[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: 7CFR245.6]



[Page 289-294]

 

                          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. 245.6  Certification of children for free and reduced price meals 

and free milk.



    (a) Each School Food Authority of a school participating in the 

National School Lunch Program, School Breakfast Program or Special Milk 

Program or of a commodity only school shall provide supplies of a form 

for use by families in making application for free or reduced price 

meals or free milk for their children. The application shall be clear 

and simple in design and the information requested thereon shall be 

limited to that required to demonstrate that the family does, or does 

not, meet the eligibility criteria for free or reduced price meals, 

respectively, or for free milk, issued by the School Food Authority. The 

information requested on the application with respect to the current 

income of the household shall be limited to the income received by each 

member identified by the household member who received the income, and 

the source of the income (such as earnings, wages, welfare, pensions, 

support payments, unemployment compensation, social security and other 

cash income). Other cash income includes cash amounts received or 

withdrawn from any source, including savings, investments, trust 

accounts, and other resources which are available for payment of the 

price of a child's meals or milk. Additionally, the application shall 

require applicants to provide the names of all household members and the 

social security number of the adult household member who signs the 

application. In lieu of a social security number, the household may 

indicate the adult household member who signs the application does not 

possess a social security number. However, if application is being made 

for a child who is a member of a food stamp, FDPIR or TANF household, 

the application shall enable the household to provide the appropriate 

food stamp or TANF case number or FDPIR case number or other FDPIR 

identifier in lieu of names of all household members, household income 

information and social security number. The application shall also 

contain substantially the following statements:

    (1) ``Unless you include your child's case number for the Food Stamp 

Program, the Food Distribution Program on Indian Reservations (or other 

identifier for the Food Distribution Program on Indian Reservations) or 

the Temporary Assistance for Needy Families Program, you must include 

the social security number of the adult household member signing the 

application or indicate that the household member does not have a social 

security number. This is required by section 9 of the National School 

Lunch Act. The social security number is not mandatory, but the 

application cannot be approved if a social security number is not given 

or an indication is not made that the signer does not have a social 

security number. The social security number will be used in the 

administration and enforcement of the program.'' State agencies and 

school food authorities must ensure that the notice complies with 

section 7(b) of the Privacy Act of 1974 (5 U.S.C. 552a note); and

    (2) ``In certain cases foster children are eligible for free or 

reduced price meals or free milk regardless of your household income. If 

you have such children living with you and wish to apply for such meals 

or milk for them, please contact us.'' The application shall also 

include a statement, immediately above the space for signature, that the 

person signing the application certifies that all information furnished 

in the application is true and correct,



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that the application is being made in connection with the receipt of 

Federal funds, that school officials may verify the information on the 

application, and that deliberate misrepresentation of the information 

may subject the applicant to prosecution under applicable State and 

Federal criminal statutes. The application shall be signed by an adult 

member of the family. The application shall contain clear instructions 

with respect to the submission of the completed application to the 

official or officials designated by the School Food Authority to make 

eligibility determinations on its behalf. A family shall be permitted to 

file an application at any time during the school year.

    (b) Direct certification. In lieu of determining eligibility based 

on information provided by the household on the free and reduced price 

meal or milk application specified in paragraph (a) of this section, 

school food authorities may determine children eligible for free meals 

or milk based on documentation obtained from the appropriate State or 

local agency responsible for the administration of the Food Stamp 

Program, FDPIR and/or the TANF Program, hereafter referred to as direct 

certification. The documentation for direct certification shall include 

the information specified in Sec. 245.2(a-4)(2). The food stamp, FDPIR 

or TANF office may provide school officials with a list which includes 

all required documentation, or documentation may be obtained through a 

computerized match in which computerized lists of names of children from 

food stamp, FDPIR or TANF households and other identifying information 

are matched against a list of names and other identifying information of 

schoolchildren. When computer matches are used or the signature of the 

food stamp, FDPIR or TANF official is otherwise impracticable to obtain, 

the signature of the food stamp, FDPIR or TANF official is not required. 

However, other arrangements must be made to ensure that a responsible 

official can attest to the data. Additionally, the food stamp, FDPIR 

and/or TANF office may provide food stamp, FDPIR and/or TANF households 

with individual notices which contain all required documentation. The 

household may then transmit the notice to the school.

