[Federal Register Volume 76, Number 209 (Friday, October 28, 2011)]
[Rules and Regulations]
[Pages 66849-66854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-27933]



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  Federal Register / Vol. 76 , No. 209 / Friday, October 28, 2011 / 
Rules and Regulations  

[[Page 66849]]



DEPARTMENT OF AGRICULTURE

Food and Nutrition Service

7 CFR Parts 210, 215, 220, 235 and 245

[FNS-2007-0023]
RIN 0584-AD54


Applying for Free and Reduced Price Meals in the National School 
Lunch Program and School Breakfast Program and for Benefits in the 
Special Milk Program, and Technical Amendments

AGENCY: Food and Nutrition Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule finalizes changes to eligibility determinations for 
free and reduced price school meals to implement nondiscretionary 
provisions of the Child Nutrition and WIC Reauthorization Act of 2004. 
This rule also finalizes the following changes set forth in the interim 
rule published on November 13, 2007 (72 FR 63785)--addition of a 
statutory definition of ``local educational agency,'' specification 
that a family only has to submit one application for all children in 
the household as long as they attend schools in the same local 
educational agency, and requirements to enhance descriptive materials 
distributed to families. This rule finalizes requirements for 
electronically-submitted applications, electronic signatures, and use 
and disclosure standards for such applications. This rule also 
finalizes year-long eligibility for free or reduced price school meals, 
unless the household chooses to decline a level of benefits. These 
changes are intended to provide children with increased access to the 
school nutrition programs by simplifying the certification process, 
streamlining program operations, and improving program management.

DATES: Effective Date: This rule is effective November 28, 2011.

FOR FURTHER INFORMATION CONTACT: Julie Brewer, Chief, Policy and 
Program Development Branch, Child Nutrition Division, Food and 
Nutrition Service (FNS) at (703) 305-2590.

SUPPLEMENTARY INFORMATION:

I. Background

    Public Law 108-265, the Child Nutrition and WIC Reauthorization Act 
of 2004, enacted June 30, 2004, amended the Richard B. Russell National 
School Lunch Act (NSLA) (42 U.S.C. 1751 et seq.) and the Child 
Nutrition Act of 1966 (CNA) (42 U.S.C. 1771 et seq.) concerning 
applications for free and reduced price meals under the National School 
Lunch Program (NSLP) and the School Breakfast Program (SBP), and for 
free milk under the Special Milk Program for Children. Please note that 
while the application and certification procedures of this final rule 
apply to the Special Milk Program, the preamble will only discuss free 
and reduced price meal benefits in the NSLP and SBP, as only a very 
small number of schools and children participate in the Special Milk 
Program. However, this rule finalizes appropriate changes to the 
Special Milk Program regulations. All references to regulatory 
citations in this preamble are to Title 7, United States Code unless 
otherwise indicated.
    In response to the statutorily imposed effective dates established 
by sections 501 and 502 of Public Law 108-265, the Department of 
Agriculture (USDA) issued memoranda to implement some of the provisions 
regulatorily codified in this final rule. For a list of memoranda, see 
the interim rule published by FNS on November 13, 2007 (72 FR 63785). 
All memoranda are located on the FNS Web site at http://www.fns.usda.gov/cnd/, click on Policy.
    This rule finalizes modifications made by Public Law 108-265 that 
necessitated changes to the existing regulatory procedures relating to 
application and certification for free and reduced price meal benefits. 
This rule also finalizes definitions and other technical changes to 7 
CFR Part 210 (National School Lunch Program), 7 CFR part 215 (Special 
Milk Program for Children), 7 CFR part 220 (School Breakfast Program), 
7 CFR part 235 (State Administrative Expense Funds) and 7 CFR part 245 
(Determining Eligibility for Free and Reduced Meals and Free Milk in 
Schools) to increase consistency in application and certification 
requirements among these regulatory divisions.
    In addition, this rule finalizes changes to the definitions 
sections of 7 CFR 215.2, 220.2, 235.2, and 245.2, including removing 
primary designations and alphabetizing the definitions, and finalizing 
a definition for ``Nonprofit.''
    For details, see the interim rule published by FNS on November 13, 
2007 (72 FR 63785). This rule finalizes changes to the regulations in 7 
CFR parts 210, 215, 220, 235 and 245 to reflect the changes mandated by 
Public Law 108-265.

