TITLE 42 - US CODE - CHAPTER 13 - SCHOOL LUNCH PROGRAMS

42 USC 1751 - Congressional declaration of policy

It is declared to be the policy of Congress, as a measure of national security, to safeguard the health and well-being of the Nations 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">nonprofit school lunch programs.

42 USC 1752 - Authorization of appropriations; Secretary defined

For each fiscal year, there is 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 chapter, other than sections 1761 and 1766 of this title. Appropriations to carry out the provisions of this chapter 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 this chapter and the Child Nutrition Act of 1966 shall remain available for the purposes of the Act for which appropriated until expended.

42 USC 1753 - Apportionments to States

(a) The sums appropriated for any fiscal year pursuant to the authorizations contained in section 1752 of this title shall be available to the Secretary for supplying agricultural commodities and other food for the program in accordance with the provisions of this chapter.
(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 1758 (a) of this title) served during such fiscal year in schools in such State which participate in the school lunch program under this chapter under agreements with such State educational agency; by
(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 1759a (a) of this title) 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.

42 USC 1754 - Nutrition promotion

(a) In general 
Subject to the availability of funds made available under subsection (g) of this section, 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 chapter 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 chapter 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) of this section 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 chapter 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) of this section.
(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) of this section; 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.
(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) of this section 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 1761 of this title, the State agency may
(A) retain a portion of the funds made available under subsection (c) of this section (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.

42 USC 1755 - Direct expenditures for agricultural commodities and other foods

(a) Administrative expenses; nutritional education; pilot projects; cash-in-lieu of commodities study; refusal of commodities and receipt of other commodities available to the State in lieu of the refused commodities 
The funds provided by appropriation or transfer from other accounts for any fiscal year for carrying out the provisions of this chapter, 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 Secretarys administrative expenses under this chapter and under the Child Nutrition Act of 1966 [42 U.S.C. 1771 et seq.];
(2) the amount apportioned by the Secretary pursuant to section 1753 of this title and the amount appropriated pursuant to sections 1759a and 1761 of this title 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 chapter and the programs under the Child Nutrition Act of 1966 [42 U.S.C. 1771 et seq.], other than section 3 [42 U.S.C. 1772], 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 1769 of this title, and for necessary surveys and studies of requirements for food service programs in furtherance of the purposes expressed in section 1751 of this title, 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 institutions participating in the food service programs under this chapter and under the Child Nutrition Act of 1966 [42 U.S.C. 1771 et seq.] 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 chapter 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 section 713c of title 15, facilitating operations with respect to the purchase and disposition of surplus agricultural commodities under section 612c of title 7, shall, to the extent not inconsistent with the provision of this chapter, also be applicable to expenditures of funds by the Secretary under this chapter. 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 chapter and the Child Nutrition Act of 1966.
(b) Delivery of commodities 
The Secretary shall deliver, to each State participating in the school lunch program under this chapter, commodities valued at the total level of assistance authorized under subsection (c)1 of this section for each school year for the school lunch program in the State, not later than September 30 of the following school year.
(c) Level of commodity assistance; computation of index; calculation of total assistance to each State; emphasis on high protein foods; per meal value of donated foods 

(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 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) Termination of commodity assistance based upon school breakfast program 
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) Minimum percentage of commodity assistance 

(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 1753 of this title, this section, and section 1759a of this title 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, 2009, 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 1762a (a) of this title to meet the requirement for the school year.
[1] See References in Text note below.

42 USC 1756 - Payments to States

(a) State revenue matching requirements; special provisions for lower than average income per capita States 

(1) Funds appropriated to carry out section 1753 of this title 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 chapter, 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 chapter. 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 such State under section 1753 of this title 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 1753 of this title 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) Disbursements; private schools 
The State revenues provided by any State to meet the requirement of subsection (a) of this section shall, to the extent the State deems practicable, be disbursed to schools participating in the school lunch program under this chapter. 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) of this section.
(c) Certification of payments by Secretary 
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) Combined Federal and State commodity purchases 
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 1753 or 1759a of this title 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 chapter.

42 USC 1757 - State disbursement to schools

(a) Disbursement by State educational agency 
Funds paid to any State during any fiscal year pursuant to section 1753 of this title 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) Permanent, amendable agreements 
The agreements described in subsection (a) of this section shall be permanent agreements that may be amended as necessary.
(c) Suspension or termination of agreements 
The State educational agency may suspend or terminate any such agreement in accordance with regulations prescribed by the Secretary.
(d) Use of funds 
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) Limitation 
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 chapter during such year by the maximum per meal reimbursement rate for the State, for the type of lunch served, as prescribed by the Secretary.
(f) Increase in meal reimbursement 
In any fiscal year in which the national average payment per lunch determined under section 1753 of this title 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) In advance or as reimbursement 
Lunch assistance disbursements to schools under this section and under section 1759a of this title may be made in advance or by way of reimbursement in accordance with procedures prescribed by the Secretary.