    (1) Information about the child or the household obtained directly 

from the food stamp, FDPIR or TANF office must be kept confidential and 

shall be used solely for the purpose of determining the child's 

eligibility for school meal or milk benefits, or as otherwise permitted 

by section 9 of the National School Lunch Act.

    (2) School food authorities are not required to provide the letter 

specified in Sec. 245.5(a) to the parents of children who are eligible 

for free meals under paragraph (b) of this section when the school food 

authorities distribute the letters or notices with application forms and 

the notice to households concerning eligibility for benefits under 

direct certification, specified in paragraph (c)(1) of this section, 

through the mail, individualized student packets, or other method which 

prevents the overt identification of children eligible for direct 

certification.

    (c) Determination of eligibility. Prior to the processing of 

applications or the completion of direct certification procedures for 

the current school year, children from households with approved 

applications or documentation of direct certification on file from the 

preceding year may be served reimbursable free and reduced price meals 

or free milk. However, applications and documentation of direct 

certification from the preceding year may be used to determine 

eligibility only during the 30 operating days following the first 

operating day at the beginning of the school year, or during a timeframe 

established by the State agency, provided that any State agency 

timeframe does not exceed the 30 operating day limit. The school food 

authority must take the income information provided by the household on 

the application and calculate the household's total current income. When 

a household submits an application containing complete documentation, as 

specified in Sec. 245.2(a-4)(1)(i), and the household's total current 

income is at or below the eligibility limits specified in the Income 

Eligibility Guidelines, the children in that household must be approved 

for



[[Page 291]]



free or reduced price benefits, as applicable. When a household submits 

an application containing the required food stamp, FDPIR or TANF 

documentation, as specified in Sec. 245.2(a-4)(1)(ii), the children in 

that household must be approved for free benefits. Additionally, when 

the school food authority obtains documentation from the State or local 

agency responsible for the administration of the Food Stamp Program, 

FDPIR and/or TANF Program that children are members of currently 

certified food stamp, FDPIR or TANF households, as specified in Sec. 

245.2(a-4)(2), the school food authority must approve such children for 

free benefits without applications from the households.

    (1) Notice of approval. The school food authority must promptly 

notify the household of their children's eligibility and provide them 

the benefits to which they are entitled. Households approved for 

benefits based on documentation provided by the appropriate State or 

local agency responsible for the administration of the Food Stamp 

Program, FDPIR or TANF Program must be notified, in writing, that their 

children are eligible for free meals or free milk, that households must 

contact the school when their children are no longer eligible for food 

stamp, FDPIR or TANF benefits, and that no application for free and 

reduced price school meals is required at this time. The notice of 

eligibility must also inform households that they must notify the school 

if they do not want their children to receive free benefits. When the 

household transmits the notice of eligibility containing the above 

information and the documentation provided by the food stamp, FDPIR or 

TANF office to the school, the school food authority is not required to 

provide a separate notice of eligibility. Children from households that 

notify the school that they do not want free benefits must have their 

benefits discontinued as soon as possible. Any notification from the 

household declining benefits must be documented and maintained on file, 

in accordance with paragraph (e) of this section. Additionally, a school 

food authority that is notified by the household that they are no longer 

eligible to receive food stamp, FDPIR or TANF benefits must follow the 

procedures specified in Sec. 245.6a(e), and inform the household that 

it must submit an application with income information to establish 

continued eligibility.

    (2) Notice of denial. When the application furnished by the family 

is not fully documented or does not meet the eligibility criteria for 

free or reduced price benefits, school officials shall promptly provide 

written notice to each family denied benefits. As a minimum, this notice 

shall include:

    (i) The reason for the denial of benefits, e.g. income in excess of 

allowable limits or incomplete application; (ii) notification of the 

right to appeal; (iii) instructions on how to appeal; and (iv) a 

statement reminding parents that they may reapply for free and reduced 

price benefits at any time during the school year. The reasons for 

ineligibility shall be properly documented and retained on file at the 

School Food Authority.

    (3) Appeals of denied benefits. A family who wishes to appeal a 

denied application by the School Food Authority may do so as specified 

in Sec. 245.7. However, prior to initiating the hearing procedure, the 

parent may request a conference to provide the opportunity for the 

parent and school officials to discuss the situation, present 

information, and obtain an explanation of the data submitted in the 

application or the decision rendered. The request for a conference shall 

not in any way prejudice or diminish the right to a fair hearing. The 

School Food Authority shall promptly schedule a fair hearing, if 

requested.

