GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2017

H                                                                                                                                                   D

HOUSE BILL DRH40514-MTa-10   (01/05)

 

 

 

Short Title:      Free Breakfast and Lunch in K-12 Pub. Schools.

(Public)

Sponsors:

Representative Brockman.

Referred to:

 

 

A BILL TO BE ENTITLED

AN ACT TO APPROPRIATE FUNDS TO PROVIDE FREE BREAKFAST AND LUNCH TO STUDENTS attending k‑12 public schools.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 115C‑263 reads as rewritten:

"§ 115C‑263.  Required provision of services.

As a part of the function of the public school system, local boards of education shall provide to the extent practicable school food nutrition services in the schools under their jurisdiction. Meals shall include breakfast and lunch at no cost to students. All school food nutrition services made available under this authority shall be provided in accordance with standards and regulations recommended by the Superintendent of Public Instruction and approved by the State Board of Education.established by the Food and Nutrition Service of the United States Department of Agriculture."

SECTION 2.  G.S. 115C‑264 reads as rewritten:

"§ 115C‑264.  Operation.

(a)        In the operation of their public school nutrition programs, the public schools shall participate in the School Breakfast Program and the National School Lunch Program established by the federal government. government and administered by the Department of Public Instruction. The program shall be under the jurisdiction of the Division of School Support, Child Nutrition Services Safe and Healthy Schools Support, School Nutrition Services, of the Department of Public Instruction and in accordance with federal guidelines as established by the Food and Nutrition Service of the United States Department of Agriculture. Instruction. The Department of Public Instruction shall allocate sufficient supplementary funds to the local school administrative units to provide free breakfast for every student who elects to receive free breakfast and free lunch for every student who elects to receive free lunch. Taking into account funds provided toward the cost of breakfast and lunch for students under the National School Lunch Program, the School Breakfast Program, any other federally assisted school nutrition program, or any program operated by a local school administrative unit, the supplementary funds provided by the Department shall be sufficient to ensure that each local school administrative unit is compensated for each participating student up to the federal free meal reimbursement rate.

(b)        For nutritional purposes, the public schools shall not (i) use cooking oils in their school food nutrition programs that contain trans‑fatty acids or (ii) sell processed foods containing trans‑fatty acids that were formed during the commercial processing of the foods.

(c)        All school food nutrition services shall be operated on a nonprofit basis, and any earnings therefrom over and above the cost of operation as defined herein shall be used to reduce the cost of food, to serve better healthier food, or to provide free or reduced‑price lunches to indigent children breakfast and lunch to students and for no other purpose. The term "cost of operation" means the actual cost incurred in the purchase and preparation of food, the salaries of all personnel directly engaged employed in providing food school nutrition services, and the cost of nonfood supplies as outlined under standards adopted by the State Board of Education. "Personnel" means child nutrition supervisors or directors, bookkeepers persons directly engaged employed in food service record keeping and those persons directly involved in preparing and serving food. Child the operation of the school nutrition program in the local school administrative unit. School nutrition personnel shall be paid from the funds of food services school nutrition services only for services rendered in behalf of the child school nutrition program. Any cost incurred in the provisions and maintenance of school food services over and beyond the cost of operation shall be included in the budget request filed annually by local boards of education with boards of county commissioners. Public schools are not required to comply with G.S. 115C‑522(a) in the purchase of supplies and food for such school food nutrition services."

SECTION 3.  Article 14A of Chapter 115C of the General Statutes is amended by adding a new section to read:

"§ 115C‑218.4.  Charter school nutrition.

(a)        The charter school may provide school nutrition services for enrolled students by participating in the federally assisted school nutrition programs. All school nutrition services provided at the school shall meet the same standards and regulations described in G.S. 115C‑263. The Department of Public Instruction shall allocate sufficient supplementary funds to the charter school to provide free breakfast for every student who elects to receive free breakfast and free lunch for every student who elects to receive free lunch. Taking into account funds provided toward the cost of breakfast and lunch for students under the National School Lunch Program, the School Breakfast Program, any other federally assisted school nutrition program, or any program operated by a local school administrative unit, the supplementary funds provided by the Department shall be sufficient to ensure that the charter school is compensated for each participating student up to the federal free meal reimbursement rate."

SECTION 4.  Article 17 of Chapter 115C of the General Statutes is amended by adding a new Part to read:

"Part 4. The North Carolina School Breakfast and Lunch Fund.

"§ 115C‑266.  North Carolina School Breakfast and Lunch Fund established; source of funding.

(a)        Establishment of the Fund. – The North Carolina School Breakfast and Lunch Fund is established as a special revenue fund to provide financing for breakfast and lunch for students in public schools, including cooperative innovative high schools, regional schools, charter schools, and lab schools. All expenses of administering the Fund shall be paid from the Fund and not from the General Fund. Any interest generated by the Fund is credited to the Fund. The State Board of Education shall administer the Fund through the Department of Public Instruction.

(b)        Source of Funding. – Money received from all of the following sources must be deposited in the North Carolina School Breakfast and Lunch Fund:

(1)        Designations made to the Fund by individual taxpayers pursuant to G.S. 105‑159.3.

