[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1343 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1343

 To amend the Richard B. Russell National School Lunch Act to improve 
  and expand direct certification procedures for the national school 
      lunch and school breakfast programs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 24, 2009

   Mr. Brown (for himself, Mr. Bennet, and Mr. Casey) 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 
  and expand direct certification procedures for the national school 
      lunch and school breakfast programs, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hunger Free Schools Act''.

SEC. 2. IMPROVING DIRECT CERTIFICATION.

    (a) Performance Awards.--Section 9(b)(4) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758(b)(4)) is amended--
            (1) in the paragraph heading, by striking ``food stamp'' 
        and inserting ``supplemental nutrition assistance program''; 
        and
            (2) by adding at the end the following:
                    ``(E) Performance awards.--
                            ``(i) In general.--Effective for each of 
                        the schools years beginning July 1, 2010, July 
                        1, 2011, and July 1, 2012, the Secretary shall 
                        offer performance awards to States to encourage 
                        the States to ensure that all children eligible 
                        for direct certification under this paragraph 
                        are certified in accordance with this 
                        paragraph.
                            ``(ii) Requirements.--For each school year 
                        described in clause (i), the Secretary shall--
                                    ``(I) consider State data from the 
                                prior school year, including estimates 
                                contained in the report required under 
                                section 4301 of the Food, Conservation, 
                                and Energy Act of 2008 (42 U.S.C. 
                                1758a); and
                                    ``(II) make performance awards to, 
                                as determined by the Secretary--
                                            ``(aa) 5 States that 
                                        demonstrate outstanding 
                                        performance; and
                                            ``(bb) 5 States that 
                                        demonstrate substantial 
                                        improvement.
                            ``(iii) Funding.--
                                    ``(I) In general.--On October 1, 
                                2009, and on each October 1 thereafter 
                                through October 1, 2011, out of any 
                                funds in the Treasury not otherwise 
                                appropriated, the Secretary of the 
                                Treasury shall transfer to the 
                                Secretary, to remain available until 
                                expended--
                                            ``(aa) $2,000,000 to carry 
                                        out clause (ii)(I); and
                                            ``(bb) $2,000,000 to carry 
                                        out clause (ii)(II).
                                    ``(II) Receipt and acceptance.--The 
                                Secretary shall be entitled to receive, 
                                shall accept, and shall use to carry 
                                out this clause the funds transferred 
                                under subclause (I), without further 
                                appropriation.''.
    (b) Continuous Improvement Plans.--Section 9(b)(4) of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1758(b)(4)) (as amended 
by subsection (a)) is amended by adding at the end the following:
                    ``(F) Continuous improvement plans.--
                            ``(i) In general.--Each school year, the 
                        Secretary shall--
                                    ``(I) identify, using estimates 
                                contained in the report required under 
                                section 4301 of the Food, Conservation, 
                                and Energy Act of 2008 (42 U.S.C. 
                                1758a), States that directly certify 
                                less than 95 percent of the total 
                                number of children in the State who are 
                                eligible for direct certification under 
                                this paragraph; and
                                    ``(II) require the States 
                                identified under subclause (I) to 
                                implement a corrective action plan to 
                                fully meet the requirements of this 
                                paragraph.
                            ``(ii) Improving performance.--A State may 
                        include in a corrective action plan under 
                        clause (i)(II) methods to improve direct 
                        certification required under this paragraph or 
                        paragraph (15) and discretionary certification 
                        under paragraph (5).
                            ``(iii) Failure to meet performance 
                        standard.--
                                    ``(I) In general.--A State that is 
                                required to implement a corrective 
                                action plan under clause (i)(II) shall 
                                be required to submit to the Secretary, 
                                for the approval of the Secretary, a 
                                direct certification improvement plan 
                                for the following school year.
                                    ``(II) Requirements.--A direct 
                                certification improvement plan under 
                                subclause (I) shall include--
                                            ``(aa) specific measures 
                                        that the State will use to 
                                        identify more children who are 
                                        eligible for direct 
                                        certification;
                                            ``(bb) a timeline for the 
                                        State to implement those 
                                        measures; and
                                            ``(cc) goals for the State 
                                        to improve direct certification 
                                        results.''.
    (c) Without Further Application.--Section 9(b)(4) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1758(b)(4)) (as amended by 
subsection (b)) is amended by adding at the end the following:
                    ``(G) Without further application.--
                            ``(i) In general.--In this paragraph, the 
                        term `without further application' means that 
                        no action is required by the household of the 
                        child.