II. Discussion of Public Comments and FNS Response

    The 180-day comment period for the interim rule began November 13, 
2007 and ended May 12, 2008. FNS received 26 comments on the interim 
rule: 17 comments from advocacy group officials, seven from 
individuals, one from a school food service association, and one from a 
State agency. The comments addressed the following areas:

Understandable Communications With Applicant Households

    The interim rule stated that the school meals programs application 
must be clear and simple in design. The rule added language reflecting 
the statutory requirement that any communication with households 
regarding certification be understandable, and to the maximum extent 
practicable, provided in a language that parents and guardians can 
understand (Sec.  245.6 (a)(2)).
    Advocacy groups and individuals emphasized the need for local 
educational agencies (LEAs) to provide information to parents and 
guardians at a low literacy level (5-6th grade was suggested), and in 
the primary languages represented in the school district (including 
providing oral translations, as needed).
    Currently, FNS promotes understandable communication with families 
by providing LEAs with prototype application materials on our Web site: 
http://www.fns.usda.gov/cnd/frp/frp.process.htm. The application 
materials have an 8th grade reading level (6th grade with the required

[[Page 66850]]

privacy, penalty, and disclosure statements omitted) as determined by 
the Flesch-Kincaid and the McLaughlin Simple Measure of Gobbledygook 
(SMOG) reading level tests. FNS conducted focus groups with low-income 
parents to ensure that application materials are clear and easy to 
understand, can be completed quickly, and elicit accurate household 
income information.
    FNS also provides translations of the prototype application 
materials on our Web site in 33 languages (available at: http://www.fns.usda.gov/cnd/frp/frp.process.htm). In 2005, FNS polled State 
agencies to determine the languages in which translated NSLP 
application packets were needed. This method of assessing needs was 
conducted because each geographical area is best positioned to 
determine the needs of their own communities. Based on State agency 
responses, languages were identified and prioritized based on the 
number of States requesting a particular language. Application packets 
were translated into those languages, reviewed by internal and external 
persons fluent in the appropriate language(s), and made available on 
our Web site. FNS recently created prototype application materials in 
eight additional languages to be consistent with the languages in which 
Supplemental Nutrition Assistance Program (SNAP) application materials 
are available. If a prototype application is not available in a 
language needed to communicate with a household, FNS encourages LEAs to 
utilize free and low-cost resources to provide families with meaningful 
access to school meals programs. LEAs should be aware of and utilize 
resources available within schools. School staff may be available to 
assist in communicating with households. Communities with limited 
English speaking populations often have community organizations or 
advocacy groups who may be able to assist in communicating with 
households. There are also several technology resources that can assist 
LEAs with providing families with meaningful access to school meals 
programs. Several Web sites offer free translation services; there are 
also several low-cost telephone translation services that provide 
assistance on an as-needed basis. These are the same types of resources 
that hospitals use to communicate with limited English speaking 
patients.
    On a national level, commenters asked USDA to specify what is 
expected of LEAs to comply with the requirements of the statutory 
provision to provide ``understandable'' communication, and emphasized 
the need to monitor compliance at the State and local levels.
    In addition to providing prototype application materials on our Web 
site, FNS ensures that States and LEAs develop ways to provide 
assistance in completing applications when there are language or 
literacy barriers. FNS Instruction 113-1 (November 8, 2005), Civil 
Rights Compliance and Enforcement--Nutrition Programs and Activities, 
requires State agencies and LEAs to provide bilingual services to 
applicants, including translators and translated materials. LEAs are 
responsible for determining the type of translation services, and 
language(s) in which translation services are available, that are 
needed to facilitate participation in school meals programs. State 
agencies must provide oversight and technical assistance to ensure that 
language is not a barrier to program participation. Compliance with 
these requirements is currently part of State agency reviews of LEAs 
and our review of State agencies.
    FNS is taking steps to help LEAs identify the languages in which 
NSLP application materials are needed. The NSLP prototype application 
was translated into 33 languages and released together with an ISpeak 
form. These resources will help LEAs identify households' primary 
languages and readily provide application materials. Schools are 
required by the Department of Education to collect information on the 
primary languages spoken in student households through the Home 
Language Survey. FNS will promote providing NSLP application materials 
to households in the languages schools determine using information 
collected via the Home Language Survey.
    In addition, FNS developed a strategic plan to improve program 
access for populations with limited English proficiency (LEP). FNS 
convened a ``Tiger Team'' to assess program applications and identify 
LEP-related barriers. FNS intends for these efforts to result in 
improved resources and guidance available to State and local 
authorities responsible for administering the Child Nutrition Programs, 
including the NSLP, SBP, and SMP.
    Commenters also expressed the need for consistent policies across 
FNS programs, specifically recommending that Child Nutrition Programs 
adopt SNAP's policies regarding limited English proficiency. SNAP 
reimburses States for 50% of administrative expenses; Child Nutrition 
Programs do not have comparable resources for administrative expenses. 
As such, State burdens in achieving full parity with SNAP 
administrative policies would be very costly in many circumstances.
    In considering national requirements for translation services, FNS 
must balance the administrative burden placed on State agencies and 
LEAs with the impact on households. That said, on a national level FNS 
will issue additional guidance to establish its expectations and assist 
LEAs in communicating with student households, including a short 
explanation of the recent provisions that remove participation barriers 
and encouraging both the use of the application translations and 
utilization of existing translation resources.
    In light of limited LEA resources, FNS will also continue to 
develop ready-to-use communication resources, informed by periodically 
reviewing the languages in which the application packet is available, 
identifying unmet needs, and making translations available in 
additional languages as necessary. FNS is committed to providing all 
eligible children access to free and reduced-price school meals. 
Consequently, FNS expects LEAs to use the resources provided and take 
appropriate measures to ensure that language and communication are not 
barriers to program participation.

