II 

111TH CONGRESS 

2D SESSION S. 3124 

To amend the Richard B. Russell National School Lunch Act to improve 

child health and nutrition and reduce administrative burdens for child 

care sponsors and providers. 

IN THE SENATE OF THE UNITED STATES 

MARCH 16, 2010 

Ms. KLOBUCHAR (for herself and Mr. HARKIN) introduced the following bill; 

which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To amend the Richard B. Russell National School Lunch 

Act to improve child health and nutrition and reduce 

administrative burdens for child care sponsors and providers. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Healthy Living Starts 

5 Early Act of 2010’’. 


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1 TITLE I—IMPROVING CHILD 

2 HEALTH AND NUTRITION 

3 SEC. 101. NUTRITION AND WELLNESS GOALS FOR MEALS 

4 SERVED THROUGH THE CHILD AND ADULT 

5 CARE FOOD PROGRAM. 

6 Section 17 of the Richard B. Russell National School 

7 Lunch Act (42 U.S.C. 1766) is amended— 

8 (1) in subsection (a), by striking ‘‘(a) GRANT

9 AUTHORITY’’ and all that follows through the end of 

10 paragraph (1) and inserting the following: 

11 ‘‘(a) PROGRAM PURPOSE, GRANT AUTHORITY AND

12 INSTITUTION ELIGIBILITY.— 

13 ‘‘(1) IN GENERAL.— 

14 ‘‘(A) PROGRAM PURPOSE.— 

15 ‘‘(i) FINDINGS.—Congress finds 

16 that— 

17 ‘‘(I) eating habits and other 

18 wellness-related behavior habits are 

19 established early in life; and 

20 ‘‘(II) good nutrition and wellness 

21 are important contributors to the 

22 overall health of young children and 

23 essential to cognitive development. 

24 ‘‘(ii) PURPOSE.—The purpose of the 

25 program authorized by this section is to 


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1 provide aid to child care institutions and 

2 family or group day care homes for the 

3 provision of nutritious foods that con4 tribute to the wellness, healthy growth, and 

5 development of young children. 

6 ‘‘(B) GRANT AUTHORITY.—The Secretary 

7 may carry out a program to assist States 

8 through grants-in-aid and other means to ini9 tiate and maintain nonprofit food service pro10 grams for children in institutions providing 

11 child care.’’; 

12 (2) by striking subsection (g) and inserting the 

13 following: 

14 ‘‘(g) NUTRITIONAL REQUIREMENTS FOR MEALS AND

15 SNACKS SERVED IN INSTITUTIONS AND FAMILY OR

16 GROUP DAY CARE HOMES.— 

17 ‘‘(1) DEFINITION OF DIETARY GUIDELINES.— 

18 In this subsection, the term ‘Dietary Guidelines’ 

19 means the Dietary Guidelines for Americans pub20 lished under section 301 of the National Nutrition 

21 Monitoring and Related Research Act of 1990 (7 

22 U.S.C. 5341). 

23 ‘‘(2) NUTRITIONAL REQUIREMENTS.— 

24 ‘‘(A) IN GENERAL.—Except as provided in 

25 subparagraph (C), reimbursable meals and 


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1 snacks served by institutions and family or 

2 group day care homes participating in the pro3 gram under this section shall consist of a com4 bination of foods that meet minimum nutri5 tional requirements prescribed by the Secretary 

6 on the basis of tested nutritional research. 

7 ‘‘(B) CONFORMITY WITH THE DIETARY

8 GUIDELINES AND AUTHORITATIVE SCIENCE.— 

9 ‘‘(i) IN GENERAL.—Not less fre10 quently than once every 10 years, the Sec11 retary shall review and, as appropriate, up12 date requirements for meals served under 

13 the program under this section to ensure 

14 that the meals— 

15 ‘‘(I) are consistent with the goals 

16 of the most recent Dietary Guidelines; 

17 and 

18 ‘‘(II) promote the health of the 

19 population served by the program au20 thorized under this section, as indi21 cated by the most recent relevant nu22 trition science and appropriate au23 thoritative scientific agency and orga24 nization recommendations. 


