42 U.S.C. § 1761 — Summer food service program for chil-

Page 4934 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 ‘‘(B) not operating the qualified program de- scribed in subsection (f)(1)(A). ‘‘(3) OTHER WAIVERS.— ‘‘(A) CHILD AND ADULT CARE FOOD PROGRAM WAIV- ER.—The authority of the Secretary to establish or grant a waiver under subsection (b) shall expire on June 30, 2022. ‘‘(B) MEAL PATTERN WAIVER.—The authority of the Secretary to establish or grant a waiver under subsection (c) shall expire on June 30, 2023. ‘‘(4) LIMITATIONS.—A waiver authorized by the Sec- retary under this section shall not be in effect after the date on which the authority of the Secretary to establish or grant that waiver under this subsection expires. ‘‘(f) DEFINITIONS.—In this section: ‘‘(1) QUALIFIED PROGRAM.—The term ‘qualified pro- gram’ means the following: ‘‘(A) The school lunch program under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.). ‘‘(B) The school breakfast program under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773). ‘‘(C) The child and adult care food program under section 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766). ‘‘(D) The summer food service program for chil- dren under section 13 of the Richard B. Russell Na- tional School Lunch Act (42 U.S.C. 1761). ‘‘(2) SECRETARY.—The term ‘Secretary’ means the Secretary of Agriculture. ‘‘(3) STATE.—The term ‘State’ has the meaning given such term in section 12(d)(8) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1760(d)(8)).’’ BUY AMERICAN REQUIREMENTS Pub. L. 115–334, title IV, § 4207, Dec. 20, 2018, 132 Stat. 4666, provided that: ‘‘(a) ENFORCEMENT.—Not later than 180 days after the date of the enactment of this Act [Dec. 20, 2018], the Secretary of Agriculture shall— ‘‘(1) enforce full compliance with the requirements of section 12(n) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1760(n)) for purchases of agricultural commodities, including fish, meats, vegetables, and fruits, and the products thereof, and ‘‘(2) ensure that States and school food authorities fully understand their responsibilities under such Act [42 U.S.C. 1751 et seq.]. ‘‘(b) REQUIREMENT.—The products of the agricultural commodities described in subsection (a)(1) shall be processed in the United States and substantially con- tain— ‘‘(1) meats, vegetables, fruits, and other agricul- tural commodities produced in— ‘‘(A) a State, ‘‘(B) the District of Columbia, ‘‘(C) the Commonwealth of Puerto Rico, or ‘‘(D) any territory or possession of the United States, or ‘‘(2) fish harvested— ‘‘(A) within the Exclusive Economic Zone of the United States, as described in Presidential Procla- mation 5030 (48 Fed. Reg. 10605; March 10, 1983) [16 U.S.C. 1453 note], or ‘‘(B) by a United States flagged vessel. ‘‘(c) REPORT.—Not later than 180 days after the date of the enactment of this Act, the Secretary shall sub- mit to Congress a report on the actions the Secretary has taken, and plans to take, to comply with this sec- tion.’’ STUDY OF COST ACCOUNTING REQUIREMENTS Pub. L. 94–105, § 21, Oct. 7, 1975, 89 Stat. 527, prohibited Secretary from delaying or withholding or causing any State to delay or withhold payments for reimburse- ment of per-meal costs on basis of noncompliance with cost accounting procedures until requirements of sub- sec. (b) of this section have been met, and called for a study by Secretary of additional personnel and training needs of States, school districts, and schools resulting from requirement of full cost accounting procedures, such report with recommendations to be submitted to appropriate committees of Congress within one year after Oct. 7, 1975. § 1761. Summer food service program for chil- dren (a) In general (1) Definitions In this section: (A) Area in which poor economic conditions exist (i) In general Subject to clause (ii), the term ‘‘area in which poor economic conditions exist’’, as the term relates to an area in which a pro- gram food service site is located, means— (I) the attendance area of a school in which at least 50 percent of the enrolled children have been determined eligible for free or reduced price school meals under this chapter and the Child Nutri- tion Act of 1966 (42 U.S.C. 1771 et seq.); (II) a geographic area, as defined by the Secretary based on the most recent census data available, in which at least 50 percent of the children residing in that area are eligible for free or reduced price school meals under this chapter and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); (III) an area— (aa) for which the program food serv- ice site documents the eligibility of en- rolled children through the collection of income eligibility statements from the families of enrolled children or other means; and (bb) at least 50 percent of the chil- dren enrolled at the program food serv- ice site meet the income standards for free or reduced price school meals under this chapter and the Child Nutri- tion Act of 1966 (42 U.S.C. 1771 et seq.); (IV) a geographic area, as defined by the Secretary based on information pro- vided from a department of welfare or zoning commission, in which at least 50 percent of the children residing in that area are eligible for free or reduced price school meals under this chapter and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); or (V) an area for which the program food service site demonstrates through other means approved by the Secretary that at least 50 percent of the children enrolled at the program food service site are eli- gible for free or reduced price school meals under this chapter and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.). (ii) Duration of determination A determination that an area is an ‘‘area in which poor economic conditions exist’’ under clause (i) shall be in effect for— Page 4935 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 (I) in the case of an area described in clause (i)(I), 5 years; (II) in the case of an area described in clause (i)(II), until more recent census data are available; (III) in the case of an area described in clause (i)(III), 1 year; and (IV) in the case of an area described in subclause (IV) or (V) of clause (i), a pe- riod of time to be determined by the Sec- retary, but not less than 1 year. (B) Children The term ‘‘children’’ means— (i) individuals who are 18 years of age and under; and (ii) individuals who are older than 18 years of age who are— (I) determined by a State educational agency or a local public educational agency of a State, in accordance with regulations promulgated by the Sec- retary, to have a disability, and (II) participating in a public or non- profit private school program estab- lished for individuals who have a dis- ability. (C) Program The term ‘‘program’’ means the summer food service program for children authorized by this section. (D) Service institution The term ‘‘service institution’’ means a public or private nonprofit school food au- thority, local, municipal, or county govern- ment, public or private nonprofit higher edu- cation institution participating in the Na- tional Youth Sports Program, or residential public or private nonprofit summer camp, that develops special summer or school va- cation programs providing food service simi- lar to food service made available to chil- dren 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.). (E) State The term ‘‘State’’ means— (i) each of the several States of the United States; (ii) the District of Columbia; (iii) the Commonwealth of Puerto Rico; (iv) Guam; (v) American Samoa; (vi) the Commonwealth of the Northern Mariana Islands; and (vii) the United States Virgin Islands. (2) Program authorization (A) In general The Secretary may carry out a program to assist States, through grants-in-aid and other means, to initiate and maintain non- profit summer food service programs for children in service institutions. (B) Preparation of food (i) In general To the maximum extent feasible, con- sistent with the purposes of this section, any food service under the program shall use meals prepared at the facilities of the service institution or at the food service facilities of public and nonprofit private schools. (ii) Information and technical assistance The Secretary shall assist States in the development of information and technical assistance to encourage increased service of meals prepared at the facilities of serv- ice institutions and at public and non- profit private schools. (3) Eligible service institutions Eligible service institutions entitled to par- ticipate in the program shall be limited to those that— (A) demonstrate adequate administrative and financial responsibility to manage an ef- fective food service; (B) have not been seriously deficient in op- erating 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 on- going year-round service if the State deter- mines that its disqualification would result in an area in which poor economic condi- tions exist not being served or in a signifi- cant number of needy children not having reasonable access to a summer food service program). (4) Priority (A) In general The following order of priority shall be used by the State in determining participa- tion where more than one eligible service in- stitution proposes to serve the same area: (i) Local schools. (ii) All other service institutions and pri- vate nonprofit organizations eligible under paragraph (7) that have demonstrated suc- cessful program performance in a prior year. (iii) New public institutions. (iv) New private nonprofit organizations eligible under paragraph (7). (B) Rural areas The Secretary and the States, in carrying out their respective functions under this sec- tion, shall actively seek eligible service in- stitutions located in rural areas, for the pur- pose of assisting such service institutions in applying to participate in the program. (5) Camps Camps that satisfy all other eligibility re- quirements of this section shall receive reim- bursement 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.]