[Federal Register Volume 71, Number 1 (Tuesday, January 3, 2006)]
[Rules and Regulations]
[Pages 1-5]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-24683]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 71, No. 1 / Tuesday, January 3, 2006 / Rules 
and Regulations  

[[Page 1]]



DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Part 226

RIN 0584-AD56


Child and Adult Care Food Program: Age Limits for Children 
Receiving Meals in Emergency Shelters

AGENCY: Food and Nutrition Service, USDA

ACTION: Interim rule.

-----------------------------------------------------------------------

SUMMARY: This interim rule amends the Child and Adult Care Food Program 
(CACFP) regulations to implement a provision of the Child Nutrition and 
WIC Reauthorization Act of 2004, which raised the age limit for 
residents of emergency shelters who are eligible to receive CACFP meals 
to include children through age 18. This rule also extends eligibility 
for participation to emergency shelters that primarily serve children 
through age 18 who are homeless and seeking shelter without their 
families. These changes are expected to increase the number of 
emergency shelters that will be eligible to participate in CACFP as 
well as the number of homeless children that will have access to free, 
nutritious meals.

DATES: Effective Date: February 2, 2006.
    Comment Date: To be assured of consideration, comments must be 
postmarked on or before March 6, 2006.

ADDRESSES: The Food and Nutrition Service invites interested persons to 
submit comments on this interim rule. Comments may be submitted by any 
of the following methods:
     Mail: Send comments to Robert M. Eadie, Chief, Policy and 
Program Development Branch, Child Nutrition Division, Room 640, Food 
and Nutrition Service, USDA, 3101 Park Center Drive, Alexandria, 
Virginia 22302-1594. All submissions will be available for public 
inspection at this location Monday through Friday, 8:30 a.m.-5 p.m.
     Fax: Submit comments by facsimile transmission to: (703) 
305-2879. Please address your comments to Mr. Eadie and identify your 
comments as ``CACFP: Age Limits for Children in Emergency Shelters''.
     E-Mail: Send comments to [email protected]. Please 
identify your comments as ``CACFP: Age Limits for Children in Emergency 
Shelters''.
     Hand Delivery or Courier: Deliver comments to 3101 Park 
Center Drive, Room 634, Alexandria, Virginia 22301-1594, during normal 
business hours of 8:30 a.m.-5 p.m.
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.

FOR FURTHER INFORMATION CONTACT: Keith Churchill, at telephone number 
(703) 305-2590.

SUPPLEMENTARY INFORMATION:

I. Background

How Does the Child and Adult Care Food Program (CACFP) Help Children 
Who Are Homeless?

    Homeless children residing in eligible emergency shelters have been 
able to receive free meals and snacks through the CACFP since July 1, 
1999, when a provision of the William F. Goodling Child Nutrition 
Reauthorization Act of 1998 (Pub. L. 105-336) became effective. Under 
Public Law 105-336, the CACFP benefit was limited to children age 12 
and younger, migrant workers' children age 15 and younger, and disabled 
children.

How Do Emergency Shelters Participate in CACFP?

    Public Law 105-336 established requirements for emergency shelters 
by adding a new section 17(t) of the Richard B. Russell National School 
Lunch Act (NSLA), 42 U.S.C. 1766(t). Emergency shelters approved under 
these provisions must:
     Meet the definition of emergency shelter contained in the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11351);
     Comply with applicable State or local health and safety 
codes;
     Serve meals that meet the USDA's nutritional standards; 
and
     Claim reimbursement only for meals served to eligible 
residential children.

What Types of Emergency Shelters Are Eligible to Participate in CACFP?