42 USC 1758 - Program requirements

(a) Nutritional requirements 

(1) 
(A) Lunches served by schools participating in the school lunch program under this chapter 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 chapter, 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 chapter
(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 students 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 cows 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).
(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 students parent or legal guardian that identifies the medical or other special dietary need that restricts the students 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 chapter 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 chapter 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 chapter (and, when approved by the local school district or nonprofit">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 chapter 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 5341 of title 7.
(B) Rules.— 
Not later than 2 years after June 30, 2004, 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 chapter and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).
(b) Eligibility 

(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 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);
(bb) the food stamp program established under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
(cc) the food distribution program on Indian reservations established under section 4(b) of the Food Stamp Act of 1977 (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 chapter, 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.
(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
(AA) the food stamp program established under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
(BB) the food distribution program on Indian reservations established under section 4(b) of the Food Stamp Act of 1977 (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 individual 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 reduced-price 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 food stamp program established under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
(II) the food distribution program on Indian reservations established under section 4(b) of the Food Stamp Act of 1977 (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.
(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 June 30, 2004, 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 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 a local educational agency to December 15 of the school year.
(ii) Eligibility changes.— 
Based on the 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 chapter;
(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 June 30, 2004, 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.— 

(A) In general.— 
Subject to subparagraph (D), each State agency shall enter into an agreement with the State agency conducting eligibility determinations for the food stamp program established under the Food Stamp Act of 1977 (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 food stamp program shall be certified as eligible for free lunches under this chapter 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 chapter 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 food stamp program as eligible for free lunches under this chapter 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) Discretionary certification.— 

(A) In general.— 
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
(i) 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;
(ii) a homeless child or youth (defined as 1 of the individuals described in section 11434a (2) of this title;[1]
(iii) 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
(iv) a migratory child (as defined in section 6399 of title 20).
(B) Children of households receiving food stamps.— 
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 member of a household that is receiving food stamps under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
(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 chapter or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) (including a regulation promulgated under either this chapter or that 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 chapter;
(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 childrens 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 chapter 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.
(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 chapter 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) of this section 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.— 

(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 1759a (a) of this title, 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 by[2] any overt identification of any child by special tokens or tickets, announced or published lists 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 childs parent or guardian continues to be unemployed and
(ii)  the income of the childs 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 a 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 chapter 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
(i) a member of a household receiving assistance under the food stamp program authorized under the Food Stamp Act of 1977 (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 11434a (2) of this title;[3]
(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 6399 of title 20).
(B) Proof of receipt of food stamps 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 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, 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 chapter.
(c) Operation on nonprofit">nonprofit basis; donation of agricultural commodities 
School lunch programs under this chapter shall be operated on a nonprofit">nonprofit basis. Commodities purchased under the authority of section 612c of title 7, 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 chapter as well as to other schools carrying out nonprofit">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) Social Security numbers and other documentation required as condition of eligibility 

(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 childs 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) of this section.
(2) No member of a household may be provided a free or reduced price lunch under this chapter 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 food stamp program under the Food Stamp Act of 1977 [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 [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;
(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) of this section; 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 6399 of title 20).
(e) Limitation on meal contracting 
A school or school food authority participating in a program under this chapter may not contract with a food service company to provide a la carte food service unless the company agrees to offer free, reduced price, and full-price reimbursable meals to all eligible children.
(f) Adherence to Dietary Guidelines 

(1) Nutritional requirements.— 
Except as provided in paragraph (2), not later than the first day of the 19961997 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 5341 of title 7; 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 19941995 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, 2009, 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 lunch program under this chapter or the school breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
(g) Justification of production records; paperwork reduction 
Not later than 1 year after November 2, 1994, 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 chapter 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 2009, 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 2009, 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 chapter, 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 1761 of this title, or the child and adult care food program under section 1766 of this title, 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
(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 

(1) In general 
The Secretary shall
(A) encourage institutions participating in the school lunch program under this chapter and the school breakfast program established by section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773) to purchase, in addition to other food purchases, locally produced foods for school meal programs, to the maximum extent practicable and appropriate;
(B) advise institutions participating in a program described in subparagraph (A) of the policy described in that subparagraph and post information concerning the policy on the website maintained by the Secretary; and
(C) in accordance with requirements established by the Secretary, provide startup grants to not more than 200 institutions to defray the initial costs of equipment, materials, and storage facilities, and similar costs, incurred in carrying out the policy described in subparagraph (A).
(2) Authorization of appropriations 