                            ``(ii) Clarification.--A requirement that a 
                        household return a letter notifying the 
                        household of eligibility for direct 
                        certification or eligibility for free school 
                        meals does not meet the requirements of clause 
                        (i).''.

SEC. 3. REPORT ON USING STATEWIDE EDUCATION DATABASES FOR DIRECT 
              CERTIFICATION.

    (a) Report.--Not later than 2 years after the date of enactment of 
this Act, the Secretary of Education shall prepare and submit to 
Congress a report regarding how statewide databases developed by States 
to track compliance with the requirements of part A of title I of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) 
can be used for purposes of direct certification under section 9(b) of 
the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)).
    (b) Contents.--The report described in subsection (a) shall--
            (1) identify the States that have, as of the time of the 
        report, developed statewide databases to track compliance with 
        the requirements of part A of title I of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.);
            (2) describe best practices regarding how such statewide 
        databases can be used for purposes of direct certification 
        under section 9(b) of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1758(b));
            (3) include case studies of States that have expanded such 
        statewide databases so that such statewide databases can be 
        used for direct certification purposes; and
            (4) identify States with such statewide databases that 
        would be appropriate for expansion for direct certification 
        purposes.
    (c) Funding.--
            (1) In general.--On October 1, 2009, out of any funds in 
        the Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary to carry out this 
        section $500,000, to remain available through September 30, 
        2012.
            (2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.

SEC. 4. EXPANDING DIRECT CERTIFICATION.

    (a) Direct Certification for Children Receiving Medicaid or 
SCHIP.--Section 9(b) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1758(b)) is amended by adding at the end the following:
            ``(14) Direct certification for children receiving medicaid 
        or schip.--
                    ``(A) Definition of eligible child.--In this 
                paragraph, the term `eligible child' means a child--
                            ``(i)(I) who is eligible for and receiving 
                        medical assistance under the State Medicaid 
                        program under title XIX of the Social Security 
                        Act (42 U.S.C. 1396 et seq.) or child health 
                        assistance under the State children's health 
                        insurance program under title XXI of that Act 
                        (42 U.S.C. 1397aa et seq.); and
                            ``(II) whose family income, as used for 
                        purposes of determining eligibility for the 
                        relevant program in subclause (I), does not 
                        exceed 133 percent of the poverty line (as 
                        defined in section 673(2) of the Community 
                        Services Block Grant Act (42 U.S.C. 9902(2), 
                        including any revision required by such 
                        section)) applicable to a family of the size 
                        used for purposes of determining that 
                        eligibility; or
                            ``(ii) a child who is a member of a 
                        household (as that term is defined in section 
                        245.2 of title 7, Code of Federal Regulations 
                        (or successor provisions)) with a child 
                        described in clause (i).
                    ``(B) Agreement.--Subject to subparagraph (D), each 
                State agency shall enter into an agreement with the 
                State agency conducting eligibility determinations for 
                the programs described in subparagraph (A)(i).
                    ``(C) Procedures.--Subject to subparagraph (D) and 
                paragraph (6), the agreement shall establish procedures 
                under which an eligible child shall be certified for 
                free lunches under this Act and free breakfasts under 
                section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 
                1773), without further application (as defined in 
                paragraph (4)(G)).
                    ``(D) Certification.--Subject to subparagraph (D) 
                and paragraph (6), under the agreement, the local 
                educational agency conducting eligibility 
                determinations for a school lunch program under this 
                Act and a school breakfast program under the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) shall 
                certify an eligible child as eligible for free lunches 
                under this Act and free breakfasts under the Child 
                Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), without 
                further application (as defined in paragraph (4)(G)).
                    ``(E) Applicability.--This paragraph applies to--
                            ``(i) in the case of the school year 
                        beginning July 1, 2010, any State or local 
                        educational agency that elects to participate 
                        in direct certification under this paragraph;
                            ``(ii) in the case of the school year 
                        beginning July 1, 2011, a local educational 
                        agency that had an enrollment of 25,000 
                        students or more in the preceding school year;
                            ``(iii) in the case of the school year 
                        beginning July 1, 2012, a local educational 
                        agency that had an enrollment of 10,000 
                        students or more in the preceding school year; 
                        and
                            ``(iv) in the case of the school year 
                        beginning July 1, 2013, and each subsequent 
                        school year, each local educational agency.