. Page 4936 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 1 So in original. Probably should be preceded by ‘‘section’’. (6) Government institutions Service institutions that are local, munic- ipal, or county governments shall be eligible for reimbursement for meals served in pro- grams under this section only if such pro- grams are operated directly by such govern- ments. (7) Private nonprofit organizations (A) Definition of private nonprofit organiza- tion In this paragraph, the term ‘‘private non- profit organization’’ means an organization that— (i) exercises full control and authority over the operation of the program at all sites under the sponsorship of the organi- zation; (ii) provides ongoing year-round activi- ties for children or families; (iii) demonstrates that the organization has adequate management and the fiscal capacity to operate a program under this section; (iv) is an organization described in sec- tion 501(c) of title 26 and exempt from tax- ation under 501(a) 1 of that title; and (v) meets applicable State and local health, safety, and sanitation standards. (B) Eligibility Private nonprofit organizations (other than organizations eligible under paragraph (1)) shall be eligible for the program under the same terms and conditions as other serv- ice institutions. (8) Seamless summer option Except as otherwise determined by the Sec- retary, a service institution that is a public or private nonprofit school food authority may provide summer or school vacation food serv- ice in accordance with applicable provisions of law governing the school lunch program estab- lished under this chapter or the school break- fast program established under the Child Nu- trition 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 eco- nomic conditions exist’’ under paragraph (1)(C) shall be 40 percent. (B) Evaluation (i) In general The Secretary, acting through the Ad- ministrator of the Food and Nutrition Service, shall evaluate the impact of the eligibility criteria described in subpara- graph (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 pro- gram; (III) the geographic location of the sites; (IV) services provided to eligible chil- dren; and (V) other factors determined by the Secretary. (iii) Report Not later than January 1, 2008, the Sec- retary 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 re- ceive, shall accept, and shall use to carry out this subparagraph the funds trans- ferred under subclause (I), without fur- ther appropriation. (10) Summer food service rural transportation (A) In general The Secretary shall provide grants, through not more than 5 eligible State agen- cies 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 appli- cation 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 begin- ning in fiscal year 2006. (D) Reports The Secretary shall submit to the Com- mittee on Education and the Workforce of the House of Representatives and the Com- mittee on Agriculture, Nutrition, and For- estry of the Senate— (i) not later than January 1, 2008, an in- terim report that describes— (I) the use of funds made available under this paragraph; and Page 4937 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 (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 Sec- retary 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 Sec- retary 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 re- ceive, shall accept, and shall use to carry out this paragraph the funds transferred under clause (i), without further appro- priation. (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 ex- pended, as determined by the Secretary. (11) Outreach to eligible families (A) In general The Secretary shall require each State agency that administers the national school lunch program under this chapter to ensure that, to the maximum extent practicable, school food authorities participating in the school lunch program under this chapter co- operate with participating service institu- tions to distribute materials to inform fami- lies of— (i) the availability and location of sum- mer food service program meals; and (ii) the availability of reimbursable breakfasts served under the school break- fast program established by section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773). (B) Inclusions Informational activities carried out under subparagraph (A) may include— (i) the development or dissemination of printed materials, to be distributed to all school children or the families of school children prior to the end of the school year, that inform families of the avail- ability and location of summer food serv- ice program meals; (ii) the development or dissemination of materials, to be distributed using elec- tronic means to all school children or the families of school children prior to the end of the school year, that inform families of the availability and location of summer food service program meals; and (iii) such other activities as are approved by the applicable State agency to promote the availability and location of summer food service program meals to school chil- dren and the families of school children. (C) Multiple State agencies If the State agency administering the pro- gram under this section is not the same State agency that administers the school lunch program under this chapter, the 2 State agencies shall work cooperatively to implement this paragraph. (12) Summer food service support grants (A) In general The Secretary shall use funds made avail- able to carry out this paragraph to award grants on a competitive basis to State agen- cies to provide to eligible service institu- tions— (i) technical assistance; (ii) assistance with site improvement costs; or (iii) other innovative activities that im- prove and encourage sponsor retention. (B) Eligibility To be eligible to receive a grant under this paragraph, a State agency shall submit an application to the Secretary in such manner, at such time, and containing such informa- tion as the Secretary may require. (C) Priority In making grants under this paragraph, the Secretary shall give priority to— (i) applications from States with signifi- cant low-income child populations; and (ii) State plans that demonstrate innova- tive approaches to retain and support sum- mer food service programs after the expi- ration of the start-up funding grants. (D) Use of funds A State and eligible service institution may use funds made available under this paragraph to pay for such costs as the Sec- retary determines are necessary to establish and maintain summer food service pro- grams. (E) Reallocation The Secretary may reallocate any amounts made available to carry out this paragraph that are not obligated or ex- pended, as determined by the Secretary. (F) Authorization of appropriations There is authorized to be appropriated to carry out this paragraph $20,000,000 for fiscal years 2011 through 2015. Page 4938 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 (13) Noncongregate meals (A) In general Beginning not later than summer 2023, the Secretary shall make available an option to States to provide program meals under this section for noncongregate consumption in a rural area with no congregate meal service, as determined by the Secretary. (B) Summer 2023 Notwithstanding any other provision in this paragraph, for summer 2023, the Sec- retary may allow States to use implementa- tion models developed by the Secretary for demonstration projects carried out under section 749(g) of the Agriculture, Rural De- velopment, Food and Drug Administration, and Related Agencies Appropriations Act, 2010 (Public Law 111–80; 123 Stat. 2132), to carry out subparagraph (A). (C) Eligibility determination In administering this paragraph, the Sec- retary shall ensure that noncongregate meals are only available for a child— (i) in an area in which poor economic conditions exist; and (ii) in an area that is not an area in which poor economic conditions exist, if the child is determined to be eligible for a free or reduced price lunch under this chapter or a free or reduced price break- fast under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773). (D) Priorities (i) In general States shall— (I) identify areas with no congregate meal service that could benefit the most from the provision of noncongregate meals; and (II) encourage participating service in- stitutions in those areas to provide non- congregate meals as appropriate. (ii) Areas Areas identified under clause (i) may in- clude areas that are not areas in which poor economic conditions exist but that have children who are determined to be eligible for free or reduced price lunch under this chapter or free or reduced price breakfast under section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773). (E) Administration In administering this paragraph, the Sec- retary shall ensure that— (i) any meal served for noncongregate consumption— (I) meets all applicable State and local health, safety, and sanitation standards; and (II) meets the requirements under sub- section (f)(1); (ii) over a 10-day calendar period, the number of reimbursable meals provided to a child does not exceed the number of meals that could be provided over a 10-day calendar period, as established under sub- section (b)(2); and (iii) States establish a process for identi- fying gaps in service and barriers in reach- ing needy children for congregate and non- congregate models. (F) Regulations Not later than 1 year after December 29, 2022, the Secretary shall promulgate regula- tions (which shall include interim final regu- lations) to carry out this section, including provisions— (i) to ensure the integrity of the alter- native option for program delivery de- scribed in subparagraph (A); and (ii) to incorporate best practices and les- sons learned from noncongregate dem- onstration projects under section 749(g) of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2010 (Public Law 111–80; 123 Stat. 2132). (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 insti- tutions 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 Bu- reau of Labor Statistics of the Department of Labor. Each adjustment shall be based on the unrounded adjustment for the prior 12-month period. (C) SEAMLESS SUMMER REIMBURSEMENTS.—A service institution described in subsection (a)(8) shall be reimbursed for meals and meal supplements in accordance with the applicable provisions under this chapter (other than sub- paragraphs (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, dur- ing each day of operation, if (A) the service in- stitution has the administrative capability and the food preparation and food holding capabili- ties (where applicable) to serve more than one meal per day, and (B) the service period of dif- ferent meals does not coincide or overlap. (3) PERMANENT OPERATING AGREEMENTS AND BUDGET FOR ADMINISTRATIVE COSTS.— (A) PERMANENT OPERATING AGREEMENTS.— (i) IN GENERAL.—Subject to clauses (ii) and (iii), to participate in the program, a service institution that meets the conditions of eli- Page 4939 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 gibility described in this section and in regu- lations promulgated by the Secretary, shall be required to enter into a permanent agree- ment with the applicable State agency. (ii) AMENDMENTS.—A permanent agree- ment described in clause (i) may be amended as necessary to ensure that the service insti- tution is in compliance with all require- ments established in this section or by the Secretary. (iii) TERMINATION.—A permanent agree- ment described in clause (i)— (I) may be terminated for convenience by the service institution and State agency that is a party to the permanent agree- ment; and (II) shall be terminated— (aa) for cause by the applicable State agency in accordance with subsection (q) and with regulations promulgated by the Secretary; or (bb) on termination of participation of the service institution in the program. (B) BUDGET FOR ADMINISTRATIVE COSTS.— (i) IN GENERAL.—When applying for partici- pation in the program, and not less fre- quently than annually thereafter, each serv- ice institution shall submit a complete budget for administrative costs related to the program, which shall be subject to ap- proval by the State. (ii) AMOUNT.