement for any fiscal year to any State for disbursement to institutions, other than family or group day care home sponsoring organizations, for meals provided under this section shall be equal to
the sum of the products obtained by multiplying the total number
of each type of meal (breakfast, lunch, or supper, or supplement)
served in such institution in that fiscal year by the applicable national average payment rate for each such type of meal, as determined under subsection (c).
(B) No reimbursement may be made to any institution under
this paragraph, or to family or group day care home sponsoring organizations under paragraph (3) of this subsection, for more than
two meals and one supplement per day per child, or in the case of
an institution (but not in the case of a family or group day care
home sponsoring organization), 2 meals and 1 supplement per day
per child, for children that are maintained in a child care setting
for eight or more hours per day.
(C) LIMITATION ON ADMINISTRATIVE EXPENSES FOR CERTAIN SPONSORING ORGANIZATIONS.—
(i) IN GENERAL.—Except as provided in clause (ii),
a sponsoring organization of a day care center may reserve not more than 15 percent of the funds provided
under paragraph (1) for the administrative expenses of
the organization.
(ii) WAIVER.—A State may waive the requirement
in clause (i) with respect to a sponsoring organization
if the organization provides justification to the State
that the organization requires funds in excess of 15
percent of the funds provided under paragraph (1) to
pay the administrative expenses of the organization.
(3) REIMBURSEMENT OF FAMILY OR GROUP DAY CARE HOME
SPONSORING ORGANIZATIONS.—
(A) REIMBURSEMENT FACTOR.—
(i) IN GENERAL.—An institution that participates
in the program under this section as a family or group
day care home sponsoring organization shall be provided, for payment to a home sponsored by the organization, reimbursement factors in accordance with this
subparagraph for the cost of obtaining and preparing
food and prescribed labor costs involved in providing
meals under this section.
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(ii) TIER I FAMILY OR GROUP DAY CARE HOMES.—
(I) DEFINITION OF TIER I FAMILY OR GROUP DAY
CARE HOME.—In this paragraph, the term ‘tier I
family or group day care home’ means—
(aa) a family or group day care home that
is located in a geographic area, as defined by
the Secretary based on census data, in which
at least 50 percent of the children residing in
the area are members of households whose incomes meet the income eligibility guidelines
for free or reduced price meals under section
9;
(bb) a family or group day care home that
is located in an area served by a school enrolling elementary students in which at least 50
percent of the total number of children enrolled are certified eligible to receive free or
reduced price school meals under this Act or
the Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.); or
(cc) a family or group day care home that
is operated by a provider whose household
meets the income eligibility guidelines for free
or reduced price meals under section 9 and
whose income is verified by the sponsoring organization of the home under regulations established by the Secretary.
(II) REIMBURSEMENT.—Except as provided in
subclause (III), a tier I family or group day care
home shall be provided reimbursement factors
under this clause without a requirement for documentation of the costs described in clause (i), except that reimbursement shall not be provided
under this subclause for meals or supplements
served to the children of a person acting as a family or group day care home provider unless the
children meet the income eligibility guidelines for
free or reduced price meals under section 9.
(III) FACTORS.—Except as provided in subclause (IV), the reimbursement factors applied to a
home referred to in subclause (II) shall be the factors in effect on July 1, 1996.
(IV) ADJUSTMENTS.—The reimbursement factors under this subparagraph shall be adjusted on
July 1, 1997, and each July 1 thereafter, to reflect
changes in the Consumer Price Index for food at
home for the most recent 12-month period for
which the data are available. The reimbursement
factors under this subparagraph shall be rounded
to the nearest lower cent increment and based on
the unrounded adjustment in effect on June 30 of
the preceding school year.
(iii) TIER II FAMILY OR GROUP DAY CARE HOMES.—
(I) IN GENERAL.—
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ments served under this clause by a family or
group day care home that does not meet the
criteria set forth in clause (ii)(I), the reimbursement factors shall be 95 cents for
lunches and suppers, 27 cents for breakfasts,
and 13 cents for supplements.
(bb) ADJUSTMENTS.—The factors shall be
adjusted on July 1, 1997, and each July 1
thereafter, to reflect changes in the Consumer
Price Index for food at home for the most recent 12-month period for which the data are
available. The reimbursement factors under
this item shall be rounded down to the nearest
lower cent increment and based on the
unrounded adjustment for the preceding 12month period.
(cc) REIMBURSEMENT.—A family or group
day care home shall be provided reimbursement factors under this subclause without a
requirement for documentation of the costs described in clause (i), except that reimbursement shall not be provided under this subclause for meals or supplements served to the
children of a person acting as a family or
group day care home provider unless
the children meet the income eligibility guidelines for free or reduced price meals under section 9.
(II) OTHER FACTORS.—A family or group day
care home that does not meet the criteria set forth
in clause (ii)(I) may elect to be provided reimbursement factors determined in accordance with the
following requirements:
(aa) CHILDREN ELIGIBLE FOR FREE OR REDUCED PRICE MEALS.—In the case of meals or
supplements served under this subsection to
children who are members of households
whose incomes meet the income eligibility
guidelines for free or reduced price meals
under section 9, the family or group day care
home shall be provided reimbursement factors
set by the Secretary in accordance with clause
(ii)(III).
(bb) INELIGIBLE CHILDREN.—In the case of
meals or supplements served under this subsection to children who are members of households whose incomes do not meet the income
eligibility guidelines, the family or group day
care home shall be provided reimbursement
factors in accordance with subclause (I).
(III) INFORMATION AND DETERMINATIONS.—
(aa) IN GENERAL.—If a family or group
day care home elects to claim the factors described in subclause (II), the family or group
day care home sponsoring organization serving
the home shall collect the necessary income
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information, as determined by the Secretary,
from any parent or other caretaker to make
the determinations specified in subclause (II)
and shall make the determinations in accordance with rules prescribed by the Secretary.
(bb) CATEGORICAL ELIGIBILITY.—In making a determination under item (aa), a family
or group day care home sponsoring organization may consider a child participating in or
subsidized under, or a child with a parent participating in or subsidized under, a federally
or State supported child care or other benefit
program with an income eligibility limit that
does not exceed the eligibility standard for
free or reduced price meals under section 9 to
be a child who is a member of a household
whose income meets the income eligibility
guidelines under section 9.
(cc) FACTORS FOR CHILDREN ONLY.—A
family or group day care home may elect to receive the reimbursement factors prescribed
under clause (ii)(III) solely for the children
participating in a program referred to in item
(bb) if the home elects not to have income
statements collected from parents or other
caretakers.
(IV) SIMPLIFIED MEAL COUNTING AND REPORTING PROCEDURES.—The Secretary shall prescribe
simplified meal counting and reporting procedures
for use by a family or group day care home that
elects to claim the factors under subclause (II) and
by a family or group day care home sponsoring organization that sponsors the home. The procedures
the Secretary prescribes may include 1 or more of
the following:
(aa) Setting an annual percentage for each
home of the number of meals served that are
to be reimbursed in accordance with the reimbursement factors prescribed under clause
(ii)(III) and an annual percentage of the number of meals served that are to be reimbursed
in accordance with the reimbursement factors
prescribed under subclause (I), based on the
family income of children enrolled in the home
in a specified month or other period.
(bb) Placing a home into 1 of 2 or more reimbursement categories annually based on the
percentage of children in the home whose
households have incomes that meet the income eligibility guidelines under section 9,
with each such reimbursement category carrying a set of reimbursement factors such as
the factors prescribed under clause (ii)(III) or
subclause (I) or factors established within the
range of factors prescribed under clause
(ii)(III) and subclause (I).
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(cc) Such other simplified procedures as
the Secretary may prescribe.
(V) MINIMUM VERIFICATION REQUIREMENTS.—
The Secretary may establish any minimum
verification requirements that are necessary to
carry out this clause.
(B) Family or group day care home sponsoring organizations
shall also receive reimbursement for their administrative expenses
in amounts not exceeding the maximum allowable levels prescribed
by the Secretary. Such levels shall be adjusted July 1 of each year
to reflect changes in the Consumer Price Index for all items for the
most recent 12-month period for which such data are available.
(C)(i) Reimbursement for administrative expenses shall also include start-up funds to finance the administrative expenses for such
institutions to initiate successful operation under the program and
expansion funds to finance the administrative expenses for such institutions to expand into low-income or rural areas. Institutions
that have received start-up funds may also apply at a later date for
expansion funds. Such start-up funds and expansion funds shall be
in addition to other reimbursement to such institutions for administrative expenses. Start-up funds and expansion funds shall be payable to enable institutions satisfying the criteria of subsection (d)
of this section, and any other standards prescribed by the Secretary, to develop an application for participation in the program as
a family or group day care home sponsoring organization or to implement the program upon approval of the application. Such startup funds and expansion funds shall be payable in accordance with
the procedures prescribed by the Secretary. The amount of start-up
funds and expansion funds payable to an institution shall be not
less than the institution’s anticipated reimbursement for administrative expenses under the program for one month and not more
than the institution’s anticipated reimbursement for administrative
expenses under the program for two months.
(ii) Funds for administrative expenses may be used by family
or group day care home sponsoring organizations assist unlicensed
family or group day care homes in becoming licensed.
(D) LIMITATIONS ON ABILITY OF FAMILY OR GROUP DAY
CARE HOMES TO TRANSFER SPONSORING ORGANIZATIONS.—
(i) IN GENERAL.—Subject to clause (ii), a State
agency shall limit the ability of a family or group day
care home to transfer from a sponsoring organization
to another sponsoring organization more frequently
than once a year.
(ii) GOOD CAUSE.—The State agency may permit or
require a family or group day care home to transfer
from a sponsoring organization to another sponsoring
organization more frequently than once a year for good
cause (as determined by the State agency), including
circumstances in which the sponsoring organization of
the family or group day care home ceases to participate in the child and adult care food program.
(E) PROVISION OF DATA TO FAMILY OR GROUP DAY CARE
HOME SPONSORING ORGANIZATIONS.—
(i) CENSUS DATA.—The Secretary shall provide to
each State agency administering a child and adult care
food program under this section data from the most reOctober 21, 2009

