42 U.S.C. § 1766 : US Code - Section 1766: Child and adult care food program

Search 42 U.S.C. § 1766 : US Code - Section 1766: Child and adult care food program

(a) Grant authority and institution eligibility
(1) Grant authority
The Secretary may carry out a program to assist States through
grants-in-aid and other means to initiate and maintain nonprofit
food service programs for children in institutions providing
child care.
(2) Definition of institution
In this section, the term "institution" means -
(A) any public or private nonprofit organization providing
nonresidential child care or day care outside school hours for
school children, including any child care center, settlement
house, recreational center, Head Start center, and institution
providing child care facilities for children with disabilities;
(B) any other private organization providing nonresidential
child care or day care outside school hours for school
children, if -
(i) at least 25 percent of the children served by the
organization meet the income eligibility criteria established
under section 1758(b) of this title for free or reduced price
meals; or
(ii) the organization receives compensation from amounts
granted to the States under title XX of the Social Security
Act (42 U.S.C. 1397 et seq.) (but only if the organization
receives compensation under that title for at least 25
percent of its enrolled children or 25 percent of its
licensed capacity, whichever is less);
(C) any public or private nonprofit organization acting as a
sponsoring organization for one or more of the organizations
described in subparagraph (A) or (B) or for an adult day care
center (as defined in subsection (o)(2) of this section);
(D) any other private organization acting as a sponsoring
organization for, and that is part of the same legal entity as,
one or more organizations that are -
(i) described in subparagraph (B); or
(ii) proprietary title XIX or title XX centers (as defined
in subsection (o)(2) of this section);
(E) any public or private nonprofit organization acting as a
sponsoring organization for one or more family or group day
care homes; and
(F) any emergency shelter (as defined in subsection (t) of
this section).
(3) Age limit
Except as provided in subsection (r) of this section,
reimbursement may be provided under this section only for meals
or supplements served to children not over 12 years of age
(except that such age limitation shall not be applicable for
children of migrant workers if 15 years of age or less or for
children with disabilities).
(4) Additional guidelines
The Secretary may establish separate guidelines for
institutions that provide care to school children outside of
school hours.
(5) Licensing
In order to be eligible, an institution (except a school or
family or group day care home sponsoring organization) or family
or group day care home shall -
(A)(i) be licensed, or otherwise have approval, by the
appropriate Federal, State, or local licensing authority; or
(ii) be in compliance with appropriate procedures for
renewing participation in the program, as prescribed by the
Secretary, and not be the subject of information possessed by
the State indicating that the license of the institution or
home will not be renewed;
(B) if Federal, State, or local licensing or approval is not
available -
(i) meet any alternate approval standards established by
the appropriate State or local governmental agency; or
(ii) meet any alternate approval standards established by
the Secretary after consultation with the Secretary of Health
and Human Services; or
(C) if the institution provides care to school children
outside of school hours and Federal, State, or local licensing
or approval is not required for the institution, meet State or
local health and safety standards.
(6) Eligibility criteria
No institution shall be eligible to participate in the program
unless it satisfies the following criteria:
(A) accepts final administrative and financial responsibility
for management of an effective food service;
(B) has not been seriously deficient in its operation of the
child and adult care food program, or any other program under
this chapter or the Child Nutrition Act of 1966 [42 U.S.C. 1771
et seq.], or has not been determined to be ineligible to
participate in any other publicly funded program by reason of
violation of the requirements of the program, for a period of
time specified by the Secretary;
(C)(i) will provide adequate supervisory and operational
personnel for overall monitoring and management of the child
care food program; and
(ii) in the case of a sponsoring organization, the
organization shall employ an appropriate number of monitoring
personnel based on the number and characteristics of child care
centers and family or group day care homes sponsored by the
organization, as approved by the State (in accordance with
regulations promulgated by the Secretary), to ensure effective
oversight of the operations of the child care centers and
family or group day care homes;
(D) in the case of a family or group day care home sponsoring
organization that employs more than one employee, the
organization does not base payments to an employee of the
organization on the number of family or group day care homes
recruited;
(E) in the case of a sponsoring organization, the
organization has in effect a policy that restricts other
employment by employees that interferes with the
responsibilities and duties of the employees of the
organization with respect to the program; and
(F) in the case of a sponsoring organization that applies for
initial participation in the program on or after June 20, 2000,
and that operates in a State that requires such institutions to
be bonded under State law, regulation, or policy, the
institution is bonded in accordance with such law, regulation,
or policy.
(b) Limitations on cash assistance
For the fiscal year ending September 30, 1979, and for each
subsequent fiscal year, the Secretary shall provide cash assistance
to States for meals as provided in subsection (f) of this section,
except that, in any fiscal year, the aggregate amount of assistance
provided to a State by the Secretary under this section shall not
exceed the sum of (1) the Federal funds provided by the State to
participating institutions within the State for that fiscal year
and (2) any funds used by the State under section 10 of the Child
Nutrition Act of 1966 [42 U.S.C. 1779].
(c) Formula for computation of payments; national average payment
rate
(1) For purposes of this section, except as provided in
subsection (f)(3) of this section, the national average payment
rate for free lunches and suppers, the national average payment
rate for reduced price lunches and suppers, and the national
average payment rate for paid lunches and suppers shall be the same
as the national average payment rates for free lunches, reduced
price lunches, and paid lunches, respectively, under sections 1753
and 1759a of this title as appropriate (as adjusted pursuant to
section 1759a(a) of this title).