    The Food and Nutrition Service (FNS) issued guidance on March 30, 
1999 requiring that to participate in CACFP emergency shelters must 
either:
     Provide temporary residence to families with children; or
     Sponsor a temporary residential site for children and 
their parents or guardians.
    This policy has targeted CACFP benefits to shelters that support 
at-risk homeless children as part of a family unit. Examples of 
eligible emergency shelters include family shelters and shelters for 
battered women. On March 14, 2000, FNS provided additional guidance 
clarifying that residential child care institutions (RCCIs) may also 
participate in CACFP if they operate a separate program for homeless 
families with children.
    In 2002, FNS added a definition of Emergency shelter to Sec.  226.2 
of the CACFP regulations. This definition was included in an interim 
rule entitled, ``Implementing Legislative Reforms to Strengthen Program 
Integrity'', published in the Federal Register on June 27, 2002 (67 FR 
43448). Based on this definition, a public or private nonprofit 
organization qualifies as an emergency shelter for purposes of Program 
participation if its primary purpose is to provide temporary housing 
and food services to homeless families with children. No comments were 
received on this definition.

What Did the Most Recent Legislation Change About the Age Limits for 
Children Residing in Emergency Shelters?

    A provision of the Child Nutrition and WIC Reauthorization Act of 
2004 (Pub. L. 108-265) extended the age limit, from 12 to 18, for 
residents of emergency shelters to be eligible to receive CACFP meals. 
Specifically, section 119(g) of Public Law 108-265 amended section 
17(t)(5)(A) of the NSLA to remove the age limitations on residents of 
emergency shelters (15 years for children of migrant workers and 12 
years for all other children) and extend the age limit for all children 
not more than 18 years. This provision was effective on October 1, 
2004, pursuant to

[[Page 2]]

section 502(b)(2) of Public Law 108-265.

What Guidance Has USDA Provided on This Change?

    FNS notified CACFP State agencies of the change in writing on 
August 10, 2004. We explained to State agencies that the recent 
legislation raised the age limit, from 12 to 18, for residents of 
emergency shelters who would be eligible to receive CACFP meals.

How Does This Rule Implement the Change in Age Limits?

    This interim rule revises the definition of Children in Sec.  226.2 
of the CACFP regulations to specify that eligible participants in 
emergency shelters includes residents through age 18 and residents of 
any age with disabilities as defined by the State agency.

Does This Rule Make Changes to the Types of Emergency Shelters That May 
Participate in the CACFP?

    Yes. This interim rule revises the definition of Emergency shelter 
at Sec.  226.2 of the CACFP regulations to:
     Extend eligibility to emergency shelters that provide 
temporary shelter and food services to unaccompanied children through 
age 18 by removing the reference to homeless families;
     Remove the condition that the primary purpose of the 
emergency shelter must be the provision of temporary shelter and food 
services;
     Clarify that the sites of otherwise eligible public or 
private nonprofit organizations may participate as emergency shelters 
if the sites provide temporary shelter and food services to homeless 
children; and
     Specify that a RCCI may participate in CACFP as an 
emergency shelter only if it serves a distinct group of homeless 
children who are not enrolled in the RCCI's regular program.
    Under this revised definition, an otherwise eligible public or 
private nonprofit organization or its site may participate as an 
emergency shelter if it provides temporary housing and food services to 
homeless children, with or without their families. A RCCI may 
participate if it provides temporary shelter and food services to 
homeless children who are not enrolled in its regular program.

Why is USDA Making These Changes?

    We are extending program eligibility to emergency shelters that 
serve unaccompanied children to ensure that CACFP meal benefits are 
available to children, including adolescents who may be alone and 
seeking shelter. The extension of CACFP meal benefits to residents 
through age 18 in emergency shelters by Public Law 108-265 focuses 
attention on homeless youth between 13 and 18 years old. In contrast to 
younger children, older youth are more likely to seek temporary shelter 
without their families. Also, we recognize that there may be emergency 
shelters serving children and youth that have multiple purposes. We 
have removed, therefore, the requirement that the primary purpose of an 
eligible emergency shelter must be the provision of temporary shelter 
and food services.
    The addition of the word ``site'' revises the current definition of 
emergency shelter to clarify the eligibility of emergency shelter 
sites, as mandated by section 17(t)(1)(B) of the NSLA (42 
U.S.C.1766(t)(1)(B)). This revision codifies current policy. Sites of 
emergency shelters meeting the definition of the McKinney-Vento 
Homeless Assistance Act as codified at 42 U.S.C. 11351, have been 
eligible to participate in CACFP since 1999. Within current CACFP 
requirements, the private, nonprofit organization that is sponsoring an 
emergency shelter site must apply to participate in the CACFP as a 
sponsoring organization, subject to all of the provisions governing the 
participation of sponsoring organizations described throughout the 
CACFP regulations, especially in Sec. Sec.  226.15 and 226.16. An 
example of this type of arrangement would be a multi-purpose private 
nonprofit organization, like The Salvation Army, which provides many 
community services including the sponsorship of an emergency shelter 
for homeless children. In this situation, The Salvation Army would need 
to apply to participate as a sponsoring organization of the emergency 
shelter facility.
    Finally, we stipulate that a RCCI may participate as an emergency 
shelter if it serves a distinct group of children who are homeless and 
are not enrolled in its regular program. Our intention in making this 
revision to the definition is to codify CACFP policy on RCCI 
participation that was first outlined in our March 14, 2000 guidance.