(A) In general 
There is authorized to be appropriated to carry out this subsection $400,000 for each of fiscal years 2003 through 2009, to remain available until expended.
(B) Limitation 
No amounts may be made available to carry out this subsection unless specifically provided by an appropriation Act.
[1] So in original. Probably should be preceded by a closing parenthesis.
[2] So in original. Probably should be “be”.
[3] So in original. Probably should be preceded by a closing parenthesis.

42 USC 1759 - Direct disbursement to schools by Secretary

(a) The Secretary shall withhold funds payable to a State under this chapter and disburse the funds directly to schools, institutions, or service institutions within the State for the purposes authorized by this chapter 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) of this section). 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 chapter. If the Secretary is administering (in whole or in part) any program authorized under this chapter, 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 chapter 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.

42 USC 1759a - Special assistance funds

(a) Formula for computation of payments; computation for lunches to eligible children in schools funding service to ineligible children from non-Federal sources; special assistance factors; annual adjustments 

(1) 
(A) Except as provided in section 1759 of this title, 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 section 1758 (a) of this title) served free to children eligible for such lunches in schools within that State during such fiscal year by the 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 price 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 chapter 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 4-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 chapter 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 4-school-year period. The State may approve an application under 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 1753 of this title).
(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 1766 (c) of this title).
(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 chapter 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) Financing cost of free and reduced price lunches on basis of need of school for special assistance; maximum per lunch amount 
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 children pursuant to section 1758 (b) of this title. 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) Payments to States 
Special assistance payments to any State under this section shall be made as provided in the last sentence of section 1756 of this title.
(d) Report of school to State educational agency, contents; report of State educational agency to Secretary, contents 

(1) The Secretary, when appropriate, may request each school participating in the school lunch program under this chapter 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) Eligibility of commodity only schools for special assistance payments; free and reduced price meals; discrimination and identification prohibited 
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 1758 (b) of this title, and shall serve meals at a reduced price, not exceeding the price specified in section 1758 (b)(9) of this title, 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[1] lunch shall be made by the school, nor shall there be 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) of this section; and
(ii) schools that may benefit from electing to receive special assistance under subparagraph (C) or (E) of subsection (a)(1) of this section;
(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) of this section;
(D) take any other actions the Secretary determines are consistent with receiving special assistance under subparagraph (C) or (E) of subsection (a)(1) of this section and receiving a grant under this subsection; and
(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) of this section;
(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) of this section; 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.
[1] So in original. Probably should be “reduced price”.

42 USC 1760 - Miscellaneous provisions

(a) Accounts and records 
States, State educational agencies, and schools participating in the school lunch program under this chapter shall keep such accounts and records as may be necessary to enable the Secretary to determine whether the provisions of this chapter 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) Agreements with State educational agencies 
The Secretary shall incorporate, in the Secretarys agreements with the State educational agencies, the express requirements under this chapter with respect to the operation of the school lunch program under this chapter insofar as they may be applicable and such other provisions as in the Secretarys opinion are reasonably necessary or appropriate to effectuate the purposes of this chapter.
(c) Requirements with respect to teaching personnel, curriculum, instruction, etc. 
In carrying out the provisions of this chapter, 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) Definitions 
For the purposes of this chapter
(1) Child.— 

(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 1766 (a) of this title, or any nonresidential public or nonprofit">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 1766 of this title 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 chapter, but which receive commodities made available by the Secretary for use by such schools in nonprofit">nonprofit lunch programs.
(3) 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 7801 of title 20.
(B) Inclusion.— 
The term local educational agency includes, in the case of a private nonprofit">nonprofit school, an appropriate entity determined by the Secretary.
(5) School means
(A)  any public or nonprofit">nonprofit private school of high school grade or under, and
(B)  any public or licensed nonprofit">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">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 title 26.
(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) Value of assistance as income or resources under Federal or State laws 
The value of assistance to children under this chapter shall not be considered to be income or resources for any purposes under any Federal or State laws, including laws relating to taxation and welfare and public assistance programs.
(f) Adjustment of national average payment rate for Alaska, Hawaii, territories and possessions, etc. 
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 1753, 1759a, 1761, and 1766 of this title 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) Criminal penalties 
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 chapter 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) Combined allocation for breakfast and lunch 
No provision of this chapter or of the Child Nutrition Act of 1966 [42 U.S.C. 1771 et seq.] shall require any school receiving funds under this chapter and the Child Nutrition Act of 1966 to account separately for the cost incurred in the school lunch and school breakfast programs.
(i) Use of school lunch facilities for elderly programs 
Facilities, equipment, and personnel provided to a school food authority for a program authorized under this chapter 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">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) Reimbursement for final claims 