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cent decennial census survey or other appropriate census survey for which the data are available showing
which areas in the State meet the requirements of subparagraph (A)(ii)(I)(aa). The State agency shall provide
the data to family or group day care home sponsoring
organizations located in the State.
(ii) SCHOOL DATA.—
(I) IN GENERAL.—A State agency administering the school lunch program under this Act
or the school breakfast program under the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall
provide to approved family or group day care home
sponsoring organizations a list of schools serving
elementary school children in the State in which
not less than 1⁄2 of the children enrolled are certified to receive free or reduced price meals. The
State agency shall collect the data necessary to
create the list annually and provide the list on a
timely basis to any approved family or group day
care home sponsoring organization that requests
the list.
(II) USE OF DATA FROM PRECEDING SCHOOL
YEAR.—In determining for a fiscal year or other
annual period whether a home qualifies as a tier
I family or group day care home under subparagraph (A)(ii)(I), the State agency administering the
program under this section, and a family or group
day care home sponsoring organization, shall use
the most current available data at the time of the
determination.
(iii) DURATION OF DETERMINATION.—For purposes
of this section, a determination that a family or group
day care home is located in an area that qualifies the
home as a tier I family or group day care home (as the
term is defined in subparagraph (A)(ii)(I)), shall be in
effect for 5 years (unless the determination is made on
the basis of census data, in which case the determination shall remain in effect until more recent census
data are available) unless the State agency determines
that the area in which the home is located no longer
qualifies the home as a tier I family or group day care
home.
(4) By the first day of each month of operation, the State may
provide advance payments for the month to each approved institution in an amount that reflects the full level of valid claims customarily received from such institution for one month’s operation. In
the case of a newly participating institution, the amount of the advance shall reflect the State’s best estimate of the level of valid
claims such institutions will submit. If the State has reason to believe that an institution will not be able to submit a valid claim covering the period for which such an advance has been made, the subsequent month’s advance payment shall be withheld until the State
receives a valid claim. Payments advanced to institutions that are
not subsequently deducted from a valid claim for reimbursement
shall be repaid upon demand by the State. Any prior payment that
is under dispute may be subtracted from an advance payment.
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(g)(1)(A) Meals served by institutions participating in the program under this section shall consist of a combination of foods that
meet minimum nutritional requirements prescribed by the Secretary on the basis of tested nutritional research.
(B) The Secretary shall provide technical assistance to those institutions participating in the program under this section to assist
the institutions and family or group day care home sponsoring organizations in complying with the nutritional requirements prescribed
by the Secretary pursuant to subparagraph (A).
(2) No physical segregation or other discrimination against any
child shall be made because of his or her inability to pay, nor shall
there be any overt identification of any such child by special tokens
or tickets, different meals or meal service, announced or published
lists of names, or other means.
(3) Each institution shall, insofar as practicable, use in its food
service foods designated from time to time by the Secretary as
being in abundance, either nationally or in the food service area, or
foods donated by the Secretary.
(h)(1)(A) The Secretary shall donate agricultural commodities
produced in the United States for use in institutions participating
in the child care food program under this section.
(B) The value of the commodities donated under subparagraph
(A) (or cash in lieu of commodities) to each State for each school
year shall be, at a minimum, the amount obtained by multiplying
the number of lunches and suppers served in participating institutions in that State during the preceding school year by the rate for
commodities or cash in lieu of commodities established under section 6(c) for the school year concerned.
(C) After the end of each school year, the Secretary shall—
(i) reconcile the number of lunches and suppers served in
participating institutions in each State during such school year
with the number of lunches and suppers served by participating institutions in each State during the preceding school
year; and
(ii) based on such reconciliation, increase or reduce subsequent commodity assistance or cash in lieu of commodities provided to each State.
(D) Any State receiving assistance under this section for institutions participating in the child care food program may, upon application to the Secretary, receive cash in lieu of some or all of the
commodities to which it would otherwise be entitled under this subsection. In determining whether to request cash in lieu of commodities, the State shall base its decision on the preferences of individual participating institutions within the State, unless this proves
impracticable due to the small number of institutions preferring donated commodities.
(2) The Secretary is authorized to provide agricultural commodities obtained by the Secretary under the provisions of the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) and donated under the provisions of section 416 of such Act, to the Department of Defense for
use by its institutions providing child care services, when such commodities are in excess of the quantities needed to meet the needs
of all other child nutrition programs, domestic and foreign food assistance and export enhancement programs. The Secretary shall require reimbursement from the Department of Defense for the costs,
or some portion thereof, of delivering such commodities to overseas
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locations, unless the Secretary determines that it is in the best interest of the program that the Department of Agriculture shall assume such costs.
(i) AUDITS.—
(1) DISREGARDS.—
(A) IN GENERAL.—Subject to subparagraph (B), in conducting management evaluations, reviews, or audits under
this section, the Secretary or a State agency may disregard
any overpayment to an institution for a fiscal year if the
total overpayment to the institution for the fiscal year does
not exceed an amount that is consistent with the disregards allowed in other programs under this Act and recognizes the cost of collecting small claims, as determined
by the Secretary.
(B) CRIMINAL OR FRAUD VIOLATIONS.—In carrying out
this paragraph, the Secretary and a State agency shall not
disregard any overpayment for which there is evidence of
a violation of a criminal law or civil fraud law.
(2) FUNDING.—The Secretary shall make available for each
fiscal year to States administering the child care food program,
for the purpose of conducting audits of participating institutions, an amount up to 1.5 percent (except, in the case of each
of fiscal years 2005 through 2007, 1 percent) of the funds used
by each State in the program under this section, during the
second preceding fiscal year.
(j) AGREEMENTS.—
(1) IN GENERAL.—The Secretary may issue regulations directing States to develop and provide for the use of a standard
form of agreement between each family or group day care sponsoring organization and the family or group day care homes
participating in the program under such organization, for the
purpose of specifying the rights and responsibilities of each
party.
(2) DURATION.—An agreement under paragraph (1) shall
remain in effect until terminated by either party to the agreement.
(k) TRAINING AND TECHNICAL ASSISTANCE.—A State participating in the program established under this section shall provide
sufficient training, technical assistance, and monitoring to facilitate
effective operation of the program. The Secretary shall assist the
State in developing plans to fulfill the requirements of this subsection.
(l) Expenditures of funds from State and local sources for the
maintenance of food programs for children shall not be diminished
as a result of funds received under this section.
(m) States and institutions participating in the program under
this section shall keep such accounts and records as may be necessary to enable the Secretary to determine whether there has been
compliance with the requirements of this section. Such accounts
and records shall be available at any reasonable time for inspection
and audit by representatives of the Secretary, the Comptroller General of the United States, and appropriate State representatives
and shall be preserved for such period of time, not in excess of five
years, as the Secretary determines necessary.
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(n) There are hereby authorized to be appropriated for each fiscal year such funds as are necessary to carry out the purposes of
this section.
(o)(1) For purposes of this section, adult day care centers shall
be considered eligible institutions for reimbursement for meals or
supplements served to persons 60 years of age or older or to chronically impaired disabled persons, including victims of Alzheimer’s
disease and related disorders with neurological and organic brain
dysfunction. Reimbursement provided to such institutions for such
purposes shall improve the quality of meals or level of services provided or increase participation in the program. Lunches served by
each such institution for which reimbursement is claimed under
this section shall provide, on the average, approximately 1⁄3 of the
daily recommended dietary allowance established by the Food and
Nutrition Board of the National Research Council of the National
Academy of Sciences. Such institutions shall make reasonable efforts to serve meals that meet the special dietary requirements of
participants, including efforts to serve foods in forms palatable to
participants.
(2) For purposes of this subsection—
(A) the term ‘‘adult day care center’’ means any public
agency or private nonprofit organization, or any proprietary
title XIX or title XX center, which—
(i) is licensed or approved by Federal, State, or local
authorities to provide adult day care services to chronically
impaired disabled adults or persons 60 years of age or
older in a group setting outside their homes, or a group living arrangement, on a less than 24-hour basis; and
(ii) provides for such care and services directly or
under arrangements made by the agency or organization
whereby the agency or organization maintains professional
management responsibility for all such services; and
(B) the term ‘‘proprietary title XIX or title XX center’’
means any private, for-profit center providing adult day care
services for which it receives compensation from amounts
granted to the States under title XIX or XX of the Social Security Act [(42 U.S.C. 1396 et seq.)] and which title XIX or title
XX beneficiaries were not less than 25 percent of enrolled eligible participants in a calendar month preceding initial application or annual reapplication for program participation.
(3)(A) The Secretary, in consulation with the Assistant Secretary for Aging, shall establish, within 6 months of enactment [enacted on October 1, 1988], separate guidelines for reimbursement of
institutions described in this subsection. Such reimbursement shall
take into account the nutritional requirements of eligible persons,
as determined by the Secretary on the basis of tested nutritional research, except that such reimbursement shall not be less than
would otherwise be required under this section.
(B) The guidelines shall contain provisions designed to assure
that reimbursement under this subsection shall not duplicate reimbursement under part C of title III of the Older Americans Act of
1965 [(42 U.S.C. 3030e et seq.)], for the same meal served.
(4) For the purpose of establishing eligibility for free or reduced
price meals or supplements under this subsection, income shall include only the income of an eligible person and, if any, the spouse
and dependents with whom the eligible person resides.
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(5) A person described in paragraph (1) shall be considered
automatically eligible for free meals or supplements under this subsection, without further application or eligibility determination, if
the person is—
(A) a member of a household receiving assistance under the
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.); or
(B) a recipient of assistance under title XVI or XIX of the
Social Security Act (42 U.S.C. 1381 et seq.).
(6) The Governor of any State may designate to administer the
program under this subsection a State agency other than the agency that administers the child care food program under this section.
(p) RURAL AREA ELIGIBILITY DETERMINATION FOR DAY CARE
HOMES.—
(1) DEFINITION OF SELECTED TIER I FAMILY OR GROUP DAY
CARE HOME.—In this subsection, the term ‘‘selected tier I family
or group day care home’’ means a family or group day home
that meets the definition of tier I family or group day care
home under subclause (I) of subsection (f)(3)(A)(ii) except that
items (aa) and (bb) of that subclause shall be applied by substituting ‘‘40 percent’’ for ‘‘50 percent’’.
(2) ELIGIBILITY.—For each of fiscal years 2006 and 2007, in
rural areas of the State of Nebraska (as determined by the Secretary), the Secretary shall provide reimbursement to selected
tier I family or group day care homes (as defined in paragraph
(1)) under subsection (f)(3) in the same manner as tier I family
or group day care homes (as defined in subsection
(f)(3)(A)(ii)(I)).
(3) EVALUATION.—
(A) IN GENERAL.—The Secretary, acting through the
Administrator of the Food and Nutrition Service, shall
evaluate the impact of the eligibility criteria described in
paragraph (2) as compared to the eligibility criteria described in subsection (f)(3)(A)(ii)(I).
(B) IMPACT.—The evaluation shall assess the impact of
the change in eligibility requirements on—
(i) the number of family or group day care homes
offering meals under this section;
(ii) the number of family or group day care homes
offering meals under this section that are defined as
tier I family or group day care homes as a result of
paragraph (1) that otherwise would be defined as tier
II family or group day care homes under subsection
(f)(3)(A)(iii);
(iii) the geographic location of the family or group
day care homes;
(iv) services provided to eligible children; and
(v) other factors determined by the Secretary.
(C) REPORT.—Not later than March 31, 2008, the Secretary 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 results of the evaluation under
this subsection.
(D) FUNDING.—
(i) IN GENERAL.—On October 1, 2005, out of any
funds in the Treasury not otherwise appropriated, the
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Secretary of the Treasury shall transfer to the Secretary of Agriculture to carry out this paragraph
$400,000, 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.
(q) MANAGEMENT SUPPORT.—
(1) TECHNICAL AND TRAINING ASSISTANCE.—In addition to
the training and technical assistance that is provided to State
agencies under other provisions of this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), the Secretary shall
provide training and technical assistance in order to assist the
State agencies in improving their program management and
oversight under this section.
(2) TECHNICAL AND TRAINING ASSISTANCE FOR IDENTIFICATION AND PREVENTION OF FRAUD AND ABUSE.—As part of training and technical assistance provided under paragraph (1), the
Secretary shall provide training on a continuous basis to State
agencies, and shall ensure that such training is provided to
sponsoring organizations, for the identification and prevention
of fraud and abuse under the program and to improve management of the program.
(3) FUNDING.—For each of fiscal years 2005 and 2006, the
Secretary shall reserve to carry out paragraph (1) $1,000,000 of
the amounts made available to carry out this section.
(r) PROGRAM FOR AT-RISK SCHOOL CHILDREN.—
(1) DEFINITION OF AT-RISK SCHOOL CHILD.—In this subsection, the term ‘‘at-risk school child’’ means a school child
who—
(A) is not more than 18 years of age, except that the
age limitation provided by this subparagraph shall not
apply to a child described in section 12(d)(1)(A); and
(B) participates in a program authorized under this
section operated at a site located in a geographical area
served by a school in which at least 50 percent of the children enrolled are certified as eligible to receive free or reduced price school meals under this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
(2) PARTICIPATION IN CHILD AND ADULT CARE FOOD PROGRAM.—An institution may participate in the program authorized under this section only if the institution provides meals or
supplements under a program—
(A) organized primarily to provide care to at-risk
school children during after-school hours, weekends, or
holidays during the regular school year; and
(B) with an educational or enrichment purpose.
(3) ADMINISTRATION.—Except as otherwise provided in this
subsection, the other provisions of this section apply to an institution described in paragraph (2).
(4) MEAL AND SUPPLEMENT REIMBURSEMENT.—
(A) LIMITATIONS.—An institution may claim reimbursement under this subsection only for one meal per child per
day and one supplement per child per day served under a
program organized primarily to provide care to at-risk
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school children during after-school hours, weekends, or
holidays during the regular school year.
(B) RATES.—
(i) MEALS.—A meal shall be reimbursed under this
subsection at the rate established for free meals under
subsection (c).
(ii) SUPPLEMENTS.—A supplement shall be reimbursed under this subsection at the rate established
for a free supplement under subsection (c)(3).
(C) NO CHARGE.—A meal or supplement claimed for reimbursement under this subsection shall be served without
charge.
(5) LIMITATION.—The Secretary shall limit reimbursement
under this subsection for meals served under a program to institutions located in the District of Columbia and thirteen
States, of which eleven States shall be Connecticut, Nevada,
Wisconsin, Vermont, Maryland, West Virginia, Illinois, Pennsylvania, Missouri, Delaware, and Michigan and two States
shall be approved by the Secretary through a competitive application process.
(s) INFORMATION CONCERNING THE SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN.—
(1) IN GENERAL.—The Secretary shall provide each State
agency administering a child and adult care food program
under this section with information concerning the special supplemental nutrition program for women, infants, and children
authorized under section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786).
(2) REQUIREMENTS FOR STATE AGENCIES.—Each State agency shall ensure that each participating family and group day
care home and child care center (other than an institution providing care to school children outside school hours)—
(A) receives materials that include—
(i) a basic explanation of the importance and benefits of the special supplemental nutrition program for
women, infants, and children;
(ii) the maximum State income eligibility standards, according to family size, for the program; and
(iii) information concerning how benefits under the
program may be obtained;
(B) receives periodic updates of the information described in subparagraph (A); and
(C) provides the information described in subparagraph (A) to parents of enrolled children at enrollment.
(t) PARTICIPATION BY EMERGENCY SHELTERS.—
(1) DEFINITION OF EMERGENCY SHELTER.—In this subsection, the term ‘‘emergency shelter’’ means—
(A) an emergency shelter (as defined in section 321 of
the Stewart B. McKinney Homeless Assistance Act 17–2 (42
U.S.C. 11351)); or
(B) a site operated by the shelter.
(2) ADMINISTRATION.—Except as otherwise provided in this
subsection, an emergency shelter shall be eligible to participate
17–2 Sec. 2 of P.L. 106–400, 114 Stat. 1675, Oct. 30, 2000, provides that any reference
in any law, regulation, document, paper, or other record of the United States to the Stewart B. McKinney Homeless Assistance Act shall be deemed to be a reference to the
‘‘McKinney-Vento Homeless Assistance Act’’.

