1.1 A bill for an act
1.2 relating to education; providing free school lunch and breakfast for students;
1.3 appropriating money; amending Minnesota Statutes 2022, sections 124D.111;
1.4 124D.1158; 126C.05, subdivision 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2022, section 124D.111, is amended to read:
1.7 124D.111 SCHOOL MEALS POLICIES; LUNCH AID; FOOD SERVICE
1.8ACCOUNTING.
1.9 Subdivision 1.School meals policies.(a) Each Minnesota participant in the national
1.10school lunch program must adopt and post to its website, or the website of the organization
1.11where the meal is served, a school meals policy.
1.12 (b) The policy must be in writing and clearly communicate student meal charges when
1.13payment cannot be collected at the point of service. The policy must be reasonable and
1.14well-defined and maintain the dignity of students by prohibiting lunch shaming or otherwise
1.15ostracizing the student.
1.16 (c) The policy must address whether the participant uses a collections agency to collect
1.17unpaid school meals debt.
1.18 (d) The policy must ensure that once a participant has placed a meal on a tray or otherwise
1.19served the meal to a student, the meal may not be subsequently withdrawn from the student
1.20by the cashier or other school official, whether or not the student has an outstanding meals
1.21balance.
1Section 1.
REVISOR CM H0005-2HF5 SECOND ENGROSSMENT
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 5
NINETY-THIRD SESSION
Authored by Jordan, Youakim, Clardy, Keeler, Feist and others01/04/2023
The bill was read for the first time and referred to the Committee on Education Policy
Adoption of Report: Re-referred to the Committee on Education Finance01/17/2023
Adoption of Report: Amended and re-referred to the Committee on Ways and Means01/26/2023
Adoption of Report: Placed on the General Register02/01/2023
Read for the Second Time
Calendar for the Day02/09/2023
Read for the Third Time
Passed by the House and transmitted to the Senate
Passed by the Senate as Amended and returned to the House03/16/2023
Returned to the House as Amended by the Senate
Read Third Time as Amended by the Senate
Bill was repassed as Amended by the Senate 2.1 (e) The policy must ensure that a student who has been determined eligible for free and
2.2reduced-price lunch must always be served a reimbursable meal even if the student has an
2.3outstanding debt.
2.4 (f) If a school contracts with a third party for its meal services, it must provide the vendor
2.5with its school meals policy. Any contract between the school and a third-party provider
2.6entered into or modified after July 1, 2021, must ensure that the third-party provider adheres
2.7to the participant's school meals policy.
2.8 Subd. 1a.School lunch aid amounts.Each school year, the state must pay participants
2.9in the national school lunch program either:
2.10 (1) the amount of 12.5 cents for each full paid and free student lunch and 52.5 cents for
2.11each reduced-price lunch served to students; or
2.12 (2) if the school participates in the free school meals program under subdivision 1c, the
2.13amount specified in subdivision 1d.
2.14 Subd. 1b.Application.A school district, charter school, nonpublic school, or other
2.15participant in the national school lunch program must apply to the department for school
2.16meals payments in the manner provided by the department.
2.17 Subd. 1c.Free school meals program.(a) The free school meals program is created
2.18within the Department of Education.
2.19 (b) Each school that participates in the United States Department of Agriculture National
2.20School Lunch program and has an Identified Student Percentage below the federal percentage
2.21determined for all meals to be reimbursed at the free rate via the Community Eligibility
2.22Provision must participate in the free school meals program.
2.23 (c) Each school that participates in the United States Department of Agriculture National
2.24School Lunch program and has an Identified Student Percentage at or above the federal
2.25percentage determined for all meals to be reimbursed at the free rate must participate in the
2.26federal Community Eligibility Provision in order to participate in the free school meals
2.27program.
2.28 (d) Each school that participates in the free school meals program must:
2.29 (1) participate in the United States Department of Agriculture School Breakfast Program
2.30and the United States Department of Agriculture National School Lunch Program; and
2.31 (2) provide to all students at no cost up to two federally reimbursable meals per school
2.32day, with a maximum of one free breakfast and one free lunch.
