
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-224 Section 243(j)]
[CITE: 42USC1776]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                      CHAPTER 13A--CHILD NUTRITION
 
Sec. 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.), 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.

(Pub. L. 89-642, Sec. 7, Oct. 11, 1966, 80 Stat. 888; Pub. L. 90-302, 
Sec. 4, May 8, 1968, 82 Stat. 119; Pub. L. 91-248, Sec. 5, May 14, 1970, 
84 Stat. 210; Pub. L. 95-166, Sec. 14, Nov. 10, 1977, 91 Stat. 1338; 
Pub. L. 95-627, Sec. 7(a), Nov. 10, 1978, 92 Stat. 3621; Pub. L. 96-499, 
title II, Sec. 201(b), Dec. 5, 1980, 94 Stat. 2600; Pub. L. 97-35, title 
VIII, Secs. 814, 819(e), Aug. 13, 1981, 95 Stat. 531, 533; Pub. L. 99-
500, title III, Secs. 313, 332, Oct. 18, 1986, 100 Stat. 1783-360, 1783-
363, and Pub. L. 99-591, title III, Secs. 313, 332, Oct. 30, 1986, 100 
Stat. 3341-363, 3341-367; Pub. L. 99-661, div. D, title I, Sec. 4103, 
title II, Sec. 4212, Nov. 14, 1986, 100 Stat. 4071, 4075; Pub. L. 101-
147, title I, Sec. 122(a), Nov. 10, 1989, 103 Stat. 893; Pub. L. 102-
512, title I, Sec. 103, Oct. 24, 1992, 106 Stat. 3363; Pub. L. 103-448, 
title I, Sec. 117(a)(2)(B), title II, Sec. 202, Nov. 2, 1994, 108 Stat. 
4717, 4737; Pub. L. 104-193, title VII, Sec. 724, Aug. 22, 1996, 110 
Stat. 2302; Pub. L. 105-336, title II, Sec. 202, Oct. 31, 1998, 112 
Stat. 3158; Pub. L. 106-78, title VII, Sec. 752(b)(16), Oct. 22, 1999, 
113 Stat. 1170.)

                       References in Text

    The Richard B. Russell National School Lunch Act, referred to in 
subsecs. (a) and (f), is act June 4, 1946, ch. 281, 60 Stat. 230, as 
amended, which is classified generally to chapter 13 (Sec. 1751 et seq.) 
of this title. For complete classification of this Act to the Code, see 
Short Title note set out under section 1751 of this title and Tables.

                          Codification

    Pub. L. 99-591 is a corrected version of Pub. L. 99-500.