—Payment to service institu- tions for administrative costs shall equal the levels determined by the Secretary pur- suant to the study required in paragraph (4). (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 para- graph (1) of this subsection should be made, in- cluding whether different reimbursement lev- els should be established for self-prepared meals and vendored meals and which site-re- lated costs, if any, should be considered as part of administrative costs. (B) The Secretary shall also study the admin- istrative costs of service institutions partici- pating in the program and shall thereafter pre- scribe maximum allowable levels for adminis- trative 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 appro- priate to further the goals of efficient and effec- tive administration of the program. (C) The Secretary shall report the results of such studies to Congress not later than Decem- ber 1, 1977. (c) Payments for meals served during May through September; exceptions for contin- uous school calendars or non-school sites; National Youth Sports Program (1) Payments shall be made to service institu- tions 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 chil- dren 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 condi- tions 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, for- warding 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 pay- ment) 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 nec- essary 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 sub- section (b) of this section not later than sixty days following receipt of valid claims therefor. (e) Advance program payments to service institu- tions for monthly meal service; certification of personnel training sessions; minimum days per month operations requirement; pay- ments: 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 institu- tions that operate under a continuous school calendar, the first day of each month of oper- ation, the State shall forward advance program payments to each service institution. The State shall not release the second month’s advance program payment to any service institution (ex- cluding 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 pay- ment 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 need- ed by such service institution for meals if such Page 4940 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 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 pay- ment is made or $40,000, whichever is less, except that a State may make a larger advance pro- gram 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 adminis- trative 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 fol- lowing 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 reim- bursement covering the period for which an ad- vance program payment has been made, the sub- sequent month’s advance program payment shall be withheld until such time as the State has received a valid claim. Program payments advanced to service institutions that are not subsequently deducted from a valid claim for re- imbursement shall be repaid upon demand by the State. Any prior payment that is under dis- pute may be subtracted from an advance pro- gram payment. (f) Nutritional standards (1) Service institutions receiving funds under this section shall serve meals consisting of a combination of foods and meeting minimum nu- tritional standards prescribed by the Secretary on the basis of tested nutritional research. (2) The Secretary shall provide technical as- sistance to service institutions and private non- profit organizations participating in the pro- gram to assist the institutions and organiza- tions in complying with the nutritional require- ments prescribed by the Secretary pursuant to this subsection. (3) Meals described in paragraph (1) shall be served without cost to children attending serv- ice institutions approved for operation under this section, except that, in the case of camps, charges may be made for meals served to chil- dren 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 institu- tions contracting for the preparation of meals with food service management companies in- clude in their contracts menu cycles, local food safety standards, and food quality standards ap- proved 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 deter- mine 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 prac- tices employed by such local health authority. (7) OFFER VERSUS SERVE.—A school food au- thority 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 con- sume, 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 regula- tions relating to the implementation of the pro- gram by November 1 of each fiscal year, final regulations by January 1 of each fiscal year, and guidelines, applications, and handbooks by Feb- ruary 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 other- wise payable for administrative costs subse- quently made to service institutions under sub- section (b)(3) of this section. (h) Direct disbursement to service institutions by Secretary Each service institution shall, insofar as prac- ticable, use in its food service under the pro- gram foods designated from time to time by the Secretary as being in abundance. The Secretary is authorized to donate to States, for distribu- tion 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. Do- nated foods may be distributed only to service institutions that can use commodities effi- ciently 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; author- ization 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; ad- justment; standards and effective dates, es- tablishment; funds: withholding, inspection (1) The Secretary shall pay to each State for its administrative costs incurred under this sec- tion 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 fis- cal year; (B) 10 percent of the next $100,000 dis- tributed 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 Page 4941 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 that State for the program in the preceding fis- cal year: Provided, That such amounts may be adjusted by the Secretary to reflect changes in the size of that State’s program since the pre- ceding fiscal year. (2) The Secretary shall establish standards and effective dates for the proper, efficient, and ef- fective administration of the program by the State. If the Secretary finds that the State has failed without good cause to meet any of the Secretary’s standards or has failed without good cause to carry out the approved State manage- ment 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 ap- propriate. (3) To provide for adequate nutritional and food quality monitoring, and to further the im- plementation 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; sub- contracts; assignments, conditions and limi- tations; meal capacity information in bids subject to review; registration; record, avail- ability to States; small and minority-owned businesses for supplies and services; con- tracts: standard form, bid and contract pro- cedures, bonding requirements and exemp- tion, review by States, collusive bidding safe- guards (1) Service institutions may contract on a competitive basis with food service management companies for the furnishing of meals or man- agement 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 sub- contract with a single company for the total meal, with or without milk, or for the assembly of the meal. The Secretary shall prescribe addi- tional conditions and limitations governing as- signment of all or any part of a contract entered into by a food service management company under this section. Any food service manage- ment company shall, in its bid, provide the serv- ice institution information as to its meal capac- ity. (2) Each State may provide for the registra- tion 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 Sec- retary, shall establish a standard form of con- tract for use by service institutions and food service management companies. The Secretary shall prescribe requirements governing bid and contract procedures for acquisition of the serv- ices of food service management companies, in- cluding, but not limited to, bonding require- ments (which may provide exemptions applica- ble 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 manage- ment 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 en- able 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 State plans (1) Summer 2023 Each State desiring to participate in the program shall notify the Secretary of its in- tent to administer the program and shall sub- mit for approval by April 1, 2023, a manage- ment and administration plan for the program for the fiscal year, which shall include, but not be limited to, (A) the State’s administra- tive budget for the fiscal year, and the State’s plans to comply with any standards prescribed by the Secretary under subsection (k) of this section; (B) the State’s plans for use of pro- gram funds and funds from within the State to the maximum extent practicable to reach needy children; (C) the State’s plans for pro- viding technical assistance and training eligi- ble service institutions; (D) the State’s plans for monitoring and inspecting service institu- tions, feeding sites, and food service manage- ment companies and for ensuring that such companies do not enter into contracts for more meals than they can provide effectively and efficiently; (E) the State’s plan for timely and effective action against program viola- tors; (F) the State’s plan for ensuring fiscal in- tegrity by auditing service institutions not subject to auditing requirements prescribed by the Secretary; and (G) the State’s plan for using the alternative option for program deliv- ery described in subsection (a)(13), if applica- ble, including plans to provide a reasonable opportunity to access meals across all areas of the State. (2) Summer 2024 and beyond Beginning in 2024, each State desiring to par- ticipate in the program under this section or in the summer EBT program under section 1762 of this title shall notify the Secretary by January 1 of each year of its intent to admin- ister the applicable program and shall submit for approval by February 15 a management and administration plan for the applicable program for the fiscal year, which shall in- clude, as applicable— (A) the requirements listed in subpara- graphs (A) through (G) of paragraph (1); (B) the administrative budget of the State for administering the summer EBT program under section 1762 of this title; (C) the State’s plan to comply with the State requirements in section 1762(c) of this Page 4942 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 title and any other standards prescribed by the Secretary under section 1762 of this title; (D) the State’s plan to identify areas with no congregate meal service; (E) the State’s plan to target priority areas identified under subsection (a)(13)(D)(i)(I); and (F) the State’s plan to ensure that summer EBT benefits (as described in section 1762(a) of this title) are issued to children based on their school attendance at the end of the in- structional year immediately preceding such summer. (o) Violations and penalties (1) Whoever, in connection with any applica- tion, procurement, recordkeeping entry, claim for reimbursement, or other document or state- ment made in connection with the program, knowingly and willfully falsifies, conceals, or covers up by any trick, scheme, or device a ma- terial 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, ficti- tious, or fraudulent statement or entry, or who- ever, in connection with the program, know- ingly 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 de- fraud 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 pri- vate, 