(2) For purposes of this section, except as provided in
subsection (f)(3) of this section, the national average payment
rate for free breakfasts, the national average payment rate for
reduced price breakfasts, and the national average payment rate for
paid breakfasts shall be the same as the national average payment
rates for free breakfasts, reduced price breakfasts, and paid
breakfasts, respectively, under section 4(b) of the Child Nutrition
Act of 1966 [42 U.S.C. 1773(b)] (as adjusted pursuant to section
1759a(a) of this title).
(3) For purposes of this section, except as provided in
subsection (f)(3) of this section, the national average payment
rate for free supplements shall be 30 cents, the national average
payment rate for reduced price supplements shall be one-half the
rate for free supplements, and the national average payment rate
for paid supplements shall be 2.75 cents (as adjusted pursuant to
section 1759a(a) of this title).
(4) Determinations with regard to eligibility for free and
reduced price meals and supplements shall be made in accordance
with the income eligibility guidelines for free lunches and reduced
price lunches, respectively, under section 1758 of this title.
(5) A child shall be considered automatically eligible for
benefits under this section without further application or
eligibility determination, if the child is enrolled as a
participant in a Head Start program authorized under the Head Start
Act (42 U.S.C. 9831 et seq.), on the basis of a determination that
the child is a member of a family that meets the low-income
criteria prescribed under section 645(a)(1)(A) of the Head Start
Act (42 U.S.C. 9840(a)(1)(A)).
(6) A child who has not yet entered kindergarten shall be
considered automatically eligible for benefits under this section
without further application or eligibility determination if the
child is enrolled as a participant in the Even Start program under
part B of chapter 1 of title I of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 2741 et seq.).(!1)
(d) Institution approval and applications
(1) Institution approval. -
(A) Administrative capability. - Subject to subparagraph (B)
and except as provided in subparagraph (C), the State agency
shall approve an institution that meets the requirements of this
section for participation in the child and adult care food
program if the State agency determines that the institution -
(i) is financially viable;
(ii) is administratively capable of operating the program
(including whether the sponsoring organization has business
experience and management plans appropriate to operate the
program) described in the application of the institution; and
(iii) has internal controls in effect to ensure program
accountability.
(B) Approval of private institutions. -
(i) In general. - In addition to the requirements established
by subparagraph (A) and subject to clause (ii), the State
agency shall approve a private institution that meets the
requirements of this section for participation in the child and
adult care food program only if -
(I) the State agency conducts a satisfactory visit to the
institution before approving the participation of the
institution in the program; and
(II) the institution -
(aa) has tax exempt status under title 26;
(bb) is operating a Federal program requiring nonprofit
status to participate in the program; or
(cc) is described in subsection (a)(2)(B) of this
section.
(ii) Exception for family or group day care homes. - Clause
(i) shall not apply to a family or group day care home.
(C) Exception for certain sponsoring organizations. -
(i) In general. - The State agency may approve an eligible
institution acting as a sponsoring organization for one or more
family or group day care homes or centers that, at the time of
application, is not participating in the child and adult care
food program only if the State agency determines that -
(I) the institution meets the requirements established by
subparagraphs (A) and (B); and
(II) the participation of the institution will help to
ensure the delivery of benefits to otherwise unserved family
or group day care homes or centers or to unserved children in
an area.
(ii) Criteria for selection. - The State agency shall
establish criteria for approving an eligible institution acting
as a sponsoring organization for one or more family or group
day care homes or centers that, at the time of application, is
not participating in the child and adult care food program for
the purpose of determining if the participation of the
institution will help ensure the delivery of benefits to
otherwise unserved family or group day care homes or centers or
to unserved children in an area.
(D) Notification to applicants. - Not later than 30 days after
the date on which an applicant institution files a completed
application with the State agency, the State agency shall notify
the applicant institution whether the institution has been
approved or disapproved to participate in the child and adult
care food program.
(2)(A) The Secretary shall develop a policy that -
(i) allows institutions providing child care that participate
in the program under this section, at the option of the State
agency, to reapply for assistance under this section at 3-year
intervals;
(ii)(I) requires periodic unannounced site visits at not less
than 3-year intervals to sponsored child care centers and family
or group day care homes to identify and prevent management
deficiencies and fraud and abuse under the program;
(II) requires at least one scheduled site visit each year to
sponsored child care centers and family or group day care homes
to identify and prevent management deficiencies and fraud and
abuse under the program and to improve program operations; and
(III) requires at least one scheduled site visit at not less
than 3-year intervals to sponsoring organizations and
nonsponsored child care centers to identify and prevent
management deficiencies and fraud and abuse under the program and
to improve program operations; and
(iii) requires periodic site visits to private institutions
that the State agency determines have a high probability of
program abuse.
(B) Each State agency that exercises the option authorized by
subparagraph (A) shall confirm on an annual basis that each such
institution is in compliance with the licensing or approval
provisions of subsection (a)(5) of this section.
(3) Program information. -
(A) In general. - On enrollment of a child in a sponsored child
care center or family or group day care home participating in the
program, the center or home (or its sponsoring organization)
shall provide to the child's parents or guardians -
(i) information that describes the program and its benefits;
and
(ii) the name and telephone number of the sponsoring
organization of the center or home and the State agency
involved in the operation of the program.