                    ``(F) Grants.--
                            ``(i) In general.--The Secretary shall 
                        provide grants to State agencies that carry out 
                        child nutrition programs (as defined in section 
                        25(b)) or conduct eligibility determinations 
                        for the programs described in subparagraph 
                        (A)(i) for activities associated with 
                        implementing this paragraph, including--
                                    ``(I) computer system upgrades;
                                    ``(II) reprogramming to allow for 
                                data matches; and
                                    ``(III) training local educational 
                                agency staff.
                            ``(ii) Requirement.--The Secretary shall 
                        use funds made available under this 
                        subparagraph to provide--
                                    ``(I) initial grants of $50,000 to 
                                each State agency; and
                                    ``(II) the remainder of the funds 
                                through competitive grants based on 
                                criteria established by the Secretary.
                            ``(iii) Funding.--
                                    ``(I) In general.--On October 1, 
                                2009, out of any funds in the Treasury 
                                not otherwise appropriated, the 
                                Secretary of the Treasury shall 
                                transfer to the Secretary to carry out 
                                this subparagraph $15,000,000, to 
                                remain available until expended.
                                    ``(II) Receipt and acceptance.--The 
                                Secretary shall be entitled to receive, 
                                shall accept, and shall use to carry 
                                out this subparagraph the funds 
                                transferred under subclause (I), 
                                without further appropriation.''.
    (b) Direct Certification Pilot Program.--Section 9(b) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)) (as 
amended by subsection (a)) is amended by adding at the end the 
following:
            ``(15) Direct certification pilot program.--
                    ``(A) In general.--For the school year beginning 
                July 1, 2010, the Secretary shall carry out a pilot 
                program to evaluate the use of program data, including 
                data relating to medical assistance under the State 
                Medicaid program under title XIX of the Social Security 
                Act (42 U.S.C. 1396 et seq.) or child health assistance 
                under the State children's health insurance program 
                under title XXI of that Act (42 U.S.C. 1397aa et seq.), 
                for direct certification of children for reduced price 
                school meals.
                    ``(B) Requirements.--The evaluation shall include--
                            ``(i) an analysis of the number of children 
                        directly certified for reduced price meals;
                            ``(ii) an assessment of--
                                    ``(I) the workload reduction for 
                                school districts associated with 
                                processing fewer paper applications and 
                                having a smaller verification sample; 
                                and
                                    ``(II) the workload associated with 
                                directly certifying children for 
                                reduced price meals;
                            ``(iii) an analysis of the number of 
                        children made eligible for reduced price meals 
                        who would have been eligible for paid meals or 
                        free meals if a paper application had been 
                        submitted on behalf of the child; and
                            ``(iv) testing of various mechanisms to 
                        ensure that no child receives a lower level of 
                        benefits as a result of the pilot than the 
                        child would have received had a paper 
                        application been submitted and approved.
                    ``(C) Report.--Not later than December 31, 2011, 
                the Secretary shall submit to the Committee on 
                Agriculture, Nutrition, and Forestry of the Senate and 
                the Committee on Education and Labor of the House of 
                Representatives a report describing the results of the 
                pilot program under this paragraph.
                    ``(D) Funding.--
                            ``(i) In general.--On October 1, 2009, out 
                        of any funds in the Treasury not otherwise 
                        appropriated, the Secretary of the Treasury 
                        shall transfer to the Secretary to carry out 
                        this paragraph $4,000,000, to remain available 
                        until expended.
                            ``(ii) Receipt and acceptance.--The 
                        Secretary shall be entitled to receive, shall 
                        accept, and shall use to carry out this 
                        paragraph the funds transferred under clause 
                        (i), without further appropriation.''.
    (c) Direct Certification of Children of Military Personnel.--
Section 9(b) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1758(b)) (as amended by subsection (b)) is amended by adding at 
the end the following:
            ``(16) Direct certification of children of military 
        personnel.--Subject to paragraph (6), any local educational 
        agency may certify any child as eligible for free lunches or 
        breakfasts, without further application (as defined in 
        paragraph (4)(G)), by directly communicating with the 
        appropriate commander at the military installation or facility 
        concerned to obtain documentation of the status of the child as 
        a member of a household that is eligible for a supplemental 
        subsistence allowance for low-income members with dependents 
        under section 402a of title 37, United States Code.''.