    (d) After the letter to parents and the applications have been 

disseminated, the School Food Authority may determine, based on 

information available to it, that a child for whom an application has 

not been submitted meets the School Food Authority's eligibility 

criteria for free and reduced price meals or for free milk. In such a 

situation, the School Food Authority shall complete and file an 

application for such child setting forth the basis of determining the 

child's eligibility. When a School Food Authority has obtained a 

determination of individual family income and family-size data from 

other



[[Page 292]]



sources, it need not require the submission of an application for any 

child from a family whose income would qualify for free or reduced price 

meals or for free milk under the School Food Authority's established 

criteria. In such event, the School Food Authority shall notify the 

family that its children are eligible for free or reduced price meals or 

for free milk. Nothing in this paragraph shall be deemed to provide 

authority for the School Food Authority to make eligibility 

determinations or certifications by categories or groups of children.

    (e) The school food authority must maintain documentation 

substantiating eligibility determinations on file for 3 years after the 

date of the fiscal year to which they pertain, except that if audit 

findings have not been resolved, the documentation must be maintained as 

long as required for resolution of the issues raised by the audit.

    (f) Disclosure of program eligibility information to State Medicaid 

(Medicaid) and the State Children's Health Insurance Program (SCHIP) 

Program eligibility information about children eligible for free and 

reduced price meals may be disclosed to Medicaid and SCHIP as described 

in this section.

    (1) Who decides whether to disclose program eligibility information 

to Medicaid and/or SCHIP? The State agency may elect to allow school 

food authorities to disclose children's free and reduced price meal 

eligibility information to Medicaid and SCHIP. School food authorities 

may then elect to do so. Children's program eligibility information may 

only be disclosed to Medicaid or SCHIP when both the State agency and 

the school food authority so elect, the parent/guardian does not decline 

to have their eligibility information disclosed as described in 

paragraph (f)(5), and the requirements in this paragraph (f) are met.

    (2) What information may we disclose for use by Medicaid and SCHIP? 

The State agency or school food authority, as appropriate, may disclose 

children's names, eligibility status (whether they are eligible for free 

or reduced price meals or free milk), and any other eligibility 

information obtained through the free and reduced price meal/milk 

application or obtained through direct certification to persons directly 

connected with the administration of Medicaid or SCHIP.

    (3) Who are persons ``directly connected'' with the administration 

of Medicaid and SCHIP? State employees and persons authorized under 

Federal and State Medicaid and SCHIP requirements to carry out initial 

processing of Medicaid or SCHIP applications or to make eligibility 

determinations are persons directly connected with the administration of 

Medicaid and SCHIP for purposes of disclosure of children's free and 

reduced price meal and free milk eligibility information.

    (4) What are the restrictions on how Medicaid and SCHIP use 

children's free and reduced price meal and free milk eligibility 

information? Medicaid and SCHIP agencies and health insurance program 

operators receiving children's free and reduced price meal and free milk 

eligibility information may only use the information to seek to enroll 

children in Medicaid or SCHIP. The Medicaid and SCHIP enrollment process 

may include targeting and identifying children from low-income 

households who are potentially eligible for Medicaid or SCHIP for the 

purpose of seeking to enroll them in Medicaid or SCHIP.

    (5) Must we notify households of potential disclosure to Medicaid or 

SCHIP? The State agency or school food authority, as appropriate, must 

notify parents/guardians that their children's free or reduced price 

meal or free milk eligibility information will be disclosed to Medicaid 

and/or SCHIP unless the parent/guardian elects not to have their 

information disclosed. Additionally, the State agency or school food 

authority, as appropriate, must give parents/guardians an opportunity to 

elect not to have their information disclosed to Medicaid or SCHIP. Only 

the parent or guardian who is a member of the household or family for 

purposes of the free and reduced price meal or free milk application may 

decline the disclosure of eligibility information. The notification must 

inform parents/guardians that they are not required to consent to the 

disclosure, that the information, if disclosed, will be used to identify 

children eligible for and seek



[[Page 293]]



to enroll children in a health insurance program, and that their 

decision will not affect their children's eligibility for free or 

reduced price meals or free milk. The notification may be included in 

the letter/notice to parents/guardians that accompanies the free and 

reduced price meal or free milk application, on the application itself 

or in a separate notice provided to parents/guardians. The notice must 

give parents/guardians adequate time to respond. For children determined 

eligible through direct certification, the notice of potential 

disclosure may be included in the document informing parents/guardians 

of their children's eligibility for free meals or free milk through 

direct certification.