2Section 1.
REVISOR CM H0005-2HF5 SECOND ENGROSSMENT 3.1 Subd. 1d.Free school meals program aid amount.The department must provide to
3.2every Minnesota school participating in the free school meals program state funding for
3.3each school lunch and breakfast served to a student, with a maximum of one breakfast and
3.4one lunch per student per school day. The state aid equals the difference between the
3.5applicable federal reimbursement rate at that school site for a free meal, as determined
3.6annually by the United States Department of Agriculture, and the actual federal
3.7reimbursement received by the participating school for the breakfast or lunch served to the
3.8student.
3.9 Subd. 2.Application.A school district, charter school, nonpublic school, or other
3.10participant in the national school lunch program shall apply to the department for this
3.11payment on forms provided by the department.
3.12 Subd. 2a.Federal child and adult care food program; criteria and notice.The
3.13commissioner must post on the department's website eligibility criteria and application
3.14information for nonprofit organizations interested in applying to the commissioner for
3.15approval as a multisite sponsoring organization under the federal child and adult care food
3.16program. The posted criteria and information must inform interested nonprofit organizations
3.17about:
3.18 (1) the criteria the commissioner uses to approve or disapprove an application, including
3.19how an applicant demonstrates financial viability for the Minnesota program, among other
3.20criteria;
3.21 (2) the commissioner's process and time line for notifying an applicant when its
3.22application is approved or disapproved and, if the application is disapproved, the explanation
3.23the commissioner provides to the applicant; and
3.24 (3) any appeal or other recourse available to a disapproved applicant.
3.25 Subd. 3.School food service fund.(a) The expenses described in this subdivision must
3.26be recorded as provided in this subdivision.
3.27 (b) In each district, the expenses for a school food service program for pupils must be
3.28attributed to a school food service fund. Under a food service program, the school food
3.29service may prepare or serve milk, meals, or snacks in connection with school or community
3.30service activities.
3.31 (c) Revenues and expenditures for food service activities must be recorded in the food
3.32service fund. The costs of processing applications, accounting for meals, preparing and
3.33serving food, providing kitchen custodial services, and other expenses involving the preparing
3Section 1.
REVISOR CM H0005-2HF5 SECOND ENGROSSMENT 4.1of meals or the kitchen section of the lunchroom may be charged to the food service fund
4.2or to the general fund of the district. The costs of lunchroom supervision, lunchroom custodial
4.3services, lunchroom utilities, and other administrative costs of the food service program
4.4must be charged to the general fund.
4.5 That portion of superintendent and fiscal manager costs that can be documented as
4.6attributable to the food service program may be charged to the food service fund provided
4.7that the school district does not employ or contract with a food service director or other
4.8individual who manages the food service program, or food service management company.
4.9If the cost of the superintendent or fiscal manager is charged to the food service fund, the
4.10charge must be at a wage rate not to exceed the statewide average for food service directors
4.11as determined by the department.
4.12 (d) Capital expenditures for the purchase of food service equipment must be made from
4.13the general fund and not the food service fund, unless the restricted balance in the food
4.14service fund at the end of the last fiscal year is greater than the cost of the equipment to be
4.15purchased.
4.16 (e) If the condition set out in paragraph (d) applies, the equipment may be purchased
4.17from the food service fund.
4.18 (f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit
4.19is not eliminated by revenues from food service operations in the next fiscal year, then the
4.20deficit must be eliminated by a permanent fund transfer from the general fund at the end of
4.21that second fiscal year. However, if a district contracts with a food service management
4.22company during the period in which the deficit has accrued, the deficit must be eliminated
4.23by a payment from the food service management company.
4.24 (g) Notwithstanding paragraph (f), a district may incur a deficit in the food service fund
4.25for up to three years without making the permanent transfer if the district submits to the
4.26commissioner by January 1 of the second fiscal year a plan for eliminating that deficit at
4.27the end of the third fiscal year.