(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) Expedited rulemaking 

(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 5341 of title 7. The final regulations shall include
(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) Waiver of statutory and regulatory requirements 

(1) 
(A) Except as provided in paragraph (4), the Secretary may waive any requirement under this chapter or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), or any regulation issued under either this chapter or 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;
(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 chapter 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 1762a of this title;
(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">nonprofit organization described in section 1761 of this title; or
(C) a family or group day care home sponsoring organization described in section 1766 of this title.
(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 chapter 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) of this section.
(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 chapter 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 chapter 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 chapter or the school breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773).
(o) Procurement contracts 
In acquiring a good or service for programs under this chapter 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.

42 USC 1761 - Summer food service programs for children in service institutions

(a) Assistance to States; definitions; eligible service institutions; priorities in participation; limitations on reimbursement; nonprofit">nonprofit organizations; rural areas 

(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">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">nonprofit school food authorities, local, municipal, or county governments, public or private nonprofit">nonprofit higher education institutions participating in the National Youth Sports Program,,[1] and residential public or private nonprofit">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 chapter 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 chapter 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">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">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">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">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;
(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">nonprofit organizations eligible under paragraph (7) that have demonstrated successful program performance in a prior year.
(C) New public institutions.
(D) New private nonprofit">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 chapter 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">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">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
(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">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 chapter 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.
(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.— 

(A) 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) of this section shall be reimbursed for meals and meal supplements in accordance with the applicable provisions under this chapter (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 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) Payments for meals served during May through September; exceptions for continuous school calendars or non-school sites; National Youth Sports Program 

(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) Advance program payments to States for monthly meal service; letters of credit, forwarding to States; determination of amount; valid claims, receipt 
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) Advance program payments to service institutions for monthly meal service; certification of personnel training sessions; minimum days per month operations requirement; payments: computation, limitation; valid claims, receipt; withholding; demand for repayment; subtraction of disputed payments 

(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 months 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 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 seventy-five 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 months 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) Nutritional standards 

(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">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.
(g) Regulations, guidelines, applications, and handbooks; publication; startup costs 
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) Direct disbursement to service institutions by Secretary 
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 1431 of title 7, or purchased under section 612c of title 7 or section 1446a–1 of title 7. Donated foods may be distributed only to service institutions that can use commodities efficiently and effectively, as determined by the Secretary.
(i) Repealed. Pub. L. 97–35, title VIII, § 817(b), Aug. 13, 1981, 95 Stat. 532 
(j) Administrative expenses of Secretary; authorization of appropriations 
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) Administrative costs of State; payment; adjustment; standards and effective dates, establishment; funds: withholding, inspection 

(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 States 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 Secretarys 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.
(l) Food service management companies; subcontracts; assignments, conditions and limitations; meal capacity information in bids subject to review; registration; record, availability to States; small and minority-owned businesses for supplies and services; contracts: standard form, bid and contract procedures, bonding requirements and exemption, review by States, collusive bidding safeguards 

(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) Accounts and records 
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) Management and administration plan; notification and submittal to Secretary; specific provisions 
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 States administrative budget for the fiscal year, and the States plans to comply with any standards prescribed by the Secretary under subsection (k) of this section;
(2)  the States plans for use of program funds and funds from within the State to the maximum extent practicable to reach needy children;
(3)  the States plans for providing technical assistance and training eligible service institutions;
(4)  the States 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 States plan for timely and effective action against program violators; and
(6)  the States plan for ensuring fiscal integrity by auditing service institutions not subject to auditing requirements prescribed by the Secretary.
(o) Violations and penalties 

(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 of 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 do 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) Monitoring of participating private nonprofit">nonprofit organizations 

(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">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) Authorization of appropriations 
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.
[1] So in original.

42 USC 1762 - Repealed. Pub. L. 101147, title III, 308, Nov. 10, 1989, 103 Stat. 915

Section, act June 4, 1946, ch. 281, 13A, as added Mar. 12, 1970, Pub. L. 91–207, 84 Stat. 51, related to emergency assistance to provide nutritious meals to needy children in schools.