Why is RCCI Participation in CACFP Restricted?

    RCCIs provide residential care and other services for children with 
specific needs, often on a long-term basis. RCCIs are designated as 
schools in section 12(d)(5) of the NSLA (42 U.S.C. 1760(d)(5)). For 
this reason, meal benefits for RCCI residents are provided through the 
school nutrition programs if the RCCI meets the definition of School in 
Sec.  210.2 of the National School Lunch Program (NSLP) regulations. 
Examples of RCCIs that may participate in the NSLP include homes for 
the mentally, emotionally or physically impaired, homes for unmarried 
mothers and their infants, halfway houses, orphanages, temporary 
shelters for abused and runaway children, long-term care facilities for 
chronically ill children, and juvenile detention centers.
    Some of these RCCIs may also be eligible to participate in CACFP if 
they meet the definition of Emergency shelter in this interim rule. 
Given the purpose and structure of most RCCIs, it is unlikely that many 
will qualify for CACFP participation as emergency shelters based on 
their regular program and curriculum. However, RCCIs that operate 
emergency shelter sites for homeless children may be eligible, provided 
that the sites, including sites that are co-located within the RCCI 
facility, serve a distinct group of children who are not enrolled in 
the RCCI's regular program.
    Due to the variety of services offered by organizations providing 
residential or short-term care for children in need, we are interested 
in receiving comments from the public on the revised definition of 
Emergency shelter.

Are Shelters for Runaways Eligible to Participate in CACFP?

    Yes, provided that runaway shelters meet the revised definition for 
Emergency shelter contained in this rule, as determined by the CACFP 
State agency, they may participate in CACFP. An eligible shelter or its 
site for runaway youth must provide temporary housing and food services 
to children 18 years of age and younger. A shelter that provides a 
program of structured care on a long-term basis would be classified as 
a RCCI and would generally be eligible to participate in the school 
nutrition programs; a runaway shelter of this type could participate in 
CACFP only if, in addition to its other activities, it provides 
temporary housing and food services to a distinct group of children who 
are not part of its regular program of care.

How Will These Changes Affect Emergency Shelters?

    Participating emergency shelters will benefit from the increased 
level of reimbursement received for meals served to children from ages 
13 through 18. This change should help to make their operation of CACFP 
more efficient, while allowing them to serve more meals that would be 
eligible for reimbursement. In addition, emergency shelters and sites 
providing temporary shelter and food services to

[[Page 3]]

unaccompanied homeless children will now be eligible to participate in 
CACFP.
    Emergency shelters must ensure that they claim reimbursement only 
for meals that meet the requirements for meals in Sec.  226.20, 
including the meal patterns for children and adult participants. To 
improve the nutrition and satisfy the hunger of adolescent boys and 
girls, emergency shelters may need to serve additional foods and larger 
portions to children ages 13 through 18. The CACFP reimbursement 
received by emergency shelters for these meals must be used exclusively 
to support the nonprofit food service programs operated for children.

How Will These Changes Affect State Agencies?

    The impact of these changes on State agencies administering CACFP 
should be minimal. State agencies have already provided information to 
emergency shelters about claiming meals for children age 13 through age 
18. The revised definition of Emergency shelter may encourage 
organizations that provide services to unaccompanied homeless youth, 
such as shelters for runaways, to apply for Program participation. As a 
result, State agencies may experience an increase in workload 
associated with approving applications, providing technical assistance, 
and conducting monitoring of newly eligible emergency shelters.

