PUBLIC LAW 106-224^-JUNE 20, 2000 114 STAT. 415 "(F) in the case of a sponsoring organization that applies for initial participation in the progr2im on or after the date of the enactment of this subparagraph and that operates in a State that requires such institutions to be bonded under State law, regulation, or policy, the institution is bonded in accordance with such law, regulation, or policy.", (b) INSTITUTION APPROVAL AND APPLICATIONS.— (1) IN GENERAL. — Section 17(d) of the Richard B, Russell National School Lunch Act (42 U.S.C. 1766(d)) is amended by striking the subsection designation and all that follows through the end of paragraph (1) and inserting the following: "(d) INSTITUTION APPROVAL AND APPLICATIONS.— "(1) INSTITUTION APPROVAL. — " (A) ADMINISTRATIVE CAPABILITY. —Subject to subparagraph (B) and except as provided in subparagraph (C), the State agency shall approve an institution that meets the requirements of this section for participation in the child and adult care food program if the State agency determines that the institution— "(i) is financially viable; "(ii) is administratively capable of operating the program (including whether the sponsoring organization has business experience and management pleuis appropriate to operate the program) described in the application of the institution; and "(iii) has internal controls in effect to ensure program accountability. "(B) APPROVAL OF PRIVATE INSTITUTIONS.— "(i) IN GENERAL.—In addition to the requirements established by subparagraph (A) and subject to clause (ii), the State agency shall approve a private institution that meets the requirements of this section for participation in the child and adult care food program only if— "(I) the State agency conducts a satisfactory visit to the institution before approving the participation of the institution in the program; and "(II) the institution— "(aa) has tax exempt status under the Internal Revenue Code of 1986; "(bb) is operating a FedergJ program requiring nonprofit status to participate in the program; or "(cc) is described in subsection (a)(2)(B). "(ii) EXCEPTION FOR FAMILY OR GROUP DAY CARE HOMES,—Clause (i) shall not apply to a family or group day care home. "(C) EXCEPTION FOR CERTAIN SPONSORING ORGANIZA- TIONS.— "(i) IN GENERAL.—The State agency may approve an eligible institution acting as a sponsoring organization for one or more family or group day care homes or centers that, at the time of application, is not participating in the child and adult care food program only if the State agency determines that—
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