42 USC 1762a - Commodity distribution program

(a) Use of funds for purchase of agricultural commodities and products for donation 
Notwithstanding any other provision of law, the Secretary shall
(1) use funds available to carry out the provisions of section 612c of title 7 which are not expended or needed to carry out such provisions, to purchase (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 chapter, 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 1431 of title 7, for such donation.
(b) Nutrition quality and content information 

(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) Authorization of appropriations for purchase of products or for cash payments in lieu of donations 
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)1 of the Older Americans Act of 1965 or for cash payments in lieu of such donations under section 311(b)(1)1 of such Act. There are hereby authorized to be appropriated such sums as are necessary to carry out the purposes of this subsection.
(d) Assistance procedures; cost and benefits, review; technical assistance; report to Congress; food quality standards contracting procedures 
In providing assistance under this chapter 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">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">nonprofit schools; and
(5) make available technical assistance on the use of commodities available under this chapter and the Child Nutrition Act of 1966 [42 U.S.C. 1771 et seq.].

Within eighteen months after 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 chapter 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) Consultation with school representatives 
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 
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 1755 (c) of this title and the national average payment established under section 1753 of this title. 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 1758 (a) of this title, and shall represent the four basic food groups, including a serving of fluid milk.
(g) Extension of alternative means of assistance 

(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 chapter 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
(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 chapter 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.
[1] See References in Text note below.

42 USC 1763 - Repealed. Pub. L. 101147, title I, 104, Nov. 10, 1989, 103 Stat. 883

Section, act June 4, 1946, ch. 281, 15, formerly 14, as added May 14, 1970, Pub. L. 91–248, § 9, 84 Stat. 213; amended Nov. 7, 1973, Pub. L. 93–150, § 8, 87 Stat. 564; renumbered 15, June 30, 1974, Pub. L. 93–326, § 2, 88 Stat. 286; Nov. 10, 1977, Pub. L. 95–166, § 16, 91 Stat. 1344; Aug. 13, 1981, Pub. L. 97–35, title VIII, § 819(i), 95 Stat. 533, established National Advisory Council on Child Nutrition.

42 USC 1764 - Repealed. Pub. L. 94105, 22, Oct. 7, 1975, 89 Stat. 528

Section, act June 4, 1946, ch. 281, 15, as added June 30, 1971, Pub. L. 92–32, § 1, 85 Stat. 85, authorized use, during fiscal 1971, of not to exceed $35,000,000 from section 612c of Title 7, and not to exceed $100,000,000 during fiscal 1972 to carry out provisions of this chapter, with unexpended funds to remain available in accordance with last sentence of section 1752 of this title.

42 USC 1765 - Election to receive cash payments

(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 chapter 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 1755 (c) of this title.
(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.

42 USC 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">nonprofit food service programs for children in institutions providing child care.
(2) Definition of institution 
In this section, the term institution means
(A) any public or private nonprofit">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 1758 (b) of this title 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">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) of this section);
(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) of this section);
(E) any public or private nonprofit">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) of this section).
(3) Age limit 
Except as provided in subsection (r) of this section, 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;
(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 chapter 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 June 20, 2000, 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) Limitations on cash assistance 
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 exceed 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) Formula for computation of payments; national average payment rate 

(1) For purposes of this section, except as provided in subsection (f)(3) of this section, 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 1753 and 1759a of this title as appropriate (as adjusted pursuant to section 1759a (a) of this title).
(2) For purposes of this section, except as provided in subsection (f)(3) of this section, 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 1759a (a) of this title).
(3) For purposes of this section, except as provided in subsection (f)(3) of this section, 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 1759a (a) of this title).
(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 1758 of this title.
(5) 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.).[1]
(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
(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 title 26;
(bb) is operating a Federal program requiring nonprofit">nonprofit status to participate in the program; or
(cc) is described in subsection (a)(2)(B) of this section.
(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 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) of this section.
(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 childs 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 childs 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 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) of this section 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;
(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) of this section.
(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) Hearing 

(1) 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.— 

(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) of this section 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) of this section.
(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.
(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 1758 of this title;
(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 chapter 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 1758 of this title 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 1758 of this title.
(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.— 

(aa) Factors.— 
Except as provided in subclause (II), with respect to meals or supplements 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 12-month 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 1758 of this title.
(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 1758 of this title, 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 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 1758 of this title to be a child who is a member of a household whose income meets the income eligibility guidelines under section 1758 of this title.
(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 1758 of this title, 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).
(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 start-up 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 institutions anticipated reimbursement for administrative expenses under the program for one month and not more than the institutions 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 to 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 recent 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 chapter 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 months operation. In the case of a newly participating institution, the amount of the advance shall reflect the States 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 months 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.
(g) Meals served by participating institutions; compliance assistance 