(B) Form. - The information described in subparagraph (A) shall
be in a form and, to the maximum extent practicable, language
easily understandable by the child's parents or guardians.
(4) Allowable administrative expenses for sponsoring
organizations. - In consultation with State agencies and sponsoring
organizations, the Secretary shall develop, and provide for the
dissemination to State agencies and sponsoring organizations of, a
list of allowable reimbursable administrative expenses for
sponsoring organizations under the program.
(5) Termination or suspension of participating organizations. -
(A) In general. - The Secretary shall establish procedures for
the termination of participation by institutions and family or
group day care homes under the program.
(B) Standards. - Procedures established pursuant to
subparagraph (A) shall include standards for terminating the
participation of an institution or family or group day care home
that -
(i) engages in unlawful practices, falsifies information
provided to the State agency, or conceals a criminal
background; or
(ii) substantially fails to fulfill the terms of its
agreement with the State agency.
(C) Corrective action. - Procedures established pursuant to
subparagraph (A) -
(i) shall require an entity described in subparagraph (B) to
undertake corrective action; and
(ii) may require the immediate suspension of operation of the
program by an entity described in subparagraph (B), without the
opportunity for corrective action, if the State agency
determines that there is imminent threat to the health or
safety of a participant at the entity or the entity engages in
any activity that poses a threat to public health or safety.
(D) Hearing. -
(i) In general. - Except as provided in clause (ii), an
institution or family or group day care home shall be provided
a fair hearing in accordance with subsection (e)(1) of this
section prior to any determination to terminate participation
by the institution or family or group day care home under the
program.
(ii) Exception for false or fraudulent claims. -
(I) In general. - If a State agency determines that an
institution has knowingly submitted a false or fraudulent
claim for reimbursement, the State agency may suspend the
participation of the institution in the program in accordance
with this clause.
(II) Requirement for review. - Prior to any determination
to suspend participation of an institution under subclause
(I), the State agency shall provide for an independent review
of the proposed suspension in accordance with subclause
(III).
(III) Review procedure. - The review shall -
(aa) be conducted by an independent and impartial
official other than, and not accountable to, any person
involved in the determination to suspend the institution;
(bb) provide the State agency and the institution the
right to submit written documentation relating to the
suspension, including State agency documentation of the
alleged false or fraudulent claim for reimbursement and the
response of the institution to the documentation;
(cc) require the reviewing official to determine, based
on the review, whether the State agency has established,
based on a preponderance of the evidence, that the
institution has knowingly submitted a false or fraudulent
claim for reimbursement;
(dd) require the suspension to be in effect for not more
than 120 calendar days after the institution has received
notification of a determination of suspension in accordance
with this clause; and
(ee) require the State agency during the suspension to
ensure that payments continue to be made to sponsored
centers and family and group day care homes meeting the
requirements of the program.
(IV) Hearing. - A State agency shall provide an institution
that has been suspended from participation in the program
under this clause an opportunity for a fair hearing on the
suspension conducted in accordance with subsection (e)(1) of
this section.
(E) List of disqualified institutions and individuals. -
(i) In general. - The Secretary shall maintain a list of
institutions, sponsored family or group day care homes, and
individuals that have been terminated or otherwise disqualified
from participation in the program.
(ii) Availability. - The Secretary shall make the list
available to State agencies for use in approving or renewing
applications by institutions, sponsored family or group day
care homes, and individuals for participation in the program.
(e) Hearing
(1) Except as provided in paragraph (2), the State shall provide,
in accordance with regulations issued by the Secretary, a fair
hearing and a prompt determination to any institution aggrieved by
the action of the State as it affects the participation of such
institution in the program authorized by this section, or its claim
for reimbursement under this section.
(2) A State is not required to provide a hearing to an
institution concerning a State action taken on the basis of a
Federal audit determination.
(3) If a State does not provide a hearing to an institution
concerning a State action taken on the basis of a Federal audit
determination, the Secretary, on request, shall afford a hearing to
the institution concerning the action.
(f) State disbursements to institutions
(1) In general. -
(A) Requirement. - Funds paid to any State under this section
shall be disbursed to eligible institutions by the State under
agreements approved by the Secretary. Disbursements to any
institution shall be made only for the purpose of assisting in
providing meals to children attending institutions, or in family
or group day care homes. Disbursement to any institution shall
not be dependent upon the collection of moneys from participating
children. All valid claims from such institutions shall be paid
within forty-five days of receipt by the State. The State shall
notify the institution within fifteen days of receipt of a claim
if the claim as submitted is not valid because it is incomplete
or incorrect.
(B) Fraud or abuse. -
(i) In general. - The State may recover funds disbursed under
subparagraph (A) to an institution if the State determines that
the institution has engaged in fraud or abuse with respect to
the program or has submitted an invalid claim for
reimbursement.
(ii) Payment. - Amounts recovered under clause (i) -
(I) may be paid by the institution to the State over a
period of one or more years; and
(II) shall not be paid from funds used to provide meals and
supplements.
(iii) Hearing. - An institution shall be provided a fair
hearing in accordance with subsection (e)(1) of this section
prior to any determination to recover funds under this
subparagraph.