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in the program authorized under this section in accordance
with the terms and conditions applicable to eligible institutions
described in subsection (a).
(3) LICENSING REQUIREMENTS.—The licensing requirements
contained in subsection (a)(5) shall not apply to an emergency
shelter.
(4) HEALTH AND SAFETY STANDARDS.—To be eligible to participate in the program authorized under this section, an emergency shelter shall comply with applicable State or local health
and safety standards.
(5) MEAL OR SUPPLEMENT REIMBURSEMENT.—
(A) LIMITATIONS.—An emergency shelter may claim reimbursement under this subsection—
(i) only for a meal or supplement served to children residing at an emergency shelter, if the children
are—
(I) not more than 18 years of age; or
(II) children with disabilities; and
(ii) for not more than 3 meals, or 2 meals and a
supplement, per child per day.
(B) RATE.—A meal or supplement eligible for reimbursement shall be reimbursed at the rate at which free
meals and supplements are reimbursed under subsection
(c).
(C) NO CHARGE.—A meal or supplement claimed for reimbursement shall be served without charge.
SEC. 17A. ø42 U.S.C. 1766a¿ MEAL SUPPLEMENTS FOR CHILDREN IN
AFTERSCHOOL CARE.

(a) GENERAL AUTHORITY.—
(1) GRANTS TO STATES.—The Secretary shall carry out a
program to assist States through grants-in-aid and other means
to provide meal supplements under a program organized primarily to provide care for children in afterschool care in eligible
elementary and secondary schools.
(2) ELIGIBLE SCHOOLS.—For the purposes of this section,
the term ‘‘eligible elementary and secondary schools’’ means
schools that—
(A) operate school lunch programs under this Act;
(B) sponsor afterschool care programs; and
(C) operate afterschool programs with an educational
or enrichment purpose.
(b) ELIGIBLE CHILDREN.—Reimbursement may be provided
under this section only for supplements served to school children
who are not more than 18 years of age, except that the age limitation provided by this subsection shall not apply to a child described
in section 12(d)(1)(A).
(c) REIMBURSEMENT.—
(1) AT-RISK SCHOOL CHILDREN.—In the case of an eligible
child who is participating in a program authorized under this
section operated at a site located in a geographical area served
by a school in which at least 50 percent of the children enrolled
are certified as eligible to receive free or reduced price school
meals under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.), a supplement provided under this section
to the child shall be—
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(A) reimbursed at the rate at which free supplements
are reimbursed under section 17(c)(3); and
(B) served without charge.
(2) OTHER SCHOOL CHILDREN.—In the case of an eligible
child who is participating in a program authorized under this
section at a site that is not described in paragraph (1), for the
purposes of this section, the national average payment rate for
supplements shall be equal to those established under section
17(c)(3) (as adjusted pursuant to section 11(a)(3)).
(d) CONTENTS OF SUPPLEMENTS.—The requirements that apply
to the content of meal supplements served under child care food
programs operated with assistance under this Act shall apply to the
content of meal supplements served under programs operated with
assistance under this section.
øSEC. 17B. 17B–1 ø42 U.S.C. 1766b¿ HOMELESS CHILDREN NUTRITION
PROGRAM.¿
PILOT PROJECTS

SEC. 18. ø42 U.S.C. 1769¿ (a) The Secretary may conduct pilot
projects in not more than three States in which the Secretary is
currently administering programs to evaluate the effects of the Secretary contracting with private profit and nonprofit organizations to
act as a State agency under this Act and the Child Nutrition Act
of 1966 [(42 U.S.C. 1771 et seq.)] for schools, institutions, or service
institutions referred to in section 10 of this Act and section 5 of the
Child Nutrition Act of 1966 [(42 U.S.C. 1774)].
(b)(1) Upon request to the Secretary, any school district that on
January 1, 1987, was receiving all cash payments or all commodity
letters of credit in lieu of entitlement commodities for its school
lunch program shall receive all cash payments or all commodity letters of credit in lieu of entitlement commodities for its school lunch
program beginning July 1, 1987. The Secretary, directly or through
contract, shall administer the project under this subsection.
(2) Any school district that elects under paragraph (1) to receive all cash payments or all commodity letters of credit in lieu of
entitlement commodities for its school lunch program shall receive
bonus commodities in the same manner as if such school district
was receiving all entitlement commodities for its school lunch program.
(c)(1)(A) The Secretary shall carry out a pilot program for purposes of identifying alternatives to—
(i) daily counting by category of meals provided by school
lunch programs under this Act; and
(ii) annual applications for eligibility to receive free meals
or reduced price meals.
(B) For the purposes of carrying out the pilot program under
this paragraph, the Secretary may waive requirements of this Act
relating to counting of meals provided by school lunch programs
and applications for eligibility.
(C) For the purposes of carrying out the pilot program under
this paragraph, the Secretary shall solicit proposals from State educational agencies and local educational agencies for the alternatives
described in subparagraph (A).
17B–1 Effective July 1, 1999, section 107(j)(2)(C)(i) of P.L. 105–336, 112 Stat. 3153, Oct.
31, 1998, repealed section 17B.

