Laws: Cases and Codes : U.S. Code : Title 42 : Section 1776


   
U.S. Code as of: 01/19/04
Section 1776. State administrative expenses

    (a) Amount available; formula for computation of payment; improved
      program integrity and meal quality; use for costs of
      administration of programs for which allocation made; retention
      of funds by Secretary
      (1) Each fiscal year, the Secretary shall make available to the
    States for their administrative costs an amount equal to not less
    than 1 1/2  percent of the Federal funds expended under sections 4,
    11, and 17 of the Richard B. Russell National School Lunch Act [42
    U.S.C. 1753, 1759a, 1766] and 1772 and 1773 of this title during
    the second preceding fiscal year. The Secretary shall allocate the
    funds so provided in accordance with paragraphs (2), (3), and (4)
    of this subsection. There are hereby authorized to be appropriated
    such sums as may be necessary to carry out the purposes of this
    section.
      (2) The Secretary shall allocate to each State for administrative
    costs incurred in any fiscal year in connection with the programs
    authorized under the Richard B. Russell National School Lunch Act
    [42 U.S.C. 1751 et seq.] or under this chapter, except for the
    programs authorized under section 13 or 17 of the Richard B.
    Russell National School Lunch Act [42 U.S.C. 1761, 1766] or under
    section 1786 of this title, an amount equal to not less than 1
    percent and not more than 1 1/2  percent of the funds expended by
    each State under sections 4 and 11 of the Richard B. Russell
    National School Lunch Act [42 U.S.C. 1753, 1759a] and sections 1772
    and 1773 of this title during the second preceding fiscal year. In
    no case shall the grant available to any State under this
    subsection be less than the amount such State was allocated in the
    fiscal year ending September 30, 1981, or $100,000, whichever is
    larger.
      (3) The Secretary shall allocate to each State for its
    administrative costs incurred under the program authorized by
    section 17 of the Richard B. Russell National School Lunch Act [42
    U.S.C. 1766] in any fiscal year an amount, based upon funds
    expended under that program in the second preceding fiscal year,
    equal to (A) 20 percent of the first $50,000, (B) 10 percent of the
    next $100,000, (C) 5 percent of the next $250,000, and (D) 2 1/2 
    percent of any remaining funds. If an agency in the State other
    than the State educational agency administers such program, the
    State shall ensure that an amount equal to no less than the funds
    due the State under this paragraph is provided to such agency for
    costs incurred by such agency in administering the program, except
    as provided in paragraph (5). The Secretary may adjust any State's
    allocation to reflect changes in the size of its program.
      (4) The remaining funds appropriated under this section shall be
    allocated among the States by the Secretary in amounts the
    Secretary determines necessary for the improvement in the States of
    the administration of the programs authorized under the Richard B.
    Russell National School Lunch Act [42 U.S.C. 1751 et seq.] and this
    chapter, except for section 1786 of this title, including, but not
    limited to, improved program integrity and the quality of meals
    served to children.
      (5)(A) Not more than 25 percent of the amounts made available to
    each State under this section for the fiscal year 1991 and 20
    percent of the amounts made available to each State under this
    section for the fiscal year 1992 and for each succeeding fiscal
    year may remain available for obligation or expenditure in the
    fiscal year succeeding the fiscal year for which such amounts were
    appropriated.
      (B) Reallocation of funds. - 
        (i) Return to secretary. - For each fiscal year, any amounts
      appropriated that are not obligated or expended during the fiscal
      year and are not carried over for the succeeding fiscal year
      under subparagraph (A) shall be returned to the Secretary.
        (ii) Reallocation by secretary. - The Secretary shall allocate,
      for purposes of administrative costs, any remaining amounts among
      States that demonstrate a need for the amounts.