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1 ‘‘(ii) COST REVIEW.—The review re2 quired under clause (i) shall include a re3 view of the cost to child care centers and 

4 group or family day care homes resulting 

5 from updated requirements for meals and 

6 snacks served under the program under 

7 this section. 

8 ‘‘(iii) REGULATIONS.—Not later than 

9 18 months after receipt of recommenda10 tions for meal pattern improvements from 

11 the Food and Nutrition Board of the Na12 tional Research Council of the National 

13 Academy of Sciences, the Secretary shall 

14 promulgate proposed regulations to update 

15 the meal patterns for meals and snacks 

16 served under the program under this sec17 tion. 

18 ‘‘(C) EXCEPTIONS.— 

19 ‘‘(i) SPECIAL DIETARY NEEDS.—The 

20 minimum nutritional requirements pre21 scribed under subparagraph (A) do not 

22 prohibit institutions and family or group 

23 day care homes from substituting foods to 

24 accommodate the medical or other special 

25 dietary needs of individual children. 


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1 ‘‘(ii) EXEMPT INSTITUTIONS.—The 

2 Secretary may elect to waive all or part of 

3 the requirements of this subsection for 

4 emergency shelters and adult day care cen5 ters participating in the program under 

6 this section. 

7 ‘‘(3) MEAL SERVICE.—Institutions and family 

8 day care homes shall ensure that reimbursable meal 

9 service contributes to the development and socializa10 tion of enrolled children by providing that food is 

11 not used as a punishment or reward. 

12 ‘‘(4) FLUID MILK.— 

13 ‘‘(A) IN GENERAL.—If an institution or 

14 family or group day care home provides fluid 

15 milk as part of a reimbursable meal or supple16 ment, the institution or family or group day 

17 care home shall provide the milk in accordance 

18 with the most recent version of the Dietary 

19 Guidelines. 

20 ‘‘(B) MILK SUBSTITUTES.—In the case of 

21 children who cannot consume fluid milk due to 

22 medical or other special dietary needs other 

23 than a disability, an institution or family or 

24 group day care home may substitute for the 


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1 fluid milk required in meals served, a nondairy 

2 beverage that— 

3 ‘‘(i) is nutritionally equivalent to fluid 

4 milk; and 

5 ‘‘(ii) meets nutritional standards es6 tablished by the Secretary, including, 

7 among other requirements established by 

8 the Secretary, fortification of calcium, pro9 tein, vitamin A, and vitamin D to levels 

10 found in cow’s milk. 

11 ‘‘(C) APPROVAL.— 

12 ‘‘(i) IN GENERAL.—A substitution au13 thorized under subparagraph (B) may be 

14 made— 

15 ‘‘(I) at the discretion of and on 

16 approval by the participating day care 

17 institution; and 

18 ‘‘(II) if the substitution is re19 quested by written statement of a 

20 medical authority, or by the parent or 

21 legal guardian of the child, that iden22 tifies the medical or other special die23 tary need that restricts the diet of the 

24 child. 


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1 ‘‘(ii) EXCEPTION.—An institution or 

2 family or group day care home shall not be 

3 required under this paragraph to provide 

4 beverages other than beverages the State 

5 has identified as acceptable substitutes. 

6 ‘‘(D) EXCESS EXPENSES BORNE BY INSTI7 TUTION.—A participating institution or family 

8 or group day care home shall be responsible for 

9 any expenses that— 

10 ‘‘(i) are incurred by the institution or 

11 family or group day care home to provide 

12 substitutions under this paragraph; and 

13 ‘‘(ii) are in excess of expenses covered 

14 under reimbursements under this Act. 

