Appendix C Child Nutrition Act of 1966 (42 U.S.C. 1786(m))

Appendix C
Child Nutrition Act of 1966 (42 U.S.C.
1786(m))

G:\COMP\FNS\CHILD NUTRITION ACT OF 1966.XML
51

CHILD NUTRITION ACT OF 1966

Sec. 17

(2) Members of the Council appointed from outside the Department of Agriculture and the Department of Health and Human
Services shall be appointed for terms not exceeding three years.
State and local officials shall serve only during their official tenure,
and the tenure of parent participants shall not exceed two years.
Persons appointed to complete an unexpired term shall serve only
for the remainder of such term.
(3) The Council shall elect a Chairman and a Vice Chairman.
The Council shall meet at the call of the Chairman, but shall meet
at least once a year. Eleven members shall constitute a quorum.
(4) The Secretary shall provide the Council with such technical
and other assistance, including secretarial and clerical assistance,
as may be required to carry out its functions.
(5) Members of the Council shall serve without compensation
but shall be reimbursed for necessary travel and subsistence expenses incurred by them in the performance of the duties of the
Council. Parent participant members of the Council, in addition to
reimbursement for necessary travel and subsistence, shall, at the
discretion of the Secretary, be compensated in advance for other
personal expenses related to participation on the Council, such as
child care expenses and lost wages during scheduled Council meetings.
(l) Foods available under section 416 of the Agriculture Act of
1949 ø(7 U.S.C. 1431)¿, including, but not limited to, dry milk, or
purchased under section 32 of the Act of August 24, 1935 ø(7
U.S.C. 612c)¿ may be donated by the Secretary, at the request of
a State agency, for distribution to programs conducted under this
section. The Secretary may purchase and distribute, at the request
of a State agency, supplemental foods for donation to programs conducted under this section, with appropriated funds, including funds
appropriated under this section.
(m)(1) Subject to the availability of funds appropriated for the
purposes of this subsection, and as specified in this subsection, the
Secretary shall award grants to States that submit State plans
that are approved for the establishment or maintenance of programs designed to provide recipients of assistance under subsection
(c), or those who are on the waiting list to receive the assistance,
with coupons that may be exchanged for fresh, nutritious, unprepared foods at farmers’ markets and (at the option of a State) roadside stands, as defined in the State plans submitted under this
subsection.
(2) A grant provided to any State under this subsection shall
be provided to the chief executive officer of the State, who shall—
(A) designate the appropriate State agency or agencies to
administer the program in conjunction with the appropriate
nonprofit organizations; and
(B) ensure coordination of the program among the appropriate agencies and organizations.
(3) The Secretary shall not make a grant to any State under
this subsection unless the State agrees to provide State, local, or
private funds for the program in an amount that is equal to not
less than 30 percent of the administrative cost of the program,
which may be satisfied from program income or State contributions
that are made for similar programs. The Secretary may negotiate
August 3, 2018

VerDate Nov 24 2008

18:10 Aug 03, 2018

As Amended Through P.L. 111-296, Effective Dec. 13, 2010

Jkt 000000

PO 00000

Frm 00051

Fmt 9001

Sfmt 9001

G:\COMP\FNS\CNAO1.BEL

HOLCPC

G:\COMP\FNS\CHILD NUTRITION ACT OF 1966.XML
Sec. 17

CHILD NUTRITION ACT OF 1966

52

with an Indian State agency a lower percentage of matching funds
than is required under the preceding sentence, but not lower than
10 percent of the administrative cost of the program, if the Indian
State agency demonstrates to the Secretary financial hardship for
the affected Indian tribe, band, group, or council.
(4) Subject to paragraph (6), the Secretary shall establish a formula for determining the amount of the grant to be awarded under
this subsection to each State for which a State plan is approved
under paragraph (6), according to the number of recipients proposed to participate as specified in the State plan. In determining
the amount to be awarded to new States, the Secretary shall rank
order the State plans according to the criteria of operation set forth
in this subsection, and award grants accordingly. The Secretary
shall take into consideration the minimum amount needed to fund
each approved State plan, and need not award grants to each State
that submits a State plan.
(5) Each State that receives a grant under this subsection shall
ensure that the program for which the grant is received complies
with the following requirements:
(A) Individuals who are eligible to receive Federal benefits
under the program shall only be individuals who are receiving
assistance under subsection (c), or who are on the waiting list
to receive the assistance.
(B) Construction or operation of a farmers’ market may not
be carried out using funds—
(i) provided under the grant; or
(ii) required to be provided by the State under paragraph (3).
(C) The value of the Federal share of the benefits received
by any recipient under the program may not be—
(i) less than $10 per year; or
(ii) more than $30 per year.
(D) The coupon issuance process under the program shall
be designed to ensure that coupons are targeted to areas
with—
(i) the highest concentration of eligible individuals;
(ii) the greatest access to farmers’ markets; and
(iii) certain characteristics, in addition to those described in clauses (i) and (ii), that are determined to be relevant by the Secretary and that maximize the availability
of benefits to eligible individuals.
(E) The coupon redemption process under the program
shall be designed to ensure that the coupons may be—
(i) redeemed only by producers authorized by the State
to participate in the program; and
(ii) redeemed only to purchase fresh nutritious unprepared food for human consumption.
(F)(i) Except as provided in clauses (ii) and (iii), the State
may use for administration of the program in any fiscal year
not more than 17 percent of the total amount of program
funds.
(ii) During any fiscal year for which a State receives assistance under this subsection, the Secretary shall permit the
State to use not more than 2 percent of total program funds
August 3, 2018