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 bene- fits, 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 organizations (1) In addition to the normal monitoring of or- ganizations receiving assistance under this sec- tion, the Secretary shall establish a system under which the Secretary and the States shall monitor the compliance of private nonprofit or- ganizations with the requirements of this sec- tion and with regulations issued to implement this section. (2) In the fiscal year 1990 and each succeeding fiscal year, the Secretary may reserve for pur- poses of carrying out paragraph (1) not more than 1⁄2 of 1 percent of amounts appropriated for purposes of carrying out this section. (q) Termination and disqualification of partici- pating organizations (1) In general Each State agency shall follow the proce- dures established by the Secretary for the ter- mination of participation of institutions under the program. (2) Fair hearing The procedures described in paragraph (1) shall include provision for a fair hearing and prompt determination for any service institu- tion aggrieved by any action of the State agency that affects— (A) the participation of the service institu- tion in the program; or (B) the claim of the service institution for reimbursement under this section. (3) List of disqualified institutions and individ- uals (A) In general The Secretary shall maintain a list of service institutions and individuals that have been terminated or otherwise disquali- fied from participation in the program under the procedures established pursuant to para- graph (1). (B) Availability The Secretary shall make the list avail- able to States for use in approving or renew- ing applications by service institutions for participation in the program. (r) Authorization of appropriations For the period beginning October 1, 1977, and ending September 30, 2015, there are hereby au- thorized to be appropriated such sums as are necessary to carry out the purposes of this sec- tion. (June 4, 1946, ch. 281, § 13, as added Pub. L. 90–302, § 3, May 8, 1968, 82 Stat. 117; amended Pub. L. 91–248, § 6(c), (d), May 14, 1970, 84 Stat. 210; Pub. L. 92–32, § 7, June 30, 1971, 85 Stat. 86; Pub. L. 92–433, §§ 1, 2, Sept. 26, 1972, 86 Stat. 724; Pub. L. 94–20, May 2, 1975, 89 Stat. 82; Pub. L. 94–105, § 13, Oct. 7, 1975, 89 Stat. 515; Pub. L. 95–166, § 2, Nov. 10, 1977, 91 Stat. 1325; Pub. L. 95–627, §§ 5(d), 7(b), 10(d)(2), Nov. 10, 1978, 92 Stat. 3620, 3622, 3624; Pub. L. 96–499, title II, § 206, Dec. 5, 1980, 94 Stat. 2601; Pub. L. 97–35, title VIII, §§ 809, 817(b), Aug. 13, 1981, 95 Stat. 527, 532; Pub. L. 99–500, title III, § 311, Oct. 18, 1986, 100 Stat. 1783–360, and Pub. L. 99–591, title III, § 311, Oct. 30, 1986, 100 Stat. 3341–363; Pub. L. 99–661, div. D, title I, § 4101, Nov. 14, 1986, 100 Stat. 4071; Pub. L. 100–435, title II, § 213, Sept. 19, 1988, 102 Stat. 1658; Pub. L. 101–147, title I, § 102(a), title III, § 307, Nov. 10, 1989, 103 Stat. 879, 915; Pub. L. 103–448, title I, §§ 105(b), 114(a)–(g), Nov. 2, 1994, 108 Stat. 4702, 4712, 4713; Pub. L. 104–193, title VII, § 706(a)–(l), Aug. 22, 1996, 110 Stat. 2291–2293; Pub. L. 105–336, title I, §§ 105(a)–(e)(1), 107(j)(2)(A), (3)(B), Oct. 31, 1998, 112 Stat. 3148, 3149, 3152, 3153; Pub. L. 108–134, § 5(1), Nov. 22, 2003, 117 Stat. 1389; Pub. L. 108–211, § 5(a), Mar. 31, 2004, 118 Stat. 566; Pub. L. 108–265, title I, § 116(a)–(e), June 30, 2004, 118 Stat. 748–750; Pub. L. 108–447, div. A, title VII, § 788(b), Dec. 8, 2004, 118 Stat. 2851; Pub. L. 110–161, div. A, title VII, § 738(a), Dec. 26, 2007, 121 Stat. 1880; Pub. L. Page 4943 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 111–296, title I, §§ 111–113, title III, §§ 321, 322, title IV, §§ 404, 441(a)(5), Dec. 13, 2010, 124 Stat. 3203, 3204, 3247, 3259, 3261; Pub. L. 117–328, div. HH, title IV, § 502(b), Dec. 29, 2022, 136 Stat. 5988.) Editorial Notes REFERENCES IN TEXT The Child Nutrition Act of 1966, referred to in sub- secs. (a)(1), (5), (8) and (b)(1)(D), is Pub. L. 89–642, Oct. 11, 1966, 80 Stat. 885, which is classified generally to chapter 13A (§ 1771 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1771 of this title and Tables. Section 749(g) of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2010, referred to in subsec. (a)(13)(B), (F)(ii), is section 749(g) of Pub. L. 111–80, Oct. 21, 2009, 123 Stat. 2132, which is not classified to the Code. CODIFICATION Pub. L. 99–591 is a corrected version of Pub. L. 99–500. AMENDMENTS 2022—Subsec. (a)(13). Pub. L. 117–328, § 502(b)(1), added par. (13). Subsec. (n). Pub. L. 117–328, § 502(b)(2), designated ex- isting provisions as par. (1) and inserted heading, sub- stituted ‘‘of its intent to administer the program and shall submit for approval by April 1, 2023,’’ for ‘‘by Jan- uary 1 of each year of its intent to administer the pro- gram and shall submit for approval by February 15’’, redesignated former pars. (1) to (6) as subpars. (A) to (F), respectively, of par. (1), and added pars. (1)(G) and (2). 2010—Pub. L. 111–296, § 441(a)(5)(A), substituted ‘‘Sum- mer food service program for children’’ for ‘‘Summer food service programs for children in service institu- tions’’ in section catchline. Subsec. (a). Pub. L. 111–296, § 441(a)(5)(A), inserted subsec. heading, added par. (1), and struck out former par. (1) which authorized the Secretary to carry out a program to initiate and maintain nonprofit food serv- ice programs for children in service institutions and provided definitions for this section. Subsec. (a)(2). Pub. L. 111–296, § 441(a)(5)(B)(i), inserted par. heading, designated existing provisions as subpar. (B) and inserted subpar. heading, inserted cl. (i) des- ignation and heading before first sentence and cl. (ii) designation and heading before second sentence, and added subpar. (A). Subsec. (a)(3). Pub. L. 111–296, § 441(a)(5)(B)(ii), in- serted par. heading and realigned margins of subpars. (A) to (D). Subsec. (a)(4). Pub. L. 111–296, § 441(a)(5)(B)(iii), in- serted par. heading, designated introductory provisions of par. (4) as introductory provisions of subpar. (A) and inserted subpar. heading, redesignated former subpars. (A) to (D) as cls. (i) to (iv), respectively, of subpar. (A) and realigned margins, and designated concluding pro- visions as subpar. (B) and inserted heading. Subsec. (a)(5). Pub. L. 111–296, § 441(a)(5)(B)(iv), in- serted heading. Subsec. (a)(6). Pub. L. 111–296, § 441(a)(5)(B)(v), in- serted heading. Subsec. (a)(7). Pub. L. 111–296, § 111, added par. (7) and struck out former par. (7) which defined ‘‘private non- profit organizations’’ and made them eligible for the program under the same terms and conditions as other service institutions. Subsec. (a)(11). Pub. L. 111–296, § 112, added par. (11). Subsec. (a)(12). Pub. L. 111–296, § 113, added par. (12). Subsec. (b)(3). Pub. L. 111–296, § 321, added par. (3) and struck out former par. (3) which read as follows: ‘‘Every service institution, when applying for participation in the program, shall submit a complete budget for ad- ministrative 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.’’ Subsec. (q). Pub. L. 111–296, § 322(2), added subsec. (q). Former subsec. (q) redesignated (r). Subsec. (r). Pub. L. 111–296, § 404, substituted ‘‘Sep- tember 30, 2015’’ for ‘‘September 30, 2009’’. Pub. L. 111–296, § 322(1), redesignated subsec. (q) as (r). 2007—Subsec. (b)(1). Pub. L. 110–161, § 738(a)(1)(A), (B), redesignated subpars. (B) to (D) as (A) and (C), respec- tively, and struck out former subpar. (A) which read as follows: ‘‘(A) IN GENERAL.—Except as otherwise provided in this paragraph, payments to service institutions shall equal the full cost of food service operations (which cost shall include the costs of obtaining, preparing, and serving food, but shall not include administrative costs).’’ Subsec. (b)(1)(A). Pub. L. 110–161, § 738(a)(1)(C), which directed the amendment of subpar.(A), as redesignated by Pub. L. 110–161, § 738(a)(1)(B), by striking ‘‘(B)’’ and all that followed through ‘‘shall not exceed’’ and insert- ing ‘‘(A) IN GENERAL.—Subject to subparagraph (B) and in addition to amounts made available under paragraph (3), payments to service institutions shall be’’ was exe- cuted by substituting the language to be inserted for ‘‘(A) MAXIMUM AMOUNTS.—Subject to subparagraph (C), payments to any institution under subparagraph (A) shall not exceed’’ to reflect the probable intent of Con- gress and the redesignation of subpar. (B) as (A). See note above. Subsec. (b)(1)(B). Pub. L. 110–161, § 738(a)(1)(D), sub- stituted ‘‘subparagraph (A)’’ for ‘‘subparagraph (B)’’. Subsec. (b)(1)(C). Pub. L. 110–161, § 738(a)(1)(E), sub- stituted ‘‘(A) and (B)’’ for ‘‘(A), (B), and (C)’’. Subsec. (b)(3). Pub. L. 110–161, § 738(a)(2), struck out ‘‘full amount of State approved administrative costs incurred, except that such payment to service institu- tions may not exceed the maximum allowable’’ after ‘‘administrative costs shall equal the’’. 2004—Subsec. (a)(8), (9). Pub. L. 108–265, § 116(a), (c), added pars. (8) and (9). Subsec. (a)(10). Pub. L. 108–265, § 116(d), added par. (10). Subsec. (a)(10)(C). Pub. L. 108–447, § 788(b)(1), sub- stituted ‘‘2006’’ for ‘‘2005’’. Subsec. (a)(10)(D)(i). Pub. L. 108–447, § 788(b)(2)(A), sub- stituted ‘‘2008’’ for ‘‘2007’’. Subsec. (a)(10)(D)(ii). Pub. L. 108–447, § 788(b)(2)(B), substituted ‘‘2009’’ for ‘‘2008’’. Subsec. (b)(1)(D). Pub. L. 108–265, § 116(b), added sub- par. (D). Subsec. (q). Pub. L. 108–265, § 116(e), substituted ‘‘Sep- tember 30, 2009’’ for ‘‘June 30, 2004’’. Pub. L. 108–211 substituted ‘‘June 30, 2004’’ for ‘‘March 31, 2004’’. 2003—Subsec. (q). Pub. L. 108–134 substituted ‘‘the pe- riod beginning October 1, 1977, and ending March 31, 2004’’ for ‘‘the fiscal year beginning October 1, 1977, and each succeeding fiscal year ending before October 1, 2003’’. 1998—Subsec. (a)(1)(D)(i). Pub. L. 105–336, § 107(j)(3)(B)(i), substituted ‘‘to have a disability’’ for ‘‘to be mentally or physically handicapped’’. Subsec. (a)(1)(D)(ii). Pub. L. 105–336, § 107(j)(3)(B)(ii), substituted ‘‘individuals who have a disability’’ for ‘‘the mentally or physically handicapped’’. Subsec. (a)(3)(C). Pub. L. 105–336, § 107(j)(2)(A), in- serted ‘‘or’’ at end of cl. (i), redesignated cl. (iii) as (ii), and struck out former cl. (ii) which read as follows: ‘‘conduct a regularly scheduled food service primarily for homeless children; or’’. Subsec. (a)(7)(B)(i). Pub. L. 105–336, § 105(a), added cl. (i) and struck out former cl. (i) which read as follows: ‘‘(i)(I) serve a total of not more than 2,500 children per day at not more than 5 sites in any urban area, with not more than 300 children being served at any 1 site (or, with a waiver granted by the State under standards developed by the Secretary, not more than 500 children being served at any 1 site); or Page 4944 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 ‘‘(II) serve a total of not more than 2,500 children per day at not more than 20 sites in any rural area, with not more than 300 children being served at any 1 site (or, with a waiver granted by the State under standards developed by the Secretary, not more than 500 children being served at any 1 site);’’. Subsec. (a)(7)(B)(ii) to (vii). Pub. L. 105–336, § 105(b)(1), redesignated cls. (iv) to (vii) as (ii) to (v), respectively, and struck out former cls. (ii) and (iii) which read as follows: ‘‘(ii) use self-preparation facilities to prepare meals, or obtain meals from a public facility (such as a school district, public hospital, or State university) or a school participating in the school lunch program under this chapter; ‘‘(iii) operate in areas where a school food authority or the local, municipal, or county government has not indicated by March 1 of any year that such authority or unit of local government will operate a program under this section in such year;’’. Subsec. (f)(7). Pub. L. 105–336, § 105(c), in first sen- tence, struck out ‘‘attending a site on school premises operated directly by the authority’’ after ‘‘permit a child’’. Subsec. (l)(1). Pub. L. 105–336, § 105(b)(2)(A), in first sentence, struck out ‘‘(other than private nonprofit or- ganizations eligible under subsection (a)(7) of this sec- tion)’’ after ‘‘Service institutions’’ and substituted ‘‘with food service management companies’’ for ‘‘only with food service management companies registered with the State in which they operate’’ and struck out at end ‘‘The State shall, upon award of any bid, review the company’s registration to calculate how many re- maining meals the food service management company is equipped to prepare.’’ Subsec. (l)(2). Pub. L. 105–336, § 105(b)(2)(B), sub- stituted ‘‘may’’ for ‘‘shall’’ after ‘‘Each State’’ and struck out at end ‘‘For the purposes of this section, registration shall include, at a minimum— ‘‘(A) certification that the company meets applica- ble State and local health, safety, and sanitation standards; ‘‘(B) disclosure of past and present company own- ers, officers, and directors, and their relationship, if any, to any service institution or food service man- agement company that received program funds in any prior fiscal year; ‘‘(C) records of contract terminations or disallow- ances, and health, safety, and sanitary code viola- tions, in regard to program operations in prior fiscal years; and ‘‘(D) the addresses of the company’s food prepara- tion and distribution sites. No food service management company may be reg- istered if the State determines that such company (i) lacks the administrative and financial capability to perform under the program, or (ii) has been seriously deficient in its participation in the program in prior fiscal years.’’ Subsec. (l)(3) to (5). Pub. L. 105–336, § 105(b)(2)(C), (D), redesignated pars. (4) and (5) as (3) and (4), respectively, and struck out former par. (3) which read as follows: ‘‘In order to ensure that only qualified food service management companies contract for services in all States, the Secretary shall maintain a record of all reg- istered food service management companies that have been seriously deficient in their participation in the program and may maintain a record of other registered food service management companies, for the purpose of making such information available to the States.’’ Subsec. (n)(2). Pub. L. 105–336, § 105(e)(1), amended Pub. L. 104–193, § 706(j)(1). See 1996 Amendment note below. Subsec. (q). Pub. L. 105–336, § 105(d), substituted ‘‘2003’’ for ‘‘1998’’. 1996—Subsec. (a)(1). Pub. L. 104–193, § 706(a)(1)(A), sub- stituted ‘‘initiate and maintain nonprofit food service programs’’ for ‘‘initiate, maintain, and expand non- profit food service programs’’ in first sentence. Subsec. (a)(1)(E). Pub. L. 104–193, § 706(a)(1)(B), struck out ‘‘the Trust Territory of the Pacific Islands,’’ before ‘‘and the Northern Mariana Islands’’. Subsec. (a)(7)(A). Pub. L. 104–193, § 706(a)(2), sub- stituted ‘‘Private nonprofit organizations’’ for ‘‘Except as provided in subparagraph (C), private nonprofit orga- nizations’’. Subsec. (b). Pub. L. 104–193, § 706(b), inserted heading. Subsec. (b)(1). Pub. L. 104–193, § 706(b), added par. (1) and struck out former par. (1) which read as follows: ‘‘Payments to service institutions shall equal the full cost of food service operations (which cost shall include the cost of obtaining, preparing, and serving food, but shall not include administrative costs), except that such payments to any institution shall not exceed (1) 85.75 cents for each lunch and supper served; (2) 47.75 cents for each breakfast served; or (3) 22.50 cents for each meal supplement served: Provided, That such amounts shall be adjusted each January 1 to the near- est one-fourth cent in accordance with the changes for the twelve-month period ending the preceding Novem- ber 30 in the series for food away from home of the Con- sumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor: Provided further, That the Secretary may make such adjustments in the maximum reimbursement lev- els as the Secretary determines appropriate after mak- ing the study prescribed in paragraph (4) of this sub- section.’’ Subsec. (b)(2). Pub. L. 104–193, § 706(c), substituted ‘‘3 meals, or 2 meals and 1 supplement,’’ for ‘‘four meals’’ in first sentence and struck out at end ‘‘The meals that camps and migrant programs may serve shall include a breakfast, a lunch, a supper, and meal supplements.’’ Subsec. (c)(2). Pub. L. 104–193, § 706(d)(3), (4), struck out ‘‘, and such higher education institutions,’’ before ‘‘shall be eligible to participate’’ and substituted ‘‘on showing residence in areas in which poor economic con- ditions exist or on the basis of income eligibility state- ments for children enrolled in the program’’ for ‘‘with- out application’’. Pub. L. 104–193, § 706(d)(1), (2), designated subpar. (B) as par. (2) and struck out subpars. (A), relating to eligi- bility of institutions operating National Youth Sports Program for meal and supplement reimbursements, and (C) to (E), relating to reimbursement rates, nutritional requirements and meal patterns, and issuance of regu- lations, respectively. Subsec. (e)(1). Pub. L. 104–193, § 706(e), substituted ‘‘each service institution. The State’’ for ‘‘each service institution: Provided, That (A) the State’’, inserted ‘‘(excluding a school)’’ after ‘‘program payment to any service institution’’, and substituted ‘‘responsibilities. No advance program payment’’ for ‘‘responsibilities, and (B) no advance program payment’’. Subsec. (f). Pub. L. 104–193, § 706(f)(5), redesignated pars. (4) to (7) as (3) to (6), respectively. Pub. L. 104–193, § 706(f)(1)–(4), redesignated first to sev- enth sentences as pars. (1) to (7), respectively, struck out par. (3), substituted ‘‘paragraph (1)’’ for ‘‘the first sentence’’ in par. (4), and substituted ‘‘conformance with standards set by local health authorities’’ for ‘‘that bacteria levels conform to the standards which are applied by the local health authority for that local- ity with respect to the levels of bacteria that may be present in meals served by other establishments in that locality’’ in par. (6)(B). Prior to repeal, par. (3) read as follows: ‘‘The Secretary shall provide additional tech- nical assistance to those service institutions and pri- vate nonprofit organizations that are having difficulty maintaining compliance with the requirements.’’ Subsec. (f)(7). Pub. L. 104–193, § 706(g), added par. (7). Subsec. (m). Pub. L. 104–193, § 706(h), substituted ‘‘be available at any reasonable time for inspection and audit’’ for ‘‘at all times be available for inspection and audit’’ in second sentence. Subsec. (n)(2). Pub. L. 104–193, § 706(j)(1), as amended by Pub. L. 105–336, § 105(e)(1), struck out ‘‘, including the State’s methods for assessing need’’ after ‘‘needy children’’. Pub. L. 104–193, § 706(i), struck out ‘‘, and its plans and schedule for informing service institutions of the availability of the program’’ before semicolon. Page 4945 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 Subsec. (n)(3). Pub. L. 104–193, § 706(j)(2), (4), redesig- nated par. (4) as (3) and struck out former par. (3) which read as follows: ‘‘the State’s best estimate of the num- ber and character of service institutions and sites to be approved, and of meals to be served and children to par- ticipate for the fiscal year, and a description of the es- timating methods used;’’. Subsec. (n)(4). Pub. L. 104–193, § 706(j)(4), redesignated par. (5) as (4). Former par. (4) redesignated (3). Pub. L. 104–193, § 706(j)(3), struck out ‘‘and schedule’’ after ‘‘State’s plans’’. Subsec. (n)(5) to (7). Pub. L. 104–193, § 706(j)(4), redesig- nated pars. (6) and (7) as (5) and (6), respectively. Former par. (5) redesignated (4). Subsec. (p). Pub. L. 104–193, § 706(l), redesignated sub- sec. (q) as (p) and struck out former subsec. (p) which read as follows: ‘‘During the fiscal years 1990 and 1991, the Secretary and the States shall carry out a program to disseminate to potentially eligible private nonprofit organizations information concerning the amendments made by the Child Nutrition and WIC Reauthorization Act of 1989 regarding the eligibility under subsection (a)(7) of this section of private nonprofit organizations for the program established under this section.’’ Subsec. (q). Pub. L. 104–193, § 706(l)(2), redesignated subsec. (r) as (q). Former subsec. (q) redesignated (p). Subsec. (q)(2). Pub. L. 104–193, § 706(k)(1), (3), redesig- nated par. (3) as (2) and struck out former par. (2) which read as follows: ‘‘The Secretary shall require each State to establish and implement an ongoing training and technical assistance program for private nonprofit organizations that provides information on program re- quirements, procedures, and accountability. The Sec- retary shall provide assistance to State agencies re- garding the development of such training and technical assistance programs.’’ Subsec. (q)(3). Pub. L. 104–193, § 706(k)(3), redesignated par. (3) as (2). Pub. L. 104–193, § 706(k)(2), substituted ‘‘paragraph (1)’’ for ‘‘paragraphs (1) and (2) of this subsection’’. Subsec. (q)(4). Pub. L. 104–193, § 706(k)(1), struck out par. (4) which read as follows: ‘‘For the purposes of this subsection, the term ‘private nonprofit organization’ has the meaning given such term in subsection (a)(7)(B) of this section.’’ Subsec. (r). Pub. L. 104–193, § 706(l)(2), redesignated subsec. (r) as (q). 1994—Subsec. (a)(4)(A) to (F). Pub. L. 103–448, § 114(a), added subpars. (A) to (D) and struck out former sub- pars. (A) to (F) which read as follows: ‘‘(A) local schools or service institutions that have demonstrated successful program performance in a prior year; ‘‘(B) service institutions that prepare meals at their own facilities or operate only one site; ‘‘(C) service institutions that use local school food fa- cilities for the preparation of meals; ‘‘(D) other service institutions that have dem- onstrated ability for successful program operation; ‘‘(E) service institutions that plan to integrate the program with Federal, State, or local employment pro- grams; and ‘‘(F) private nonprofit organizations eligible under paragraph (7).’’ Subsec. (a)(7)(C). Pub. L. 103–448, § 114(b), struck out subpar. (C) which read as follows: ‘‘(C)(i) Except as provided in clause (ii), no private nonprofit organization (other than organizations eligi- ble under paragraph (1)) may participate in the pro- gram in an area where a school food authority or a local, municipal, or county government participated in the program before such organization applied to par- ticipate until the expiration of the 1-year period begin- ning on the date that such school food authority or local, municipal, or county government terminated its participation in the program. ‘‘(ii) Clause (i) shall not apply if the appropriate State agency or regional office of the Department of Agriculture (whichever administers the program in the area concerned), after consultation with the school food authority or local, municipal, or county govern- ment concerned, determines that such school food au- thority or local, municipal, or county government would have discontinued its participation in the pro- gram regardless of whether a private nonprofit organi- zation was available to participate in the program in such area.’’ Subsec. (c)(1). Pub. L. 103–448, § 114(c), inserted before period at end ‘‘or that provide meal service at non- school sites to children who are not in school for a pe- riod during the months of October through April due to a natural disaster, building repair, court order, or simi- lar cause’’. Subsec. (f). Pub. L. 103–448, § 105(b), inserted after first sentence ‘‘The Secretary shall provide technical assist- ance to service institutions and private nonprofit orga- nizations participating in the program to assist the in- stitutions and organizations in complying with the nu- tritional requirements prescribed by the Secretary pur- suant to this subsection. The Secretary shall provide additional technical assistance to those service institu- tions and private nonprofit organizations that are hav- ing difficulty maintaining compliance with the require- ments.’’ and substituted ‘‘Meals described in the first sentence shall be served’’ for ‘‘Such meals shall be served’’. Subsec. (l)(3). Pub. L. 103–448, § 114(d), substituted ‘‘that have been seriously deficient in their participa- tion in the program and may maintain a record of other registered food service management companies,’’ for ‘‘and their program record’’. Subsec. (n)(5). Pub. L. 103–448, § 114(e)(1), (2), redesig- nated cl. (7) as (5) and struck out former cl. (5) which read as follows: ‘‘the State’s schedule for application by service institutions;’’. Subsec. (n)(6). Pub. L. 103–448, § 114(e)(1)–(3), redesig- nated cl. (9) as (6), inserted ‘‘and’’ at end, and struck out former cl. (6) which read as follows: ‘‘the actions to be taken to maximize the use of meals prepared by service institutions and the use of school food service facilities;’’. Subsec. (n)(7). Pub. L. 103–448, § 114(e)(2), redesignated cl. (11) as (7). Former cl. (7) redesignated (5). Subsec. (n)(8). Pub. L. 103–448, § 114(e)(1), struck out cl. (8) which read as follows: ‘‘the State’s plan and schedule for registering food service management com- panies;’’. Subsec. (n)(9). Pub. L. 103–448, § 114(e)(2), redesignated cl. (9) as (6). Subsec. (n)(10). Pub. L. 103–448, § 114(e)(1), struck out cl. (10) which read as follows: ‘‘the State’s plan for de- termining the amounts of program payments to service institutions and for disbursing such payments;’’. Subsec. (n)(11). Pub. L. 103–448, § 114(e)(2), redesig- nated cl. (11) as (7). Subsec. (n)(12). Pub. L. 103–448, § 114(e)(4), struck out cl. (12) which read as follows: ‘‘the State’s procedure for granting a hearing and prompt determination to any service institution wishing to appeal a State ruling de- nying the service institution’s application for program participation or for program reimbursement.’’ Subsec. (q)(2). Pub. L. 103–448, § 114(f)(1), (2), redesig- nated par. (3) as (2) and struck out former par. (2) which read as follows: ‘‘Application forms or other printed materials provided by the Secretary or the States to persons who intend to apply to participate as private nonprofit organizations shall contain a warning in bold lettering explaining, at a minimum— ‘‘(A) the criminal provisions and penalties estab- lished by subsection (o) of this section; and ‘‘(B) the procedures for termination of participa- tion in the program as established by regulations.’’ Subsec. (q)(3). Pub. L. 103–448, § 114(f)(2), (3), redesig- nated par. (4) as (3) and substituted ‘‘paragraphs (1) and (2)’’ for ‘‘paragraphs (1) and (3)’’. Former par. (3) redes- ignated (2). Subsec. (q)(4), (5). Pub. L. 103–448, § 114(f)(2), redesig- nated pars. (4) and (5) as (3) and (4), respectively. Subsec. (r). Pub. L. 103–448, § 114(g), substituted ‘‘1998’’ for ‘‘1994’’. Page 4946 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 1989—Subsec. (a)(3)(C). Pub. L. 101–147, § 102(a)(1)(A), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: ‘‘either conduct a regularly scheduled food service for children from areas in which poor economic conditions exist or qualify as camps; and’’. Subsec. (a)(4)(F). Pub. L. 101–147, § 102(a)(1)(B), added subpar. (F). Subsec. (a)(7)(A). Pub. L. 101–147, § 102(a)(1)(C)(i), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘‘Not later than May 1, 1989, the Secretary shall institute Statewide demonstration projects in five States in which private nonprofit orga- nizations, as defined in subparagraph (B) (other than organizations already eligible under subsection (a)(1) of this section), shall be eligible for the program under the same terms and conditions as other service institu- tions.’’ Subsec. (a)(7)(B)(i). Pub. L. 101–147, § 102(a)(1)(C)(ii)(I), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: ‘‘serve no more than 2,500 children per day and operate at not more than 5 sites;’’. Subsec. (a)(7)(B)(ii). Pub. L. 101–147, § 102(a)(1)(C)(ii)(II), inserted ‘‘or a school participating in the school lunch program under this chapter’’ after ‘‘university)’’. Subsec. (a)(7)(B)(v). Pub. L. 101–147, § 102(a)(1)(C)(ii)(III), inserted ‘‘or families’’ after ‘‘chil- dren’’. Subsec. (a)(7)(C). Pub. L. 101–147, § 102(a)(1)(C)(iii), added subpar. (C). Subsec. (c). Pub. L. 101–147, § 102(a)(2), designated ex- isting provisions as par. (1) and added par. (2). Subsec. (d). Pub. L. 101–147, § 307(1), substituted ‘‘July 1 of each year’’ for ‘‘July 1, of each year’’. Subsec. (f). Pub. L. 101–147, § 307(2), substituted ‘‘pre- scribe’’ for ‘‘prescribed’’ before ‘‘model meal specifica- tions’’. Subsec. (g). Pub. L. 101–147, § 307(3), struck out ‘‘: Provided, That for fiscal year 1978, those portions of the regulations relating to payment rates for both food service operations and administrative costs need not be published until December 1 and February 1, respec- tively’’ after ‘‘February 1 of each fiscal year’’. Subsec. (h). Pub. L. 101–147, § 307(4), made technical amendments to references to sections 612c, 1431, and 1446a–1 of title 7 involving underlying provisions of original act and requiring no change in text. Subsec. (l)(1). Pub. L. 101–147, § 102(a)(3), inserted ‘‘(other than private nonprofit organizations eligible under subsection (a)(7) of this section)’’ after ‘‘Service institutions’’. Subsec. (p). Pub. L. 101–147, § 102(a)(4), (5), added sub- sec. (p) and redesignated former subsec. (p) as (r). Subsec. (q). Pub. L. 101–147, § 102(a)(5), added subsec. (q). Subsec. (r). Pub. L. 101–147, § 102(a)(6), substituted ‘‘For the fiscal year beginning October 1, 1977, and each succeeding fiscal year ending before October 1, 1994,’’ for ‘‘For the fiscal years beginning October 1, 1979, and ending September 30, 1989,’’. Pub. L. 101–147, § 102(a)(4), redesignated former subsec. (p) as (r). 1988—Subsec. (a)(1)(B). Pub. L. 100–435, § 213(a), in- serted reference to public or private nonprofit higher education institutions participating in National Youth Sports Program. Subsec. (a)(7). Pub. L. 100–435, § 213(b), added par. (7). 1986—Subsec. (p). Pub. L. 99–500, Pub. L. 99–591, and Pub. L. 99–661, amended subsec. (p) identically, sub- stituting ‘‘1989’’ for ‘‘1984’’. 1981—Subsec. (a). Pub. L. 97–35, § 809, in par. (1)(B) substituted ‘‘public or private nonprofit school food au- thorities, local, municipal, or county governments,’’ for ‘‘nonresidential public or private nonprofit institu- tions’’ and in par. (1)(C) substituted ‘‘50’’ for ‘‘331⁄3’’, and added par. (6). Subsec. (i). Pub. L. 97–35, § 817(b), struck out subsec. (i) which related to administration of program by Sec- retary in event of nonadministration by State. 1980—Subsec. (b)(2). Pub. L. 96–499, § 206(1), restricted service institutions to serving only two meals per day unless such institutions were a camp or an institution serving meals primarily to migrant children. Subsec. (p). Pub. L. 96–499, § 206(2), substituted ‘‘Sep- tember 30, 1984’’ for ‘‘September 30, 1980’’. 1978—Subsec. (a)(1)(D)(ii). Pub. L. 95–627, § 10(d)(2), in- serted ‘‘or nonprofit private’’ after ‘‘in a public’’. Subsec. (b)(1). Pub. L. 95–627, § 5(d), inserted ‘‘for All Urban Consumers’’ after ‘‘Consumer Price Index’’. Subsec. (k)(1). Pub. L. 95–627, § 7(b), substituted ‘‘$100,000’’ for ‘‘$50,000’’ in cl. (B), ‘‘$250,000’’ for ‘‘$100,000’’ in cl. (C), and ‘‘21⁄2 percent’’ for ‘‘2 percent’’ in cl. (D). 1977—Subsec. (a). Pub. L. 95–166, in revising subsec. (a), among other changes: reenacted par. (1); inserted cl. (A) definition of ‘‘program’’; reenacted as cl. (B) def- inition of ‘‘service institutions’’, inserting development of ‘‘school vacation’’ programs; reenacted as cl. (C) def- inition of ‘‘areas in which poor economic conditions exist’’ definition of ‘‘poor economic conditions’’ of former par. (3), substituting ‘‘as determined by infor- mation’’ for ‘‘as shown by information’’ and ‘‘served to children attending public and nonprofit private schools located in the area of program food service sites, or from other appropriate sources, including statements of eligibility based upon income for children enrolled in the program’’ for ‘‘served to children attending schools located in the area of summer food sites, or from other applicable sources’’ and striking out reference to infor- mation provided from model city target areas; inserted cl. (D) definition of ‘‘children’’; reenacted as cl. (E) def- inition of ‘‘State’’ last sentence of former par. (3), ex- tending term to include the Northern Mariana Islands; enacted par. (2), which incorporated part of former par. (1) which had read ‘‘To the maximum extent feasible, consistent with the purposes of this section, special summer programs shall utilize the existing food service facilities of public and nonprofit private schools.’’; en- acted par. (3), which incorporated part of former par. (2) which had read ‘‘Service institutions eligible to partici- pate under the program authorized under this section shall be limited to those which conduct a regularly scheduled program for children from areas in which poor economic conditions exist, for any period during the months of May through September, at site loca- tions where organized recreation activities or food services are provided for children in attendance.’’; and added pars. (4) and (5). Subsec. (b)(1). Pub. L. 95–166 incorporated existing provisions in part in text designated par. (1); sub- stituted ‘‘Payments’’ for ‘‘Disbursements’’ increased payments for cost of lunch and supper, breakfast, and each meal supplement to 85.75 from 75.5, to 47.75 from 42, and to 22.50 from 19.75 cents respectively; sub- stituted provision for adjustment of rates each January 1 based on the Consumer Price Index for twelve-month period ending November 30 for prior such provision for adjustment each March 1 based on the Index for year ending January 31; exclude from cost of food service op- erations administrative costs; and authorized