    (d) Agreement for Direct Certification and Cooperation by State 
Medicaid and CHIP Agencies.--
            (1) In general.--Section 1902(a)(7) of the Social Security 
        Act (42 U.S.C. 1396a(a)(7)) is amended--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively and realigning the 
                left margins accordingly;
                    (B) in clause (ii) (as so redesignated)--
                            (i) by striking ``at State option,'';
                            (ii) by inserting ``certify or'' before 
                        ``verify the certification of eligibility''; 
                        and
                            (iii) by adding ``and'' after the 
                        semicolon;
                    (C) by striking ``provide safeguards'' and 
                inserting ``provide--
                    ``(A) safeguards''; and
                    (D) by adding at the end the following:
                    ``(B) that, notwithstanding the option under 
                subsection (e)(13) (relating to Express Lane 
                eligibility), not later than July 1, 2010, the State 
                shall enter into an agreement with the State agency 
                administering the school lunch program established 
                under the Richard B. Russell National School Lunch Act 
                under which the State shall establish procedures to 
                ensure that--
                            ``(i) any child receiving medical 
                        assistance under the State plan under this 
                        title or child health assistance under a State 
                        child health plan under title XXI whose family 
                        income does not exceed 133 percent of the 
                        poverty line (as defined in section 673(2) of 
                        the Community Services Block Grant Act, 
                        including any revision required by such 
                        section) applicable to a family of the size 
                        involved, shall be certified as eligible for 
                        free lunches under the Richard B. Russell 
                        National School Lunch Act and free breakfasts 
                        under the Child Nutrition Act of 1966 without 
                        further application; and
                            ``(ii) the State agencies responsible for 
                        administering the State plan under this title, 
                        the State child health plan under title XXI, 
                        and for carrying out child nutrition programs 
                        (as defined in section 25(b) of the Richard B. 
                        Russell National School Lunch Act) cooperate in 
                        carrying out paragraphs (3)(F) and (14) of 
                        section 9(b) of that Act;''.
            (2) Effective date.--
                    (A) In general.--Except as provided in paragraph 
                (2), the amendments made by this subsection take effect 
                on the date of enactment of this Act.
                    (B) Extension of effective date for state law 
                amendment.--In the case of a State plan under title XIX 
                of the Social Security Act (42 U.S.C. 1396 et seq.) 
                which the Secretary of Health and Human Services 
                determines requires State legislation in order for the 
                plan to meet the additional requirements imposed by the 
                amendments made by this section, the State plan shall 
                not be regarded as failing to comply with the 
                requirements of the amendments made by this section 
                solely on the basis of its failure to meet such 
                additional requirements before the first day of the 
                first calendar quarter beginning after the close of the 
                first regular session of the State legislature that 
                begins after the date of the enactment of this Act. For 
                purposes of the previous sentence, in the case of a 
                State that has a 2-year legislative session, each year 
                of the session is considered to be a separate regular 
                session of the State legislature.

SEC. 5. HUNGER FREE SCHOOLS.

    (a) Eligibility.--Section 11(a)(1) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1759a(a)(1)) is amended by adding 
at the end the following:
                    ``(F) Data-based eligibility.--
                            ``(i) In general.--A school or local 
                        educational agency may elect to receive special 
                        assistance payments under clause (ii) in lieu 
                        of special assistance payments otherwise made 
                        available under this paragraph based on 
                        applications for free and reduced price lunches 
                        if the school or local educational agency--
                                    ``(I) elects to serve all children 
                                in the school or local educational 
                                agency free lunches and breakfasts 
                                under the school lunch program and 
                                school breakfast program established 
                                under section 4 of the Child Nutrition 
                                Act of 1966 (42 U.S.C. 1773), during a 
                                period of 5 successive school years; 
                                and
                                    ``(II) pays, from sources other 
                                than Federal funds, the costs of 
                                serving the lunches or breakfasts that 
                                are in excess of the value of 
                                assistance received under this Act and 
                                the Child Nutrition Act of 1966 (42 
                                U.S.C. 1771 et seq.).
                            ``(ii) Alternative data sources.--Subject 
                        to criteria established by the Secretary not 
                        later than December 31, 2010, special 
                        assistance payments under clause (i) may be 
                        based on an estimate of the number of children 
                        eligible for free and reduced price lunches 
                        under section 9(b)(1)(A) derived from recent 
                        data other than applications, including--
                                    ``(I) a socioeconomic survey of a 
                                representative sample of households of 
                                students, which may exclude students 
                                who have been directly certified under 
                                paragraphs (4), (5), (14), (15), and 
                                (16) of section 9(b);
                                    ``(II) data from the American 
                                Community Survey of the Bureau of the 
                                Census;
                                    ``(III) data on receipt of income-
                                tested public benefits by students or 
                                the households of students or income 
                                data collected by public benefit 
                                programs, including--
                                            ``(aa) the supplemental 
                                        nutrition assistance program 
                                        established under the Food and 
                                        Nutrition Act of 2008 (7 U.S.C. 