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(2)(A) The Secretary shall carry out a pilot program under
which a limited number of schools participating in the special assistance program under section 11(a)(1) that have in attendance
children at least 80 percent of whom are eligible for free lunches
or reduced price lunches shall submit applications for a 3-year period.
(B) Each school participating in the pilot program under this
paragraph shall have the option of determining the number of free
meals, reduced price meals, and paid meals provided daily under
the school lunch program operated by such school by applying percentages determined under subparagraph (C) to the daily total student meal count.
(C) The percentages determined under this subparagraph shall
be established on the basis of the master roster of students enrolled
in the school concerned, which—
(i) shall include a notation as to the eligibility status of
each student with respect to the school lunch program; and
(ii) shall be updated not later than September 30 of each
year.
(3) In addition to the pilot projects described in this subsection,
the Secretary may conduct other pilot projects to test alternative
counting and claiming procedures.
(4) Each pilot program carried out under this subsection shall
be evaluated by the Secretary after it has been in operation for 3
years.
(d)(1) Subject to the availability of appropriations to carry out
this subsection, the Secretary shall establish pilot projects in at
least 25 school districts under which the milk offered by schools
meets the fortification requirements of paragraph (3) for lowfat,
skim, and other forms of fluid milk.
(2) The Secretary shall make available to school districts information that compares the nutritional benefits of fluid milk that
meets the fortification requirements of paragraph (3) and the nutritional benefits of other milk that is made available through the
school lunch program established under this Act.
(3) The fortification requirements for fluid milk for the pilot
project referred to in paragraph (1) shall provide that—
(A) all whole milk in final package form for beverage use
shall contain not less than—
(i) 3.25 percent milk fat; and
(ii) 8.7 percent milk solids not fat;
(B) all lowfat milk in final package form for beverage use
shall contain not less than 10 percent milk solids not fat; and
(C) all skim milk in final package form for beverage use
shall contain not less than 9 percent milk solids not fat.
(4)(A) In selecting where to establish pilot projects under this
subsection, the Secretary shall take into account, among other factors, the availability of fortified milk and the interest of the school
district in being included in the pilot project.
(B) The Secretary shall establish the pilot projects in as many
geographic areas as practicable, except that none of the projects
shall be established in school districts that use milk described in
paragraph (3) or similar milk.
(5) Not later than 2 years after the establishment of the first
pilot project under this subsection, the Secretary shall report to the
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culture, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on—
(A) the acceptability of fortified whole, lowfat, and skim
milk products to participating children;
(B) the impact of offering the milk on milk consumption;
(C) the views of the school food service authorities on the
pilot projects; and
(D) any increases or reductions in costs attributed to the
pilot projects.
(6) The Secretary shall—
(A) obtain copies of any research studies or papers that discuss the impact of the fortification of milk pursuant to standards established by the States; and
(B) on request, make available to State agencies and the
public—
(i) the information obtained under subparagraph (A);
and
(ii) information about where to obtain milk described
in paragraph (3).
(7)(A) Each pilot project established under this subsection shall
terminate on the last day of the third year after the establishment
of the pilot project.
(B) The Secretary shall advise representatives of each district
participating in a pilot project that the district may continue to
offer the fortified forms of milk described in paragraph (3) after the
project terminates.
(e) BREAKFAST PILOT PROJECTS.—
(1) IN GENERAL.—Subject to the availability of funds made
available under paragraph (10), for a period of 3 successive
school years, the Secretary shall make grants to State agencies
to conduct pilot projects in elementary schools under the jurisdiction of not more than 6 school food authorities approved by
the Secretary to—
(A) reduce paperwork, simplify meal counting requirements, and make changes that will increase participation
in the school breakfast program; and
(B) evaluate the effect of providing free breakfasts to
elementary school children, without regard to family income, on participation, academic achievement, attendance
and tardiness, and dietary intake over the course of a day.
(2) NOMINATIONS.—A State agency that seeks a grant
under this subsection shall submit to the Secretary nominations of school food authorities to participate in a pilot project
under this subsection
(3) APPROVAL.—The Secretary shall approve for participation in pilot projects under this subsection elementary schools
under the jurisdiction of not more than 6 nominated school food
authorities selected so as to—
(A) provide for an equitable distribution of pilot
projects among urban and rural elementary schools;
(B) provide for an equitable distribution of pilot
projects among elementary schools of varying family income levels; and
(C) permit the evaluation of pilot projects to distinguish the effects of the pilot projects from other factors,
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such as changes or differences in educational policies or
programs.
(4) GRANTS TO SCHOOL FOOD AUTHORITIES.—A State agency
receiving a grant under paragraph (1) shall make grants to
school food authorities to conduct the pilot projects described in
paragraph (1).
(5) DURATION OF PILOT PROJECTS.—Subject to the availability of funds made available to carry out this subsection, a
school food authority receiving amounts under a grant to conduct a pilot project described in paragraph (1) shall conduct the
project during a period of 3 successive school years.
(6) WAIVER AUTHORITY.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), the Secretary may waive the requirements of this Act
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.) relating to counting of meals, applications for eligibility, and related requirements that would preclude the
Secretary from making a grant to conduct a pilot project
under paragraph (1).
(B) NONWAIVABLE REQUIREMENTS.—The Secretary may
not waive a requirement under subparagraph (A) if the
waiver would prevent a program participant, a potential
program participant, or a school from receiving all of the
benefits and protections of this Act, the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.), or a Federal law (including a regulation) that protects an individual constitutional
right or a statutory civil right.
(7) REQUIREMENTS FOR PARTICIPATION IN PILOT PROJECT.—
To be eligible to participate in a pilot project under this
subsection—
(A) a State agency—
(i) shall submit an application to the Secretary at
such time and in such manner as the Secretary shall
establish to meet criteria the Secretary has established
to enable a valid evaluation to be conducted; and
(ii) shall provide such information relating to the
operation and results of the pilot project as the Secretary may reasonably require; and
(B) a school food authority—
(i) shall agree to serve all breakfasts at no charge
to all children enrolled in participating elementary
schools;
(ii) shall not have a history of violations of this Act
or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.);
(iii) shall have, under the jurisdiction of the school
food authority, a sufficient number of elementary
schools that are not participating in the pilot projects
to permit a valid evaluation of the effects of the pilot
projects; and
(iv) shall meet all other requirements that the Secretary may reasonably require.
(8) EVALUATION OF PILOT PROJECTS.—
(A) IN GENERAL.—The Secretary, acting through the
Administrator of the Food and Nutrition Service, shall conOctober 21, 2009

