[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR245.10]

[Page 305-306]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 245--DETERMINING ELIGIBILITY FOR FREE AND REDUCED PRICE MEALS AND FREE MILK IN SCHOOLS--Table of Contents
 
Sec. 245.10  Action by School Food Authorities.

    (a) Each School Food Authority of a school desiring to participate 
in the National School Lunch Program, School Breakfast Program, or to 
provide free milk under the Special Milk Program, or to become a 
commodity-only school shall submit for approval to the State agency a 
free and reduced price policy statement. Once approved, the policy 
statement shall be a permanent document which may be amended as 
necessary, except as specified in paragraph (c) of this section. Such 
policy statement, as a minimum, shall contain the following:
    (1) The official or officials designated by the school food 
authority to make eligibility determinations on its behalf for free and 
reduced price meals or for free milk;
    (2) An assurance that for children who are not categorically 
eligible for free and reduced price benefits the school food authority 
will determine eligibility for free and reduced price meals or free milk 
in accordance with the current Income Eligibility Guidelines.
    (3) The specific procedures the school food authority will use in 
accepting applications from families for free and reduced price meals or 
for free milk. Additionally, if the school food authority has opted to 
determine eligibility for children from food stamp, FDPIR or TANF 
households based on documentation obtained from the State or local 
agency responsible for the Food Stamp, FDPIR or TANF Program, in lieu of 
an application, the school food authority shall include the specific 
procedures it will use to obtain the required documentation. 
Additionally, school food authorities that have implemented direct 
certification and that must provide households a notice of eligibility, 
as specified in Sec. 245.6(b), must also include in their policy 
statement a copy of the notice to households regarding their children's 
eligibility under the direct certification provision.
    (4) A description of the method or methods to be used to collect 
payments from those children paying the full price of the meal or milk, 
or a reduced price of a meal, which will prevent the overt 
identification of the children receiving a free meal or free milk or a 
reduced price meal, and
    (5) An assurance that the school will abide by the hearing procedure 
set forth in Sec. 245.7 and the nondiscrimination practices set forth in 
Sec. 245.8.
    (b) The policy statement submitted by each school food authority 
shall be accompanied by a copy of the application form to be used by the 
school and of the proposed letter or notice to parents.
    (c) Each school food authority shall amend its permanent free and 
reduced price policy statement to reflect substantive changes. Any 
amendment to a policy shall be approved by the State agency prior to 
implementation, or as provided in paragraph (e) of this section. Each 
year, if a School Food Authority does not have its policy statement 
approved by the State agency, or FNSRO where applicable, by October 15, 
reimbursement shall be suspended for any meals or milk served until such 
time as the School Food Authority's free and reduced price policy 
statement has been approved by the State agency, or FNSRO where 
applicable. Furthermore, no commodities donated by the Department shall 
be used in any school after October 15, until such time as the School 
Food Authority's free and reduced price policy statement has been 
approved by the State agency, or FNSRO where applicable. Once the

[[Page 306]]

School Food Authority's free and reduced price policy statement has been 
approved, reimbursement may be allowed, at the discretion of the State 
agency, or FNSRO where applicable, for eligible meals and milk served 
during the period of suspension.
    (d) If any free and reduced price policy statement submitted for 
approval by any School Food Authority to the State agency, or FNSRO 
where applicable, is determined to be not in compliance with the 
provisions of this part, the School Food Authority shall submit a policy 
statement that does meet the provisions within 30 days after 
notification by the State agency, or FNSO where applicable.
    (e) When revision of a School Food Authority's approved free and 
reduced price policy statement is necessitated because of a change in 
the family-size income standards of the State agency, or FNSRO where 
applicable, or because of other program changes, the School Food 
Authority shall have 60 days from the date the State agency announces 
the change in which to have its revised policy statement approved by the 
State agency, or FNSRO where applicable. In the event that a School Food 
Authority's proposed revised free and reduced price policy statement has 
not been submitted to, and approved by, the State agency, or FNSRO where 
applicable, within 60 days following the public announcement by the 
State agency, reimbursement shall be suspended for any meals or milk 
served after the end of the 60-day period. No commodities donated by the 
Department shall be used in any school after the end of the 60-day 
period, until such time as the School Food Authority's free and reduced 
price policy statement has been approved by the State agency, or FNSRO 
where applicable. Reimbursement may be allowed at the discretion of the 
State agency, or FNSRO where applicable, for eligible meals and milk 
served during the period of suspension once the School Food Authority's 
free and reduced price policy statement has been approved by the State 
agency, or FNSRO where applicable. Pending approval of a revision of a 
policy statement, the existing statement shall remain in effect.

(Sec. 8, Pub. L. 95-627, 92 Stat. 3623 (42 U.S.C. 1758); sec. 5, Pub. L. 
95-627, 92 Stat. 3619 (42 U.S.C. 1772); 44 U.S.C. 3506; sec. 803, Pub. 
L. 97-35, 95 Stat. 521-535 (42 U.S.C. 1758))

[35 FR 14065, Sept. 4, 1970, as amended at 38 FR 14958, June 7, 1973; 
Amdt. 6, 39 FR 30339, Aug. 22, 1974; Amdt. 8, 40 FR 57208, Dec. 8, 1975; 
Admt. 13, 44 FR 33049, June 8, 1979; 47 FR 746, Jan. 7, 1982; 48 FR 
12511, Mar. 25, 1983; 64 FR 50744, Sept. 20, 1999;64 FR 72474, Dec. 28, 
1999]