      (6) Use of administrative funds. - Funds available to a State
    under this subsection and under section 13(k)(1) of the Richard B.
    Russell National School Lunch Act (42 U.S.C. 1761(k)(1)) may be
    used by the State for the costs of administration of the programs
    authorized under this chapter (except for the programs authorized
    under sections 1786 and 1790 of this title) and the Richard B.
    Russell National School Lunch Act (42 U.S.C. 1751 et seq.) without
    regard to the basis on which the funds were earned and allocated.
      (7) Where the Secretary is responsible for the administration of
    programs under this chapter or the Richard B. Russell National
    School Lunch Act [42 U.S.C. 1751 et seq.], the amount of funds that
    would be allocated to the State agency under this section and under
    section 13(k)(1) of the Richard B. Russell National School Lunch
    Act [42 U.S.C. 1761(k)(1)] shall be retained by the Secretary for
    the Secretary's use in the administration of such programs.
      (8) In the fiscal year 1991 and each succeeding fiscal year, in
    accordance with regulations issued by the Secretary, each State
    shall ensure that the State agency administering the distribution
    of commodities under programs authorized under this chapter and
    under the Richard B. Russell National School Lunch Act [42 U.S.C.
    1751 et seq.] is provided, from funds made available to the State
    under this subsection, an appropriate amount of funds for
    administrative costs incurred in distributing such commodities. In
    developing such regulations, the Secretary may consider the value
    of commodities provided to the State under this chapter and under
    the Richard B. Russell National School Lunch Act.
      (9)(A) If the Secretary determines that the administration of any
    program by a State under this chapter (other than section 1786 of
    this title) or under the Richard B. Russell National School Lunch
    Act (42 U.S.C. 1751 et seq.)(including any requirement to provide
    sufficient training, technical assistance, and monitoring of the
    child and adult care food program under section 17 of that Act (42
    U.S.C. 1766)), or compliance with a regulation issued pursuant to
    either this chapter or such Act, is seriously deficient, and the
    State fails to correct the deficiency within a specified period of
    time, the Secretary may withhold from the State some or all of the
    funds allocated to the State under this section or under section
    13(k)(1) or 17 of the Richard B. Russell National School Lunch Act
    (42 U.S.C. 1761(k)(1) or 1766).
      (B) On a subsequent determination by the Secretary that the
    administration of any program referred to in subparagraph (A), or
    compliance with the regulations issued to carry out the program, is
    no longer seriously deficient and is operated in an acceptable
    manner, the Secretary may allocate some or all of the funds
    withheld under such subparagraph.
    (b) Funds, usage: compensation, benefits, and travel expenses of
      personnel; support services; office equipment; staff development
      Funds paid to a State under subsection (a) of this section may be
    used to pay salaries, including employee benefits and travel
    expenses, for administrative and supervisory personnel; for support
    services; for office equipment; and for staff development.
    (c) Fund adjustment; State administered programs
      If any State agency agrees to assume responsibility for the
    administration of food service programs in nonprofit private
    schools or child care institutions that were previously
    administered by the Secretary, an appropriate adjustment shall be
    made in the administrative funds paid under this section to the
    State not later than the succeeding fiscal year.
    (d) Unused funds; availability for obligation and expenditure, and
      reallocation to other States
      Notwithstanding any other provision of law, funds made available
    to each State under this section shall remain available for
    obligation and expenditure by that State during the fiscal year
    immediately following the fiscal year for which such funds were
    made available. For each fiscal year the Secretary shall establish
    a date by which each State shall submit to the Secretary a plan for
    the disbursement of funds provided under this section for each such
    year, and the Secretary shall reallocate any unused funds, as
    evidenced by such plans, to other States as the Secretary considers
    appropriate.
    (e) State plan; use of funds
      Each State shall submit to the Secretary for approval by October
    1 of the initial fiscal year a plan for the use of State
    administrative expense funds, including a staff formula for State
    personnel, system level supervisory and operating personnel, and
    school level personnel. After submitting the initial plan, a State
    shall be required to submit to the Secretary for approval only a
    substantive change in the plan.
    (f) State funding requirement
      Payments of funds under this section shall be made only to States
    that agree to maintain a level of funding out of State revenues,
    for administrative costs in connection with programs under this
    chapter (except section 1786 of this title) and the Richard B.
    Russell National School Lunch Act [42 U.S.C. 1751 et seq.] (except
    section 13 of that Act [42 U.S.C. 1761]), not less than the amount
    expended or obligated in fiscal year 1977, and that agree to
    participate fully in any studies authorized by the Secretary.
    (g) Authorization of appropriations
      For the fiscal year beginning October 1, 1977, and each
    succeeding fiscal year ending before October 1, 2003, there are
    hereby authorized to be appropriated such sums as may be necessary
    for the purposes of this section.



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