15 ‘‘(5) NONDISCRIMINATION POLICY.—No phys16 ical segregation or other discrimination against any 

17 child shall be made because of the inability of the 

18 child to pay, nor shall there be any overt identifica19 tion of any such child by special tokens or tickets, 

20 different meals or meal service, announced or pub21 lished lists of names, or other means. 

22 ‘‘(6) USE OF ABUNDANT AND DONATED

23 FOODS.—To the maximum extent practicable, each 

24 institution shall use in its food service foods that 

25 are— 


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1 ‘‘(A) designated from time to time by the 

2 Secretary as being in abundance, either nation3 ally or in the food service area; or 

4 ‘‘(B) donated by the Secretary.’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(u) PROMOTING HEALTH AND WELLNESS IN CHILD

7 CARE.— 

8 ‘‘(1) PHYSICAL ACTIVITY AND ELECTRONIC

9 MEDIA USE.—The Secretary shall encourage partici10 pating child care centers and family or group day 

11 care homes— 

12 ‘‘(A) to provide to all children under the 

13 supervision of the participating child care cen14 ters and family or group day care homes daily 

15 opportunities for structured and unstructured 

16 age-appropriate moderate-intensity to vigorous17 intensity physical activity; and 

18 ‘‘(B) to limit among children under the su19 pervision of the participating child care centers 

20 and family or group day care homes the use of 

21 electronic media to an appropriate level. 

22 ‘‘(2) WATER CONSUMPTION.—Participating 

23 child care centers and family or group day care 

24 homes shall make available to children, as nutrition25 ally appropriate, water as an acceptable fluid for 


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1 consumption throughout the day, including at meal 

2 times. 

3 ‘‘(3) TECHNICAL ASSISTANCE AND GUID4 ANCE.— 

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 provide technical assistance to institutions par7 ticipating in the program under this section to 

8 assist participating child care centers and fam9 ily or group day care homes in complying with 

10 the nutritional and wellness requirements pre11 scribed by the Secretary in accordance with this 

12 subsection and subsection (g). 

13 ‘‘(B) GUIDANCE.—Not later than January 

14 1, 2011, the Secretary shall issue guidance to 

15 States and institutions to encourage partici16 pating child care centers and family or group 

17 day care homes serving meals and snacks under 

18 this section to— 

19 ‘‘(i) include foods that are rec20 ommended for increased serving consump21 tion in amounts recommended by the most 

22 recent Dietary Guidelines for Americans 

23 published under section 301 of the Na24 tional Nutrition Monitoring and Related 

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1 cluding fresh, canned, frozen, or dried 

2 whole fruits and vegetables, whole grain 

3 products, lean meat products, and low-fat 

4 and non-fat dairy products; and 

5 ‘‘(ii) reduce sedentary activities and 

6 provide opportunities for regular physical 

7 activity in quantities recommended by the 

8 most recent Dietary Guidelines for Ameri9 cans described in clause (i). 

10 ‘‘(C) NUTRITION.—Technical assistance 

11 relating to the nutritional requirements of this 

12 subsection and subsection (g) shall include— 

13 ‘‘(i) nutrition education, including 

14 education that emphasizes the relationship 

15 between nutrition, physical activity, and 

16 health; 

17 ‘‘(ii) menu planning; 

18 ‘‘(iii) interpretation of nutrition labels; 

19 and 

20 ‘‘(iv) food preparation and purchasing 

21 guidance to produce meals and snacks that 

22 are— 

23 ‘‘(I) consistent with the goals of 

24 the most recent Dietary Guidelines; 

25 and 


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1 ‘‘(II) promote the health of the 

2 population served by the program 

3 under this section, as recommended 

4 by authoritative scientific organiza5 tions. 

6 ‘‘(D) PHYSICAL ACTIVITY.—Technical as7 sistance relating to the physical activity require8 ments of this subsection shall include— 

9 ‘‘(i) education on the importance of 

10 regular physical activity to overall health 

11 and well being; and 

12 ‘‘(ii) sharing of best practices for 

13 physical activity plans in child care centers 

14 and homes as recommended by authori15 tative scientific organizations. 