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duct an evaluation of the pilot projects conducted by the
school food authorities selected for participation.
(B) CONTENT.—The evaluation shall include—
(i) a determination of the effect of participation in
the pilot project on the academic achievement, attendance and tardiness, and dietary intake over the course
of a day of participating children that is not attributable to changes in educational policies and practices;
and
(ii) a determination of the effect that participation
by elementary schools in the pilot project has on the
proportion of students who eat breakfast and on the
paperwork required to be completed by the schools.
(C) REPORT.—On completion of the pilot projects and
the evaluation, the Secretary 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 results of the evaluation of the pilot projects required under
subparagraph (A).
(9) REIMBURSEMENT.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), a school conducting a pilot project under this subsection shall receive a total Federal reimbursement under
the school breakfast program in an amount that is equal
to the total Federal reimbursement for the school for the
prior year under the program (adjusted to reflect changes
in the series for food away from home of the Consumer
Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor and
adjusted for fluctuations in enrollment).
(B) EXCESS NEEDS.—Funds required for the pilot
project in excess of the level of reimbursement received by
the school for the prior year (adjusted to reflect changes described in subparagraph (A) and adjusted for fluctuations
in enrollment) may be taken from any non-Federal source
or from amounts provided under this subsection.
(10) AUTHORIZATION OF APPROPRIATIONS.—
(A) IN GENERAL.—There are authorized to be appropriated such sums as are necessary to carry out this subsection.
(B) REQUIREMENT.—No amounts may be provided
under this subsection unless specifically provided in appropriations Acts.
(f) SUMMER FOOD SERVICE RESIDENTIAL CAMP ELIGIBILITY.—
(1) IN GENERAL.—During the month after the date of enactment of this subsection through September, 2004, and the
months of May through September, 2005, the Secretary shall
modify eligibility criteria, at not more than 1 private nonprofit
residential camp in each of not more than 2 States, as determined by the Secretary, for the purpose of identifying and evaluating alternative methods of determining the eligibility of residential private nonprofit camps to participate in the summer
food service program for children established under section 13.
(2) ELIGIBILITY.—To be eligible for the criteria modified
under paragraph (1), a residential camp—
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(A) shall be a service institution (as defined in section
13(a)(1));
(B) may not charge a fee to any child in residence at
the camp; and
(C) shall serve children who reside in an area in which
poor economic conditions exist (as defined in section
13(a)(1)).
(3) PAYMENTS.—
(A) IN GENERAL.—Under this subsection, the Secretary
shall provide reimbursement for meals served to all children at a residential camp at the payment rates specified
in section 13(b)(1).
(B) REIMBURSABLE MEALS.—A residential camp selected by the Secretary may receive reimbursement for not
more than 3 meals, or 2 meals and 1 supplement, during
each day of operation.
(4) EVALUATION.—
(A) INFORMATION FROM RESIDENTIAL CAMPS.—Not later
than December 31, 2005, a residential camp selected under
paragraph (1) shall report to the Secretary such information as is required by the Secretary concerning the requirements of this subsection.
(B) REPORT TO CONGRESS.—Not later than March 31,
2006, the Secretary 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 that evaluates the effect of this subsection on program participation and other factors, as determined by the Secretary.
(g) ACCESS TO LOCAL FOODS AND SCHOOL GARDENS.—
(1) IN GENERAL.—The Secretary may provide assistance,
through competitive matching grants and technical assistance,
to schools and nonprofit entities for projects that—
(A) improve access to local foods in schools and institutions participating in programs under this Act and section
4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773)
through farm-to-cafeteria activities, including school gardens, that may include the acquisition of food and appropriate equipment and the provision of training and education;
(B) are, at a minimum, designed to—
(i) procure local foods from small- and mediumsized farms for school meals; and
(ii) support school garden programs;
(C) support nutrition education activities or curriculum
planning that promotes healthy food education in the
school curriculum and incorporates the participation of
school children in farm-based agricultural education activities, that may include school gardens;
(D) develop a sustained commitment to farm-to-cafeteria projects in the community by linking schools, State
departments of agriculture, agricultural producers, parents,
and other community stakeholders;
(E) require $100,000 or less in Federal contributions;
(F) require a Federal share of costs not to exceed 75
percent;
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(G) provide matching support in the form of cash or inkind contributions (including facilities, equipment, or services provided by State and local governments and private
sources); and
(H) cooperate in an evaluation carried out by the Secretary.
(2) ADMINISTRATION.—In providing grants under paragraph
(1), the Secretary shall give priority to projects that can be replicated in schools.
(3) PILOT PROGRAM FOR HIGH-POVERTY SCHOOLS.—
(A) DEFINITIONS.—In this paragraph:
(i) ELIGIBLE PROGRAM.—The term ‘‘eligible program’’ means—
(I) a school-based program with hands-on vegetable gardening and nutrition education that is
incorporated into the curriculum for 1 or more
grades at 2 or more eligible schools; or
(II) a community-based summer program with
hands-on vegetable gardening and nutrition education that is part of, or coordinated with, a summer enrichment program at 2 or more eligible
schools.
(ii) ELIGIBLE SCHOOL.—The term ‘‘eligible school’’
means a public school, at least 50 percent of the students of which are eligible for free or reduced price
meals under this Act.
(B) ESTABLISHMENT.—The Secretary shall carry out a
pilot program under which the Secretary shall provide to
nonprofit organizations or public entities in not more than
5 States grants to develop and run, through eligible programs, community gardens at eligible schools in the States
that would—
(i) be planted, cared for, and harvested by students
at the eligible schools; and
(ii) teach the students participating in the community gardens about agriculture production practices
and diet.
(C) PRIORITY STATES.—Of the States in which grantees
under this paragraph are located—
(i) at least 1 State shall be among the 15 largest
States, as determined by the Secretary;
(ii) at least 1 State shall be among the 16th to
30th largest States, as determined by the Secretary;
and
(iii) at least 1 State shall be a State that is not described in clause (i) or (ii).
(D) USE OF PRODUCE.—Produce from a community garden provided a grant under this paragraph may be—
(i) used to supplement food provided at the eligible
school;
(ii) distributed to students to bring home to the
families of the students; or
(iii) donated to a local food bank or senior center
nutrition program.
(E) NO COST-SHARING REQUIREMENT.—A nonprofit organization or public entity that receives a grant under this
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paragraph shall not be required to share the cost of carrying out the activities assisted under this paragraph.
(F) EVALUATION.—A nonprofit organization or public
entity that receives a grant under this paragraph shall be
required to cooperate in an evaluation in accordance with
paragraph (1)(H).
(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as are necessary to carry out
this subsection for each of fiscal years 2004 through 2009.
(h) YEAR-ROUND SERVICES FOR ELIGIBLE ENTITIES.—
(1) IN GENERAL.—A service institution that is described in
section 13(a)(6) (excluding a public school), or a private nonprofit organization described in section 13(a)(7), and that is located in the State of California may be reimbursed—
(A) for up to 2 meals during each day of operation
served—
(i) during the months of May through September;
(ii) in the case of a service institution that operates a food service program for children on school vacation, at anytime under a continuous school calendar;
and
(iii) in the case of a service institution that provides meal service at a nonschool site to children who
are not in school for a period during the school year
due to a natural disaster, building repair, court order,
or similar case, at anytime during such a period; and
(B) for a snack served during each day of operation
after school hours, weekends, and school holidays during
the regular school calendar.
(2) PAYMENTS.—The service institution shall be reimbursed
consistent with section 13(b)(1).
(3) ADMINISTRATION.—To receive reimbursement under this
subsection, a service institution shall comply with section 13,
other than subsections (b)(2) and (c)(1) of that section.
(4) EVALUATION.—Not later than September 30, 2007, the
State agency shall submit to the Secretary a report on the effect of this subsection on participation in the summer food service program for children established under section 13.
(5) FUNDING.—The Secretary shall provide to the State of
California such sums as are necessary to carry out this subsection for each of fiscal years 2005 through 2010.
(i) FREE LUNCH AND BREAKFAST ELIGIBILITY.—
(1) IN GENERAL.—Subject to the availability of funds under
paragraph (4), the Secretary shall expand the service of free
lunches and breakfasts provided at schools participating in the
school lunch program under this Act or the school breakfast
program under section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773) in all or part of 5 States selected by the Secretary
(of which at least 1 shall be a largely rural State with a significant Native American population).
(2) INCOME ELIGIBILITY.—The income guidelines for determining eligibility for free lunches or breakfasts under this subsection shall be 185 percent of the applicable family size income
levels contained in the nonfarm income poverty guidelines prescribed by the Office of Management and Budget, as adjusted
annually in accordance with section 9(b)(1)(B).
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(3) EVALUATION.—
(A) IN GENERAL.—Not later than 3 years after the implementation of this subsection, the Secretary shall conduct
an evaluation to assess the impact of the changed income
eligibility guidelines by comparing the school food authorities operating under this subsection to school food authorities not operating under this subsection.
(B) IMPACT ASSESSMENT.—
(i) CHILDREN.—The evaluation shall assess the impact of this subsection separately on—
(I) children in households with incomes less
than 130 percent of the applicable family income
levels contained in the nonfarm poverty income
guidelines prescribed by the Office of Management
and Budget, as adjusted annually in accordance
with section 9(b)(1)(B); and
(II) children in households with incomes greater than 130 percent and not greater than 185 percent of the applicable family income levels contained in the nonfarm poverty income guidelines
prescribed by the Office of Management and Budget, as adjusted annually in accordance with section
9(b)(1)(B).
(ii) FACTORS.—The evaluation shall assess the impact of this subsection on—
(I) certification and participation rates in the
school lunch and breakfast programs;
(II) rates of lunch- and breakfast-skipping;
(III) academic achievement;
(IV) the allocation of funds authorized in title
I of the Elementary and Secondary Education Act
(20 U.S.C. 6301) to local educational agencies and
public schools; and
(V) other factors determined by the Secretary.
(C) COST ASSESSMENT.—The evaluation shall assess
the increased costs associated with providing additional
free, reduced price, or paid meals in the school food authorities operating under this subsection.
(D) REPORT.—On completion of the evaluation, the Secretary 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 results of the evaluation under
this paragraph.
(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as are necessary to carry out
this subsection, to remain available until expended.
SEC. 19.ø42 U.S.C. 1769a¿ FRESH FRUIT AND VEGETABLE PROGRAM. 19–1

(a) IN GENERAL.—For the school year beginning July 2008 and
each subsequent school year, the Secretary shall provide grants to
19–1 Sec. 4304(a)(2)(B) of the Food, Conservation, and Energy Act of 2008 (P.L. 110–246;
122 Stat. XXXX) provided that: ‘‘To facilitate transition from the program authorized
under section 18(f) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769(f))
(as in effect on the day before the date of enactment of this Act) to the program established under section 19 of that Act (as amended by paragraph (1))—

Continued

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States to carry out a program to make free fresh fruits and vegetables available in elementary schools (referred to in this section as
the ‘‘program’’).
(b) PROGRAM.—A school participating in the program shall
make free fresh fruits and vegetables available to students throughout the school day (or at such other times as are considered appropriate by the Secretary) in 1 or more areas designated by the
school.
(c) FUNDING TO STATES.—
(1) MINIMUM GRANT.—Except as provided in subsection
(i)(2), the Secretary shall provide to each of the 50 States and
the District of Columbia an annual grant in an amount equal
to 1 percent of the funds made available for a year to carry out
the program.
(2) ADDITIONAL FUNDING.—Of the funds remaining after
grants are made under paragraph (1), the Secretary shall allocate additional funds to each State that is operating a school
lunch program under section 4 based on the proportion that—
(A) the population of the State; bears to
(B) the population of the United States.
(d) SELECTION OF SCHOOLS.—
(1) IN GENERAL.—Except as provided in paragraph (2) of
this subsection and section 4304(a)(2) of the Food, Conservation, and Energy Act of 2008, each year, in selecting schools to
participate in the program, each State shall—
(A) ensure that each school chosen to participate in the
program is a school—
(i) in which not less than 50 percent of the students are eligible for free or reduced price meals under
this Act; and
(ii) that submits an application in accordance with
subparagraph (D);
(B) to the maximum extent practicable, give the highest priority to schools with the highest proportion of children who are eligible for free or reduced price meals under
this Act;
(C) 19–2 ensure that each school selected is an elementary school (as defined in section 9101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801));
(D) solicit applications from interested schools that
include—
(i) information pertaining to the percentage of students enrolled in the school submitting the application
who are eligible for free or reduced price school
lunches under this Act;
(i) for the school year beginning July 1, 2008, the Secretary may permit any school
selected for participation under section 18(f) of that Act (42 U.S.C. 1769(f)) for that school
year to continue to participate under section 19 of that Act until the end of that school
year; and
(ii) funds made available under that Act for fiscal year 2009 may be used to support
the participation of any schools selected to participate in the program authorized under
section 18(f) of that Act (42 U.S.C. 1769(f)) (as in effect on the day before the date of enactment of this Act).’’.
19–2 Sec. 4304(a)(2)(A) of the Food, Conservation, and Energy Act of 2008 (P.L. 110–246;
122 Stat. XXXX) provided that: ‘‘Section 19(d)(1)(C) of the Richard B. Russell National
School Lunch Act (as amended by paragraph (1)) may be waived by a State until July 1,
2010, for each secondary school in the State that has been awarded funding under section
18(f) of that Act (42 U.S.C. 1769(f)) for the school year beginning July 1, 2008.’’.
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Sec. 19