Transferring Eligibility for Free or Reduced Price Meals

    The interim rule stated that the NSLA requires year long 
eligibility, which is effective through the current school year and up 
to 30 days into the subsequent school year. The interim rule, at Sec.  
245.6(a)(4), also includes a provision that allows LEAs the option of 
accepting the eligibility determination from the student's old school 
district without incurring liability for the accuracy of the initial 
determination.
    Advocacy groups commented that, ideally, full year eligibility 
requires a system to transfer a child's status from one LEA to another, 
even across state lines. These commenters asked USDA to require LEAs to 
provide materials to each student newly enrolled during the school year 
and process the new application quickly. They also suggested that LEAs 
should conduct direct certification on each new student to determine if 
s/he is a member of a household receiving assistance benefits or is 
otherwise categorically eligible.
    Currently, LEAs are encouraged, to the maximum extent practicable, 
to transfer/receive information about a child's eligibility for free or 
reduced price meals. In order to avoid placing an undue burden on 
districts where the costs of compliance would outweigh the benefits, 
the final rule does not make

[[Page 66851]]

these provisions mandatory. USDA is sensitive to LEA burden and seeks 
to provide LEAs flexibility to conduct certification and direct 
certification activities differently, in ways that are most suitable to 
local eligibility systems. Therefore, USDA has taken measures other 
than mandatory provisions to ensure that students who transfer during 
the school year can access school meal programs, including the 
following: USDA is supporting transfers by removing any liability from 
the receiving LEA for errors made in the initial application approval; 
as suggested by the comment letters, we added language in the final 
rule at Sec.  245.6(a)(1) requiring LEAs to provide newly enrolled 
students with applications and determine eligibility promptly; and, 
finally, we also encourage LEAs to directly certify these students, and 
encourage State and local agencies to develop and support systems that 
allow schools to determine the eligibility status of transferred 
students. Our recently published rule, Direct Certification and 
Certification of Homeless, Migrant and Runaway Children for Free School 
Meals (76 FR 22785), requires that LEAs conduct direct certification at 
least three times during the school year and encourages more frequent 
direct certification. This measure should also help LEAs capture and 
provide free meal eligibility to more students who transfer between 
schools during the school year.

Temporary Approvals

    The interim rule stated that year-long eligibility does not apply 
when a household is given temporary approval, a determination made by 
the LEA when a household's need for assistance appears to be short-
term, such as when a household experiences a temporary reduction in 
income. A suggested time period for temporary approvals was 45 days 
unless otherwise stipulated by the State agency. At the end of 
temporary approval, determining officials re-evaluate the household's 
situation. The provision on temporary approval was included in the 
interim rule at Sec.  245.6(c)(3)(iii).
    Advocacy groups stated that there is no statutory authority to 
permit temporary approvals due to the new requirement for year-long 
eligibility, and noted that the statutory exemptions for year-long 
eligibility do not address temporary approvals. The school food service 
association echoed that anything less than year-long approval is not 
warranted.
    After careful reconsideration, we agree that the requirement for 
year-long eligibility negates the use of temporary approvals. Temporary 
approvals were used to safeguard Federal benefits in situations where 
the need for assistance appeared to be short-term. In lieu of temporary 
approvals, in situations where a LEA is concerned about the accuracy of 
application information, we highly encourage the LEA to conduct 
``verification for cause.'' Therefore, this final rule removes the 
paragraph on temporary approvals, Sec.  245.6 (c)(3)(iii). We will also 
update our guidance to reflect this change. We will address the use of 
verification for cause in a separate rulemaking.

