[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: 7CFR245.11]



[Page 308-310]

 

                          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. 245.11  Action by State agencies and FNSROs.



    (a) Each State agency, or FNSRO where applicable, shall, for schools 

under its jurisdiction:

    (1) As necessary, each State agency or FNSRO, as applicable, shall 

issue a prototype free and reduced price policy statement and any other 

instructions to ensure that each school food authority is fully informed 

of the provisions of this part. If the State elects to establish for all 

schools a maximum price for reduced price lunches that is less than 40 

cents, the State shall establish such price in its prototype policy. 

Such State shall then receive the adjusted national average factor 

provided for in Sec. 210.4(b); (2) prescribe and publicly announce by 

July 1 of each fiscal year, in accordance with Sec. 245.3(a), family-

size income standards. Any standards prescribed by FNSRO with respect to 

nonprofit private schools shall be developed by FNSRO after consultation 

with the State agency.

    (a-1) When a revision of the family-size income standards of the 

State agency, or FNSRO where applicable, is necessitated because of a 

change in the Secretary's income poverty guidelines or because of other 

program changes, the State agency shall publicly announce its revised 

family-size income standards no later than 30 days after the Secretary 

has announced such change.



[[Page 309]]



    (b) State agencies, and FNSRO where applicable, shall review the 

policy statements submitted by school-food authorities for compliance 

with the provisions of this part and inform the school-food authorities 

of any necessary changes or amendments required in any policy statement 

to bring such statement into compliance. They shall notify school-food 

authorities in writing of approval of their policy statements and shall 

direct them to distribute promptly the public announcements required 

under the provisions of Sec. 245.5.

    (c) Each State agency, or FNSRO where applicable, shall instruct 

School Food Authorities under their jurisdiction that they may not alter 

or amend the eligibility criteria set forth in an approved policy 

statement without advance approval of the State agency, or FNSRO where 

applicable.

    (d) Not later than 10 days after the State agency, or FNSRO where 

applicable, announces its family-size income standards, it shall notify 

School Food Authorities in writing of any amendment to their free and 

reduced price policy statements necessary to bring the family-sized 

income criteria into conformance with the State agency's or FNSRO's 

family-size income standards.

    (e) Except as provided in Sec. 245.10, the State agency, or FNSRO 

where applicable, shall neither disburse any funds, nor authorize the 

distribution of commodities donated by the Department to any school 

unless the school food authority has an approved free and reduced price 

policy statement on file with the State Agency, or FNSRO where 

applicable.

    (f) Each State agency, or FNSRO where applicable, shall, in the 

course of its supervisory assistance, review and evaluate the 

performance of School Food Authorities and of schools in fulfilling the 

requirements of this part, and shall advise School Food Authorities of 

any deficiencies found and any corrective action required to be taken.

    (g) The State agency must notify FNS whether the TANF Program in 

their State is comparable to or more restrictive than the State's Aid to 

Families with Dependent Children Program that was in effect on June 1, 

1995. Automatic eligibility and direct certification for TANF households 

is allowed only in States in which FNS has been assured that the TANF 

standards are comparable to or more restrictive than the program it 

replaced. State agencies must inform FNS when there is a change in the 

State's TANF Program that would no longer make households participating 

in TANF automatically eligible for free school meals.

    (h) The State agency shall take action to ensure the proper 

implementation of Provisions 1, 2, and 3. Such action shall include:

    (1) Notification. Notifying school food authorities of schools 

implementing Provision 2 and/or 3 that each Provision 2 or Provision 3 

school must return to standard eligibility determination and meal 

counting procedures or apply for an extension under Provision 2 or 3. 