adjust- ments, as appropriate, in the maximum reimbursement levels. Subsec. (b)(2). Pub. L. 95–166 added par. (2) which in- corporated in part existing provision which formerly stated that no institution shall be prohibited from serving breakfasts, suppers, and meal supplements as well as lunches unless the service period of different meals coincides or overlaps. Subsec. (b)(3). Pub. L. 95–166 added par. (3) which su- persedes part of existing provisions prescribing admin- istrative costs of lunch and supper, breakfast, and meal supplement not to exceed 6, 3, and 1.5 cents respec- tively. Subsec. (b)(4). Pub. L. 95–166 added par. (4). Subsec. (c). Pub. L. 95–166 substituted ‘‘Payments’’ for ‘‘Disbursements’’ and ‘‘except in the case of service institutions that operate food service programs for children on school vacation at any time under a contin- uous school calendar’’ for ‘‘except that the foregoing Page 4947 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 provision shall not apply to institutions which develop food service programs for children on school vacation at any time under a continuous school calendar or pre- vent such institutions, if otherwise eligible, from par- ticipating in the program authorized by this section’’. Subsec. (d). Pub. L. 95–166, in revising text, sub- stituted provision for advance program payment to States through letters of credit forwarded no later than April 15, May 15, and July 1, of each year for prior pro- vision for forwarding advance payments no later than June 1, July 1, and August 1 of each year; inserted com- putation of payment amount provision; struck out prior provision for an amount no less than (1) the total payment made to the State for meals served for the calendar month of the preceding calendar year or (2) 65 per centum of the amount estimated by the State, on the basis of approved applications, to be needed to re- imburse service institutions for meals to be served in the month, whichever is the greater, now covered in subsec. (e)(2) of this section; substituted provision for forwarding payments to States operating a program in months other than May through September by the first day of the month prior to the month in which the pro- gram is conducted for prior provision for receipt of ad- vance payments not later than the first day of each month involved where institutions operate programs during nonsummer vacations during a continuous school year calendar; reenacted provision for payments within sixty days of receipt of valid claims; and struck out provision declaring that any funds advanced to a State for which valid claims have not been established within 180 days shall be deducted from the next appro- priate monthly advance payment unless the claimant requests a hearing with the Secretary prior to the 180th day, covered in subsec. (e)(2) of this section. Subsec. (e). Pub. L. 95–166 added subsec. (e) which in incorporating in part provisions of former subsec. (d), substituted in par. (1) July 15 and August 15 for July 1 and August 1 and reenacted provision for payment not later than the first day of each month of operation where service institutions operate under a continuous school calendar, and in par. (2) substituted provision for computation of amount which is the greatest of the amount described in cls. (A), (B), and (C) for prior pro- vision for such computation which is the greater of (1) the total payment made to the State for meals served for the calendar month of the preceding calendar year (covered in cl. (A)) or (2) 65 per centum of the amount estimated by the State, on the basis of approved appli- cations, to be needed to reimburse service institutions for meals to be served in the month (covered in cl. (C)). Former subsec. (e) redesignated (f). Subsec. (f). Pub. L. 95–166 redesignated former subsec. (e) as (f), substituted in first sentence ‘‘receiving funds’’ for ‘‘to which funds are disbursed’’, and inserted provisions respecting: charging ineligible children for meals served in camps, model specifications and stand- ards for quality assurance, meal preparation contract requirements, and inspection and testing. Former sub- sec. (f) redesignated (g). Subsec. (g). Pub. L. 95–166 redesignated former subsec. (f) as (g), required publication of proposed regulations by November 1, instead of January 1, final regulations by January 1, instead of March 1, and guidelines, appli- cations, and handbooks by February 1, instead of March 1, of each fiscal year, inserted proviso, sub- stituted provision for payment of startup costs limited to 20 percent of administrative funds provided for in the administrative budget for prior limitation to 10 per centum of Federal funds provided the service institu- tions for meals served under this section during the preceding summer, and substituted provision for sub- traction of startup costs from amounts otherwise pay- able for administrative costs made to the service insti- tutions for prior provision for such reduction from pay- ments made for meals served under subsec. (b) of this section. Former subsec. (g) redesignated (h). Subsec. (h). Pub. L. 95–166 redesignated former sub- sec. (g) as (h), struck out ‘‘participating’’ before ‘‘serv- ice institution’’ and ‘‘, either nationally or in the insti- tution area, or foods donated by the Secretary’’ after ‘‘abundance’’, and substituted provision for donation of available or purchased food to States, for distribution to service institutions that can use commodities effi- ciently and effectively, as determined by the Secretary for prior provision for donation by the Secretary of available or purchased foods, irrespective of amount of appropriated funds, to service institutions in accord- ance with the needs as determined by authorities of these institutions for utilization in their feeding pro- gram. Former subsec. (h) redesignated (i). Subsec. (i). Pub. L. 95–166 redesignated former subsec. (h) as (i), authorized Secretary’s administration of the program when the State is unable for any reason to dis- burse the funds otherwise payable or does not operate the program as required by this section, prior provision only requiring direct disbursements when the State educational agency was not permitted by law or was otherwise unable to disburse the funds, and required State notification of the Secretary of its intention not to administer the program. Former subsec. (i) redesig- nated (j). Subsec. (j). Pub. L. 95–166 redesignated former subsec. (i) as (j). Former subsec. (j) redesignated (p). Subsec. (k). Pub. L. 95–166 added subsec. (k) and struck out former subsec. (k) which required Secretary to pay administrative costs of each State in an amount equal to 2 per centum of funds distributed to the State and prescribing minimum sum of $10,000 each fiscal year, except where distribution of funds to the State totals less than $50,000 for the fiscal year. Subsec. (l). Pub. L. 95–166 added subsec. (l) and struck out former subsec. (l) which provided that nothing in this section should be construed to preclude a service institution from contracting on a competitive basis for the furnishing of meals or administration of the pro- gram, or both. Subsec. (m). Pub. L. 95–166 struck out ‘‘, State edu- cational agencies,’’ after ‘‘States’’. Subsecs. (n), (o). Pub. L. 95–166 added subsecs. (n) and (o). Subsec. (p). Pub. L. 95–166 redesignated former subsec. (j) as (p) and made authorization applicable to fiscal years beginning Oct. 1, 1977, and ending Sept. 30, 1980. 1975—Subsec. (a). Pub. L. 94–105 substituted provi- sions authorizing to be appropriated sums for a summer food services program through Sept. 30, 1977, for provi- sions authorizing to be appropriated sums for a summer food services program through Sept. 30, 1975. Subsec. (a)(1). Pub. L. 94–20, § 1(a), inserted ‘‘and for the period July 1, 1975, through September 30, 1975,’’ be- fore ‘‘to enable’’. Subsec. (b). Pub. L. 94–105 substituted provisions for payment to service institutions of the full cost of ob- taining, preparing and serving food and administrative costs, with maximum rates for each kind of meal and its related administrative cost and adjustment of the rates each March 1 on the basis of changes in the series for food away from home of the Consumer Price Index for provisions apportioning among the states the appro- priated sums, with a maximum basic grant of $50,000, and reserving 2 per centum of the appropriated sums for apportionment to Guam, Puerto Rico, the Virgin Is- lands, American Samoa, and the Trust Territory of the Pacific Islands. Subsec. (c). Pub. L. 94–105 substituted provisions for disbursement to service institutions only for meals served during May through Sept. except for institu- tions with programs for children on school vacation at any time under a continuous school calendar for provi- sions for the disbursement of funds by the State edu- cational agency to service institutions on a non- discriminatory basis for the cost of obtaining agricul- tural commodities and other foods, purchase and rental of equipment and authorizing financial assistance not to exceed 3 per centum of the operating costs in cases of severe need. Subsec. (d). Pub. L. 94–105 substituted provisions re- lating to the advance payment to States for meals served in that month and deductions in the next month Page 4948 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1761 for advances for which valid claims have not been es- tablished within 180 days for provisions for the dis- bursement of funds directly to service institutions in states where the State educational agency is forbidden by law to disburse funds to such institutions. Subsec. (e). Pub. L. 94–105 substituted provisions for free meals consisting of a combination of foods and meeting minimum nutritional standards for provisions making available for the first three months of the next fiscal year any funds unobligated at the end of the prior fiscal year. Subsec. (f). Pub. L. 94–105 substituted provisions di- recting the Secretary to publish proposed and final reg- ulations, guidelines, and handbooks and authorizing startup costs for meals served during the preceding summer for provisions for free or reduced cost meals with minimum nutritional standards and prohibiting segregation, discrimination or overt identification practices with regard to any child because of his inabil- ity to pay. Subsec. (g). Pub. L. 94–105 substituted provisions di- recting the utilization of foods donated or designated as in abundance by the Secretary and directing the do- nation of food available under section 1431, 612c and 1446a–1 of title 7 irrespective of the amount of funds ap- propriated under this section for provisions directing further apportionment among the States if any State cannot utilize all funds apportioned to it or additional funds are made available. Subsec. (h). Pub. L. 94–105 substituted provisions au- thorizing the Secretary to disburse funds directly to service institutions in States where the educational agency is not permitted by law or is otherwise unable to disburse the funds for provisions requiring certifi- cation by the Secretary to the Secretary of the Treas- ury of amounts to be paid, directing the utilization of donated foods or foods designated as abundant, permit- ting donation of food available under sections 1431, 612c or 1446a–1 of title 7 