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HF 5

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/27/2023 09:27am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to education; providing free school lunch and breakfast for students;
appropriating money; amending Minnesota Statutes 2022, sections 124D.111;
124D.1158; 126C.05, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 124D.111, is amended to read:


124D.111 SCHOOL MEALS POLICIES; LUNCH AID; FOOD SERVICE
ACCOUNTING.

Subdivision 1.

School meals policies.

(a) Each Minnesota participant in the national
school lunch program must adopt and post to its website, or the website of the organization
where the meal is served, a school meals policy.

(b) The policy must be in writing and clearly communicate student meal charges when
payment cannot be collected at the point of service. The policy must be reasonable and
well-defined and maintain the dignity of students by prohibiting lunch shaming or otherwise
ostracizing the student.

(c) The policy must address whether the participant uses a collections agency to collect
unpaid school meals debt.

(d) The policy must ensure that once a participant has placed a meal on a tray or otherwise
served the meal to a student, the meal may not be subsequently withdrawn from the student
by the cashier or other school official, whether or not the student has an outstanding meals
balance.

(e) The policy must ensure that a student who has been determined eligible for free and
reduced-price lunch must always be served a reimbursable meal even if the student has an
outstanding debt.

(f) If a school contracts with a third party for its meal services, it must provide the vendor
with its school meals policy. Any contract between the school and a third-party provider
entered into or modified after July 1, 2021, must ensure that the third-party provider adheres
to the participant's school meals policy.

Subd. 1a.

School lunch aid amounts.

Each school year, the state must pay participants
in the national school lunch program new text begineither:
new text end

new text begin (1) new text endthe amount of 12.5 cents for each full paid and free student lunch and 52.5 cents for
each reduced-price lunch served to studentsnew text begin; or
new text end

new text begin (2) if the school participates in the free school meals program under subdivision 1c, the
amount specified in subdivision 1d
new text end.

new text begin Subd. 1b. new text end

new text begin Application. new text end

new text begin A school district, charter school, nonpublic school, or other
participant in the national school lunch program must apply to the department for school
meals payments in the manner provided by the department.
new text end

new text begin Subd. 1c. new text end

new text begin Free school meals program. new text end

new text begin (a) The free school meals program is created
within the Department of Education.
new text end

new text begin (b) Each school that participates in the United States Department of Agriculture National
School Lunch program and has an Identified Student Percentage below the federal percentage
determined for all meals to be reimbursed at the free rate via the Community Eligibility
Provision must participate in the free school meals program.
new text end

new text begin (c) Each school that participates in the United States Department of Agriculture National
School Lunch program and has an Identified Student Percentage at or above the federal
percentage determined for all meals to be reimbursed at the free rate must participate in the
federal Community Eligibility Provision in order to participate in the free school meals
program.
new text end

new text begin (d) Each school that participates in the free school meals program must:
new text end

new text begin (1) participate in the United States Department of Agriculture School Breakfast Program
and the United States Department of Agriculture National School Lunch Program; and
new text end

new text begin (2) provide to all students at no cost up to two federally reimbursable meals per school
day, with a maximum of one free breakfast and one free lunch.
new text end

new text begin Subd. 1d. new text end

new text begin Free school meals program aid amount. new text end

new text begin The department must provide to
every Minnesota school participating in the free school meals program state funding for
each school lunch and breakfast served to a student, with a maximum of one breakfast and
one lunch per student per school day. The state aid equals the difference between the
applicable federal reimbursement rate at that school site for a free meal, as determined
annually by the United States Department of Agriculture, and the actual federal
reimbursement received by the participating school for the breakfast or lunch served to the
student.
new text end

deleted text begin Subd. 2. deleted text end

deleted text begin Application. deleted text end

deleted text begin A school district, charter school, nonpublic school, or other
participant in the national school lunch program shall apply to the department for this
payment on forms provided by the department.
deleted text end

Subd. 2a.

Federal child and adult care food program; criteria and notice.

The
commissioner must post on the department's website eligibility criteria and application
information for nonprofit organizations interested in applying to the commissioner for
approval as a multisite sponsoring organization under the federal child and adult care food
program. The posted criteria and information must inform interested nonprofit organizations
about:

(1) the criteria the commissioner uses to approve or disapprove an application, including
how an applicant demonstrates financial viability for the Minnesota program, among other
criteria;

(2) the commissioner's process and time line for notifying an applicant when its
application is approved or disapproved and, if the application is disapproved, the explanation
the commissioner provides to the applicant; and

(3) any appeal or other recourse available to a disapproved applicant.

Subd. 3.

School food service fund.

(a) The expenses described in this subdivision must
be recorded as provided in this subdivision.

(b) In each district, the expenses for a school food service program for pupils must be
attributed to a school food service fund. Under a food service program, the school food
service may prepare or serve milk, meals, or snacks in connection with school or community
service activities.