Carryover of Previous Year's Eligibility Into the New School Year

    Per Section 106 of Public Law 108-265, the interim rule stated that 
year-long eligibility is valid for the full school year and for a 
period not to exceed the first 30 operating days following the first 
operating day at the beginning of the school year, or until the new 
eligibility determination is made, whichever comes first. USDA used the 
long-standing permissive carry-over authority of current Sec.  245.6(c) 
as the basis for this new requirement.
    Advocacy groups requested that USDA clarify that siblings of 
previously eligible children may receive benefits when they start 
school, and encouraged USDA to address ways that LEAs should identify 
siblings.
    The provision concerning newly enrolled siblings receiving benefits 
is currently only included in our guidance materials. LEAs can claim 
and be reimbursed for free and reduced price meals or free milk served 
to new children in an LEA from households with children who were 
approved for benefits the previous year. The Eligibility Manual for 
School Meals (available at: http://www.fns.usda.gov/cnd/guidance/eligibility_guidance.pdf) currently states that categorical 
eligibility may not be extended to siblings. This determination was 
made because different assistance programs confer benefits based on 
household characteristics using different definitions of ``household.'' 
After reconsideration, this final rule, at Sec.  245.6(c)(2), requires 
the extension of categorical eligibility to children living in the same 
household as children previously receiving benefits, based on the 
definition of ``household'' provided in Sec.  245.2. This change is 
consistent with our policy SP 38-2009 (August 27, 2009), Extending 
Categorical Eligibility to Additional Children in a Household.
    In addition, a State agency found ambiguity in the wording ``* * * 
a period not to exceed * * *'' in Sec.  245.6(c)(2) and suggested the 
omission of those words. We agree with the State agency, and omitted 
the ambiguous language from the final rule.

Processing Changes During the School Year

    With the exception of incorrect eligibility determinations, a 
household's initial eligibility determination remains valid for the 
entire school year and up to 30 operating days into the next school 
year, unless a new application is submitted. Households are no longer 
required to report changes in income or household size or loss of SNAP 
(formerly the Food Stamp Program) or Temporary Assistance for Needy 
Families benefits. (Please note that current regulations refer to the 
Food Stamp Program. Regulatory references to the Food Stamp Program 
will be updated in future rulemaking to reflect the Program's name 
change.) However, households may voluntarily report changes, and may 
apply for benefits any time during the school year.
    Advocacy groups were pleased that the interim rule states that a 
household must be given the option to decline a reduction of benefits 
if it reports a change in income or household size during the school 
year. Commenters also requested that the regulations prohibit reducing 
benefits using information from a source other than the household 
(e.g., child is no longer homeless as reported by the school district's 
homeless liaison).
    Due to year-long eligibility, the final rule specifies that 
benefits may only be reduced during the school year if a household 
voluntarily makes a written request for benefit reduction, for example, 
by submitting a new application or other documentation. The final rule 
clarifies that benefits cannot be reduced by new information received 
through other sources without the consent of the household. This is 
consistent with guidance materials which are very specific about how to 
handle changes reported during the school year, especially as they 
relate to households' ability to decline a reduction in benefits.
    The interim rule also defined ``local educational agency'' and 
``nonprofit,'' provided for electronically-submitted applications, 
addressed electronic signatures, and established use and disclosure 
standards for such applications. Commenters did not recommend any 
changes to these provisions; therefore, USDA is adopting these changes 
as set forth in the interim rule.

[[Page 66852]]

III. Procedural Matters

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been determined to be significant and was 
reviewed by the Office of Management and Budget in conformance with 
Executive Order 12866.
Regulatory Impact Analysis
    Need for action:
    This rule modifies and finalizes interim regulations published in 
November 2007 to carry out nondiscretionary provisions of the 2004 
Child Nutrition and WIC Reauthorization Act. The rule implements 
provisions intended to facilitate the certification of children for 
free and reduced price school meals and free milk. These provisions are 
meant to benefit children eligible for school meal benefits as well as 
program administrators responsible for the certification process.
    Benefits:
    The rule finalizes provisions that mandate or provide for year-long 
eligibility, single applications for most households, extension of 
eligibility for newly enrolled siblings of most eligible students, 
electronic applications, the transfer of eligibility across schools and 
districts, and clarity in written communication between applicant 
households and school officials. These provisions will benefit eligible 
children who may have been denied benefits for at least part of the 
school year under previous program rules. Several of these provisions, 
particularly greater use of household applications and electronic 
applications, and the promotion of transferred eligibility across 
districts, promise long-term benefits to program administrators as 
well.
    Costs:
    Although the rule promotes the certification of eligible children 
for school meals benefits, at least one of its most significant 
provisions, year-long certifications, serves to affirm what had 
previously occurred in practice. To the extent that these provisions 
increase the number of children certified for free or reduced price 
school meals or free milk, the cost of federal reimbursements will 
increase. Other provisions, such as those encouraging electronic 
applications and the transfer of eligibility across districts, may 
require short-term investment by LEAs. Overall, the costs of the rule 
are expected to be small.