(ii) a certification of support for participation in
the program signed by the school food manager, the
school principal, and the district superintendent (or
equivalent positions, as determined by the school);
(iii) a plan for implementation of the program, including efforts to integrate activities carried out under
this section with other efforts to promote sound health
and nutrition, reduce overweight and obesity, or promote physical activity; and
(iv) such other information as may be requested by
the Secretary; and
(E) encourage applicants to submit a plan for implementation of the program that includes a partnership with
1 or more entities that will provide non-Federal resources
(including entities representing the fruit and vegetable industry).
(2) EXCEPTION.—Clause (i) of paragraph (1)(A) shall not
apply to a State if all schools that meet the requirements of
that clause have been selected and the State does not have a
sufficient number of additional schools that meet the requirement of that clause.
(3) OUTREACH TO LOW-INCOME SCHOOLS.—
(A) IN GENERAL.—Prior to making decisions regarding
school participation in the program, a State agency shall
inform the schools within the State with the highest proportion of free and reduced price meal eligibility, including
Native American schools, of the eligibility of the schools for
the program with respect to priority granted to schools
with the highest proportion of free and reduced price eligibility under paragraph (1)(B).
(B) REQUIREMENT.—In providing information to schools
in accordance with subparagraph (A), a State agency shall
inform the schools that would likely be chosen to participate in the program under paragraph (1)(B).
(e) NOTICE OF AVAILABILITY.—If selected to participate in the
program, a school shall widely publicize within the school the availability of free fresh fruits and vegetables under the program.
(f) PER-STUDENT GRANT.—The per-student grant provided to a
school under this section shall be—
(1) determined by a State agency; and
(2) not less than $50, nor more than $75.
(g) LIMITATION.—To the maximum extent practicable, each
State agency shall ensure that in making the fruits and vegetables
provided under this section available to students, schools offer the
fruits and vegetables separately from meals otherwise provided at
the school under this Act or the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
(h) EVALUATION AND REPORTS.—
(1) IN GENERAL.—The Secretary shall conduct an evaluation of the program, including a determination as to whether
children experienced, as a result of participating in the
program—
(A) increased consumption of fruits and vegetables;
(B) other dietary changes, such as decreased consumption of less nutritious foods; and
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(C) such other outcomes as are considered appropriate
by the Secretary.
(2) REPORT.—Not later than September 30, 2011, the Secretary shall submit to the Committee on Education and Labor
of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the evaluation under paragraph (1).
(i) FUNDING.—
(1) IN GENERAL.—Out of the funds made available under
subsection (b)(2)(A) of section 14222 of the Food, Conservation,
and Energy Act of 2008, the Secretary shall use the following
amounts to carry out this section:
(A) On October 1, 2008, $40,000,000.
(B) On July 1, 2009, $65,000,000.
(C) On July 1, 2010, $101,000,000.
(D) On July 1, 2011, $150,000,000.
(E) On July 1, 2012, and each July 1 thereafter, the
amount made available for the preceding fiscal year, as adjusted to reflect changes for the 12-month period ending
the preceding April 30 in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, for items other than
food.
(2) MAINTENANCE OF EXISTING FUNDING.—In allocating
funding made available under paragraph (1) among the States
in accordance with subsection (c), the Secretary shall ensure
that each State that received funding under section 18(f) on the
day before the date of enactment of the Food, Conservation,
and Energy Act of 2008 shall continue to receive sufficient
funding under this section to maintain the caseload level of the
State under that section as in effect on that date.
(3) EVALUATION FUNDING.—On October 1, 2008, out of any
funds made available under subsection (b)(2)(A) of section
14222 of the Food, Conservation, and Energy Act of 2008, the
Secretary shall use to carry out the evaluation required under
subsection (h), $3,000,000, to remain available for obligation
until September 30, 2010.
(4) RECEIPT AND ACCEPTANCE.—The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section any funds transferred for that purpose, without further appropriation.
(5) AUTHORIZATION OF APPROPRIATIONS.—In addition to any
other amounts made available to carry out this section, there
are authorized to be appropriated such sums as are necessary
to expand the program established under this section.
(6) ADMINISTRATIVE COSTS.—
(A) IN GENERAL.—Of funds made available to carry out
this section for a fiscal year, the Secretary may use not
more than $500,000 for the administrative costs of carrying
out the program.
(B) RESERVATION OF FUNDS.—The Secretary shall allow
each State to reserve such funding as the Secretary determines to be necessary to administer the program in the
State (with adjustments for the size of the State and the
grant amount), but not to exceed the amount required to
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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

Sec. 21

pay the costs of 1 full-time coordinator for the program in
the State.
(7) REALLOCATION.—
(A) AMONG STATES.—The Secretary may reallocate any
amounts made available to carry out this section that are
not obligated or expended by a date determined by the Secretary.
(B) WITHIN STATES.—A State that receives a grant
under this section may reallocate any amounts made available under the grant that are not obligated or expended by
a date determined by the Secretary.
DEPARTMENT OF DEFENSE OVERSEAS DEPENDENTS’ SCHOOLS

SEC. 20. ø42 U.S.C. 1769b¿ (a) For the purpose of obtaining
Federal payments and commodities in conjunction with the provision of lunches to students attending Department of Defense dependents’ schools which are located outside the United States, its
territories or possessions, the Secretary of Agriculture shall make
available to the Department of Defense, from funds appropriated
for such purpose, the same payments and commodities as are provided to States for schools participating in the National School
Lunch Program in the United States.
(b) The Secretary of Defense shall administer lunch programs
authorized by this section and shall determine eligibility for free
and reduced price lunches under the criteria published by the Secretary of Agriculture, except that the Secretary of Defense shall
prescribe regulations governing computation of income eligibility
standards for families of students participating in the National
School Lunch Program under this section.
(c) The Secretary of Defense shall be required to offer meals
meeting nutritional standards prescribed by the Secretary of Agriculture; however, the Secretary of Defense may authorize deviations
from Department of Agriculture prescribed meal patterns and fluid
milk requirements when local conditions preclude strict compliance
or when such compliance is impracticable.
(d) Funds are hereby authorized to be appropriated for any fiscal year in such amounts as may be necessary for the administrative expenses of the Department of Defense under this section.
(e) The Secretary of Agriculture shall provide the Secretary of
Defense with the technical assistance in the administration of the
school lunch programs authorized by this section.
SEC. 21. ø42 U.S.C. 1769b–1¿ TRAINING, TECHNICAL ASSISTANCE, AND
FOOD SERVICE MANAGEMENT INSTITUTE.

(a) GENERAL AUTHORITY.—The Secretary—
(1) subject to the availability of, and from, amounts appropriated pursuant to subsection (e)(1), shall conduct training activities and provide—
(A) training and technical assistance to improve the
skills of individuals employed in—
(i) food service programs carried out with assistance under this Act and, to the maximum extent practicable, using individuals who administer exemplary
local food service programs in the State;
(ii) school breakfast programs carried out with assistance under section 4 of the Child Nutrition Act of
1966 (42 U.S.C. 1773); and
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(iii) as appropriate, other federally assisted feeding
programs; and
(B) assistance, on a competitive basis, to State agencies
for the purpose of aiding schools and school food authorities with at least 50 percent of enrolled children certified
to receive free or reduced price meals (and, if there are any
remaining funds, other schools and school food authorities)
in meeting the cost of acquiring or upgrading technology
and information management systems for use in food service programs carried out under this Act and section 4 of the
Child Nutrition Act of 1966 (42 U.S.C. 1773), if the school
or school food authority submits to the State agency an infrastructure development plan that—
(i) addresses the cost savings and improvements in
program integrity and operations that would result
from the use of new or upgraded technology;
(ii) ensures that there is not any overt identification of any child by special tokens or tickets, announced or published list of names, or by any other
means;
(iii) provides for processing and verifying applications for free and reduced price school meals;
(iv) integrates menu planning, production, and
serving data to monitor compliance with section 9(f)(1);
and
(v) establishes compatibility with statewide reporting systems;
(C) assistance, on a competitive basis, to State agencies
with low proportions of schools or students that—
(i) participate in the school breakfast program
under section 4 of the Child Nutrition Act of 1966 (42
U.S.C. 1773); and
(ii) demonstrate the greatest need, for the purpose
of aiding schools in meeting costs associated with initiating or expanding a school breakfast program under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773), including outreach and informational activities;
and
(2) from amounts appropriated pursuant to subsection
(e)(2), is authorized to provide financial and other assistance to
the University of Mississippi, in cooperation with the University of Southern Mississippi, to establish and maintain a food
service management institute.
(b) MINIMUM REQUIREMENTS.—The activities conducted and assistance provided as required by subsection (a)(1) shall at least include activities and assistance with respect to—
(1) menu planning;
(2) implementation of regulations and appropriate guidelines; and
(3) compliance with program requirements and accountability for program operations.
(c) DUTIES OF FOOD SERVICE MANAGEMENT INSTITUTE.—
(1) IN GENERAL.—Any food service management institute
established as authorized by subsection (a)(2) shall carry out
activities to improve the general operation and quality of—
(A) food service programs assisted under this Act;
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Sec. 21

(B) school breakfast programs assisted under section 4
of the Child Nutrition Act of 1966; and
(C) as appropriate, other federally assisted feeding programs.
(2) REQUIRED ACTIVITIES.—Activities carried out under
paragraph (1) shall include—
(A) conducting research necessary to assist schools and
other organizations that participate in such programs in
providing high quality, nutritious, cost-effective meal service to the children served;
(B) providing training and technical assistance with respect to—
(i) efficient use of physical resources;
(ii) financial management;
(iii) efficient use of computers;
(iv) procurement;
(v) sanitation;
(vi) safety, including food handling, hazard analysis and critical control point plan implementation,
emergency readiness, responding to a food recall, and
food biosecurity training;
(vii) meal planning and related nutrition activities;
(viii) culinary skills; and
(ix) other appropriate activities;
(C) establishing a national network of trained professionals to present training programs and workshops for
food service personnel;
(D) developing training materials for use in the programs and workshops described in subparagraph (C);
(E) acting as a clearinghouse for research, studies, and
findings concerning all aspects of the operation of food
service programs;
(F) training food service personnel to comply with the
nutrition guidance and objectives established by the Secretary through a national network of instructors or other
means;
(G) preparing informational materials, such as video
instruction tapes and menu planners, to promote healthier
food preparation; and
(H) assisting State educational agencies in providing
additional nutrition and health instructions and instructors, including training personnel to comply with the nutrition guidance and objectives established by the Secretary.
(d) COORDINATION.—
(1) IN GENERAL.—The Secretary shall coordinate activities
carried out and assistance provided as required by subsection
(b) with activities carried out by any food service management
institute established as authorized by subsection (a)(2).
(2) USE OF INSTITUTE FOR DIETARY AND NUTRITION ACTIVITIES.—The Secretary shall use any food service management
institute established under subsection (a)(2) to assist in carrying out dietary and nutrition activities of the Secretary.
(e) AUTHORIZATION OF APPROPRIATIONS.—
(1) TRAINING ACTIVITIES AND TECHNICAL ASSISTANCE.—
There are authorized to be appropriated to carry out subsection
(a)(1) $3,000,000 for fiscal year 1990, $2,000,000 for fiscal year
October 21, 2009

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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