(2)(A) Subject to subparagraph (B) of this paragraph, the
disbursement for any fiscal year to any State for disbursement to
institutions, other than family or group day care home sponsoring
organizations, for meals provided under this section shall be equal
to the sum of the products obtained by multiplying the total number
of each type of meal (breakfast, lunch or supper, or supplement)
served in such institution in that fiscal year by the applicable
national average payment rate for each such type of meal, as
determined under subsection (c) of this section.
(B) No reimbursement may be made to any institution under this
paragraph, or to family or group day care home sponsoring
organizations under paragraph (3) of this subsection, for more than
two meals and one supplement per day per child, or in the case of
an institution (but not in the case of a family or group day care
home sponsoring organization), 2 meals and 1 supplement per day per
child, for children that are maintained in a child care setting for
eight or more hours per day.
(C) Limitation on administrative expenses for certain sponsoring
organizations. -
(i) In general. - Except as provided in clause (ii), a
sponsoring organization of a day care center may reserve not more
than 15 percent of the funds provided under paragraph (1) for the
administrative expenses of the organization.
(ii) Waiver. - A State may waive the requirement in clause (i)
with respect to a sponsoring organization if the organization
provides justification to the State that the organization
requires funds in excess of 15 percent of the funds provided
under paragraph (1) to pay the administrative expenses of the
organization.
(3) Reimbursement of family or group day care home sponsoring
organizations. -
(A) Reimbursement factor. -
(i) In general. - An institution that participates in the
program under this section as a family or group day care home
sponsoring organization shall be provided, for payment to a
home sponsored by the organization, reimbursement factors in
accordance with this subparagraph for the cost of obtaining and
preparing food and prescribed labor costs involved in providing
meals under this section.
(ii) Tier i family or group day care homes. -
(I) Definition of tier i family or group day care home. -
In this paragraph, the term "tier I family or group day care
home" means -
(aa) a family or group day care home that is located in a
geographic area, as defined by the Secretary based on
census data, in which at least 50 percent of the children
residing in the area are members of households whose
incomes meet the income eligibility guidelines for free or
reduced price meals under section 1758 of this title;
(bb) a family or group day care home that is located in
an area served by a school enrolling elementary students in
which at least 50 percent of the total number of children
enrolled are certified eligible to receive free or reduced
price school meals under this chapter or the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.); or
(cc) a family or group day care home that is operated by
a provider whose household meets the income eligibility
guidelines for free or reduced price meals under section
1758 of this title and whose income is verified by the
sponsoring organization of the home under regulations
established by the Secretary.
(II) Reimbursement. - Except as provided in subclause
(III), a tier I family or group day care home shall be
provided reimbursement factors under this clause without a
requirement for documentation of the costs described in
clause (i), except that reimbursement shall not be provided
under this subclause for meals or supplements served to the
children of a person acting as a family or group day care
home provider unless the children meet the income eligibility
guidelines for free or reduced price meals under section 1758
of this title.
(III) Factors. - Except as provided in subclause (IV), the
reimbursement factors applied to a home referred to in
subclause (II) shall be the factors in effect on July 1,
1996.
(IV) Adjustments. - The reimbursement factors under this
subparagraph shall be adjusted on July 1, 1997, and each July
1 thereafter, to reflect changes in the Consumer Price Index
for food at home for the most recent 12-month period for
which the data are available. The reimbursement factors under
this subparagraph shall be rounded to the nearest lower cent
increment and based on the unrounded adjustment in effect on
June 30 of the preceding school year.
(iii) Tier ii family or group day care homes. -
(I) In general. -
(aa) Factors. - Except as provided in subclause (II),
with respect to meals or supplements served under this
clause by a family or group day care home that does not
meet the criteria set forth in clause (ii)(I), the
reimbursement factors shall be 95 cents for lunches and
suppers, 27 cents for breakfasts, and 13 cents for
supplements.
(bb) Adjustments. - The factors shall be adjusted on July
1, 1997, and each July 1 thereafter, to reflect changes in
the Consumer Price Index for food at home for the most
recent 12-month period for which the data are available.
The reimbursement factors under this item shall be rounded
down to the nearest lower cent increment and based on the
unrounded adjustment for the preceding 12-month period.
(cc) Reimbursement. - A family or group day care home
shall be provided reimbursement factors under this
subclause without a requirement for documentation of the
costs described in clause (i), except that reimbursement
shall not be provided under this subclause for meals or
supplements served to the children of a person acting as a
family or group day care home provider unless the children
meet the income eligibility guidelines for free or reduced
price meals under section 1758 of this title.
(II) Other factors. - A family or group day care home that
does not meet the criteria set forth in clause (ii)(I) may
elect to be provided reimbursement factors determined in
accordance with the following requirements:
(aa) Children eligible for free or reduced price meals. -
In the case of meals or supplements served under this
subsection to children who are members of households whose
incomes meet the income eligibility guidelines for free or
reduced price meals under section 1758 of this title, the
family or group day care home shall be provided
reimbursement factors set by the Secretary in accordance
with clause (ii)(III).
(bb) Ineligible children. - In the case of meals or
supplements served under this subsection to children who
are members of households whose incomes do not meet the
income eligibility guidelines, the family or group day care
home shall be provided reimbursement factors in accordance
with subclause (I).