Regulatory Flexibility Act

    This final rule has been reviewed with regard to the requirements 
of the Regulatory Flexibility Act (5 U.S.C. 601-612). It has been 
certified that this rule will not have a significant economic impact on 
a substantial number of small entities. Households applying for free or 
reduced price school meals for their children are affected, as they are 
no longer required to complete and submit an application for each 
child. Local educational agencies are also affected because there are 
fewer applications to process and there will be potential for more 
economically beneficial centralized systems.

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 the private sector. Under section 202 of the UMRA, FNS 
must generally prepare 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 USDA to identify and consider a reasonable 
number of regulatory alternatives and adopt the least costly, more 
cost-effective or least burdensome alternative that achieves the 
objectives of the rule.
    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local and tribal 
governments or the private sector of $100 million or more in any one 
year. Thus, this final rule is not subject to the requirements of 
sections 202 and 205 of the UMRA.

Executive Order 12372

    The NSLP, Special Milk Program, SBP, and State Administrative 
Expense Funds are listed in the Catalog of Federal Domestic Assistance 
under Nos. 10.555, 10.556, 10.553 and 10.560, respectively. For the 
reasons set forth in the final rule in 7 CFR Part 3015, Subpart V, and 
final rule related notice at 48 FR 29114, June 24, 1983, these programs 
are included in the scope of Executive Order 12372, which requires 
intergovernmental consultation with State and local officials.
    Because these programs are federally funded programs administered 
at the State level, FNS headquarters and regional office staff have 
ongoing formal and informal discussions with State and local officials 
regarding operational issues. This arrangement allows State and local 
agencies to provide feedback that forms the basis for any discretionary 
decisions made in this and other rules.

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 regulations 
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 rule does not impose 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 preemptive effect with 
respect to any State or local laws, regulations or policies which 
conflict with its provisions or which would otherwise impede its full 
implementation. This rule is not intended to have retroactive effect 
unless so specified in the DATES section of this preamble. Prior to any 
judicial challenge to the provisions of this rule or the application of 
its provisions, all applicable administrative procedures under Sec.  
210.18(q) or Sec.  235.11(f) must be exhausted.

Civil Rights Impact Analysis

    FNS has reviewed this final rule in accordance with the Department 
Regulation 4300-4, ``Civil Rights Impact Analysis,'' to identify any 
major civil rights impacts the rule might have on children on the basis 
of age, race, color, national origin, sex, or disability. A careful 
review of the rule's intent and

[[Page 66853]]

provisions revealed that this rule is not intended to reduce 
participants' ability to participate in the NSLP, SBP, or Special Milk 
Program.

Executive Order 13175

    USDA will undertake, within 6 months after this rule becomes 
effective, a series of Tribal consultation sessions to gain input by 
elected Tribal officials or their designees concerning the impact of 
this rule on Tribal governments, communities and individuals. These 
sessions will establish a baseline of consultation for future actions, 
should any be necessary, regarding this rule. Reports from these 
sessions for consultation will be made part of the USDA annual 
reporting on Tribal Consultation and Collaboration. USDA will respond 
in a timely and meaningful manner to all Tribal government requests for 
consultation concerning this rule and will provide additional venues, 
such as webinars and teleconferences, to periodically host 
collaborative conversations with Tribal leaders and their 
representatives concerning ways to improve this rule in Indian country.
    We are unaware of any current Tribal laws that could be in conflict 
with the final rule. We request that commenters address any concerns in 
this regard in their responses.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35; see 5 CFR 
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 any new information collection requirements 
subject to approval by OMB under the Paperwork Reduction Act of 1995. 
Information collections associated with this rule have been approved 
under following OMB control numbers 0584-0005, 0584-0006, 0584-0012, 
0584-0026 and 0584-0067.