4.28 (h) If a surplus in the food service fund exists at the end of a fiscal year for three
4.29successive years, a district may recode for that fiscal year the costs of lunchroom supervision,
4.30lunchroom custodial services, lunchroom utilities, and other administrative costs of the food
4.31service program charged to the general fund according to paragraph (c) and charge those
4.32costs to the food service fund in a total amount not to exceed the amount of surplus in the
4.33food service fund.
4Section 1.
REVISOR CM H0005-2HF5 SECOND ENGROSSMENT 5.1 Subd. 4.No fees.A participant that receives school lunch aid under this section must
5.2make lunch available without charge and must not deny a school lunch to all participating
5.3students who qualify for free or reduced-price meals, whether or not that student has an
5.4outstanding balance in the student's meals account attributable to a la carte purchases or for
5.5any other reason.
5.6 Subd. 5.Respectful treatment.(a) The participant must also provide meals to students
5.7in a respectful manner according to the policy adopted under subdivision 1. The participant
5.8must ensure that any reminders for payment of outstanding student meal balances do not
5.9demean or stigmatize any child participating in the school lunch program, including but not
5.10limited to dumping meals, withdrawing a meal that has been served, announcing or listing
5.11students' names publicly, or affixing stickers, stamps, or pins. The participant must not
5.12impose any other restriction prohibited under section 123B.37 due to unpaid student meal
5.13balances. The participant must not limit a student's participation in any school activities,
5.14graduation ceremonies, field trips, athletics, activity clubs, or other extracurricular activities
5.15or access to materials, technology, or other items provided to students due to an unpaid
5.16student meal balance.
5.17 (b) If the commissioner or the commissioner's designee determines a participant has
5.18violated the requirement to provide meals to participating students in a respectful manner,
5.19the commissioner or the commissioner's designee must send a letter of noncompliance to
5.20the participant. The participant is required to respond and, if applicable, remedy the practice
5.21within 60 days.
5.22 EFFECTIVE DATE.This section is effective for meals provided on or after July 1,
5.232023.
5.24 Sec. 2. Minnesota Statutes 2022, section 124D.1158, is amended to read:
5.25 124D.1158 SCHOOL BREAKFAST PROGRAM.
5.26 Subdivision 1.Purpose; eligibility.(a) The purpose of the school breakfast program is
5.27to provide affordable morning nutrition to children so that they can effectively learn. Public
5.28and
5.29 (b) A school district, charter school, nonpublic schools that participate school, or other
5.30participant in the federal school breakfast program may receive state breakfast aid.
5.31 (c) Schools shall encourage all children to eat a nutritious breakfast, either at home or
5.32at school, and shall work to eliminate barriers to breakfast participation at school such as
5.33inadequate facilities and transportation.
5Sec. 2.
REVISOR CM H0005-2HF5 SECOND ENGROSSMENT 6.1 Subd. 2.Program; eligibility.Each school year, public and nonpublic schools that
6.2participate in the federal school breakfast program are eligible for the state breakfast program.
6.3 Subd. 3.Program reimbursement.Each school year, the state must reimburse each
6.4participating school either:
6.5 (1) 30 cents for each reduced-price breakfast, 55 cents for each fully paid breakfast
6.6served to students in grades 1 to 12, and $1.30 for each fully paid breakfast served to a
6.7prekindergarten student enrolled in an approved voluntary prekindergarten program under
6.8section 124D.151 or a kindergarten student; or
6.9 (2) if the school participates in the free school meals program under section 124D.111,
6.10subdivision 1c, state aid as provided in section 124D.111, subdivision 1d.
6.11 Subd. 4.No fees.A school that receives school breakfast aid under this section must
6.12make breakfast available without charge to all participating students in grades 1 to 12 who
6.13qualify for free or reduced-price meals and to all prekindergarten students enrolled in an
6.14approved voluntary prekindergarten program under section 124D.151 and all kindergarten
6.15students.
6.16 Sec. 3. Minnesota Statutes 2022, section 126C.05, subdivision 3, is amended to read:
6.17 Subd. 3.Compensation revenue pupil units.Compensation revenue pupil units must
6.18be computed according to this subdivision.