16 ‘‘(E) ELECTRONIC MEDIA USE.—Technical 

17 assistance relating to the electronic media use 

18 requirements of this subsection shall include— 

19 ‘‘(i) education on the health impacts 

20 of overuse of and overexposure to elec21 tronic media by children; and 

22 ‘‘(ii) sharing of best practices for the 

23 development of daily activity plans that 

24 limit use of electronic media. 


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1 ‘‘(F) MINIMUM ASSISTANCE.—At a min2 imum, the technical assistance required under 

3 this paragraph shall include a handbook, devel4 oped by the Secretary in coordination with the 

5 Secretary for Health and Human Services, that 

6 includes recommendations, guidelines, and best 

7 practices for participating institutions and fam8 ily or group day care homes that are consistent 

9 with the nutrition, physical activity, and 

10 wellness requirements and recommendations of 

11 this subsection. 

12 ‘‘(G) ADDITIONAL ASSISTANCE.—In addi13 tion to the requirements of this paragraph, the 

14 Secretary shall develop and provide such appro15 priate training and education materials, guid16 ance, and technical assistance as the Secretary 

17 considers to be necessary to comply with the 

18 nutritional and wellness requirements of this 

19 subsection and subsection (g). 

20 ‘‘(H) FUNDING.— 

21 ‘‘(i) IN GENERAL.—On October 1, 

22 2009, and on each October 1 thereafter 

23 through October 1, 2013, out of any funds 

24 in the Treasury not otherwise appro25 priated, the Secretary of the Treasury 


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1 shall transfer to the Secretary to provide 

2 technical assistance under this subsection 

3 $3,000,000, to remain available until ex4 pended. 

5 ‘‘(ii) RECEIPT AND ACCEPTANCE.— 

6 The Secretary shall be entitled to receive, 

7 shall accept, and shall use to carry out this 

8 subsection the funds transferred under 

9 clause (i), without further appropriation.’’. 

10 SEC. 102. INTERAGENCY COORDINATION TO PROMOTE 

11 HEALTH AND WELLNESS IN CHILD CARE LI12 CENSING. 

13 The Secretary of Agriculture shall coordinate with 

14 the Secretary of Health and Human Services to encourage 

15 State licensing agencies to include nutrition and wellness 

16 standards within State licensing standards that ensure, to 

17 the maximum extent practicable, that licensed child care 

18 centers and family or group day care homes— 

19 (1) provide to all children under the supervision 

20 of the child care centers and family or group day 

21 care homes daily opportunities for age-appropriate 

22 moderate-intensity to vigorous-intensity physical ac23 tivity; 

24 (2) limit among children under the supervision 

25 of the child care centers and family or group day 


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1 care homes the use of electronic media and the 

2 quantity of time spent in sedentary activity to an ap3 propriate level; 

4 (3) serve meals and snacks that are consistent 

5 with the child and adult care food program estab6 lished under section 17 of the Richard B. Russell 

7 National School Lunch Act (42 U.S.C. 1766); and 

8 (4) promote such other nutrition and wellness 

9 goals as the Secretaries determine to be necessary. 

10 SEC. 103. STUDY ON NUTRITION AND WELLNESS QUALITY 

11 OF CHILD CARE SETTINGS. 

12 (a) IN GENERAL.—Not less than 4 years after the 

13 date of enactment of this Act, and not less frequently than 

14 once every 5 years thereafter, the Secretary of Agriculture 

15 shall submit to Congress a report based on— 

16 (1) a nationally representative study of child 

17 care centers and family or group day care homes 

18 that— 

19 (A) is designed in consultation with the 

20 Secretary of Health and Human Services; and 

21 (B) includes an assessment of— 

22 (i) the nutritional quality of all foods 

23 provided to children in child care settings 

24 as compared to the recommendations in 

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1 cans published under section 301 of the 