(III) Information and determinations. -
(aa) In general. - If a family or group day care home
elects to claim the factors described in subclause (II),
the family or group day care home sponsoring organization
serving the home shall collect the necessary income
information, as determined by the Secretary, from any
parent or other caretaker to make the determinations
specified in subclause (II) and shall make the
determinations in accordance with rules prescribed by the
Secretary.
(bb) Categorical eligibility. - In making a determination
under item (aa), a family or group day care home sponsoring
organization may consider a child participating in or
subsidized under, or a child with a parent participating in
or subsidized under, a federally or State supported child
care or other benefit program with an income eligibility
limit that does not exceed the eligibility standard for
free or reduced price meals under section 1758 of this
title to be a child who is a member of a household whose
income meets the income eligibility guidelines under
section 1758 of this title.
(cc) Factors for children only. - A family or group day
care home may elect to receive the reimbursement factors
prescribed under clause (ii)(III) solely for the children
participating in a program referred to in item (bb) if the
home elects not to have income statements collected from
parents or other caretakers.
(IV) Simplified meal counting and reporting procedures. -
The Secretary shall prescribe simplified meal counting and
reporting procedures for use by a family or group day care
home that elects to claim the factors under subclause (II)
and by a family or group day care home sponsoring
organization that sponsors the home. The procedures the
Secretary prescribes may include 1 or more of the following:
(aa) Setting an annual percentage for each home of the
number of meals served that are to be reimbursed in
accordance with the reimbursement factors prescribed under
clause (ii)(III) and an annual percentage of the number of
meals served that are to be reimbursed in accordance with
the reimbursement factors prescribed under subclause (I),
based on the family income of children enrolled in the home
in a specified month or other period.
(bb) Placing a home into 1 of 2 or more reimbursement
categories annually based on the percentage of children in
the home whose households have incomes that meet the income
eligibility guidelines under section 1758 of this title,
with each such reimbursement category carrying a set of
reimbursement factors such as the factors prescribed under
clause (ii)(III) or subclause (I) or factors established
within the range of factors prescribed under clause
(ii)(III) and subclause (I).
(cc) Such other simplified procedures as the Secretary
may prescribe.
(V) Minimum verification requirements. - The Secretary may
establish any minimum verification requirements that are
necessary to carry out this clause.
(B) Family or group day care home sponsoring organizations
shall also receive reimbursement for their administrative
expenses in amounts not exceeding the maximum allowable levels
prescribed by the Secretary. Such levels shall be adjusted July 1
of each year to reflect changes in the Consumer Price Index for
all items for the most recent 12-month period for which such data
are available.
(C)(i) Reimbursement for administrative expenses shall also
include start-up funds to finance the administrative expenses for
such institutions to initiate successful operation under the
program and expansion funds to finance the administrative
expenses for such institutions to expand into low-income or rural
areas. Institutions that have received start-up funds may also
apply at a later date for expansion funds. Such start-up funds
and expansion funds shall be in addition to other reimbursement
to such institutions for administrative expenses. Start-up funds
and expansion funds shall be payable to enable institutions
satisfying the criteria of subsection (d) of this section, and
any other standards prescribed by the Secretary, to develop an
application for participation in the program as a family or group
day care home sponsoring organization or to implement the program
upon approval of the application. Such start-up funds and
expansion funds shall be payable in accordance with the
procedures prescribed by the Secretary. The amount of start-up
funds and expansion funds payable to an institution shall be not
less than the institution's anticipated reimbursement for
administrative expenses under the program for one month and not
more than the institution's anticipated reimbursement for
administrative expenses under the program for two months.
(ii) Funds for administrative expenses may be used by family or
group day care home sponsoring organizations to assist unlicensed
family or group day care homes in becoming licensed.
(D) Limitations on ability of family or group day care homes to
transfer sponsoring organizations. -
(i) In general. - Subject to clause (ii), a State agency
shall limit the ability of a family or group day care home to
transfer from a sponsoring organization to another sponsoring
organization more frequently than once a year.
(ii) Good cause. - The State agency may permit or require a
family or group day care home to transfer from a sponsoring
organization to another sponsoring organization more frequently
than once a year for good cause (as determined by the State
agency), including circumstances in which the sponsoring
organization of the family or group day care home ceases to
participate in the child and adult care food program.
(E) Provision of data to family or group day care home
sponsoring organizations. -
(i) Census data. - The Secretary shall provide to each State
agency administering a child and adult care food program under
this section data from the most recent decennial census survey
or other appropriate census survey for which the data are
available showing which areas in the State meet the
requirements of subparagraph (A)(ii)(I)(aa). The State agency
shall provide the data to family or group day care home
sponsoring organizations located in the State.
(ii) School data. -
(I) In general. - A State agency administering the school
lunch program under this chapter or the school breakfast
program under the Child Nutrition Act of 1966 (42 U.S.C. 1771
et seq.) shall provide to approved family or group day care
home sponsoring organizations a list of schools serving
elementary school children in the State in which not less
than 1/2 of the children enrolled are certified to receive
free or reduced price meals. The State agency shall collect
the data necessary to create the list annually and provide
the list on a timely basis to any approved family or group
day care home sponsoring organization that requests the list.
(II) Use of data from preceding school year. - In
determining for a fiscal year or other annual period whether
a home qualifies as a tier I family or group day care home
under subparagraph (A)(ii)(I), the State agency administering
the program under this section, and a family or group day
care home sponsoring organization, shall use the most current
available data at the time of the determination.