(c) Revenues and expenditures for food service activities must be recorded in the food
service fund. The costs of processing applications, accounting for meals, preparing and
serving food, providing kitchen custodial services, and other expenses involving the preparing
of meals or the kitchen section of the lunchroom may be charged to the food service fund
or to the general fund of the district. The costs of lunchroom supervision, lunchroom custodial
services, lunchroom utilities, and other administrative costs of the food service program
must be charged to the general fund.

That portion of superintendent and fiscal manager costs that can be documented as
attributable to the food service program may be charged to the food service fund provided
that the school district does not employ or contract with a food service director or other
individual who manages the food service program, or food service management company.
If the cost of the superintendent or fiscal manager is charged to the food service fund, the
charge must be at a wage rate not to exceed the statewide average for food service directors
as determined by the department.

(d) Capital expenditures for the purchase of food service equipment must be made from
the general fund and not the food service fund, unless the restricted balance in the food
service fund at the end of the last fiscal year is greater than the cost of the equipment to be
purchased.

(e) If the condition set out in paragraph (d) applies, the equipment may be purchased
from the food service fund.

(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit
is not eliminated by revenues from food service operations in the next fiscal year, then the
deficit must be eliminated by a permanent fund transfer from the general fund at the end of
that second fiscal year. However, if a district contracts with a food service management
company during the period in which the deficit has accrued, the deficit must be eliminated
by a payment from the food service management company.

(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service fund
for up to three years without making the permanent transfer if the district submits to the
commissioner by January 1 of the second fiscal year a plan for eliminating that deficit at
the end of the third fiscal year.

(h) If a surplus in the food service fund exists at the end of a fiscal year for three
successive years, a district may recode for that fiscal year the costs of lunchroom supervision,
lunchroom custodial services, lunchroom utilities, and other administrative costs of the food
service program charged to the general fund according to paragraph (c) and charge those
costs to the food service fund in a total amount not to exceed the amount of surplus in the
food service fund.

Subd. 4.

No fees.

A participant that receives school lunch aid under this section must
make lunch available without charge and must not deny a school lunch to all participating
students who qualify for free or reduced-price meals, whether or not that student has an
outstanding balance in the student's meals account deleted text beginattributable to a la carte purchases or for
any other reason
deleted text end.

Subd. 5.

Respectful treatment.

(a) The participant must also provide meals to students
in a respectful manner according to the policy adopted under subdivision 1. The participant
must ensure that any reminders for payment of outstanding student meal balances do not
demean or stigmatize any child participating in the school lunch program, including but not
limited to dumping meals, withdrawing a meal that has been served, announcing or listing
students' names publicly, or affixing stickers, stamps, or pins. The participant must not
impose any other restriction prohibited under section 123B.37 due to unpaid student meal
balances. The participant must not limit a student's participation in any school activities,
graduation ceremonies, field trips, athletics, activity clubs, or other extracurricular activities
or access to materials, technology, or other items provided to students due to an unpaid
student meal balance.

(b) If the commissioner or the commissioner's designee determines a participant has
violated the requirement to provide meals to participating students in a respectful manner,
the commissioner or the commissioner's designee must send a letter of noncompliance to
the participant. The participant is required to respond and, if applicable, remedy the practice
within 60 days.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for meals provided on or after July 1,
2023.
new text end

Sec. 2.

Minnesota Statutes 2022, section 124D.1158, is amended to read:


124D.1158 SCHOOL BREAKFAST PROGRAM.

Subdivision 1.

Purposenew text begin; eligibilitynew text end.

new text begin(a) new text endThe purpose of the school breakfast program is
to provide affordable morning nutrition to children so that they can effectively learn. deleted text beginPublic
and
deleted text end

new text begin (b) A school district, charter school,new text end nonpublic deleted text beginschools that participatedeleted text endnew text begin school, or other
participant
new text end in the federal school breakfast program may receive state breakfast aid.

new text begin (c)new text end Schools shall encourage all children to eat a nutritious breakfast, either at home or
at school, and shall work to eliminate barriers to breakfast participation at school such as
inadequate facilities and transportation.

deleted text begin Subd. 2. deleted text end

deleted text begin Program; eligibility. deleted text end

deleted text begin Each school year, public and nonpublic schools that
participate in the federal school breakfast program are eligible for the state breakfast program.
deleted text end

Subd. 3.

Program reimbursement.

Each school year, the state must reimburse each
participating school new text begineither:
new text end

new text begin (1) new text end30 cents for each reduced-price breakfast, 55 cents for each fully paid breakfast
served to students in grades 1 to 12, and $1.30 for each fully paid breakfast served to a
prekindergarten student enrolled in an approved voluntary prekindergarten program under
section 124D.151 or a kindergarten studentnew text begin; or
new text end

new text begin (2) if the school participates in the free school meals program under section 124D.111,
subdivision 1c, state aid as provided in section 124D.111, subdivision 1d
new text end.

