[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR240.5]



[Page 282]

 

                          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.