(iii) Duration of determination. - For purposes of this
section, a determination that a family or group day care home
is located in an area that qualifies the home as a tier I
family or group day care home (as the term is defined in
subparagraph (A)(ii)(I)), shall be in effect for 5 years
(unless the determination is made on the basis of census data,
in which case the determination shall remain in effect until
more recent census data are available) unless the State agency
determines that the area in which the home is located no longer
qualifies the home as a tier I family or group day care home.
(4) By the first day of each month of operation, the State may
provide advance payments for the month to each approved institution
in an amount that reflects the full level of valid claims
customarily received from such institution for one month's
operation. In the case of a newly participating institution, the
amount of the advance shall reflect the State's best estimate of
the level of valid claims such institutions will submit. If the
State has reason to believe that an institution will not be able to
submit a valid claim covering the period for which such an advance
has been made, the subsequent month's advance payment shall be
withheld until the State receives a valid claim. Payments advanced
to institutions that are not subsequently deducted from a valid
claim for reimbursement shall be repaid upon demand by the State.
Any prior payment that is under dispute may be subtracted from an
advance payment.
(g) Meals served by participating institutions; compliance
assistance
(1)(A) Meals served by institutions participating in the program
under this section shall consist of a combination of foods that
meet minimum nutritional requirements prescribed by the Secretary
on the basis of tested nutritional research.
(B) The Secretary shall provide technical assistance to those
institutions participating in the program under this section to
assist the institutions and family or group day care home
sponsoring organizations in complying with the nutritional
requirements prescribed by the Secretary pursuant to subparagraph
(A).
(2) No physical segregation or other discrimination against any
child shall be made because of his or her inability to pay, nor
shall there be any overt identification of any such child by
special tokens or tickets, different meals or meal service,
announced or published lists of names, or other means.
(3) Each institution shall, insofar as practicable, use in its
food service foods designated from time to time by the Secretary as
being in abundance, either nationally or in the food service area,
or foods donated by the Secretary.
(h) Donation of agricultural commodities by Secretary; measurement
of value; annual readjustment of assistance; cash in lieu of
commodities; Department of Defense child care feeding program
(1)(A) The Secretary shall donate agricultural commodities
produced in the United States for use in institutions participating
in the child care food program under this section.
(B) The value of the commodities donated under subparagraph (A)
(or cash in lieu of commodities) to each State for each school year
shall be, at a minimum, the amount obtained by multiplying the
number of lunches and suppers served in participating institutions
in that State during the preceding school year by the rate for
commodities or cash in lieu of commodities established under
section 1755(c) of this title for the school year concerned.
(C) After the end of each school year, the Secretary shall -
(i) reconcile the number of lunches and suppers served in
participating institutions in each State during such school year
with the number of lunches and suppers served by participating
institutions in each State during the preceding school year; and
(ii) based on such reconciliation, increase or reduce
subsequent commodity assistance or cash in lieu of commodities
provided to each State.
(D) Any State receiving assistance under this section for
institutions participating in the child care food program may, upon
application to the Secretary, receive cash in lieu of some or all
of the commodities to which it would otherwise be entitled under
this subsection. In determining whether to request cash in lieu of
commodities, the State shall base its decision on the preferences
of individual participating institutions within the State, unless
this proves impracticable due to the small number of institutions
preferring donated commodities.
(2) The Secretary is authorized to provide agricultural
commodities obtained by the Secretary under the provisions of the
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) and donated under
the provisions of section 416 of such Act [7 U.S.C. 1431], to the
Department of Defense for use by its institutions providing child
care services, when such commodities are in excess of the
quantities needed to meet the needs of all other child nutrition
programs, domestic and foreign food assistance and export
enhancement programs. The Secretary shall require reimbursement
from the Department of Defense for the costs, or some portion
thereof, of delivering such commodities to overseas locations,
unless the Secretary determines that it is in the best interest of
the program that the Department of Agriculture shall assume such
costs.
(i) Audits
(1) Disregards
(A) In general
Subject to subparagraph (B), in conducting management
evaluations, reviews, or audits under this section, the
Secretary or a State agency may disregard any overpayment to an
institution for a fiscal year if the total overpayment to the
institution for the fiscal year does not exceed an amount that
is consistent with the disregards allowed in other programs
under this chapter and recognizes the cost of collecting small
claims, as determined by the Secretary.
(B) Criminal or fraud violations
In carrying out this paragraph, the Secretary and a State
agency shall not disregard any overpayment for which there is
evidence of a violation of a criminal law or civil fraud law.
(2) Funding
The Secretary shall make available for each fiscal year to
States administering the child care food program, for the purpose
of conducting audits of participating institutions, an amount up
to 1.5 percent (except, in the case of each of fiscal years 2005
through 2007, 1 percent) of the funds used by each State in the
program under this section, during the second preceding fiscal
year.
(j) Agreements
(1) In general
The Secretary may issue regulations directing States to develop
and provide for the use of a standard form of agreement between
each family or group day care sponsoring organization and the
family or group day care homes participating in the program under
such organization, for the purpose of specifying the rights and
responsibilities of each party.
(2) Duration
An agreement under paragraph (1) shall remain in effect until
terminated by either party to the agreement.
(k) Training and technical assistance
A State participating in the program established under this
section shall provide sufficient training, technical assistance,
and monitoring to facilitate effective operation of the program.