2 National Nutrition Monitoring and Related 

3 Research Act of 1990 (7 U.S.C. 5341); 

4 (ii) the quantity and type of opportu5 nities for physical activity provided to chil6 dren in child care settings; and 

7 (iii) the quantity of time spent by chil8 dren in child care settings in sedentary ac9 tivities; and 

10 (2) an assessment of the barriers to and 

11 facilitators for— 

12 (A) providing foods to children in child 

13 care settings that meet the recommendations in 

14 the most recent Dietary Guidelines for Ameri15 cans published under section 301 of the Na16 tional Nutrition Monitoring and Related Re17 search Act of 1990 (7 U.S.C. 5341); 

18 (B) providing the appropriate quantity and 

19 type of opportunities for physical activity for 

20 children in child care settings; and 

21 (C) participation by child care centers and 

22 family or group day care homes in the child and 

23 adult care food program established under sec24 tion 17 of the Richard B. Russell National 

25 School Lunch Act (42 U.S.C. 1766). 


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1 (b) FUNDING.— 

2 (1) IN GENERAL.—On October 1, 2010, out of 

3 any funds in the Treasury not otherwise appro4 priated, the Secretary of the Treasury shall transfer 

5 to the Secretary of Agriculture to carry out this sec6 tion $5,000,000, to remain available until expended. 

7 (2) RECEIPT AND ACCEPTANCE.—The Sec8 retary of Agriculture shall be entitled to receive, 

9 shall accept, and shall use to carry out this section 

10 the funds transferred under paragraph (1), without 

11 further appropriation. 

12 TITLE II—REDUCING ADMINIS13 TRATIVE BURDENS FOR 

14 CHILD CARE SPONSORS AND 

15 PROVIDERS 

16 SEC. 201. WORKING GROUP TO REDUCE PAPERWORK AND 

17 IMPROVE PROGRAM ADMINISTRATION. 

18 (a) DEFINITIONS.—In this section: 

19 (1) PROGRAM.—The term ‘‘program’’ means 

20 the child and adult care food program established 

21 under section 17 of the Richard B. Russell National 

22 School Lunch Act (42 U.S.C. 1766). 

23 (2) SECRETARY.—The term ‘‘Secretary’’ means 

24 the Secretary of Agriculture. 


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1 (b) ESTABLISHMENT.—The Secretary, in conjunction 

2 with States and participating institutions, shall reconvene 

3 a working group to continue to examine the feasibility of 

4 reducing unnecessary or duplicative paperwork resulting 

5 from regulations and recordkeeping requirements for 

6 State agencies, institutions, family and group day care 

7 homes, and sponsored centers participating in the pro8 gram. 

9 (c) DUTIES.—At a minimum, the working group 

10 shall— 

11 (1) review and evaluate the recommendations, 

12 guidance, and regulatory priorities developed and 

13 issued to comply with section 119(i) of the Child 

14 Nutrition and WIC Reauthorization Act of 2004 (42 

15 U.S.C. 1766 note; Public Law 108–265); and 

16 (2) examine additional paperwork and adminis17 trative requirements that have been established since 

18 February 23, 2007, that could be reduced or sim19 plified. 

20 (d) ADDITIONAL DUTIES.—In addition to, or oper21 ating concurrently with, the working group described in 

22 subsection (b), the Secretary may, if determined necessary 

23 by the Secretary and in conjunction with States and insti24 tutions participating in the program, establish 1 or more 


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1 working groups to examine any aspect of administration 

2 of the program. 