(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) Donation of agricultural commodities by Secretary; measurement of value; annual readjustment of assistance; cash in lieu of commodities; Department of Defense child care feeding program 

(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 1755 (c) of this title 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 [7 U.S.C. 1431], 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 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 chapter 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) Non-diminishment of State and local funds 
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) Accounts and records 
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.
(n) Authorization of appropriations 
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) Participation of older persons and chronically impaired disabled persons 

(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 Alzheimers 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">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., 1397 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[2] with the Assistant Secretary for Aging, shall establish, within 6 months of 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.
(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 Stamp Act of 1977 (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., 1396 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) of this section 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) of this section in the same manner as tier I family or group day care homes (as defined in subsection (f)(3)(A)(ii)(I) of this section).
(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) of this section.
(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) of this section;
(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 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 chapter 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 1760 (d)(1)(A) of this title; 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 chapter 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 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) of this section.
(ii) Supplements A supplement shall be reimbursed under this subsection at the rate established for a free supplement under subsection (c)(3) of this section.
(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 eight States, of which six States shall be 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 11351 of this title); 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 in the program authorized under this section in accordance with the terms and conditions applicable to eligible institutions described in subsection (a) of this section.
(3) Licensing requirements 
The licensing requirements contained in subsection (a)(5) of this section 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) of this section.
(C) No charge 
A meal or supplement claimed for reimbursement shall be served without charge.
[1] See References in Text note below.
[2] So in original. Probably should be “consultation”.

42 USC 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 chapter;
(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 1760 (d)(1)(A) of this title.
(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 chapter 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
(A) reimbursed at the rate at which free supplements are reimbursed under section 1766 (c)(3) of this title; 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 1766 (c)(3) of this title (as adjusted pursuant to section 1759a (a)(3) of this title).
(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 chapter shall apply to the content of meal supplements served under programs operated with assistance under this section.

42 USC 1766b - Repealed. Pub. L. 105336, title I, 107(j)(2)(C)(i), Oct. 31, 1998, 112 Stat. 3153

Section, act June 4, 1946, ch. 281, 17B, as added Pub. L. 103–448, title I, § 117(a)(1), Nov. 2, 1994, 108 Stat. 4715, related to homeless children nutrition program.

1767, 1768. Repealed. Pub. L. 99500, title III, 371(a)(1), Oct. 18, 1986, 100 Stat. 1783368, and Pub. L. 99591, title III, 371(a)(1), Oct. 30, 1986, 100 Stat. 3341371; Pub. L. 99661, div. D, title V, 4501(a)(1), Nov. 14, 1986, 100 Stat. 4080

Pub. L. 99–591 is a corrected version of Pub. L. 99–500. Section 1767, act June 4, 1946, ch. 281, 18, as added Oct. 7, 1975, Pub. L. 94–105, § 19, 89 Stat. 526, authorized nutrition program staff study. Section 1768, act June 4, 1946, ch. 281, 19, as added Oct. 7, 1975, Pub. L. 94–105, § 20, 89 Stat. 527, authorized appropriations to assist Trust Territory of Pacific Islands.

42 USC 1769 - Pilot projects

(a) Pilot projects for administration of child nutrition programs by contract or direct disbursement 
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">nonprofit organizations to act as a State agency under this chapter and the Child Nutrition Act of 1966 [42 U.S.C. 1771 et seq.] for schools, institutions, or service institutions referred to in section 1759 of this title and section 5 of the Child Nutrition Act of 1966 [42 U.S.C. 1774].
(b) Extension of eligibility of certain school districts to receive cash or commodity letters of credit assistance for school lunch programs 

(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) Alternative counting and claiming procedures 

(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 chapter; 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 chapter 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).
(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 1759a (a)(1) of this title 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) Fortified fluid milk 

(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 chapter.
(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 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 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[1]
(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, 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 chapter 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 chapter, 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 chapter 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 conduct 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) Fresh fruit and vegetable program 

(1) In general 
For the school year beginning July 2004 and each subsequent school year, the Secretary shall carry out a program to make free fresh fruits and vegetables available, to the maximum extent practicable, to
(A) 25 elementary or secondary schools in each of the 4 States authorized to participate in the program under this subsection on May 1, 2004;
(B) 25 elementary or secondary schools (as selected by the Secretary in accordance with paragraph (3)) in each of 4 States (including a State for which funds were allocated under the program described in paragraph (3)(B)(ii)) that are not participating in the program under this subsection on May 1, 2004; and
(C) 25 elementary or secondary schools operated on 3 Indian reservations (including the reservation authorized to participate in the program under this subsection on May 1, 2004), as selected by the Secretary.
(2) Program 
A school participating in the program shall make free fresh fruits and vegetables available to students throughout the school day in 1 or more areas designated by the school.
(3) Selection of schools 