VerDate Nov 24 2008

18:10 Aug 03, 2018

As Amended Through P.L. 111-296, Effective Dec. 13, 2010

Jkt 000000

PO 00000

Frm 00052

Fmt 9001

Sfmt 9001

G:\COMP\FNS\CNAO1.BEL

HOLCPC

G:\COMP\FNS\CHILD NUTRITION ACT OF 1966.XML
53

CHILD NUTRITION ACT OF 1966

Sec. 17

for market development or technical assistance to farmers’
markets if the Secretary determines that the State intends to
promote the development of farmers’ markets in socially or economically disadvantaged areas, or remote rural areas, where
individuals eligible for participation in the program have limited access to locally grown fruits and vegetables.
(iii) The provisions of clauses (i) and (ii) with respect to the
use of program funds shall not apply to any funds that a State
may contribute in excess of the funds used by the State to
meet the requirements of paragraph (3).
(G) The State shall ensure that no State or local taxes are
collected within the State on purchases of food with coupons
distributed under the program.
(6)(A) The Secretary shall give the same preference for funding
under this subsection to eligible States that participated in the program under this subsection in a prior fiscal year as to States that
participated in the program in the most recent fiscal year. The Secretary shall inform each State of the award of funds as prescribed
by subparagraph (G) by February 15 of each year.
(B)(i) Subject to the availability of appropriations, if a State
provides the amount of matching funds required under paragraph
(3), the State shall receive assistance under this subsection in an
amount that is not less than the amount of such assistance that
the State received in the most recent fiscal year in which it received such assistance.
(ii) If amounts appropriated for any fiscal year pursuant to the
authorization contained in paragraph (10) for grants under this
subsection are not sufficient to pay to each State for which a State
plan is approved under paragraph (6) the amount that the Secretary determines each such State is entitled to under this subsection, each State’s grant shall be ratably reduced, except that (if
sufficient funds are available) each State shall receive at least
$75,000 or the amount that the State received for the prior fiscal
year if that amount is less than $75,000.
(C) In providing funds to a State that received assistance
under this subsection in the previous fiscal year, the Secretary
shall consider—
(i) the availability of any such assistance not spent by the
State during the program year for which the assistance was received;
(ii) documentation that demonstrates that—
(I) there is a need for an increase in funds; and
(II) the use of the increased funding will be consistent
with serving nutritionally at-risk persons and expanding
the awareness and use of farmers’ markets;
(iii) demonstrated ability to satisfactorily operate the existing program; and
(iv) whether, in the case of a State that intends to use any
funding provided under subparagraph (G)(i) 8 to increase the
value of the Federal share of the benefits received by a recipi8 So

in original. Probably should refer to ‘‘subparagraph (F)(i)’’ in both places.

