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92 STAT. 3622

42 USC 1751 note.

Ante, p. 3611.

42 USC 1761.

42 USC 1761.

42 USC 1758.

PUBLIC LAW 95-627–NOV. 10, 1978

funds expended under that program in the second preceding fiscal year, equal to (A) 20 percent of the first $50,000, (B) 10 percent of the next $100,000, (C) 5 percent of the next $250,000, and (D) 212 percent of any remaining funds. The Secretary may adjust any State's allocation to reflect changes in the size of its program.

"(4) The remaining funds appropriated under this section shall be allocated among the States by the Secretary in amounts the Secretary determines necessary for the improvement in the States of the administration of the programs authorized under the National School Lunch Act and this Act, except for section 17 of this Act, including, but not limited to, improved program integrity and the quality of meals served

to children.

"(5) Funds available to States under this subsection and under section 13(k) (1) of the National School Lunch Act shall be used for the costs of administration of the programs for which the allocations are made, except that States may transfer up to 10 percent of any of the amounts allocated among such programs.

"(6) Where the Secretary is responsible for the administration of programs under this Act or the National School Lunch Act, the amount of funds that would be allocated to the State agency under this section and under section 13 (k) (1) of the National School Lunch Act shall be retained by the Secretary for the Secretary's use in the administration of such programs.".

State Administrative Expenses for Summer Feeding

(b) Section 13 (k) (1) of the National School Lunch Act is amended to read as follows:

"(k) (1) The Secretary shall pay to each State for its administrative costs incurred under this section in any fiscal year an amount equal to (A) 20 percent of the first $50,000 in funds distributed to that State for the program in the preceding fiscal year; (B) 10 percent of the next $100,000 distributed to that State for the program in the preceding fiscal year; (C) 5 percent of the next $250,000 in funds distributed to that State for the program in the preceding fiscal year, and (D) 22 percent of any remaining funds distributed to that State for the program in the preceding fiscal year: Provided, That such amounts may be adjusted by the Secretary to reflect changes in the size of that State's program since the preceding fiscal year.".

INCOME POVERTY GUIDELINES

SEC. 8. Section 9(b)(1) of the National School Lunch Act is amended by

(1) amending the second sentence to read as follows: "The income poverty guidelines shall be the nonfarm income poverty guidelines prescribed by the Office of Management and Budget adjusted annually under section 625 of the Economic Opportunity Act of 1964, as amended (42 U.S.C. 2971d): Provided, That the income poverty guidelines for the period commencing July 1, 1978, shall be made as up to date as possible by multiplying the nonfarm income poverty guidelines based on the average 1977

PUBLIC LAW 95-627-NOV. 10, 1978

Consumer Price Index, by the change between the average 1977 Consumer Price Index and the Consumer Price Index of March 1978, using the most current procedures of the Office of Management and Budget. The income poverty guidelines for future periods shall be similarly adjusted."; and

(2) amending the fifth sentence to read as follows: "The income guidelines for free lunches shall be prescribed at 25 percent above the applicable family size income levels in the income poverty guidelines prescribed by the Secretary.".

STUDY OF MENU CHOICE

SEC. 9. The National School Lunch Act is amended by adding at the end thereof a new section 22 as follows:

"STUDY OF MENU CHOICE

92 STAT. 3623

"SEC. 22. As a means of diminishing waste of foods without endan- 42 USC 1769c. gering nutritional integrity of meals served, the Secretary shall conduct a study to determine the cost and feasibility of requiring schools to offer a choice of menu items within the required meal patterns. This study shall, as a minimum, include different needs and capabilities of elementary and secondary schools for such a requirement. The Secretary shall develop regulations designed to diminish such waste based on the results of this study.".

MISCELLANEOUS PROVISIONS

SEC. 10. (a) Section 12 of the National School Lunch Act is amended 42 USC 1760. by adding at the end thereof new subsections (f) and (g) as follows: "(f) In providing assistance for school breakfasts and lunches served in Alaska, Hawaii, Guam, American Samoa, Puerto Rico, the Virgin Islands of the United States, the Trust Territory of the Pacific Islands, and the Commonwealth of the Northern Mariana Islands, the Secretary may establish appropriate adjustments for each such State to the national average payment rates prescribed under sections 4 and 11 of this Act and section 4 of the Child Nutrition Act of 1966, to reflect the differences between the costs of providing lunches and breakfasts in those States and the costs of providing lunches and

breakfasts in all other States.

42 USC 1754,

1759a.
42 USC 1773.

Penalty.

"(g) Whoever embezzles, willfully misapplies, steals, or obtains by fraud any funds, assets, or property that are the subject of a grant or other form of assistance under this Act or the Child Nutrition Act of 1966, whether received directly or indirectly from the United States 42 USC 1771 Department of Agriculture, or whoever receives, conceals, or retains such funds, assets, or property to his use or gain, knowing such funds, assets, or property have been embezzled, willfully misapplied, stolen, or obtained by fraud shall, if such funds, assets, or property are of the value of $100 or more, be fined not more than $10,000 or imprisoned not more than five years, or both, or, if such funds, assets, or property are of a value of less than $100, shall be fined not more than $1,000 or imprisoned for not more than one year, or both.".

(b) Section 12(d) (7) of the National School Lunch Act is amended to read as follows:

92 STAT. 3624

"School year."

42 USC 1784.

42 USC 1757.

42 USC 1761.

42 USC 1784.

Ante, p. 3611.
"Child" or
"children."

42 USC 1769.

Reimbursement.

42 USC 1758.

PUBLIC LAW 95-627-NOV. 10, 1978

"(7) 'School year' means the annual period from July 1 through June 30.".

