91 STAT. 1326
Service institutions, eligibility.
Participation, priorities.
Reimbursement, limitations.
42 USC 1771 note. Payments to institutions.
Adjustments.
Meals per day, limitation.
PUBLIC LAW 95-166—NOV. 10, 1977
facilities of public and nonprofit private schools. The Secretary shall assist States in the development of information and technical assistance to encourage increased service of meals prepared at the facilities of service institutions and at public and nonprofit private schools. "(3) Eligible service institutions entitled to participate in the program shall be limited to those that— "(A) demonstrate adequate administrative and financial responsibility to manage an effective food service; "(B) have not been seriously deficient in operating under the program; "(C) either conduct a regularly scheduled food service for children from areas in which poor economic conditions exist or qualify as camps; and "(D) provide an ongoing year-round service to the community to be served under the program (except that an otherwise eligible service institution shall not be disqualified for failure to meet this requirement for ongoing year-round service if the State determines that its disqualification would result in an area in which poor economic conditions exist not being served or in a significant number of needy children not having reasonable access to a summer food service program). "(4) The following order of priority shall be used by the State in determining participation where more than one eligible service institution proposes to serve the same area: "(A) local schools or service institutions that have demonstrated successful program performance in a prior year; "(B) service institutions that prepare meals at their own facilities or operate only one site; "(C) service institutions that use local school food facilities for the preparation of meals; "(D) other service institutions that have demonstrated ability for successful program operation; and " (E) service institutions that plan to integrate the program with Federal, State, or local employment programs. The Secretary and the States, in carrying out their respective functions under this section, shall actively seek eligible service institutions located in rural areas, for the purpose of assisting such service institutions in applying to participate in the program. "(5) Camps that satisfy all other eligibility requirements of this section shall receive reimbursement only for meals served to children who meet the eligibility requirements for free or reduced price meals, as determined under this Act and the Child Nutrition Act of 1966. "(b)(1) Payments to service institutions shall equal the full cost of food service operations (which cost shall include the cost of obtaining, preparing, and serving food, but shall not include administrative costs), except tl at such payments to any institution shall not exceed (1) 85.75 cents for each lunch and supper served; (2) 47.75 cents for each breakfast served; or (3) 22.50 cents for each meal supplement served: Provided, That such amounts shall be adjusted each January 1 to the nearest one-fourth cent in accordance with the changes for the twelve-month period ending the preceding November 30 in the series for food away from home of the Consumer Price Index published by the Bureau of Labor Statistics of the Department of Labor: Provided further, That the Secretary may make such adjustments in the maximum reimbursement levels as the Secretary determines appropriate after making the study prescribed in paragraph (4) of this subsection. "(2) Any service institution shall be pennitted to serve up to three
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