(2)        Voluntary donations made directly to the Fund.

(c)        Determinations of Fund Amount. – By December 15, 2018, and every year thereafter, the State Board of Education shall prepare and provide to the Joint Legislative Education Oversight Committee of the General Assembly a report documenting, evaluating, and making recommendations relating to the administration, implementation, and enforcement of this Part. In its report, the State Board shall set out the funds received to date and the expected needs of the Fund in the next school year.

"§ 115C‑267.  Administration of the Fund.

(a)        Estimated Number of Participants; Reporting. – Prior to the beginning of the school year, each local school administrative unit and participating charter school shall survey its students to determine how many students elect to receive free breakfast or lunch. Within 30 days of the beginning of the school year, the local school administrative unit or charter school shall report this information to the Department of Public Instruction.

(b)        Timing of Fund Distribution. – The Department of Public Instruction shall reimburse local school administrative units and participating charter schools from the Fund within 30 business days of receipt from the local school administrative unit or charter school of a request for reimbursement for breakfast or lunch.

(c)        Use of Funds. – Monies in the fund shall be used to fund breakfasts and lunches for students electing to receive those meals. If the money in the fund is insufficient to fully fund all breakfasts and lunches for all students electing to receive those meals over the course of the year, the State Board of Education shall use additional State funds provided for this purpose. It is the intent of the General Assembly to fund any shortfall.

(d)       Reimbursement of Funds. – The Department of Public Instruction shall reimburse local school administrative units and charter schools each month pursuant to G.S. 115C‑264(a) for all breakfasts and lunches served in each respective local school administrative unit or charter school. The State Board shall use a rapid, reliable method of reimbursing local school administrative units and charter schools for these amounts. In all cases, the State Board shall distribute funds to local school administrative units in a manner that is expeditious, ensures accountability, and safeguards the integrity of the Fund."

SECTION 5.(a)  Part 2 of Article 4 of Subchapter I of Chapter 105 of the General Statutes is amended by adding a new section to read:

"§ 105‑159.3.  Designation of tax to North Carolina School Breakfast and Lunch Fund.

(a)        Allocation to the North Carolina School Breakfast and Lunch Fund. – To ensure the financial viability of the North Carolina School Breakfast and Lunch Fund established in Part 4 of Article 17 of Chapter 115C of the General Statutes, the Department must allocate to that Fund three dollars ($3.00) from the income taxes paid each year by each individual with an income tax liability of at least that amount, if the individual agrees. A taxpayer must be given the opportunity to indicate an agreement or objection to that allocation in the manner described in subsection (b) of this section. In the case of a married couple filing a joint return, each individual must have the option of agreeing or objecting to the allocation. The amounts allocated under this subsection to the Fund must be credited to it on a monthly basis.

(b)        Returns. – Individual income tax returns must give an individual an opportunity to agree to the allocation of three dollars ($3.00) of the individual's tax liability to the North Carolina School Breakfast and Lunch Fund. The Department must make it clear to the taxpayer that the dollars will support financing for breakfast and lunch for students in public schools, including cooperative innovative high schools, regional schools, charter schools, and lab schools, and that allocation of the dollars neither increases nor decreases the individual's tax liability. The following statement must be used to meet this requirement: "Mark "Yes" if you want to designate $3.00 of taxes to this special Fund for providing financing, including administrative costs, for free breakfast and lunch meals to students in public schools, including cooperative innovative high schools, regional schools, charter schools, and lab schools. Marking "Yes" does not change your tax or refund." The Department must consult with the State Board of Education to ensure that the information given to taxpayers complies with the intent of this section.

The Department must inform the entities it approves to reproduce the return that they must comply with the requirements of this section and that a return may not reflect an agreement or objection unless the individual completing the return decided to agree or object after being presented with the statement required by subsection (b) of this section and, as available background information or instructions, the information required by subsection (c) of this section. No software package used in preparing North Carolina income tax returns may default to an agreement or objection. A paid preparer of tax returns may not mark an agreement or objection for a taxpayer without the taxpayer's consent.

(c)        Instructions. – The instruction for individual income tax returns must include the following explanatory statement: "The North Carolina School Breakfast and Lunch Fund provides an alternative source of funding to offset the costs of breakfast and lunch meals for students attending public school. Three dollars from the taxes you pay will go to the Fund if you mark an agreement. Regardless of what choice you make, your tax will not increase, nor will any refund be reduced.""

SECTION 5.(b)  This section is effective for taxes imposed for taxable years beginning on or after January 1, 2017.

SECTION 6.  There is appropriated from the General Fund to the Department of Public Instruction the sum of two hundred million dollars ($200,000,000) in nonrecurring funds for the 2017‑2018 fiscal year to provide free breakfast and lunch for students in public schools, including cooperative innovative high schools, regional schools, charter schools, and lab schools, for the 2017‑2018 school year and the sum of two hundred million dollars ($200,000,000) in recurring funds for the 2018‑2019 school year to supplement the Fund established pursuant to Section 4 of this act.

SECTION 7.  Except as otherwise provided, this act becomes effective July 1, 2017, and applies beginning with the 2017‑2018 school year.