6.19 (a) The compensation revenue concentration percentage for each building in a district
6.20equals the product of 100 times the ratio of:
6.21 (1) the sum of the number of pupils enrolled in the building eligible to receive free lunch
6.22plus one-half of the pupils eligible to receive reduced priced lunch on October 1 of the
6.23previous fiscal year; to
6.24 (2) the number of pupils enrolled in the building on October 1 of the previous fiscal
6.25year.
6.26 (b) The compensation revenue pupil weighting factor for a building equals the lesser of
6.27one or the quotient obtained by dividing the building's compensation revenue concentration
6.28percentage by 80.0.
6.29 (c) The compensation revenue pupil units for a building equals the product of:
6.30 (1) the sum of the number of pupils enrolled in the building eligible to receive free lunch
6.31and one-half of the pupils eligible to receive reduced priced lunch on October 1 of the
6.32previous fiscal year; times
6Sec. 3.
REVISOR CM H0005-2HF5 SECOND ENGROSSMENT 7.1 (2) the compensation revenue pupil weighting factor for the building; times
7.2 (3) .60.
7.3 (d) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten programs under
7.4section 124D.151, charter schools, and contracted alternative programs in the first year of
7.5operation, compensation revenue pupil units shall be computed using data for the current
7.6fiscal year. If the voluntary prekindergarten program, charter school, or contracted alternative
7.7program begins operation after October 1, compensatory revenue pupil units shall be
7.8computed based on pupils enrolled on an alternate date determined by the commissioner,
7.9and the compensation revenue pupil units shall be prorated based on the ratio of the number
7.10of days of student instruction to 170 days.
7.11 (e) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten seats discontinued
7.12in fiscal year 2024 due to the reduction in the participation limit under section 124D.151,
7.13subdivision 6, those discontinued seats must not be used to calculate compensation revenue
7.14pupil units for fiscal year 2024.
7.15 (f) The percentages in this subdivision must be based on the count of individual pupils
7.16and not on a building average or minimum.
7.17 (g) Notwithstanding paragraphs (a) to (f), for revenue in fiscal year 2025 only, the
7.18compensation revenue pupil units for each building in a district equals the greater of the
7.19building's actual compensation revenue pupil units computed according to paragraphs (a)
7.20to (f) for revenue in fiscal year 2025, or the building's actual compensation revenue pupil
7.21units computed according to paragraphs (a) to (f) for revenue in fiscal year 2024.
7.22 Sec. 4. APPROPRIATION; SCHOOL MEALS.
7.23 Subdivision 1.Department of Education.The sums indicated in this section are
7.24appropriated from the general fund to the Department of Education in the fiscal year
7.25designated.
7.26 Subd. 2.School lunch.For school lunch aid under Minnesota Statutes, section 124D.111,
7.27including the amounts for the free school meals program:
2024.....190,863,0007.28 $
2025.....197,902,0007.29 $
7.30 Subd. 3.School breakfast.For school breakfast aid under Minnesota Statutes, section
7.31124D.1158:
7Sec. 4.
REVISOR CM H0005-2HF5 SECOND ENGROSSMENT 2024.....25,731,0008.1 $
2025.....26,538,0008.2 $
8.3 Subd. 4.Administrative costs.(a) For onetime and ongoing administrative costs
8.4necessary to implement the free school meals program:
2023.....400,0008.5 $
2024.....08.6 $
2025.....202,0008.7 $
8.8 (b) The fiscal year 2023 appropriation does not cancel but is available until June 30,
8.92025.
8.10 (c) The base for fiscal year 2026 and later is $202,000.
8.11 Subd. 5.Additional general education aid.(a) For additional general education aid
8.12under Minnesota Statutes, section 126C.13, subdivision 4, for compensatory revenue under
8.13section 3:
2025.....5,434,0008.14 $
8.15 (b) The aid for fiscal year 2026 is $604,000. The base for fiscal year 2027 and later is
8.16$0.
8.17 EFFECTIVE DATE.This section is effective the day following final enactment.
8Sec. 4.
REVISOR CM H0005-2HF5 SECOND ENGROSSMENT