Subd. 4.

No fees.

A school that receives school breakfast aid under this section must
make breakfast available without charge to all participating students in grades 1 to 12 who
qualify for free or reduced-price meals and to all prekindergarten students enrolled in an
approved voluntary prekindergarten program under section 124D.151 and all kindergarten
students.

Sec. 3.

Minnesota Statutes 2022, section 126C.05, subdivision 3, is amended to read:


Subd. 3.

Compensation revenue pupil units.

Compensation revenue pupil units must
be computed according to this subdivision.

(a) The compensation revenue concentration percentage for each building in a district
equals the product of 100 times the ratio of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch
plus one-half of the pupils eligible to receive reduced priced lunch on October 1 of the
previous fiscal year; to

(2) the number of pupils enrolled in the building on October 1 of the previous fiscal
year.

(b) The compensation revenue pupil weighting factor for a building equals the lesser of
one or the quotient obtained by dividing the building's compensation revenue concentration
percentage by 80.0.

(c) The compensation revenue pupil units for a building equals the product of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch
and one-half of the pupils eligible to receive reduced priced lunch on October 1 of the
previous fiscal year; times

(2) the compensation revenue pupil weighting factor for the building; times

(3) .60.

(d) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten programs under
section 124D.151, charter schools, and contracted alternative programs in the first year of
operation, compensation revenue pupil units shall be computed using data for the current
fiscal year. If the voluntary prekindergarten program, charter school, or contracted alternative
program begins operation after October 1, compensatory revenue pupil units shall be
computed based on pupils enrolled on an alternate date determined by the commissioner,
and the compensation revenue pupil units shall be prorated based on the ratio of the number
of days of student instruction to 170 days.

(e) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten seats discontinued
in fiscal year 2024 due to the reduction in the participation limit under section 124D.151,
subdivision 6, those discontinued seats must not be used to calculate compensation revenue
pupil units for fiscal year 2024.

(f) The percentages in this subdivision must be based on the count of individual pupils
and not on a building average or minimum.

new text begin (g) Notwithstanding paragraphs (a) to (f), for revenue in fiscal year 2025 only, the
compensation revenue pupil units for each building in a district equals the greater of the
building's actual compensation revenue pupil units computed according to paragraphs (a)
to (f) for revenue in fiscal year 2025, or the building's actual compensation revenue pupil
units computed according to paragraphs (a) to (f) for revenue in fiscal year 2024.
new text end

Sec. 4. new text beginAPPROPRIATION; SCHOOL MEALS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education in the fiscal year
designated.
new text end

new text begin Subd. 2. new text end

new text begin School lunch. new text end

new text begin For school lunch aid under Minnesota Statutes, section 124D.111,
including the amounts for the free school meals program:
new text end

new text begin $
new text end
new text begin 190,863,000
new text end
new text begin .....
new text end
new text begin 2024
new text end
new text begin $
new text end
new text begin 197,902,000
new text end
new text begin .....
new text end
new text begin 2025
new text end

new text begin Subd. 3. new text end

new text begin School breakfast. new text end

new text begin For school breakfast aid under Minnesota Statutes, section
124D.1158:
new text end

new text begin $
new text end
new text begin 25,731,000
new text end
new text begin .....
new text end
new text begin 2024
new text end
new text begin $
new text end
new text begin 26,538,000
new text end
new text begin .....
new text end
new text begin 2025
new text end

new text begin Subd. 4. new text end

new text begin Administrative costs. new text end

new text begin (a) For onetime and ongoing administrative costs
necessary to implement the free school meals program:
new text end

new text begin $
new text end
new text begin 400,000
new text end
new text begin .....
new text end
new text begin 2023
new text end
new text begin $
new text end
new text begin 0
new text end
new text begin .....
new text end
new text begin 2024
new text end
new text begin $
new text end
new text begin 202,000
new text end
new text begin .....
new text end
new text begin 2025
new text end

new text begin (b) The fiscal year 2023 appropriation does not cancel but is available until June 30,
2025.
new text end

new text begin (c) The base for fiscal year 2026 and later is $202,000.
new text end

new text begin Subd. 5. new text end

new text begin Additional general education aid. new text end

new text begin (a) For additional general education aid
under Minnesota Statutes, section 126C.13, subdivision 4, for compensatory revenue under
section 3:
new text end

new text begin $
new text end
new text begin 5,434,000
new text end
new text begin .....
new text end
new text begin 2025
new text end

new text begin (b) The aid for fiscal year 2026 is $604,000. The base for fiscal year 2027 and later is
$0.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end