(A) In general 
Except as provided in subparagraph (B), in selecting additional schools to participate in the program under paragraph (1)(B), the Secretary shall
(i) to the maximum extent practicable, ensure that the majority of schools selected are those in which not less than 50 percent of students are eligible for free or reduced price meals under this chapter;
(ii) 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 chapter;
(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); and
(III) such other information as may be requested by the Secretary;
(iii) for each application received, determine whether the application is from a school in which not less than 50 percent of students are eligible for free or reduced price meals under this chapter; and
(iv) give priority to schools that submit a plan for implementation of the program that includes a partnership with 1 or more entities that provide non-Federal resources (including entities representing the fruit and vegetable industry) for
(I) the acquisition, handling, promotion, or distribution of fresh and dried fruits and fresh vegetables; or
(II) other support that contributes to the purposes of the program.
(B) Nonapplicability to existing participants 
Subparagraph (A) shall not apply to a school, State, or Indian reservation authorized
(i) to participate in the program on May 1, 2004; or
(ii) to receive funding for free fruits and vegetables under funds provided for public health improvement under the heading disease control, research, and training under the heading Centers for Disease Control and Prevention in title II of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2004 (Division E of Public Law 108199; 118 Stat. 238).
(4) Notice of availability 
To be eligible to participate in the program under this subsection, a school shall widely publicize within the school the availability of free fresh fruits and vegetables under the program.
(5) Reports 

(A) Interim reports 
Not later than September 30 of each of fiscal years 2005 through 2008, the Secretary, acting through the Administrator of the Food and Nutrition Service, 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 an interim report that describes the activities carried out under this subsection during the fiscal year covered by the report.
(B) Final report 
Not later than December 31, 2008, the Secretary, acting through the Administrator of the Food and Nutrition Service, 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 final report that describes the results of the program under this subsection.
(6) Funding 

(A) Existing funds 
The Secretary shall use to carry out this subsection any funds that remain under this subsection on the day before June 30, 2004.
(B) Mandatory funds 

(i) In general On October 1, 2004, and on each October 1 thereafter, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary of Agriculture to carry out this subsection $9,000,000, to remain available until expended.
(ii) Receipt and acceptance The Secretary shall be entitled to receive, shall accept, and shall use to carry out this subsection the funds made available under this subparagraph, without further appropriation.
(C) Authorization of appropriations 
In addition to any amounts made available under subparagraphs (A) and (B), there are authorized to be appropriated such sums as are necessary to expand the program carried out under this subsection.
(D) Reallocation 
The Secretary may reallocate any amounts made available to carry out this subsection that are not obligated or expended, as determined by the Secretary.
(g) Summer food service residential camp eligibility 

(1) In general 
During the month after June 30, 2004, through September, 2004, and the months of May through September, 2005, the Secretary shall modify eligibility criteria, at not more than 1 private nonprofit">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">nonprofit camps to participate in the summer food service program for children established under section 1761 of this title.
(2) Eligibility 
To be eligible for the criteria modified under paragraph (1), a residential camp
(A) shall be a service institution (as defined in section 1761 (a)(1) of this title);
(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 1761 (a)(1) of this title).
(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 1761 (b)(1) of this title.
(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.
(h) 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">nonprofit entities for projects that
(A) improve access to local foods in schools and institutions participating in programs under this chapter 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 medium-sized farms for school meals; and
(ii) support school garden programs;
(C) support nutrition education activities or curriculum planning that 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;
(G) provide matching support in the form of cash or in-kind 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) 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.
(i) Year-round services for eligible entities 

(1) In general 
A service institution that is described in section 1761 (a)(6) of this title (excluding a school">public school), or a private nonprofit">nonprofit organization described in section 1761 (a)(7) of this title, 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 1761 (b)(1) of this title.
(3) Administration 
To receive reimbursement under this subsection, a service institution shall comply with section 1761 of this title, 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 1761 of this title.
(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 2009.
(j) 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 chapter 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 1758 (b)(1)(B) of this title.
(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 1758 (b)(1)(B) of this title; 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 1758 (b)(1)(B) of this title.
(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 et seq.] 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.
[1] So in original. Probably should be followed by a period.