3 (e) REPORT.—Not later than 4 years after the date 

4 of enactment of this Act, the Secretary shall submit to 

5 Congress a report that describes the actions that have 

6 been taken to carry out this section, including— 

7 (1) actions taken to address administrative and 

8 paperwork burdens identified as a result of compli9 ance with section 119(i) of the Child Nutrition and 

10 WIC Reauthorization Act of 2004 (42 U.S.C. 1766 

11 note; Public Law 108–265); 

12 (2) administrative and paperwork burdens iden13 tified as a result of compliance with section 119(i) 

14 of that Act for which no regulatory action or policy 

15 guidance has been taken; 

16 (3) additional steps that the Secretary is taking 

17 or plans to take to address any administrative and 

18 paperwork burdens identified under subsection (c)(2) 

19 and paragraph (2), including— 

20 (A) new or updated regulations, policy, 

21 guidance, or technical assistance; and 

22 (B) a timeframe for the completion of 

23 those steps; and 

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1 dress identified administrative and paperwork bur2 dens. 

3 SEC. 202. RENEWAL OF APPLICATION MATERIALS AND PER4 MANENT OPERATING AGREEMENTS. 

5 (a) PERMANENT OPERATING AGREEMENTS.—Sec6 tion 17(d)(1) of the Richard B. Russell National School 

7 Lunch Act (42 U.S.C. 1766(d)(1)) is amended by adding 

8 at the end the following: 

9 ‘‘(E) PERMANENT OPERATING AGREE10 MENTS.— 

11 ‘‘(i) IN GENERAL.—Subject to clauses 

12 (ii) and (iii), to participate in the child and 

13 adult care food program, an institution 

14 that meets the conditions of eligibility de15 scribed in this subsection shall be required 

16 to enter into a permanent agreement with 

17 the applicable State agency. 

18 ‘‘(ii) AMENDMENTS.—A permanent 

19 agreement described in clause (i) may be 

20 amended as necessary to ensure that the 

21 institution is in compliance with all re22 quirements established in this section or by 

23 the Secretary. 

24 ‘‘(iii) TERMINATION.—A permanent 

25 agreement described in clause (i)— 


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1 ‘‘(I) may be terminated for con2 venience by the institution and State 

3 agency that is a party to the perma4 nent agreement; and 

5 ‘‘(II) shall be terminated— 

6 ‘‘(aa) for cause by the appli7 cable State agency in accordance 

8 with paragraph (5); or 

9 ‘‘(bb) on termination of par10 ticipation of the institution in the 

11 child and adult care food pro12 gram.’’. 

13 (b) APPLICATIONS.—Section 17(d) of the Richard B. 

14 Russell National School Lunch Act (42 U.S.C. 1766(d)) 

15 is amended by striking paragraph (2) and inserting the 

16 following: 

17 ‘‘(2) PROGRAM APPLICATIONS.— 

18 ‘‘(A) IN GENERAL.—The Secretary shall 

19 develop a policy under which each institution 

20 providing child care that participates in the 

21 program under this section shall— 

22 ‘‘(i) submit to the State agency an ini23 tial application to participate in the pro24 gram that meets all requirements estab25 lished by the Secretary by regulation; 


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1 ‘‘(ii) annually confirm to the State 

2 agency that the institution, and any facili3 ties of the institution in which the program 

4 is operated by a sponsoring organization, is 

5 in compliance with subsection (a)(5); and 

6 ‘‘(iii) annually submit to the State 

7 agency any additional information nec8 essary to confirm that the institution is in 

9 compliance with all other requirements to 

10 participate in the program, as established 

11 by the Secretary by regulation. 

12 ‘‘(B) REVIEWS.—The Secretary shall de13 velop a policy under which each sponsoring or14 ganization participating in the program shall 

15 conduct— 

16 ‘‘(i) periodic unannounced site visits 

17 at not less than 3-year intervals to spon18 sored child care centers and family or 

19 group day care homes to identify and pre20 vent management deficiencies and fraud 

21 and abuse under the program; 

22 ‘‘(ii) at least 1 scheduled site visit at 

23 not less than 3-year intervals to sponsoring 

24 organizations and nonsponsored child care 

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1 ment deficiencies and fraud and abuse 

2 under the program and to improve pro3 gram operations; and 

4 ‘‘(iii) periodic site visits to private in5 stitutions that the State agency determines 

6 have a high probability of program 

7 abuse.’’. 