                                        2011 et seq.);
                                            ``(bb) the medical 
                                        assistance program under the 
                                        State Medicaid program under 
                                        title XIX of the Social 
                                        Security Act (42 U.S.C. 1396 et 
                                        seq.);
                                            ``(cc) the supplemental 
                                        security income program 
                                        established under title XVI of 
                                        that Act (42 U.S.C. 1381 et 
                                        seq.); and
                                            ``(dd) the program of block 
                                        grants to States for temporary 
                                        assistance for needy families 
                                        established under part A of 
                                        title IV of that Act (42 U.S.C. 
                                        601 et seq.); or
                                    ``(IV) other data, including State 
                                or local survey data and State or local 
                                tax records.
                            ``(iii) Review and approval.--The Secretary 
                        shall--
                                    ``(I) review any proposal submitted 
                                by a school or local educational agency 
                                that relies on the alternative data 
                                sources described in clause (ii) to 
                                develop an estimate of the number of 
                                children eligible for free and reduced 
                                price lunches under section 9(b)(1)(A); 
                                and
                                    ``(II) approve the proposals that 
                                meet the criteria established under 
                                clause (ii).
                            ``(iv) Payments.--
                                    ``(I) Free meals.--For each month 
                                of the period during which a school or 
                                local educational agency described in 
                                clause (i) serves free lunches or 
                                breakfasts to all enrolled children, 
                                special assistance payments at the rate 
                                for free meals shall be made for a 
                                percentage of all reimbursable meals 
                                served that is equal to the percentage 
                                of students estimated to be eligible 
                                for free meals.
                                    ``(II) Reduced price meals.--For 
                                each month of the period during which 
                                the school or local educational agency 
                                serves free lunches or breakfasts to 
                                all enrolled children, special 
                                assistance payments at the rate for 
                                reduced price meals shall be made for a 
                                percentage of all reimbursable meals 
                                served that is equal to the percentage 
                                of students estimated to be eligible 
                                for reduced price meals.
                                    ``(III) Other meals.--For each 
                                month of the period during which the 
                                school or local educational agency 
                                serves free lunches or breakfasts to 
                                all enrolled children, special 
                                assistance payments at the rate 
                                provided under section 4 shall be made 
                                for the remainder of the reimbursable 
                                meals served.
                            ``(v) Renewals.--
                                    ``(I) In general.--A school or 
                                local educational agency described in 
                                clause (i) may reapply to the Secretary 
                                at the end of the period described in 
                                clause (i), and at the end of each 
                                period thereafter for which the school 
                                or local educational agency receives 
                                special assistance payments under this 
                                subparagraph, for the purpose of 
                                continuing to receive the 
                                reimbursements and assistance for a 
                                subsequent 5-school-year period.
                                    ``(II) Approval.--The Secretary 
                                shall approve an application under this 
                                clause if available socioeconomic data 
                                demonstrate that the income level of 
                                the population of the school or local 
                                educational agency has remained 
                                consistent with or below the income 
                                level of the population of the school 
                                or local educational agency in the last 
                                year in which reimbursement rates were 
                                determined under clause (ii).
                                    ``(III) Data.--Not later than 
                                December 31, 2010, the Secretary shall 
                                establish criteria regarding the 
                                socioeconomic data that may be used by 
                                a school or local educational agency 
                                when applying for a renewal of the 
                                special assistance payments for a 
                                subsequent 5-school-year period.