                               Amendments

    1999--Subsecs. (a), (f). Pub. L. 106-78 substituted ``Richard B. 
Russell National School Lunch Act'' for ``National School Lunch Act'' 
wherever appearing.
    1998--Subsec. (a)(5)(B). Pub. L. 105-336, Sec. 202(a), amended 
subpar. (B) generally, substituting present provisions for provisions 
which related to return of unexpended funds to Secretary and 
reallocation of such funds to provide annual grants to public entities 
and private nonprofit organizations participating in projects under 
former section 1766b of this title.
    Subsec. (a)(6). Pub. L. 105-336, Sec. 202(b), amended par. (6) 
generally. Prior to amendment, par. (6) read as follows: ``Funds 
available to States under this subsection and under section 13(k)(1) of 
the National School Lunch Act shall be used for the costs of 
administration of the programs for which the allocations are made, 
except that States may transfer up to 10 percent of any of the amounts 
allocated among such programs.''
    Subsec. (g). Pub. L. 105-336, Sec. 202(c), substituted ``2003'' for 
``1998''.
    1996--Subsec. (e). Pub. L. 104-193, Sec. 724(b), substituted ``the 
initial fiscal year a plan'' for ``each year an annual plan'' and 
inserted at end ``After submitting the initial plan, a State shall be 
required to submit to the Secretary for approval only a substantive 
change in the plan.''
    Pub. L. 104-193, Sec. 724(a), redesignated subsec. (f) as (e) and 
struck out former subsec. (e) which read as follows: ``The State may use 
a portion of the funds available under this section to assist in the 
administration of the commodity distribution program.''
    Subsecs. (f), (g). Pub. L. 104-193, Sec. 724(a)(2), redesignated 
subsecs. (g) and (i) as (f) and (g), respectively. Former subsec. (f) 
redesignated (e).
    Subsec. (h). Pub. L. 104-193, Sec. 724(a)(1), struck out subsec. (h) 
which read as follows: ``The Secretary may not provide amounts under 
this section to a State for administrative costs incurred in any fiscal 
year unless the State agrees to participate in any study or survey of 
programs authorized under this chapter or the National School Lunch Act 
(42 U.S.C. 1751 et seq.) and conducted by the Secretary.''
    Subsec. (i). Pub. L. 104-193, Sec. 724(a)(2), redesignated subsec. 
(i) as (g).
    1994--Subsec. (a)(5)(B)(i)(I). Pub. L. 103-448, Sec. 117(a)(2)(B), 
substituted ``projects under section 17B of the National School Lunch 
Act'' for ``projects under section 18(c) of the National School Lunch 
Act (42 U.S.C. 1769(c))'' and substituted ``fiscal year 1995 and each 
subsequent fiscal year'' for ``each of fiscal years 1993 and 1994'' in 
two places.
    Subsec. (a)(9). Pub. L. 103-448, Sec. 202(a), added par. (9).
    Subsec. (h). Pub. L. 103-448, Sec. 202(c)(2), added subsec. (h). 
Former subsec. (h) redesignated (i).
    Pub. L. 103-448, Sec. 202(b), substituted ``1998'' for ``1994''.
    Subsec. (i). Pub. L. 103-448, Sec. 202(c)(1), redesignated subsec. 
(h) as (i).
    1992--Subsec. (a)(5)(B)(i). Pub. L. 102-512, Sec. 103(1), 
substituted a colon for ``, the Secretary shall--'' in introductory 
provisions.
    Subsec. (a)(5)(B)(i)(I). Pub. L. 102-512, Sec. 103(2), added subcl. 
(I) and struck out former subcl. (I) which read as follows: ``first 
allocate, for the purpose of providing grants on an annual basis to 
private nonprofit organizations participating in projects under section 
18(f) of the National School Lunch Act, not less than $3,000,000 in the 
fiscal year 1992 and not less than $4,000,000 in each of the fiscal 
years 1993 and 1994; and''.
    Subsec. (a)(5)(B)(i)(II). Pub. L. 102-512, Sec. 103(3), substituted 
``After making the allocations under subclause (I), the Secretary shall 
allocate,'' for ``then allocate,''.
    1989--Subsec. (a)(3). Pub. L. 101-147, Sec. 122(a)(1)(A), inserted 
after first sentence ``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).''
    Subsec. (a)(5) to (8). Pub. L. 101-147, Sec. 122(a)(1)(B)-(D), added 
pars. (5) and (8) and redesignated former pars. (5) and (6) as (6) and 
(7), respectively.
    Subsec. (g). Pub. L. 101-147, Sec. 122(a)(2), inserted before period 
at end ``, and that agree to participate fully in any studies authorized 
by the Secretary''.
    Subsec. (h). Pub. L. 101-147, Sec. 122(a)(3), substituted ``For the 
fiscal year beginning October 1, 1977, and each succeeding fiscal year 
ending before October 1, 1994,'' for ``For the fiscal years beginning 
October 1, 1977, and ending September 30, 1989,''.
    1986--Subsecs. (b) to (g). Pub. L. 99-500 and Pub. L. 99-591, 
Sec. 332, and Pub. L. 99-661, Sec. 4212, amended section identically, 
redesignating subsecs. (c) to (h) as (b) to (g), respectively, and 