(c) Section 15(e) of the Child Nutrition Act of 1966 is amended to read as follows:

"(e) "School year' means the annual period from July 1 through June 30.".

(d) (1) Section 8 of the National School Lunch Act is amended by inserting after the second sentence the following new sentence: "The terms 'child' and 'children' as used in this Act shall be deemed to include persons regardless of age who are determined by the State educational agency, in accordance with regulations prescribed by the Secretary, to be mentally or physically handicapped and who are attending any child care institution as defined in section 17 of this Act or any nonresidential public or nonprofit private school of high school grade or under for the purpose of participating in a school program established for mentally or physically handicapped: Provided, That no institution that is not otherwise eligible to participate in the program under section 17 of this Act shall be deemed so eligible because of this sentence.".

(2) Section 13 (a) (1) (D) (ii) of the National School Lunch Act is amended by inserting "or nonprofit private" after "public".

(3) Section 15 of the Child Nutrition Act of 1966 is amended by adding at the end thereof a new subsection as follows:

"(f) Except as used in section 17 of this Act, the terms 'child' and 'children' as used in this Act, shall be deemed to include persons regardless of age who are determined by the State educational agency, in accordance with regulations prescribed by the Secretary, to be mentally or physically handicapped and who are attending any nonresidential public or nonprofit private school of high school grade or under for the purpose of participating in a school program established for mentally or physically handicapped.".

SCHOOL LUNCH PROGRAM PILOT PROJECTS

SEC. 11. Section 20 of the National School Lunch Act is amended by

(1) inserting before, the period at the end of the first sentence of subsection (c) the following: ", except for the pilot projects conducted under subsection (d) of this section"; and

(2) adding at the end thereof a new subsection (d) as follows: "(d) (1) The Secretary may conduct pilot projects in not more than fourteen school districts (or other appropriate units), of which not more than two may be located in any administrative region of the Food and Nutrition Service of the Department of Agriculture, for the purpose of determining the feasibility, cost, and other consequences of providing lunches free to all children, without regard to the income of the children's families, during the school year beginning July 1, 1979. "(2) The Secretary shall reimburse school food authorities participating in a pilot project under this subsection for all lunches served to children on the same basis that the Secretary normally provides for lunches served to children meeting the eligibility requirements for free lunches under section 9 of this Act.

PUBLIC LAW 95-627-NOV. 10, 1978

92 STAT. 3625

"(3) The Secretary shall submit to the appropriate committees of Report to the Senate and the House of Representatives a report on the pilot congressional projects conducted under this subsection not later than six months committees. after the conclusion of such projects.

"(4) There are hereby authorized to be appropriated such sums as Appropriation are necessary for the fiscal year beginning October 1, 1978, for the authorization. purpose of conducting an evaluation of pilot projects conducted under this subsection and for the purpose of making additional payments for lunches served to children (beyond what the school food authori

ties would otherwise receive under sections 4 and 11 of this Act) to 42 USC 1754, school food authorities participating in pilot projects.".

PURCHASES OF SEAFOOD PRODUCTS FOR SCHOOL LUNCHES

1759a.

SEC. 12. (a) Section 6(e) of the National School Lunch Act is 42 USC 1755. amended by inserting in the second sentence "(which may include domestic seafood commodities and their products)" after "alternatives".

(b) Section 14(a)(1) of the National School Lunch Act is amended 42 USC 1762a. by inserting "(which may include domestic seafood commodities and their products)" after "such section".

IMPLEMENTATION

SEC. 13. (a) The Secretary shall promulgate regulations to implement the provisions of section 3 of this Act within one hundred and twenty days of the date of enactment of this Act. (b) The provisions of section 17 of the National School Lunch Act and section 17 of the Child Nutrition Act of 1966, in effect prior to the effective date of sections 2 and 3 of this Act, which are relevant to current regulations of the Secretary governing the child care food program and the special supplemental food program, respectively, shall remain in effect until such regulations are revoked, superseded, amended, or modified by regulations issued under those sections as amended by sections 2 and 3 of this Act.

(c) Pending proceedings under section 17 of the National School Lunch Act and section 17 of the Child Nutrition Act of 1966 shall not be abated by reason of any provision of sections 2 and 3 of this Act, but shall be disposed of under the applicable provisions of section 17 of the National School Lunch Act and section 17 of the Child Nutrition Act of 1966 in effect prior to the effective date of sections 2 and 3 of this Act.

(d) Appropriations made available to carry out section 17 of the National School Lunch Act and section 17 of the Child Nutrition Act of 1966 shall be available to carry out the provisions of sections 2 and 3 of this Act.

EFFECTIVE DATE

SEC. 14. The provisions of this Act, except sections 4, 5, and 8, shall become effective October 1, 1978. The provisions of section 4 of this Act shall become effective Janary 1, 1979. The provisions of sections 5 and 8 of this Act shall become effective July 1, 1979, except that the

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92 STAT. 3626

PUBLIC LAW 95-627-NOV. 10, 1978

Secretary may make the necessary changes in the income poverty guidelines for the special supplemental food program under section 17 of the Child Nutrition Act of 1966 not earlier than October 1, 1978, and not later than July 1, 1979.

Approved November 10, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95-1153, accompanying H.R. 12511, Pt. I (Comm. on

Education and Labor) and Pt. II (Comm. on Appropriations). SENATE REPORTS: No. 95-884 (Comm. on Agriculture, Nutrition, and Forestry) and No. 95-1020 (Comm. on Appropriations).

CONGRESSIONAL RECORD, Vol. 124 (1978):

July 21, considered and passed Senate.

Oct. 10, H.R. 12511 considered in House.

Oct. 15, considered and passed House, amended.

Oct. 15, Senate concurred in House amendment.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 45:

Nov. 10, Presidential statement.

O

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