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1991, and $1,000,000 for each of fiscal years 1992 through
2009.
(2) FOOD SERVICE MANAGEMENT INSTITUTE.—
(A) FUNDING.—In addition to any amounts otherwise
made available for fiscal year 1995, out of any moneys in
the Treasury not otherwise appropriated, the Secretary of
the Treasury shall provide to the Secretary $3,000,000 for
fiscal year 2004 and $4,000,000 for fiscal year 2005 and
each subsequent fiscal year, to carry out subsection (a)(2).
The Secretary shall be entitled to receive the funds and
shall accept the funds, without further appropriation.
(B) ADDITIONAL FUNDING.—In addition to amounts
made available under subparagraph (A), there are authorized to be appropriated to carry out subsection (a)(2) such
sums as are necessary for fiscal year 1995 and each subsequent fiscal year. The Secretary shall carry out activities
under subsection (a)(2), in addition to the activities funded
under subparagraph (A), to the extent provided for, and in
such amounts as are provided for, in advance in appropriations Acts.
(C) FUNDING FOR EDUCATION, TRAINING, OR APPLIED RESEARCH OR STUDIES.—In addition to amounts made available under subparagraphs (A) and (B), from amounts otherwise appropriated to the Secretary in discretionary appropriations, the Secretary may provide funds to any food
service management institute established under subsection
(a)(2) for projects specified by the Secretary that will contribute to implementing dietary or nutrition initiatives.
Any additional funding under this subparagraph shall be
provided noncompetitively in a separate cooperative agreement.
(f) ADMINISTRATIVE TRAINING AND TECHNICAL ASSISTANCE MATERIAL.—In collaboration with State educational agencies, local
educational agencies, and school food authorities of varying sizes,
the Secretary shall develop and distribute training and technical
assistance material relating to the administration of school meals
programs that are representative of the best management and administrative practices.
(g) FEDERAL ADMINISTRATIVE SUPPORT.—
(1) FUNDING.—
(A) IN GENERAL.—Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary of Agriculture to carry out this
subsection—
(i) on October 1, 2004, and October 1, 2005,
$3,000,000; and
(ii) on October 1, 2006, October 1, 2007, October 1,
2008, and October 1, 2009, $2,000,000.
(B) RECEIPT AND ACCEPTANCE.—The Secretary shall be
entitled to receive, shall accept, and shall use to carry out
this subsection the funds transferred under subparagraph
(A), without further appropriation.
(C) AVAILABILITY OF FUNDS.—Funds transferred under
subparagraph (A) shall remain available until expended.
(2) USE OF FUNDS.—The Secretary may use funds provided
under this subsection—
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Sec. 22

(A) to provide training and technical assistance and
material related to improving program integrity and administrative accuracy in school meals programs; and
(B) to assist State educational agencies in reviewing
the administrative practices of local educational agencies,
to the extent determined by the Secretary.
SEC. 22. ø42 U.S.C. 1769c¿ COMPLIANCE AND ACCOUNTABILITY.

(a) UNIFIED ACCOUNTABILITY SYSTEM.—There shall be a unified
system prescribed and administered by the Secretary for ensuring
that local food service authorities that participate in the school
lunch program under this Act comply with the provisions of this
Act. Such system shall be established through the publication of
regulations and the provision of an opportunity for public comment,
consistent with the provisions of section 553 of title 5, United
States Code.
(b) FUNCTIONS OF SYSTEM.—
(1) IN GENERAL.—Under the system described in subsection
(a), each State educational agency shall—
(A) require that local food service authorities comply
with the provisions of this Act; and
(B) ensure such compliance through reasonable audits
and supervisory assistance reviews.
(2) MINIMIZATION OF ADDITIONAL DUTIES.—Each State educational agency shall coordinate the compliance and accountability activities described in paragraph (1) in a manner that
minimizes the imposition of additional duties on local food service authorities.
(3) ADDITIONAL REVIEW REQUIREMENT FOR SELECTED LOCAL
EDUCATIONAL AGENCIES.—
(A) DEFINITION OF SELECTED LOCAL EDUCATIONAL
AGENCIES.—In this paragraph, the term ‘‘selected local educational agency’’ means a local educational agency that has
a demonstrated high level of, or a high risk for, administrative error, as determined by the Secretary.
(B) ADDITIONAL ADMINISTRATIVE REVIEW.—In addition
to any review required by subsection (a) or paragraph (1),
each State educational agency shall conduct an administrative review of each selected local educational agency during
the review cycle established under subsection (a).
(C) SCOPE OF REVIEW.—In carrying out a review under
subparagraph (B), a State educational agency shall only review the administrative processes of a selected local educational agency, including application, certification,
verification, meal counting, and meal claiming procedures.
(D) RESULTS OF REVIEW.—If the State educational
agency determines (on the basis of a review conducted
under subparagraph (B)) that a selected local educational
agency fails to meet performance criteria established by
the Secretary, the State educational agency shall—
(i) require the selected local educational agency to
develop and carry out an approved plan of corrective
action;
(ii) except to the extent technical assistance is provided directly by the Secretary, provide technical assistance to assist the selected local educational agency
in carrying out the corrective action plan; and
October 21, 2009

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(iii) conduct a followup review of the selected local
educational agency under standards established by the
Secretary.
(4) RETAINING FUNDS AFTER ADMINISTRATIVE REVIEWS.—
(A) IN GENERAL.—Subject to subparagraphs (B) and
(C), if the local educational agency fails to meet administrative performance criteria established by the Secretary in
both an initial review and a followup review under paragraph (1) or (3) or subsection (a), the Secretary may require
the State educational agency to retain funds that would
otherwise be paid to the local educational agency for school
meals programs under procedures prescribed by the Secretary.
(B) AMOUNT.—The amount of funds retained under
subparagraph (A) shall equal the value of any overpayment
made to the local educational agency or school food authority as a result of an erroneous claim during the time period
described in subparagraph (C).
(C) TIME PERIOD.—The period for determining the
value of any overpayment under subparagraph (B) shall be
the period—
(i) beginning on the date the erroneous claim was
made; and
(ii) ending on the earlier of the date the erroneous
claim is corrected or—
(I) in the case of the first followup review conducted by the State educational agency of the local
educational agency under this section after July 1,
2005, the date that is 60 days after the beginning
of the period under clause (i); or
(II) in the case of any subsequent followup review conducted by the State educational agency of
the local educational agency under this section,
the date that is 90 days after the beginning of the
period under clause (i).
(5) USE OF RETAINED FUNDS.—
(A) IN GENERAL.—Subject to subparagraph (B), funds
retained under paragraph (4) shall—
(i) be returned to the Secretary, and may be
used—
(I) to provide training and technical assistance
related to administrative practices designed to improve program integrity and administrative accuracy in school meals programs to State educational
agencies and, to the extent determined by the Secretary, to local educational agencies and school
food authorities;
(II) to assist State educational agencies in reviewing the administrative practices of local educational agencies in carrying out school meals programs; and
(III) to carry out section 21(f); or
(ii) be credited to the child nutrition programs appropriation account.
(B) STATE SHARE.—A State educational agency may retain not more than 25 percent of an amount recovered
October 21, 2009

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RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT

Sec. 25

under paragraph (4), to carry out school meals program integrity initiatives to assist local educational agencies and
school food authorities that have repeatedly failed, as determined by the Secretary, to meet administrative performance criteria.
(C) REQUIREMENT.—To be eligible to retain funds
under subparagraph (B), a State educational agency
shall—
(i) submit to the Secretary a plan describing how
the State educational agency will use the funds to improve school meals program integrity, including measures to give priority to local educational agencies from
which funds were retained under paragraph (4);
(ii) consider using individuals who administer exemplary local food service programs in the provision of
training and technical assistance; and
(iii) obtain the approval of the Secretary for the
plan.
(c) ROLE OF SECRETARY.—In carrying out this section, the Secretary shall—
(1) assist the State educational agency in the monitoring of
programs conducted by local food service authorities; and
(2) through management evaluations, review the compliance of the State educational agency and the local school food
service authorities with regulations issued under this Act.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to
be appropriated for purposes of carrying out the compliance and accountability activities referred to in subsection (c) $6,000,000 for
each of fiscal years 2004 through 2009.
[SEC. 23. 23–1 ø42 U.S.C. 1769d¿ INFORMATION ON INCOME ELIGIBILITY.]
[SEC. 24. 24–1 ø42 U.S.C. 1769e¿ NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.]
SEC. 25. ø42 U.S.C. 1769f¿ DUTIES OF THE SECRETARY RELATING TO
NONPROCUREMENT DEBARMENT.

(a) PURPOSES.—The purposes of this section are to promote the
prevention and deterrence of instances of fraud, bid rigging, and
other anticompetitive activities encountered in the procurement of
products for child nutrition programs by—
(1) establishing guidelines and a timetable for the Secretary to initiate debarment proceedings, as well as establishing mandatory debarment periods; and
(2) providing training, technical advice, and guidance in
identifying and preventing the activities.
(b) DEFINITIONS.—As used in this section:
(1) CHILD NUTRITION PROGRAM.—The term ‘‘child nutrition
program’’ means—
(A) the school lunch program established under this
Act;
(B) the summer food service program for children established under section 13;
(C) the child and adult care food program established
under section 17;
23–1 Section
24–1 Section

October 21, 2009

23 repealed by section 711 of P.L. 104–193, 110 Stat. 2301, Aug. 22, 1996.
24 repealed by section 712 of P.L. 104–193, 110 Stat. 2301, Aug. 22, 1996..