                    ``(G) High-poverty areas.--
                            ``(i) In general.--A school or local 
                        educational agency may elect to receive special 
                        assistance payments under clause (ii) in lieu 
                        of special assistance payments otherwise made 
                        available under this paragraph based on 
                        applications for free and reduced price lunches 
                        if the school or local educational agency--
                                    ``(I) during a period of 2 
                                successive school years, selects to 
                                serve all children in the school or 
                                local educational agency free lunches 
                                and breakfasts under the school lunch 
                                program under this Act and the school 
                                breakfast program established under 
                                section 4 of the Child Nutrition Act of 
                                1966 (42 U.S.C. 1773);
                                    ``(II) pays, from sources other 
                                than Federal funds, the costs of 
                                serving the lunches or breakfasts that 
                                are in excess of the value of 
                                assistance received under this Act and 
                                the Child Nutrition Act of 1966 (42 
                                U.S.C. 1771 et seq.); and
                                    ``(III)(aa) for a local educational 
                                agency, during the prior school year, 
                                directly certified under paragraphs 
                                (4), (5), (14), (15), and (16) of 
                                section 9(b) at least 50 percent of the 
                                enrolled students;
                                    ``(bb) for a school, during the 
                                prior school year, directly certified 
                                under paragraphs (4), (5), (14), (15), 
                                and (16) of section 9(b) at least 60 
                                percent of the enrolled students; or
                                    ``(cc) for a school or local 
                                educational agency that received 
                                payments under this subparagraph for 
                                the prior school year, directly 
                                certifies under paragraphs (4), (5), 
                                (14), (15), and (16) of section 9(b) at 
                                least 40 or 50 percent, respectively, 
                                of the enrolled students.
                            ``(ii) Payments.--
                                    ``(I) In general.--For each month 
                                of the school year, special assistance 
                                payments at the rate for free meals 
                                shall be made under this subparagraph 
                                for a percentage of all reimbursable 
                                meals served in an amount equal the 
                                product obtained by multiplying--
                                            ``(aa) 1.5; by
                                            ``(bb) the percentage of 
                                        students directly certified 
                                        under paragraphs (4), (5), 
                                        (14), (15), and (16) of section 
                                        9(b), up to a maximum of 100 
                                        percent.
                                    ``(II) Other meals.--The percentage 
                                of meals served that is not described 
                                in subclause (I) shall be reimbursed at 
                                the rate provided under section 4.
                            ``(iii) Election of option.--
                                    ``(I) In general.--Any school or 
                                local educational agency eligible for 
                                the option under clause (i) may elect 
                                to receive special assistance payments 
                                under clause (ii) for the next school 
                                year if the school or local educational 
                                agency provides to the State agency 
                                evidence of the percentage of students 
                                directly certified not later than June 
                                30 of the current school year.
                                    ``(II) State agency notification.--
                                Not later than May 1 of each school 
                                year, each State agency shall notify--
                                            ``(aa) any local 
                                        educational agency that 
                                        appears, based on reported 
                                        verification summary data, to 
                                        have directly certified at 
                                        least 50 percent of the 
                                        enrolled students for the 
                                        current school year, that the 
                                        local educational agency may be 
                                        eligible to elect to receive 
                                        special assistance payments 
                                        under clause (ii) for the next 
                                        school year and explain the 
                                        procedures for the local 
                                        educational agency to make such 
                                        an election; and
                                            ``(bb) any local 
                                        educational agency that 
                                        appears, based on reported 
                                        verification summary data, to 
                                        have directly certified at 
                                        least 40 percent of the 
                                        enrolled students for the 
                                        current school year, that the 
                                        local educational agency may 
                                        become eligible to elect to 
                                        receive special assistance 
                                        payments under clause (ii) for 
                                        a future school year if the 
                                        local educational agency 
                                        directly certifies at least 50 
                                        percent of the enrolled 
                                        students.
                                    ``(III) Local education agency 
                                notification.--Not later than May 1 of 
                                each school year, each local 
                                educational agency shall notify--
                                            ``(aa) any school that 
                                        directly certified at least 60 
                                        percent of the enrolled 
                                        students for the current school 
                                        year, that the school is 
                                        eligible to elect to receive 
                                        special assistance payments 
                                        under clause (ii) for the next 
                                        school year and explain the 
                                        procedures for the school to 
                                        make such an election; and
                                            ``(bb) any school that 
                                        directly certified at least 50 
                                        percent of the enrolled 
                                        students for the current school 
                                        year, that the school may 
                                        become eligible to elect to 
                                        receive special assistance 
                                        payments under clause (ii) for 
                                        a future school year if the 
                                        school directly certifies at 
                                        least 60 percent of the 
                                        enrolled students.
                                    ``(IV) Procedures.--Not later than 
                                December 31, 2010, the Secretary shall 
                                establish procedures for State 
                                agencies, local educational agencies, 
                                and schools to meet the requirements of 
                                this subparagraph and exercise the 
                                options provided under this 
                                subparagraph.''.
    (b) Conforming Amendments.--Section 11(a)(1)(B) of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1759a(a)(1)(B)) is amended 
by striking ``or (E)'' and inserting ``(E), (F), or (G)''.
                                 <all>