Does This Rule Make Any Other Changes to the CACFP Regulations?

    Yes. This rule updates the CACFP regulations to add emergency 
shelters to the definitions of Center, Child care facility, Free meal, 
Independent center, and Sponsoring organization. The rule also makes a 
number of technical revisions to the regulations to ensure that 
emergency shelters are included and/or excluded in program 
requirements, as appropriate. These revisions include:
     In Sec.  226.4, a new paragraph specifies that emergency 
shelters must be reimbursed at the free rates for meals and snacks 
served;
     In Sec.  226.6, paragraph (d) is revised to specify that 
emergency shelters are exempt from licensing or approval requirements 
for child care centers but must meet applicable State or local health 
and safety requirements (note: the exemption from licensing/approval 
and compliance with health and safety standards are mandated by the 
NSLA, 42 U.S.C. 1766(t)(3) and (4));
     In Sec. Sec.  226.7 and 226.9, emergency shelters and 
sponsoring organizations of emergency shelters are excluded from the 
requirement to submit information about participants' income or 
eligibility for free, reduced price, or paid meals that the State 
agency uses to assign reimbursement rates to centers;
     In Sec.  226.11, emergency shelters are included in the 
requirement that State agencies may only reimburse centers for meal 
types specified in the program agreement;
     In Sec.  226.15, emergency shelters are excluded from the 
requirements to submit enrollment information of participants and from 
the requirements of determining their eligibility for free, reduced 
price, or paid meals and snacks;
     In Sec.  226.16, emergency shelters are added to the list 
of facilities that may be subject to a separate agreement and are 
included in the list of centers that must receive program payments from 
the sponsoring organization within five working days of receipt; and
     In Sec.  226.23, revisions are made to clarify that 
institutions that elect not to charge separately for meals, such as 
emergency shelters and sponsoring organizations of emergency shelters, 
do not have to include the income eligibility guidelines in media 
releases advertising free Program meals.

II. Procedural Matters

Executive Order 12866

    This rule has been determined to be not significant and therefore 
was not reviewed by the Office of Management and Budget under Executive 
Order 12866.

Regulatory Flexibility Act

    This rule has been reviewed with regard to the requirements of the 
Regulatory Flexibility Act (5 U.S.C. 601-612). Roberto Salazar, FNS 
Administrator, has certified that this rule does not have a significant 
impact on a substantial number of small entities. It affects public and 
private nonprofit organizations or their sites that provide temporary 
housing and food services to children by allowing them to claim 
reimbursement for the meals and snacks they serve to all resident 
children, birth through age 18. FNS does not anticipate any significant 
negative fiscal impact resulting from the implementation of this rule.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments, and on the private sector. Under section 202 of the UMRA, 
FNS generally prepares a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local, or tribal governments, in 
the aggregate, or to the private sector, of $100 million or more in any 
one year. When such a statement is needed for a rule, section 205 of 
the UMRA generally requires FNS to identify and consider a reasonable 
number of regulatory alternatives and adopt the least costly, most 
cost-effective, or least burdensome alternative that achieves the 
objectives of the rule.
    This rule contains no Federal mandates of $100 million or more in 
any one year (under regulatory provisions of Title II of the UMRA), for 
State, local, or tribal governments, or for the private sector. Thus, 
this rule is not subject to the requirements of sections 202 and 205 of 
the UMRA.

Executive Order 12372

    The CACFP is listed in the Catalog of Federal Domestic Assistance 
under No. 10.558. For the reasons set forth in the final rule in 7 CFR 
part 3015, Subpart V, and related Notice (48 FR 29115, June 24, 1983), 
this program is subject to the provisions of Executive Order 12372, 
which requires intergovernmental consultation with State and local 
officials.