The Secretary shall assist the State in developing plans to fulfill
the requirements of this subsection.
(l) Non-diminishment of State and local funds
Expenditures of funds from State and local sources for the
maintenance of food programs for children shall not be diminished
as a result of funds received under this section.
(m) Accounts and records
States and institutions participating in the program under this
section shall keep such accounts and records as may be necessary to
enable the Secretary to determine whether there has been compliance
with the requirements of this section. Such accounts and records
shall be available at any reasonable time for inspection and audit
by representatives of the Secretary, the Comptroller General of the
United States, and appropriate State representatives and shall be
preserved for such period of time, not in excess of five years, as
the Secretary determines necessary.
(n) Authorization of appropriations
There are hereby authorized to be appropriated for each fiscal
year such funds as are necessary to carry out the purposes of this
section.
(o) Participation of older persons and chronically impaired
disabled persons
(1) For purposes of this section, adult day care centers shall be
considered eligible institutions for reimbursement for meals or
supplements served to persons 60 years of age or older or to
chronically impaired disabled persons, including victims of
Alzheimer's disease and related disorders with neurological and
organic brain dysfunction. Reimbursement provided to such
institutions for such purposes shall improve the quality of meals
or level of services provided or increase participation in the
program. Lunches served by each such institution for which
reimbursement is claimed under this section shall provide, on the
average, approximately 1/3 of the daily recommended dietary
allowance established by the Food and Nutrition Board of the
National Research Council of the National Academy of Sciences. Such
institutions shall make reasonable efforts to serve meals that meet
the special dietary requirements of participants, including efforts
to serve foods in forms palatable to participants.
(2) For purposes of this subsection -
(A) the term "adult day care center" means any public agency or
private nonprofit organization, or any proprietary title XIX or
title XX center, which -
(i) is licensed or approved by Federal, State, or local
authorities to provide adult day care services to chronically
impaired disabled adults or persons 60 years of age or older in
a group setting outside their homes, or a group living
arrangement, on a less than 24-hour basis; and
(ii) provides for such care and services directly or under
arrangements made by the agency or organization whereby the
agency or organization maintains professional management
responsibility for all such services; and
(B) the term "proprietary title XIX or title XX center" means
any private, for-profit center providing adult day care services
for which it receives compensation from amounts granted to the
States under title XIX or XX of the Social Security Act [42
U.S.C. 1396 et seq., 1397 et seq.] and which title XIX or title
XX beneficiaries were not less than 25 percent of enrolled
eligible participants in a calendar month preceding initial
application or annual reapplication for program participation.
(3)(A) The Secretary, in consulation (!2) with the Assistant
Secretary for Aging, shall establish, within 6 months of October 1,
1988, separate guidelines for reimbursement of institutions
described in this subsection. Such reimbursement shall take into
account the nutritional requirements of eligible persons, as
determined by the Secretary on the basis of tested nutritional
research, except that such reimbursement shall not be less than
would otherwise be required under this section.
(B) The guidelines shall contain provisions designed to assure
that reimbursement under this subsection shall not duplicate
reimbursement under part C of title III of the Older Americans Act
of 1965 [42 U.S.C. 3030e et seq.], for the same meal served.
(4) For the purpose of establishing eligibility for free or
reduced price meals or supplements under this subsection, income
shall include only the income of an eligible person and, if any,
the spouse and dependents with whom the eligible person resides.
(5) A person described in paragraph (1) shall be considered
automatically eligible for free meals or supplements under this
subsection, without further application or eligibility
determination, if the person is -
(A) a member of a household receiving assistance under the Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.); or
(B) a recipient of assistance under title XVI or XIX of the
Social Security Act [42 U.S.C. 1381 et seq., 1396 et seq.].
(6) The Governor of any State may designate to administer the
program under this subsection a State agency other than the agency
that administers the child care food program under this section.
(p) Rural area eligibility determination for day care homes
(1) Definition of selected tier I family or group day care home
In this subsection, the term "selected tier I family or group
day care home" means a family or group day home that meets the
definition of tier I family or group day care home under
subclause (I) of subsection (f)(3)(A)(ii) of this section except
that items (aa) and (bb) of that subclause shall be applied by
substituting "40 percent" for "50 percent".
(2) Eligibility
For each of fiscal years 2006 and 2007, in rural areas of the
State of Nebraska (as determined by the Secretary), the Secretary
shall provide reimbursement to selected tier I family or group
day care homes (as defined in paragraph (1)) under subsection
(f)(3) of this section in the same manner as tier I family or
group day care homes (as defined in subsection (f)(3)(A)(ii)(I)
of this section).
(3) Evaluation
(A) In general
The Secretary, acting through the Administrator of the Food
and Nutrition Service, shall evaluate the impact of the
eligibility criteria described in paragraph (2) as compared to
the eligibility criteria described in subsection
(f)(3)(A)(ii)(I) of this section.
(B) Impact
The evaluation shall assess the impact of the change in
eligibility requirements on -
(i) the number of family or group day care homes offering
meals under this section;
(ii) the number of family or group day care homes offering
meals under this section that are defined as tier I family or
group day care homes as a result of paragraph (1) that
otherwise would be defined as tier II family or group day
care homes under subsection (f)(3)(A)(iii) of this section;
(iii) the geographic location of the family or group day
care homes;
(iv) services provided to eligible children; and
(v) other factors determined by the Secretary.