8 (c) AGREEMENTS.—Section 17(j)(1) of the Richard 

9 B. Russell National School Lunch Act (42 U.S.C. 

10 1766(j)(1)) is amended— 

11 (1) by striking ‘‘may’’ and inserting ‘‘shall’’; 

12 (2) by striking ‘‘family or group day care’’ the 

13 first place it appears; and 

14 (3) by inserting ‘‘or sponsored day care cen15 ters’’ before ‘‘participating’’. 

16 SEC. 203. TRANSMISSION OF INCOME INFORMATION BY 

17 SPONSORED FAMILY OR GROUP DAY CARE 

18 HOMES. 

19 Section 17(f)(3)(A)(iii)(III) of the Richard B. Russell 

20 National School Lunch Act (42 U.S.C. 

21 1766(f)(3)(A)(iii)(III)) is amended by adding at the end 

22 the following: 

23 ‘‘(dd) TRANSMISSION OF IN24 COME INFORMATION BY SPON25 SORED FAMILY OR GROUP DAY


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1 CARE HOMES.—If a family or 

2 group day care home elects to be 

3 provided reimbursement factors 

4 described in subclause (II), the 

5 family or group day care home 

6 may assist in the transmission of 

7 necessary household income in8 formation to the family or group 

9 day care home sponsoring organi10 zation in accordance with the pol11 icy described in item (ee). 

12 ‘‘(ee) POLICY.—The Sec13 retary shall develop a policy 

14 under which a sponsored family 

15 or group day care home described 

16 in item (dd) may, under terms 

17 and conditions specified by the 

18 Secretary and with the written 

19 consent of the parents or guard20 ians of a child in a family or 

21 group day care home partici22 pating in the program, assist in 

23 the transmission of the income 

24 information of the family to the 


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1 family or group day care home 

2 sponsoring organization.’’. 

3 SEC. 204. SIMPLIFYING AND ENHANCING ADMINISTRATIVE 

4 PAYMENTS TO SPONSORING ORGANIZATIONS. 

5 Section 17(f)(3) of the Richard B. Russell National 

6 School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by 

7 striking subparagraph (B) and inserting the following: 

8 ‘‘(B) ADMINISTRATIVE FUNDS.— 

9 ‘‘(i) IN GENERAL.—In addition to re10 imbursement factors described in subpara11 graph (A), a family or group day care 

12 home sponsoring organization shall receive 

13 reimbursement for the administrative ex14 penses of the sponsoring organization in an 

15 amount that is not less than the product 

16 obtained each month by multiplying— 

17 ‘‘(I) the number of family and 

18 group day care homes of the spon19 soring organization submitting a claim 

20 for reimbursement during the month; 

21 by 

22 ‘‘(II) the appropriate administra23 tive rate determined by the Secretary. 

24 ‘‘(ii) ANNUAL ADJUSTMENT.—The ad25 ministrative reimbursement levels specified 


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1 in clause (i) shall be adjusted July 1 of 

2 each year to reflect changes in the Con3 sumer Price Index for All Urban Con4 sumers published by the Bureau of Labor 

5 Statistics of the Department of Labor for 

6 the most recent 12-month period for which 

7 such data are available. 

8 ‘‘(iii) CARRYOVER FUNDS.—The Sec9 retary shall develop procedures under 

10 which not more than 10 percent of the 

11 amount made available to sponsoring orga12 nizations under this section for administra13 tive expenses for a fiscal year may remain 

14 available for obligation or expenditure in 

15 the succeeding fiscal year. 

16 ‘‘(iv) RETURN TO SECRETARY.—Any 

17 amounts appropriated that are not obli18 gated or expended during a fiscal year and 

19 are not carried over for the succeeding fis20 cal year under clause (iii) shall be returned 

21 to the Secretary.’’. 

Æ 


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