striking out former subsec. (b) which read as follows: ``The Secretary, 
in cooperation with the several States, shall develop State staffing 
standards for the administration by each State of sections 4, 11, and 17 
of the National School Lunch Act [42 U.S.C. 1753, 1759a, 1766], and 
sections 1772 and 1773 of this title, that will ensure sufficient staff 
for the planning and administration of programs covered by State 
administrative expenses.''
    Subsecs. (h), (i). Pub. L. 99-500 and Pub. L. 99-591, Secs. 313, 
332(2), and Pub. L. 99-661, Secs. 4103, 4212(2), amended section 
identically, redesignating subsec. (i) as (h) and substituting ``1989'' 
for ``1984''. Former subsec. (h) redesignated (g).
    1981--Subsec. (a). Pub. L. 97-35, Secs. 814(a), 819(e), in par. (1) 
struck out reference to section 1774 of this title, and in par. (2) 
substituted ``1981'' for ``1978'' and struck out reference to section 
1774 of this title.
    Subsec. (b). Pub. L. 97-35, Sec. 819(e), struck out reference to 
section 1774 of this title.
    Subsec. (e). Pub. L. 97-35, Sec. 814(b), substituted provisions 
relating to general availability of unobligated funds during fiscal 
years following the fiscal years for which such funds were made 
available for provisions relating to availability of unobligated funds 
for fiscal year 1979 and for the five succeeding fiscal years.
    1980--Subsec. (e). Pub. L. 96-499, Sec. 201(b)(1), substituted ``and 
for the five succeeding fiscal years'' for ``and the succeeding fiscal 
year''.
    Subsec. (i). Pub. L. 96-499, Sec. 201(b)(2), substituted ``September 
30, 1984'' for ``September 30, 1980''.
    1978--Subsec. (a). Pub. L. 95-627 generally revised and restructured 
subsection and, among other changes, inserted formula for determining 
State allocations for administrative costs incurred under the program 
authorized by section 17 of the National School Lunch Act, authorized 
the State to transfer up to ten percent of any amounts allocated for 
administrative costs of the programs for which such funds were 
allocated, and authorized retention by the Secretary for the Secretary's 
use in administering certain programs, allocations for such programs, 
under this section and section 13(k)(1) of the National School Lunch 
Act.
    1977--Subsecs. (a) to (i). Pub. L. 95-166 added subsecs. (a) to (i) 
and struck out prior provisions authorizing the Secretary to utilize 
appropriated funds for advances to State educational agencies for use 
for administrative expenses, advancing the fund only in necessary 
amounts and for administration of certain activities, and authorizing 
appropriation of necessary sums, now incorporated in subsec. (i) of this 
section.
    1970--Pub. L. 91-248 inserted provisions authorizing Secretary to 
utilize funds appropriated under this section for advances for 
administrative expenses of any other designated State agency as well as 
for those of the State educational agency and in the case of either 
State agency, for its administrative expenses in supervising and giving 
technical assistance to service institutions as well as to local school 
districts.
    1968--Pub. L. 90-302 inserted the programs under sections 1759a and 
1761 of this title to the enumeration of programs in which appropriated 
funds could be used for administrative expenses of local school 
districts in supervising and giving technical assistance and added 
section 1761 to the enumeration of sections covering programs of 
additional activities under which funds could be advanced only in 
amounts and to the extent determined necessary by the Secretary.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-336 effective Oct. 1, 1998, see section 401 
of Pub. L. 105-336, set out as a note under section 1755 of this title.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-448 effective Oct. 1, 1994, see section 401 
of Pub. L. 103-448, set out as a note under section 1755 of this title.


                    Effective Date of 1992 Amendment

    Amendment by Pub. L. 102-512 effective Sept. 30, 1992, see section 
104 of Pub. L. 102-512, set out as a note under section 1769 of this 
title.


                    Effective Date of 1989 Amendment

    Section 122(b) of Pub. L. 101-147 provided that: ``The amendment 
made by subsection (a)(1)(A) [amending this section] shall be effective 
as of October 1, 1989.''


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 
820(a)(4) of Pub. L. 97-35, set out as a note under section 1753 of this 
title.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-627 effective Oct. 1, 1978, see section 14 
of Pub. L. 95-627, set out as a note under section 1755 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1755, 1775 of this title.