E-Government Act Compliance

    FNS is committed to complying with the E-Government Act to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services and for other purposes.

List of Subjects in 7 CFR Part 245

    Civil rights, Food assistance programs, Grant programs-education, 
Grant programs-health, Infants and children, Milk, Reporting and 
recordkeeping requirements, School breakfast and lunch programs.

    Accordingly, the interim rule amending 7 CFR parts 210, 215, 220, 
235 and 245, published at 72 FR 63785 on November 13, 2007, is adopted 
as a final rule with the following changes:

PART 245--DETERMINING ELIGIBILITY FOR FREE AND REDUCED PRICE MEALS 
AND FREE MILK IN SCHOOLS

0
1. The authority citation for Part 245 continues to read as follows:

     Authority: 42 U.S.C. 1752, 1758, 1759a, 1772, 1773, and 1779.


0
2. In Sec.  245.6:
0
a. Amend paragraph (a) introductory text by adding a comma between the 
words ``school'' and ``shall'';
0
b. Amend paragraph (a)(1) by adding a new sentence between the first 
and second sentences of the paragraph, and removing the word ``issued'' 
and adding in its place the word ``provided'';
0
c. Amend the first sentence of paragraph (a)(4) by removing the word 
``another'' and adding in its place the words ``a new'';
0
d. Amend paragraph (a)(5)(i) by removing the word ``that'';
0
e. Amend paragraph (a)(9) by adding a new sentence at the end of the 
paragraph.
0
f. Revise paragraph (c)(1);
0
g. Revise paragraph (c)(2);
0
h. Revise paragraph (c)(3)(i);
0
i. Remove paragraph (c)(3)(iii);
0
j. Amend the first sentence of paragraph (c)(6)(iii) by adding the 
words ``or reduced price'' between the words ``free'' and ``benefits'';
0
k. Amend the last sentence of paragraph (c)(7) by removing the word 
``As'' and adding in its place the word ``At''.
    The revisions and additions read as follows:


Sec.  245.6  Application, eligibility and certification of children for 
free and reduced price meals and free milk.

    (a) * * *
    (1) Household applications. * * * The local educational agency must 
provide newly enrolled students with an application and determine 
eligibility promptly. * * *
* * * * *
    (9) * * * Applicants must attest to changes in information as 
specified in this paragraph (b), if changes are voluntarily reported in 
writing during the eligibility period.
* * * * *
    (c) * * * (1) Duration of eligibility. Except as otherwise 
specified in paragraph (c)(3) of this section, eligibility for free or 
reduced price meals, as determined through an approved application or 
by direct certification, must remain in effect for the entire school 
year and for up to 30 operating days into the subsequent school year. 
The local educational agency must determine household eligibility for 
free or reduced price meals either through direct certification or the 
application process at or about the beginning of the school year. The 
local educational agency must determine eligibility for free or reduced 
price meals when a household submits an application or, if feasible, 
through direct certification, at any time during the school year.
    (2) Use of prior year's eligibility status. Prior to the processing 
of applications or the completion of direct certification procedures 
for the current school year, children from households with approved 
applications or documentation of direct certification on file from the 
preceding year shall be offered reimbursable free and reduced price 
meals or free milk, as appropriate. The local educational agency must 
extend eligibility to newly enrolled children when other children in 
their household (as defined in Sec.  245.2) were approved for benefits 
the previous year. However, applications and documentation of direct 
certification from the preceding year shall be used only to determine 
eligibility for the first 30 operating days following the first 
operating day at the beginning of the school year, or until a new 
eligibility determination is made in the current school year, whichever 
comes first.
    (3) Exceptions for year-long duration of eligibility. (i) Voluntary 
reporting of changes. Households are not required to report changes in 
circumstances during the school year, but a household may voluntarily 
contact the local educational agency to report any changes. If the 
household voluntarily reports a change in income or in program 
participation that would result in loss of categorical eligibility, the 
local educational agency may only reduce benefits if the household 
requests the reduction in writing, for example, by submitting a new 
application.
    (ii) Households must attest to changes in information as specified 
in Sec.  245.3(a)(9). In addition, benefits cannot be reduced by 
information received through other sources without the written consent 
of the household, except for information received through verification.
* * * * *


[[Page 66854]]


    Dated: October 24, 2011.
Kevin W. Concannon,
Under Secretary, Food, Nutrition, and Consumer Services.
[FR Doc. 2011-27933 Filed 10-27-11; 8:45 am]
BILLING CODE 3410-30-P