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(D) the special milk program established under section
3 of the Child Nutrition Act of 1966 (42 U.S.C. 1772);
(E) the school breakfast program established under
section 4 of such Act (42 U.S.C. 1773); and
(F) the special supplemental nutrition program for
women, infants, and children authorized under section 17
of such Act (42 U.S.C. 1786).
(2) CONTRACTOR.—The term ‘‘contractor’’ means a person
that contracts with a State, an agency of a State, or a local
agency to provide goods or services in relation to the participation of a local agency in a child nutrition program.
(3) LOCAL AGENCY.—The term ‘‘local agency’’ means a
school, school food authority, child care center, sponsoring organization, or other entity authorized to operate a child nutrition
program at the local level.
(4) NONPROCUREMENT DEBARMENT.—The term ‘‘nonprocurement debarment’’ means an action to bar a person from programs and activities involving Federal financial and nonfinancial assistance, but not including Federal procurement
programs and activities.
(5) PERSON.—The term ‘‘person’’ means any individual, corporation, partnership, association, cooperative, or other legal
entity, however organized.
(c) ASSISTANCE TO IDENTIFY AND PREVENT FRAUD AND ANTICOMPETITIVE ACTIVITIES.—The Secretary shall—
(1) in cooperation with any other appropriate individual,
organization, or agency, provide advice, training, technical assistance, and guidance (which may include awareness training,
training films, and troubleshooting advice) to representatives of
States and local agencies regarding means of identifying and
preventing fraud and anticompetitive activities relating to the
provision of goods or services in conjunction with the participation of a local agency in a child nutrition program; and
(2) provide information to, and fully cooperate with, the Attorney General and State attorneys general regarding investigations of fraud and anticompetitive activities relating to the
provision of goods or services in conjunction with the participation of a local agency in a child nutrition program.
(d) NONPROCUREMENT DEBARMENT.—
(1) IN GENERAL.—Except as provided in paragraph (3) and
subsection (e), not later than 180 days after notification of the
occurrence of a cause for debarment described in paragraph (2),
the Secretary shall initiate nonprocurement debarment proceedings against the contractor who has committed the cause
for debarment.
(2) CAUSES FOR DEBARMENT.—Actions requiring initiation
of nonprocurement debarment pursuant to paragraph (1) shall
include a situation in which a contractor is found guilty in any
criminal proceeding, or found liable in any civil or administrative proceeding, in connection with the supplying, providing, or
selling of goods or services to any local agency in connection
with a child nutrition program, of—
(A) an anticompetitive activity, including bid-rigging,
price-fixing, the allocation of customers between competitors, or other violation of Federal or State antitrust laws;
(B) fraud, bribery, theft, forgery, or embezzlement;
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(C) knowingly receiving stolen property;
(D) making a false claim or statement; or
(E) any other obstruction of justice.
(3) EXCEPTION.—If the Secretary determines that a decision on initiating nonprocurement debarment proceedings cannot be made within 180 days after notification of the occurrence
of a cause for debarment described in paragraph (2) because of
the need to further investigate matters relating to the possible
debarment, the Secretary may have such additional time as the
Secretary considers necessary to make a decision, but not to exceed an additional 180 days.
(4) MANDATORY CHILD NUTRITION PROGRAM DEBARMENT PERIODS.—
(A) IN GENERAL.—Subject to the other provisions of
this paragraph and notwithstanding any other provision of
law except subsection (e), if, after deciding to initiate nonprocurement debarment proceedings pursuant to paragraph (1), the Secretary decides to debar a contractor, the
debarment shall be for a period of not less than 3 years.
(B) PREVIOUS DEBARMENT.—If the contractor has been
previously debarred pursuant to nonprocurement debarment proceedings initiated pursuant to paragraph (1), and
the cause for debarment is described in paragraph (2)
based on activities that occurred subsequent to the initial
debarment, the debarment shall be for a period of not less
than 5 years.
(C) SCOPE.—At a minimum, a debarment under this
subsection shall serve to bar the contractor for the specified
period from contracting to provide goods or services in conjunction with the participation of a local agency in a child
nutrition program.
(D) REVERSAL, REDUCTION, OR EXCEPTION.—Nothing in
this section shall restrict the ability of the Secretary to—
(i) reverse a debarment decision;
(ii) reduce the period or scope of a debarment;
(iii) grant an exception permitting a debarred contractor to participate in a particular contract to provide
goods or services; or
(iv) otherwise settle a debarment action at any
time;
in conjunction with the participation of a local agency in a
child nutrition program, if the Secretary determines there
is good cause for the action, after taking into account factors set forth in paragraphs (1) through (6) of subsection
(e).
(5) INFORMATION.—On request, the Secretary shall present
to the Committee on Education and Labor, and the Committee
on Agriculture, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate information regarding the decisions required by this subsection.
(6) RELATIONSHIP TO OTHER AUTHORITIES.—A debarment
imposed under this section shall not reduce or diminish the authority of a Federal, State, or local government agency or court
to penalize, imprison, fine, suspend, debar, or take other adverse action against a person in a civil, criminal, or administrative proceeding.
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(7) REGULATIONS.—The Secretary shall issue such regulations as are necessary to carry out this subsection.
(e) MANDATORY DEBARMENT.—Notwithstanding any other provision of this section, the Secretary shall initiate nonprocurement
debarment proceedings against the contractor (including any cooperative) who has committed the cause for debarment (as determined
under subsection (d)(2)), unless the action—
(1) is likely to have a significant adverse effect on competition or prices in the relevant market or nationally;
(2) will interfere with the ability of a local agency to procure a needed product for a child nutrition program;
(3) is unfair to a person, subsidiary corporation, affiliate,
parent company, or local division of a corporation that is not
involved in the improper activity that would otherwise result in
the debarment;
(4) is likely to have significant adverse economic impacts
on the local economy in a manner that is unfair to innocent
parties;
(5) is not justified in light of the penalties already imposed
on the contractor for violations relevant to the proposed debarment, including any suspension or debarment arising out of the
same matter that is imposed by any Federal or State agency;
or
(6) is not in the public interest, or otherwise is not in the
interests of justice, as determined by the Secretary.
(f) EXHAUSTION OF ADMINISTRATIVE REMEDIES.—Prior to seeking judicial review in a court of competent jurisdiction, a contractor
against whom a nonprocurement debarment proceeding has been
initiated shall—
(1) exhaust all administrative procedures prescribed by the
Secretary; and
(2) receive notice of the final determination of the Secretary.
(g) INFORMATION RELATING TO PREVENTION AND CONTROL OF
ANTICOMPETITIVE ACTIVITIES.—On request, the Secretary shall
present to the Committee on Education and Labor, and the Committee on Agriculture, of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate information regarding the activities of the Secretary relating to anticompetitive activities, fraud, nonprocurement debarment, and any
waiver granted by the Secretary under this section.
SEC. 26. ø42 U.S.C. 1769g¿ INFORMATION CLEARINGHOUSE.

(a) IN GENERAL.—The Secretary shall enter into a contract with
a nongovernmental organization described in subsection (b) to establish and maintain a clearinghouse to provide information to nongovernmental groups located throughout the United States that assist low-income individuals or communities regarding food assistance, self-help activities to aid individuals in becoming self-reliant,
and other activities that empower low-income individuals or communities to improve the lives of low-income individuals and reduce
reliance on Federal, State, or local governmental agencies for food
or other assistance.
(b) NONGOVERNMENTAL ORGANIZATION.—The nongovernmental
organization referred to in subsection (a) shall be selected on a competitive basis and shall—
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(1) be experienced in the gathering of first-hand information in all the States through onsite visits to grassroots organizations in each State that fight hunger and poverty or that assist individuals in becoming self-reliant;
(2) be experienced in the establishment of a clearinghouse
similar to the clearinghouse described in subsection (a);
(3) agree to contribute in-kind resources towards the establishment and maintenance of the clearinghouse and agree to
provide clearinghouse information, free of charge, to the Secretary, States, counties, cities, antihunger groups, and grassroots organizations that assist individuals in becoming self-sufficient and self-reliant;
(4) be sponsored by an organization, or be an organization,
that—
(A) has helped combat hunger for at least 10 years;
(B) is committed to reinvesting in the United States;
and
(C) is knowledgeable regarding Federal nutrition programs;
(5) be experienced in communicating the purpose of the
clearinghouse through the media, including the radio and print
media, and be able to provide access to the clearinghouse information through computer or telecommunications technology, as
well as through the mails; and
(6) be able to provide examples, advice, and guidance to
States, counties, cities, communities, antihunger groups, and
local organizations regarding means of assisting individuals
and communities to reduce reliance on government programs,
reduce hunger, improve nutrition, and otherwise assist low-income individuals and communities become more self-sufficient.
(c) AUDITS.—The Secretary shall establish fair and reasonable
auditing procedures regarding the expenditures of funds to carry
out this section.
(d) FUNDING.—Out of any moneys in the Treasury not otherwise appropriated, the Secretary of the Treasury shall pay to the
Secretary to provide to the organization selected under this section,
to establish and maintain the information clearinghouse, $200,000
for each of fiscal years 1995 and 1996, $150,000 for fiscal year 1997,
$100,000 for fiscal year 1998, $166,000 for each of fiscal years 1999
through 2004, and $250,000 for each of fiscal years 2005 through
2010. The Secretary shall be entitled to receive the funds and shall
accept the funds, without further appropriation.
SEC. 27. ø42 U.S.C. 1769h¿ ACCOMMODATION OF THE SPECIAL DIETARY NEEDS OF INDIVIDUALS WITH DISABILITIES.

(a) DEFINITIONS.—In this section:
(1) COVERED PROGRAM.—The term ‘‘covered program’’
means—
(A) the school lunch program authorized under this
Act;
(B) the school breakfast program authorized under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773);
and
(C) any other program authorized under this Act or the
Child Nutrition Act of 1966 (except for section 17) that the
Secretary determines is appropriate.
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(2) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means a
school food authority, institution, or service institution that
participates in a covered program.
(b) ACTIVITIES.—The Secretary may carry out activities to help
accommodate the special dietary needs of individuals with disabilities who are participating in a covered program. The activities may
include—
(1) developing and disseminating to State agencies guidance and technical assistance materials;
(2) conducting training of State agencies and eligible entities; and
(3) providing grants to State agencies and eligible entities.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as are necessary to carry out this section for each of fiscal years 1999 through 2003.
SEC. 28. ø42 U.S.C. 1769i¿ PROGRAM EVALUATION.

(a) PERFORMANCE ASSESSMENTS.—
(1) IN GENERAL.—Subject to the availability of funds made
available under paragraph (3), the Secretary, acting through
the Administrator of the Food and Nutrition Service, may conduct annual national performance assessments of the meal programs under this Act and the Child Nutrition Act of 1966 (42
U.S.C. 1771 et seq.).
(2) COMPONENTS.—In conducting an assessment, the Secretary may assess—
(A) the cost of producing meals and meal supplements
under the programs described in paragraph (1); and
(B) the nutrient profile of meals, and status of menu
planning practices, under the programs.
(3) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $5,000,000
for fiscal year 2004 and each subsequent fiscal year.
(b) CERTIFICATION IMPROVEMENTS.—
(1) IN GENERAL.—Subject to the availability of funds made
available under paragraph (5), the Secretary, acting through
the Administrator of the Food and Nutrition Service, shall conduct a study of the feasibility of improving the certification
process used for the school lunch program established under
this Act.
(2) PILOT PROJECTS.—In carrying out this subsection, the
Secretary may conduct pilot projects to improve the certification process used for the school lunch program.
(3) COMPONENTS.—In carrying out this subsection, the Secretary shall examine the use of—
(A) other income reporting systems;
(B) an integrated benefit eligibility determination process managed by a single agency;
(C) income or program participation data gathered by
State or local agencies; and
(D) other options determined by the Secretary.
(4) WAIVERS.—
(A) IN GENERAL.—Subject to subparagraph (B), the
Secretary may waive such provisions of this Act and the
Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) as are
necessary to carry out this subsection.
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(B) PROVISIONS.—The protections of section 9(b)(6)
shall apply to any study or pilot project carried out under
this subsection.
(5) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection such sums
as are necessary.

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