42 USC 1769a - Repealed. Pub. L. 104193, title VII, 710, Aug. 22, 1996, 110 Stat. 2301

Section, act June 4, 1946, ch. 281, 19, formerly 21, as added Nov. 10, 1977, Pub. L. 95–166, § 13, 91 Stat. 1338; renumbered 19, Oct. 18, 1986, Pub. L. 99–500, title III, § 371(c)(1), 100 Stat. 1783368, and Oct. 30, 1986, Pub. L. 99–591, title III, § 371(c)(1), 100 Stat. 3341372; renumbered 19, Nov. 14, 1986, Pub. L. 99–661, div. D, title V, 4501(c)(1), 100 Stat. 4080; Nov. 10, 1989, Pub. L. 101–147, title I, § 108, 103 Stat. 887; Nov. 2, 1994, Pub. L. 103–448, title I, § 119, 108 Stat. 4726, directed Secretary to reduce paperwork required in carrying out functions under this chapter and under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.).

42 USC 1769b - Department of Defense overseas dependents schools

(a) Purpose of program; availability of payments and commodities 
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) Administration of program; eligibility determinations and regulations 
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) Nutritional standards for meals; noncompliance with standards 
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) Authorization of appropriations 
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) Technical assistance for administration of program 
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.

42 USC 1769b1 - 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) of this section, 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 chapter 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 1773 of this title; and
(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 chapter and section 1773 of this title, 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 1758 (f)(1) of this title; 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 1773 of this title; 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 1773 of this title, including outreach and informational activities; and
(2) from amounts appropriated pursuant to subsection (e)(2) of this section, 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) of this section 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) of this section shall carry out activities to improve the general operation and quality of
(A) food service programs assisted under this chapter;
(B) school breakfast programs assisted under section 1773 of this title; 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) of this section with activities carried out by any food service management institute established as authorized by subsection (a)(2) of this section.
(2) Use of institute for dietary and nutrition activities 
The Secretary shall use any food service management institute established under subsection (a)(2) of this section 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) of this section $3,000,000 for fiscal year 1990, $2,000,000 for fiscal year 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) of this section. 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) of this section such sums as are necessary for fiscal year 1995 and each subsequent fiscal year. The Secretary shall carry out activities under subsection (a)(2) of this section, 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) of this section 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, and October 1, 2008, $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
(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.

42 USC 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 chapter comply with the provisions of this chapter. 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.
(b) Functions of system 

(1) In general 
Under the system described in subsection (a) of this section, each State educational agency shall
(A) require that local food service authorities comply with the provisions of this chapter; 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) of this section 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) of this section.
(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
(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) of this section, 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 1769b–1 (f) of this title; 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 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 chapter.
(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) of this section $6,000,000 for each of fiscal years 2004 through 2009.

1769d, 1769e. Repealed. Pub. L. 104193, title VII, 711, 712, Aug. 22, 1996, 110 Stat. 2301

Section 1769d, act June 4, 1946, ch. 281, 23, as added Nov. 10, 1989, Pub. L. 101–147, title I, § 111, 103 Stat. 890, directed Secretary to provide each appropriate State agency with information on income eligibility for free or reduced price meals under each program established under this chapter and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.). Section 1769e, act June 4, 1946, ch. 281, 24, as added Nov. 10, 1989, Pub. L. 101–147, title I, § 112, 103 Stat. 890, related to nutrition guidance for child nutrition programs.

42 USC 1769f - Duties of 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 chapter;
(B) the summer food service program for children established under section 1761 of this title;
(C) the child and adult care food program established under section 1766 of this title;
(D) the special milk program established under section 1772 of this title;
(E) the school breakfast program established under section 1773 of this title; and
(F) the special supplemental nutrition program for women, infants, and children authorized under section 1786 of this title.
(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) of this section, 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;
(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) of this section, 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) of this section.

(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.
(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) of this section), 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.

42 USC 1769g - Information clearinghouse

(a) In general 
The Secretary shall enter into a contract with a nongovernmental organization described in subsection (b) of this section 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) of this section shall be selected on a competitive basis and shall
(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) of this section;
(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 2009. The Secretary shall be entitled to receive the funds and shall accept the funds, without further appropriation.

42 USC 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 chapter;
(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 chapter or the Child Nutrition Act of 1966 [42 U.S.C. 1771 et seq.] (except for section 17 [42 U.S.C. 1786]) that the Secretary determines is appropriate.
(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.

42 USC 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 chapter 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 chapter.
(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 chapter and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) as are necessary to carry out this subsection.
(B) Provisions 
The protections of section 1758 (b)(6) of this title 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.