irrespective of funds appropriated, mandating that value of assistance to children under this section not be considered income, that expendi- tures of State and local funds not be diminished as a re- sult of federal funding, authorizing appropriations for administrative expenses and requiring States and State educational agencies and service institutions to keep and make available for inspection such accounts and records as may be necessary. Subsec. (i). Pub. L. 94–105 substituted provision that the amount of State and local funds spent for food pro- grams not be diminished as a result of funds received under this program for provisions authorizing the Sec- retary of Agriculture to utilize during May 15 to Sept. 15, 1972 not to exceed $25,000 of funds available under section 612c of Title 7 to carry out the purposes of this chapter, such funds to be reimbursed out of any supple- mental appropriation. Subsec. (j). Pub. L. 94–105 substituted provision au- thorizing to be appropriated such sums as may be nec- essary for the Secretary’s administrative expenses, for provisions adjusting the reimbursement rate for meals served during May through Sept. 1975 to the nearest quarter cent to reflect changes since the period of May through Sept. 1974 in the cost of operating special sum- mer food programs. Pub. L. 94–20, § 1(b), added subsec. (j). Subsec. (k). Pub. L. 94–105 substituted provisions di- recting the Secretary to pay each State for administra- tive costs an amount equal to 2 per centum of funds distributed under subsec. (b), with no State to receive less than $10,000 unless funds distributed to such State total less than $50,000 for provisions directing the Sec- retary to issue regulations no later than ten days fol- lowing May 2, 1975 pertaining to operations of the pro- gram during the months of May through Sept. 1975, with proviso that such regulations shall in no way dif- fer from current regulations except for changes nec- essary to implement this chapter. Pub. L. 94–20, § 1(b), added subsec. (k). Subsecs. (l), (m). Pub. L. 94–105 added subsecs. (l) and (m). 1972—Subsec. (a)(1). Pub. L. 92–433, § 2(a), substituted authorization of appropriation of such sums as are nec- essary for each of the fiscal years ending June 30, 1973, June 30, 1974, and June 30, 1975, for provisions author- izing appropriation of $32,000,000 for each of the fiscal years ending June 30, 1972 and June 30, 1973. Subsec. (a)(2). Pub. L. 92–433, § 2(b), inserted provi- sions authorizing special summer programs to utilize existing food service facilities of public and nonprofit private schools to the maximum extent feasible. Subsec. (i). Pub. L. 92–433, § 1, added subsec. (i). 1971—Subsec. (a)(1). Pub. L. 92–32, § 7(a), authorized appropriations of $32,000,000 for fiscal years ending June 30, 1972, and 1973, as were authorized for fiscal years ending June 30, 1969, 1970, and 1971, and substituted in first sentence ‘‘program’’ for ‘‘pilot program’’. Subsec. (c)(2). Pub. L. 92–32, § 7(b), provided that non- Federal contributions may be in cash or kind, fairly evaluated, including but not limited to equipment and services. 1970—Subsec. (f). Pub. L. 91–248 provided for deter- mination of ability to pay the full cost of lunch based on a publicly announced policy the minimum criteria of which includes family income and the number of school children in the family unit as well as the size of the family unit in general and provided that there be no overt identification of those children who receive free and reduced price meals. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–296 effective Oct. 1, 2010, except as otherwise specifically provided, see section 445 of Pub. L. 111–296, set out as a note under section 1751 of this title. EFFECTIVE DATE OF 2007 AMENDMENT Pub. L. 110–161, div. A, title VII, § 738(c), Dec. 26, 2007, 121 Stat. 1880, provided that: ‘‘The amendments made by this section [amending this section and section 1769 of this title] take effect on January 1 of the first full calendar year following the date of enactment of this Act [Dec. 26, 2007].’’ EFFECTIVE DATE OF 2004 AMENDMENT Amendment by section 116(a)–(c), (e) of Pub. L. 108–265 effective June 30, 2004, and amendment by sec- tion 116(d) of Pub. L. 108–265 effective Oct. 1, 2005, see section 502(a), (b)(5) of Pub. L. 108–265, as amended, set out as an Effective Date note under section 1754 of this title. EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105–336, title I, § 105(e)(2), Oct. 31, 1998, 112 Stat. 3149, provided that: ‘‘The amendment made by paragraph (1) [amending this section] takes effect on January 1, 1997.’’ Pub. L. 105–336, title I, § 107(j)(4), Oct. 31, 1998, 112 Stat. 3153, provided that: ‘‘The amendments made by paragraphs (1) and (2) [amending this section and sec- tions 1766 and 1769f of this title and repealing section 1766b of this title] take effect on July 1, 1999.’’ Amendment by sections 105(a)–(d) and 107(j)(3)(B) of Pub. L. 105–336 effective Oct. 1, 1998, see section 401 of Pub. L. 105–336, set out as a note under section 1755 of this title. EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–193, title VII, § 706(m), Aug. 22, 1996, 110 Stat. 2293, provided that: ‘‘The amendments made by subsection (b) [amending this section] shall become ef- fective on January 1, 1997.’’ EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–448 effective Oct. 1, 1994, see section 401 of Pub. L. 103–448, set out as a note under section 1755 of this title. Page 4949 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1762 EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101–147, title I, § 102(b)(2)(A), Nov. 10, 1989, 103 Stat. 881, provided that: ‘‘Subparagraphs (A), (B), (C), and (D)(i) of section 13(c)(2) of the [Richard B. Russell] National School Lunch Act [subpars. (A), (B), (C), (D)(i) of subsec. (c)(2) of this section] (as added by subsection (a)(2)(B) of this section) shall be effective as of October 1, 1989.’’ Pub. L. 101–147, title I, § 102(b)(3), Nov. 10, 1989, 103 Stat. 882, provided that: ‘‘The amendments made by subsection (a)(6) [amending this section] shall be effec- tive as of October 1, 1989.’’ EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–435 to be effective and im- plemented on Oct. 1, 1988, see section 701(a) of Pub. L. 100–435, set out as a note under section 2012 of Title 7, Agriculture. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 820(a)(4) of Pub. L. 97–35, set out as a note under section 1753 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by section 5(d) of Pub. L. 95–627 effective July 1, 1979, and amendment by sections 7(b) and 10(d)(2) of Pub. L. 95–627 effective Oct. 1, 1978, see sec- tion 14 of Pub. L. 95–627, set out as a note under section 1755 of this title. EFFECTIVE DATE OF 1975 AMENDMENT Pub. L. 94–105, § 13, Oct. 7, 1975, 89 Stat. 515, provided that the amendment made by that section is effective Oct. 1, 1975. REGULATIONS Pub. L. 101–147, title I, § 102(b)(1), Nov. 10, 1989, 103 Stat. 881, provided that: ‘‘Not later than February 1, 1990, the Secretary of Agriculture shall issue regula- tions to implement the amendments made by para- graphs (1), (3), (4), and (5) of subsection (a) [amending this section]. Notwithstanding the provisions of section 553 of title 5, United States Code, the Secretary of Agri- culture may issue such regulations without providing notice or an opportunity for public comment.’’ Pub. L. 101–147, title I, § 102(b)(2)(B), Nov. 10, 1989, 103 Stat. 882, provided that: ‘‘Not later than February 1, 1990, the Secretary of Agriculture shall— ‘‘(i) issue final regulations to implement subpara- graph (D)(ii) of section 13(c)(2) of the [Richard B. Rus- sell] National School Lunch Act [subpar. (D)(ii) of subsec. (c)(2) of this section] (as added by subsection (a)(2)(B) of this section); and ‘‘(ii) issue final regulations under subparagraph (E) of such section.’’ ALL-DAY EDUCATIONAL AND RECREATIONAL ACTIVITIES; SOURCES OF FUNDS Pub. L. 103–448, title I, § 114(h), Nov. 2, 1994, 108 Stat. 4713, directed Secretary of Agriculture, not later than 180 days after Nov. 2, 1994, in consultation with heads of other Federal agencies, to identify sources of Fed- eral funds that might be available from other Federal agencies for service institutions under the summer food service program for children established under this sec- tion to carry out all-day educational and recreational activities for children at feeding sites under the pro- gram, and notify the service institutions of the sources. § 1762. Summer electronic benefits transfer for children program (a) Program established The Secretary shall establish a program under which States and covered Indian Tribal organi- zations electing to participate in such program shall, beginning with summer 2024 and annually for each summer thereafter, issue to each eligi- ble household summer electronic benefit trans- fer benefits (referred to in this section as ‘‘sum- mer EBT benefits’’)— (1) in accordance with this section; and (2) for the purpose of providing nutrition as- sistance through electronic benefit transfer or methods described in clauses (ii) and (iii) of subsection (b)(2)(B) during the summer months for each eligible child, to ensure con- tinued access to food when school is not in ses- sion for the summer. (b) Summer EBT benefits requirements (1) Purchase options (A) Benefits issued by states Summer EBT benefits issued pursuant to subsection (a) by a State may only be used by the eligible household that receives such summer EBT benefits to purchase food (as defined in section 3 of the Food and Nutri- tion Act of 2008 (7 U.S.C. 2012)) from retail food stores that have been approved for par- ticipation in the supplemental nutrition as- sistance program established under such Act [7 U.S.C. 2011 et seq.] and in accordance with section 7(b) of such Act (7 U.S.C. 2016(b)) or in the nutrition assistance program in American Samoa, the Commonwealth of Puerto Rico, and the Commonwealth of the Northern Mariana Islands. (B) Benefits issued by covered Indian Tribal organizations Summer EBT benefits issued pursuant to subsection (a) by a covered Indian Tribal or- ganization may only be used by the eligible household that receives such summer EBT benefits to purchase supplemental foods from vendors that have been approved for participation in the special supplemental nutrition program for women, infants, and children under section 1786 of this title. (2) Amount Summer EBT benefits issued pursuant to subsection (a)— (A) shall be— (i) for calendar year 2024, in an amount equal to $40, which may be proportionately higher consistent with the adjustments es- tablished under section 1760(f) of this title for each eligible child in the eligible household per month during the summer operational period; and (ii) for calendar year 2025 and each year thereafter, in an amount equal to the unrounded benefit amount from the prior year, adjusted to the nearest lower dollar increment to reflect changes to the cost of the diet described in section 3(u) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(u)) for the 12-month period ending on November 30 of the preceding calendar year and rounded to the nearest lower dol- lar increment; and (B) may be issued— (i) in the form of an EBT card; (ii) through other electronic methods, as determined by the Secretary; or