[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR240.5]

[Page 287]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 240_CASH IN LIEU OF DONATED FOODS--Table of Contents
 
Sec. 240.5  Cash in lieu of donated foods for commodity schools.

    (a) The school food authority of a commodity school may elect (1) to 
receive cash payments in lieu of up to five cents per lunch of the value 
specified in Sec. 250.4(b)(2)(ii) of this chapter to be used for 
donated-food processing and handling expenses, or (2) to have such 
payments retained for use on its behalf by the State agency. The school 
food authority shall consult with commodity schools before making the 
election.
    (b) When a school food authority makes an election regarding receipt 
of cash payments and the amount of any payments to be received under 
this paragraph, such election shall be binding on the school food 
authority for the school year to which the election applies.
    (c) The State agency shall (1) no later than May 14, 1982 for the 
school year ending June 30, 1982, and no later than August 15 of each 
subsequent school year, contact all school food authorities of commodity 
schools to learn their election regarding cash payments under this 
section and the amount of any such payments, and (2) forward this 
information to the distributing agency and FNSRO, in accordance with 
Sec. 210.14(d)(2) of this chapter.