Executive Order 13132

    Executive Order 13132 requires Federal agencies to consider the 
impact of their regulatory actions on State and local governments. 
Where such actions have federalism implications, agencies are directed 
to provide a statement for inclusion in the preamble to the regulation 
describing the agency's considerations in terms of the three categories 
called for under section (6)(b)(2)(B) of Executive Order 13132. FNS has 
considered the impact of this rule on State and local governments and 
has determined that this rule does not have federalism implications. 
This interim rule does not impose substantial or direct compliance 
costs on State and local governments. Therefore, under section 6(b) of 
the Executive Order, a federalism summary impact statement is not 
required.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is intended to have a preemptive effect with 
respect to any State or local laws, regulations, or policies which 
conflict with its provisions, or which otherwise impede its full 
implementation. This rule does not have retroactive effect unless so

[[Page 4]]

specified in the DATES section of this preamble. Prior to any judicial 
challenge to the provisions of this interim rule or the application of 
the provisions, all applicable administrative procedures must be 
exhausted. In CACFP, the administrative procedures are set forth at 7 
CFR 226.6(k), which establishes appeal procedures; and 7 CFR 226.22 and 
7 CFR 3016 and 3019, which address administrative appeal procedures for 
disputes involving procurement by State agencies and institutions.

Civil Rights Impact Analysis

    FNS has reviewed this interim rule in accordance with the 
Department Regulation 4300-4, ``Civil Rights Impact Analysis'' to 
identify and address any major civil rights impacts the rule might have 
on minorities, women, and persons with disabilities. After a careful 
review of the rule's intent and provisions, FNS has determined that 
there is no negative effect on these groups. All data available to FNS 
indicate that protected individuals have the same opportunity to 
participate in CACFP as non-protected individuals. Regulations at Sec.  
226.6(b)(4) require that CACFP institutions agree to operate the 
program in compliance with applicable Federal civil rights laws, 
including Title VI of the Civil Rights Act of 1964, Title IX of the 
Education amendments of 1972, Section 504 of the Rehabilitation Act of 
1973, the Age Discrimination Act of 1975, and USDA's nondiscrimination 
regulations under 7 CFR parts 15, 15a, and 15b. At 7 CFR 226.6(m)(1), 
State agencies are required to monitor CACFP institution compliance 
with these laws and regulations.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35; see 5 CFR 
part 1320) requires that the Office of Management and Budget (OMB) 
approve all collections of information by a Federal agency before they 
can be implemented. Respondents are not required to respond to any 
collection of information unless it displays a current valid OMB 
control number. This rule does not contain information collection 
requirements subject to approval by OMB under the Paperwork Reduction 
Act of 1995.

Government Paperwork Elimination Act

    FNS is committed to compliance with the Government Paperwork 
Elimination Act (GPEA), which requires Government agencies to provide 
the public the option of submitting information or transacting business 
electronically to the maximum extent possible.

Public Participation

    This action is being finalized without prior notice or public 
comment under authority of 5 U.S.C. 553(b)(3)(A) and (B). This rule 
implements through amendments to current program regulations a 
nondiscretionary provision mandated by the Child Nutrition and WIC 
Reauthorization Act of 2004 (Pub. L. 108-265). Additional regulatory 
changes complement these legislatively-driven amendments. For that 
reason, we seek public comment on all of the changes made pursuant to 
this interim rule. Thus, the Department has determined in accordance 
with 5 U.S.C. 553(b) that Notice of Proposed Rulemaking and Opportunity 
for Public Comments is unnecessary and contrary to the public interest 
and, in accordance with 5 U.S.C. 553(d), finds that good cause exists 
for making this action effective without prior public comment.

List of Subjects in 7 CFR Part 226

    Accounting, Aged, Day care, Food Assistance programs, Grant 
programs, Grant programs--health, American Indians, Individuals with 
disabilities, Infants and children, Intergovernmental relations, Loan 
programs, Reporting and recordkeeping requirements, Surplus 
agricultural commodities.

0
Accordingly, 7 CFR part 226 is amended as follows:

PART 226--CHILD AND ADULT CARE FOOD PROGRAM

0
1. The authority citation for part 226 continues to read as follows:

    Authority: Secs. 9, 11, 14, 16, and 17, Richard B. Russell 
National School Lunch Act, as amended (42 U.S.C. 1758, 1759a, 1762a, 
1765 and 1766).