(C) Report
Not later than March 31, 2008, the Secretary shall submit to
the Committee on Education and the Workforce of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report describing the results of
the evaluation under this subsection.
(D) Funding
(i) In general
On October 1, 2005, out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer to the Secretary of Agriculture to carry out this
paragraph $400,000, to remain available until expended.
(ii) Receipt and acceptance
The Secretary shall be entitled to receive, shall accept,
and shall use to carry out this paragraph the funds
transferred under clause (i), without further appropriation.
(q) Management support
(1) Technical and training assistance
In addition to the training and technical assistance that is
provided to State agencies under other provisions of this chapter
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), the
Secretary shall provide training and technical assistance in
order to assist the State agencies in improving their program
management and oversight under this section.
(2) Technical and training assistance for identification and
prevention of fraud and abuse
As part of training and technical assistance provided under
paragraph (1), the Secretary shall provide training on a
continuous basis to State agencies, and shall ensure that such
training is provided to sponsoring organizations, for the
identification and prevention of fraud and abuse under the
program and to improve management of the program.
(3) Funding
For each of fiscal years 2005 and 2006, the Secretary shall
reserve to carry out paragraph (1) $1,000,000 of the amounts made
available to carry out this section.
(r) Program for at-risk school children
(1) Definition of at-risk school child
In this subsection, the term "at-risk school child" means a
school child who -
(A) is not more than 18 years of age, except that the age
limitation provided by this subparagraph shall not apply to a
child described in section 1760(d)(1)(A) of this title; and
(B) participates in a program authorized under this section
operated at a site located in a geographical area served by a
school in which at least 50 percent of the children enrolled
are certified as eligible to receive free or reduced price
school meals under this chapter or the Child Nutrition Act of
1966 (42 U.S.C. 1771 et seq.).
(2) Participation in child and adult care food program
An institution may participate in the program authorized under
this section only if the institution provides meals or
supplements under a program -
(A) organized primarily to provide care to at-risk school
children during after-school hours, weekends, or holidays
during the regular school year; and
(B) with an educational or enrichment purpose.
(3) Administration
Except as otherwise provided in this subsection, the other
provisions of this section apply to an institution described in
paragraph (2).
(4) Meal and supplement reimbursement
(A) Limitations
An institution may claim reimbursement under this subsection
only for one meal per child per day and one supplement per
child per day served under a program organized primarily to
provide care to at-risk school children during after-school
hours, weekends, or holidays during the regular school year.
(B) Rates
(i) Meals
A meal shall be reimbursed under this subsection at the
rate established for free meals under subsection (c) of this
section.
(ii) Supplements
A supplement shall be reimbursed under this subsection at
the rate established for a free supplement under subsection
(c)(3) of this section.
(C) No charge
A meal or supplement claimed for reimbursement under this
subsection shall be served without charge.
(5) Limitation
The Secretary shall limit reimbursement under this subsection
for meals served under a program to institutions located in seven
States, of which five States shall be Illinois, Pennsylvania,
Missouri, Delaware, and Michigan and two States shall be approved
by the Secretary through a competitive application process.
(s) Information concerning the special supplemental nutrition
program for women, infants, and children
(1) In general
The Secretary shall provide each State agency administering a
child and adult care food program under this section with
information concerning the special supplemental nutrition program
for women, infants, and children authorized under section 17 of
the Child Nutrition Act of 1966 (42 U.S.C. 1786).
(2) Requirements for State agencies
Each State agency shall ensure that each participating family
and group day care home and child care center (other than an
institution providing care to school children outside school
hours) -
(A) receives materials that include -
(i) a basic explanation of the importance and benefits of
the special supplemental nutrition program for women,
infants, and children;
(ii) the maximum State income eligibility standards,
according to family size, for the program; and
(iii) information concerning how benefits under the program
may be obtained;
(B) receives periodic updates of the information described in
subparagraph (A); and
(C) provides the information described in subparagraph (A) to
parents of enrolled children at enrollment.
(t) Participation by emergency shelters
(1) Definition of emergency shelter
In this subsection, the term "emergency shelter" means -
(A) an emergency shelter (as defined in section 11351 of this
title); or
(B) a site operated by the shelter.
(2) Administration
Except as otherwise provided in this subsection, an emergency
shelter shall be eligible to participate in the program
authorized under this section in accordance with the terms and
conditions applicable to eligible institutions described in
subsection (a) of this section.
(3) Licensing requirements
The licensing requirements contained in subsection (a)(5) of
this section shall not apply to an emergency shelter.
(4) Health and safety standards
To be eligible to participate in the program authorized under
this section, an emergency shelter shall comply with applicable
State or local health and safety standards.
(5) Meal or supplement reimbursement
(A) Limitations
An emergency shelter may claim reimbursement under this
subsection -
(i) only for a meal or supplement served to children
residing at an emergency shelter, if the children are -
(I) not more than 18 years of age; or
(II) children with disabilities; and
(ii) for not more than 3 meals, or 2 meals and a
supplement, per child per day.
(B) Rate
A meal or supplement eligible for reimbursement shall be
reimbursed at the rate at which free meals and supplements are
reimbursed under subsection (c) of this section.
(C) No charge
A meal or supplement claimed for reimbursement shall be
served without charge.