    (6) May social security numbers be disclosed? The State agency or 

school food authority, as appropriate, may disclose social security 

numbers to any programs or persons authorized to receive all program 

eligibility information under this paragraph (f), provided parents/

guardians have not declined to have their information disclosed. 

However, State agencies and school food authorities that plan to 

disclose social security numbers must give notice of the planned use of 

the social security numbers. This notice must be in accordance with 

section 7(b) of the Privacy Act of 1974 (5 U.S.C. 552a note). The 

application must include substantially the following language for 

disclosures of social security numbers to Medicaid or SCHIP: ``The 

social security number may also be disclosed to Medicaid and the State 

Children's Health Insurance Program for the purpose of identifying and 

seeking to enroll eligible children in one of these health insurance 

programs.'' This language is in addition to the notice required in 

paragraph (a)(1) of this section. State agencies and school food 

authorities are responsible for drafting the appropriate notice for 

disclosures of social security numbers.

    (7) Are agreements required before disclosing program eligibility 

information? The State agency or school food authority, as appropriate, 

must have a written agreement with the State or local agency or agencies 

administering Medicaid or SCHIP prior to disclosing children's free and 

reduced price eligibility information. At a minimum, the agreement must:

    (i) Identify the health insurance program or health agency receiving 

children's eligibility information;

    (ii) Describe the information that will be disclosed;

    (iii) Require that the Medicaid or SCHIP agency use the information 

obtained and specify that the information must only be used to seek to 

enroll children in Medicaid or SCHIP;

    (iv) Describe how the information will be protected from 

unauthorized uses and disclosures;

    (v) Describe the penalties for unauthorized disclosure; and

    (vi) Be signed by both the Medicaid or SCHIP program or agency and 

the State agency or school food authority, as appropriate.

    (8) What are the penalties for unauthorized disclosure or misuse of 

information? In accordance with section 9(b)(2)(C)(v) of the Richard B. 

Russell National School Lunch Act (42 U.S.C. 1758(b)(2)(C)(v)), any 

individual who publishes, divulges, discloses or makes known in any 

manner, or to any extent not authorized by statute or this section, any 

information obtained under this paragraph (f) will be fined not more 

than $1,000 or imprisoned for up to 1 year, or both.

    (9) What are the State agency's responsibilities regarding 

disclosures? State agencies that elect to allow disclosure of children's 

free and reduced price meal eligibility information to Medicaid or 

SCHIP, as provided in this paragraph (f), must ensure that any school 

food authority acting in accordance with that option:

    (i) Has a written agreement with the State or local agency or 

agencies administering health insurance programs for children under 

titles XIX and XXI of the Social Security Act (42 U.S.C. 1396 et seq. 

and 1397aa et seq.) that requires the health agencies to use children's 

free and reduced price meal eligibility information to seek to enroll 

children in those health insurance programs; and

    (ii) Notifies each household of the information that will be 

disclosed, that the information disclosed will be used



[[Page 294]]



only to seek to enroll children in Medicaid or SCHIP and provides each 

parent/guardian with an opportunity to elect not to have the information 

disclosed.



(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 14957, June 7, 1973; 

Amdt. 6, 39 FR 30338, Aug. 22, 1974; Amdt. 9, 41 FR 26192, June 25, 

1976; Amdt. 19, 45 FR 67287, Oct. 10, 1980; 47 FR 31853, July 23, 1982; 

49 FR 26034, June 26, 1984; 52 FR 19275, May 22, 1987; 55 FR 19240, May 

9, 1990; 56 FR 32950, July 17, 1991; 56 FR 33860, July 24, 1991; 64 FR 

72472, Dec. 28, 1999; 66 FR 2205, Jan. 11, 2001; 66 FR 48328, Sept. 20, 

2001; 68 FR 53489, Sept. 11, 2003]