0
2. In Sec.  226.2:
0
a. Amend the definition of ``CACFP child care standards'' by removing 
the words ``Sec.  226.6(d)(2) and (3)'' and adding in their place the 
words ``Sec.  226.6(d)(3) and (4)'';
0
b. Revise the definitions of ``Center'', ``Children'', and ``Emergency 
shelter'';
0
c. Amend the definition of ``Child care facility'' by adding the words 
``emergency shelter,'' after the words ``day care home,'';
0
d. Amend the definition of ``Free meal'' by adding in the first 
sentence the phrase ``or to a child who is receiving temporary housing 
and meal services from an approved emergency shelter;'' after the 
phrase, ``a child who is a Head Start participant;''; and
0
e. Amend the definition of ``Independent center'' by adding the words 
``emergency shelter,'' after the words ``child care center,''.
0
f. Revise the first sentence of the definition of ``Sponsoring 
organization'';
    The revisions read as follows:


Sec.  226.2  Definitions.

* * * * *
    Center means a child care center, an adult day care center, an 
emergency shelter, or an outside-school-hours care center.
* * * * *
    Children means:
    (a) Persons age 12 and under;
    (b) Persons age 15 and under who are children of migrant workers;
    (c) Persons age 18 and under who are residents of emergency 
shelters; and
    (d) Persons with mental or physical handicaps, as defined by the 
State, which are enrolled in an institution or a child care facility or 
residing in an emergency shelter serving a majority of persons 18 years 
of age and under.
* * * * *
    Emergency shelter means a public or private nonprofit organization 
or its site that provides temporary shelter and food services to 
homeless children, including a residential child care institution 
(RCCI) that serves a distinct group of homeless children who are not 
enrolled in the RCCI's regular program.
* * * * *
    Sponsoring organization means a public or nonprofit private 
organization that is entirely responsible for the administration of the 
food program in: (a) One or more day care homes; (b) a child care 
center, emergency shelter, outside-school-hours care center, or adult 
day care center which is a legally distinct entity from the sponsoring 
organization; (c) two or more child care centers, emergency shelters, 
outside-school-hours care centers, or adult day care centers; or (d) 
any combination of child care centers, emergency shelters, adult day 
care centers, day care homes, and outside-school-hours care centers. * 
* *
* * * * *

0
3. In Sec.  226.4:
0
a. Revise paragraph (a);
0
b. Redesignate paragraphs (c) through (j) as paragraphs (d) through 
(k), respectively, and add a new paragraph (c); and
0
c. Revise the first sentence of newly redesignated paragraph (h)(2).
    The revisions and addition read as follows:


Sec.  226.4  Payments to States and use of funds.

    (a) Availability of funds. For each fiscal year based on funds 
provided to the Department, FNS must make funds available to each State 
agency to

[[Page 5]]

reimburse institutions for their costs in connection with food service 
operations, including administrative expenses, under this part. Funds 
must be made available in an amount no less than the sum of the totals 
obtained under paragraphs (b), (c), (d), (e), (f), and (i) of this 
section. However, in any fiscal year, the aggregate amount of 
assistance provided to a State under this part must not exceed the sum 
of the Federal funds provided by the State to participating 
institutions within the State for that fiscal year and any funds used 
by the State under paragraphs (i) and (k) of this section.
* * * * *
    (c) Emergency shelter funds. For meals and snacks served to 
children in emergency shelters, funds will be made available to each 
State agency in an amount equal to the total calculated by multiplying 
the number of meals and snacks served in the Program within the State 
to such children by the national average payment rate for free meals 
and free snacks under section 11 of the National School Lunch Act.
* * * * *
    (h) * * *
    (1) * * *
    (2) The rates for meals, including snacks, served in child care 
centers, emergency shelters, adult day care centers, and outside-
school-hours care centers will be adjusted annually, on July 1, on the 
basis of changes in the series for food away from home of the Consumer 
Price Index for All Urban Consumers published by the Department of 
Labor. * * *
* * * * *

0
4. In Sec.  226.6:
0
a. Revise the heading of paragraph (d) and add a new second sentence to 
the introductory text;
0
b. Redesignate paragraphs (d)(2) and (d)(3) as paragraphs (d)(3) and 
(d)(4), respectively, and add a new paragraph (d)(2); and
0
c. Amend newly redesignated (d)(3)(i) by removing the reference 
``(d)(3)'' and adding in its place the reference ``(d)(4)''.
    The revision and additions read as follows:


Sec.  226.6  State agency administrative responsibilities.