Such notification must be in writing, and be sent no later than February 

15, or other date established by the State agency, of the fourth year of 

a school's current cycle;

    (2) Return to standard procedures. Returning the school to standard 

eligibility determination and meal counting procedures and fiscal action 

as required under Sec. 210.19(c) of this chapter if the State agency 

determines that records were not maintained; and

    (3) Technical assistance. Providing technical assistance, 

adjustments to the level of financial assistance for the current school 

year, and returning the school to standard eligibility determination and 

meal counting procedures, as appropriate, if a State agency determines 

at any time that:

    (i) The school or school food authority has not correctly 

implemented Provision 1, Provision 2 or Provision 3;

    (ii) Meal quality has declined because of the implementation of the 

provision;

    (iii) Participation in the program has declined over time;

    (iv) Eligibility determinations or the verification procedures were 

incorrectly conducted; or

    (v) Meal counts were incorrectly taken or incorrectly applied.

    (4) State agency recordkeeping. State agencies shall retain the 

following information annually for the month of



[[Page 310]]



October and, upon request, submit to FNS:

    (i) The number of schools using Provision 1, Provision 2 and 

Provision 3 for NSLP;

    (ii) The number of schools using Provision 2 and Provision 3 for SBP 

only;

    (iii) The number of extensions granted to schools using Provision 2 

and Provision 3 during the previous school year;

    (iv) The number of extensions granted during the previous year on 

the basis of Food Stamp/FDPIR data;

    (v) The number of extensions granted during the previous year on the 

basis of Temporary Assistance for Needy Families (TANF) data;

    (vi) The number of extensions granted during the previous year on 

the basis of local data collected by a city or county zoning and/or 

economic planning office;

    (vii) The number of extensions granted during the previous year on 

the basis of applications collected from enrolled students;

    (viii) The number of extensions granted during the previous year on 

the basis of statistically valid surveys of enrolled students; and

    (ix) The number of extensions granted during the previous year on 

the basis of alternate data as approved by the State agency's respective 

FNS Regional Office.

    (5) State agency approval. Prior to approval for participation under 

Provision 2 or Provision 3, State agencies shall ensure school and/or 

school food authority program compliance as required under Sec. Sec. 

210.19(a)(4) and 220.13(k) of this chapter.

    (i) No later than March 1, 2005 and by March 1st each year 

thereafter, each State agency must collect annual verification data from 

each school food authority as described in Sec. 245.6a(c) and in 

accordance with guidelines provided by FNS. Each State agency must 

analyze these data, determine if there are potential problems, and 

formulate corrective actions and technical assistance activities that 

will support the objective of certifying only those children eligible 

for free or reduced price meals. No later than April 15, 2005 and by 

April 15 each year thereafter, each State agency must report to FNS the 

verification information in a consolidated electronic file that has been 

reported to it as required under Sec. 245.6a(c), by school food 

authority, and any ameliorative actions the State agency has taken or 

intends to take in school food authorities with high levels of 

applications changed due to verification. Contingent upon new funding to 

support this purpose, FNS will also require each State agency to report 

the aggregate number of students who were terminated as a result of 

verification but who were reinstated as of February 15th. The first 

report containing this data element would be required in the school year 

beginning July 1, 2005 and each school year thereafter. State agencies 

are encouraged to collect and report any or all verification data 

elements before the required dates.



(Secs. 801, 803, 812; Pub. L. 97-35, 95 Stat. 521-535 (42 U.S.C. 1753, 

1758, 1759(a), 1773, 1778))



[35 FR 14065, Sept. 4, 1970, as amended at 38 FR 14958, June 7, 1973; 

Amdt. 8, 40 FR 57208, Dec. 8, 1975; 44 FR 1364, Jan. 5, 1979; 46 FR 

51368, Oct. 20, 1981; 48 FR 12511, Mar. 25, 1983; 52 FR 19276, May 22, 

1987; 64 FR 50744, Sept. 20, 1999; 64 FR 72474, Dec. 28, 1999; 66 FR 

48333, Sept. 20, 2001; 68 FR 53490, Sept. 11, 2003]



    Effective Date Note: At 68 FR 53490, Sept. 11, 2003, Sec. 245.11(i) 

was added. This paragraph contains information collection and 

recordkeeping requirements and will not become effective until approval 

has been given by the Office of Management and Budget.