August 3, 2018

VerDate Nov 24 2008

18:10 Aug 03, 2018

As Amended Through P.L. 111-296, Effective Dec. 13, 2010

Jkt 000000

PO 00000

Frm 00053

Fmt 9001

Sfmt 9001

G:\COMP\FNS\CNAO1.BEL

HOLCPC

G:\COMP\FNS\CHILD NUTRITION ACT OF 1966.XML
Sec. 17

CHILD NUTRITION ACT OF 1966

54

ent, the funding provided under subparagraph (G)(i) 8 will increase the rate of coupon redemption.
(D)(i) A State that desires to receive a grant under this subsection shall submit, for each fiscal year, a State plan to the Secretary by November 15 of each year.
(ii) Each State plan submitted under this paragraph shall contain—
(I) the estimated cost of the program and the estimated
number of individuals to be served by the program;
(II) a description of the State plan for complying with the
requirements established in paragraph (5); and
(III) criteria developed by the State with respect to authorization of producers to participate in the program.
(iii) The criteria developed by the State as required by clause
(ii)(III) shall require any authorized producer to sell fresh nutritious unprepared foods (such as fruits and vegetables) to recipients,
in exchange for coupons distributed under the program.
(E) The Secretary shall establish objective criteria for the approval and ranking of State plans submitted under this paragraph.
(F)(i) An amount equal to 75 percent of the funds available
after satisfying the requirements of subparagraph (B) shall be
made available to States participating in the program whose State
plan is approved by the Secretary. If this amount is greater than
that necessary to satisfy the approved State plans, the unallocated
amount shall be applied toward satisfying any unmet need of
States that have not participated in the program in the prior fiscal
year, and whose State plans have been approved.
(ii) An amount equal to 25 percent of the funds available after
satisfying the requirements of subparagraph (B) shall be made
available to States that have not participated in the program in the
prior fiscal year, and whose State plans have been approved by the
Secretary. If this amount is greater than that necessary to satisfy
the approved State plans for new States, the unallocated amount
shall be applied toward satisfying any unmet need of States whose
State plans have been approved.
(iii) In any fiscal year, any funds that remain unallocated after
satisfying the requirements of clauses (i) and (ii) shall be reallocated in the following fiscal year according to procedures established pursuant to paragraph (10)(B)(ii).
(7)(A) The value of the benefit received by any recipient under
any program for which a grant is received under this subsection
may not affect the eligibility or benefit levels for assistance under
other Federal or State programs.
(B) Any programs for which a grant is received under this subsection shall be supplementary to the supplemental nutrition assistance program carried out under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.) and to any other Federal or State program under which foods are distributed to needy families in lieu
of supplemental nutrition assistance program benefits.
(8) For each fiscal year, the Secretary shall collect from each
State that receives a grant under this subsection information relating to—
August 3, 2018

VerDate Nov 24 2008

18:10 Aug 03, 2018

As Amended Through P.L. 111-296, Effective Dec. 13, 2010

Jkt 000000

PO 00000

Frm 00054

Fmt 9001

Sfmt 9001

G:\COMP\FNS\CNAO1.BEL

HOLCPC

G:\COMP\FNS\CHILD NUTRITION ACT OF 1966.XML
55

CHILD NUTRITION ACT OF 1966

Sec. 17

(A) the number and type of recipients served by both Federal and non-Federal benefits under the program for which the
grant is received;
(B) the rate of redemption of coupons distributed under the
program;
(C) the average amount distributed in coupons to each recipient;
(D) the change in consumption of fresh fruits and vegetables by recipients, if the information is available;
(E) the effects of the program on farmers’ markets, if the
information is available; and
(F) any other information determined to be necessary by
the Secretary.
(9) FUNDING.—
(A) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this subsection
such sums as are necessary for each of fiscal years 2010
through 2015.
(B)(i)(I) Each State shall return to the Secretary any funds
made available to the State that are unobligated at the end of the
fiscal year for which the funds were originally allocated. The unexpended funds shall be returned to the Secretary by February 1st
of the following fiscal year.
(II) Notwithstanding any other provision of this subsection, a
total of not more than 5 percent of funds made available to a State
for any fiscal year may be expended by the State to reimburse expenses incurred for a program assisted under this subsection during the preceding fiscal year.
(ii) The Secretary shall establish procedures to reallocate funds
that are returned under clause (i).
(10) For purposes of this subsection:
(A) The term ‘‘coupon’’ means a coupon, voucher, or other
negotiable financial instrument by which benefits under this
section are transferred.
(B) The term ‘‘program’’ means—
(i) the State farmers’ market coupon nutrition program authorized by this subsection (as it existed on September 30, 1991); or
(ii) the farmers’ market nutrition program authorized
by this subsection.
(C) The term ‘‘recipient’’ means a person or household, as
determined by the State, who is chosen by a State to receive
benefits under this subsection, or who is on a waiting list to
receive such benefits.
(D) The term ‘‘State agency’’ has the meaning provided in
subsection (b)(13), except that the term also includes the agriculture department of each State and any other agency approved by the chief executive officer of the State.
(n) DISQUALIFICATION OF VENDORS WHO ARE DISQUALIFIED
UNDER THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.—
(1) IN GENERAL.—The Secretary shall issue regulations
providing criteria for the disqualification under this section of
an approved vendor that is disqualified from accepting benefits
under the supplemental nutrition assistance program estabAugust 3, 2018

VerDate Nov 24 2008

18:10 Aug 03, 2018

As Amended Through P.L. 111-296, Effective Dec. 13, 2010

Jkt 000000

PO 00000

Frm 00055

Fmt 9001

Sfmt 9001

G:\COMP\FNS\CNAO1.BEL

HOLCPC