* * * * *
    (d) Licensing/approval for institutions or facilities providing 
child care. * * * Emergency shelters are exempt from licensing/approval 
requirements contained in this section but must meet the requirements 
of paragraph (d)(2) to be eligible to participate in the Program. * * *
* * * * *
    (2) Health and safety requirements for emergency shelters. To be 
eligible to participate in the Program, emergency shelters must meet 
applicable State or local health and safety standards.
* * * * *

0
5. In Sec.  226.7, revise paragraph (f) to read as follows:


Sec.  226.7  State agency responsibilities for financial management.

* * * * *
    (f) Rate assignment. Each State agency must require institutions 
(other than emergency shelters and sponsoring organizations of 
emergency shelters or day care homes) to submit, not less frequently 
than annually, information necessary to assign rates of reimbursement 
as outlined in Sec.  226.9.
* * * * *


Sec.  226.8  [Amended]

0
6. In Sec.  226.8, remove the reference ``Sec.  226.4(h)'' in the first 
sentence of paragraph (b), the first sentence of paragraph (c), and the 
first and second sentences of paragraph (d), and add in its place the 
reference ``Sec.  226.4(i)''.

0
7. In Sec.  226.9:
0
a. Add a new second sentence in paragraph (a);
0
b. Revise paragraph (b) introductory text; and
0
c. Revise paragraph (b)(2).
    The addition and revisions read as follows:


Sec.  226.9  Assignment of rates of reimbursement for centers.

    (a) * * * However, only free rates for meals and snacks as 
described in Sec.  226.4(i)(2) must be assigned for emergency shelters. 
* * *
    (b) Except for emergency shelters, the State agency shall either:
* * * * *
    (2) Establish claiming percentages, not less frequently than 
annually, for each institution on the basis of the number of enrolled 
participants eligible for free, reduced price, and paid meals. Children 
who only participate in emergency shelters must not be considered to be 
enrolled participants for the purpose of establishing claiming 
percentages; or
* * * * *


Sec.  226.11  [Amended]

0
8. In Sec.  226.11, amend the first sentence of paragraph (a) by adding 
the words ``, emergency shelters,'' after the words ``adult day care 
centers''.

0
9. In Sec.  226.15, revise the first two sentences of paragraph (e)(2) 
to read as follows:


Sec.  226.15  Institution provisions.

* * * * *
    (e) * * *
    (2) Documentation of the enrollment of each participant at centers 
(except for outside-school-hours care centers and emergency shelters). 
All types of centers, except for emergency shelters, must maintain 
information used to determine eligibility for free or reduced price 
meals in accordance with Sec.  226.23(e)(1). * * *
* * * * *


Sec.  226.16  [Amended]

0
10. In Sec.  226.16:
0
a. Amend paragraph (f) by adding the words ``emergency shelters,'' 
after the words ``adult day care centers,''; and
0
b. Amend the first sentence of paragraph (h) by adding the words ``, 
emergency shelters,'' after the words ``adult day care centers''.

0
11. In Sec.  226.23:
0
a. Revise the second sentence of paragraph (d); and
0
b. Amend the first sentence of paragraph (e)(1)(i) by adding the words 
``(other than emergency shelters)''`` after the word ``institutions''.
    The revision reads as follows:


Sec.  226.23  Free and reduced-price meals.

* * * * *
    (d) * * * All media releases issued by institutions, except for 
sponsoring organizations of day care homes, emergency shelters, and 
other institutions that elect not to charge separately for meals, shall 
include the Secretary's Income Eligibility Guidelines for Free and 
Reduced-Price Meals. * * *
* * * * *

    Dated: December 23, 2005.
Roberto Salazar,
Administrator, Food and Nutrition Service.
[FR Doc. 05-24683 Filed 12-30-05; 8:45 am]
BILLING CODE 3410-30-P