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Child Nutrition and WIC Child Nutrition and WIC Reauthorization Act of 2004Reauthorization Act of 2004

Public Law 108-265Public Law 108-265

An OrientationAn Orientation

Part 1Part 1

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An Overview of the Child An Overview of the Child Nutrition Reauthorization ActNutrition Reauthorization Act

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Reauthorization Act 2004 Reauthorization Act 2004 BackgroundBackground

• Every 4-5 years Congress revisits the laws that Every 4-5 years Congress revisits the laws that govern the school meals programs.govern the school meals programs.

• The Administration also uses the The Administration also uses the reauthorization process to recommend changes.reauthorization process to recommend changes.

• The sum of the changes was intended to be cost The sum of the changes was intended to be cost neutral.neutral.

• Cost neutrality means major revisions must Cost neutrality means major revisions must have increases balanced by savings.have increases balanced by savings.

• Savings found in provisions to address over-Savings found in provisions to address over-certification and to streamline the programs.certification and to streamline the programs.

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Reauthorization Act 2004 Reauthorization Act 2004 Background (Cont.)Background (Cont.)

• The Administration grouped issues into three The Administration grouped issues into three categories: categories: – Program Access Program Access – Healthy School EnvironmentHealthy School Environment– Program Integrity.Program Integrity.

• President signed Child Nutrition and WIC President signed Child Nutrition and WIC Reauthorization Act of 2004 on June 30, 2004.Reauthorization Act of 2004 on June 30, 2004.

• Public Law 108-265.Public Law 108-265.

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Regulatory Regulatory

ProcessProcess

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Regulatory ProcessRegulatory Process

More than twenty new rules will More than twenty new rules will result from the Actresult from the Act

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Reauthorization Act 2004:Reauthorization Act 2004:Types of RulesTypes of Rules

TypesTypes

• Proposed Proposed

• InterimInterim

• FinalFinal

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Reauthorization Act 2004:Reauthorization Act 2004:Proposed RulesProposed Rules

• Complex or controversial issuesComplex or controversial issues

• DiscretionaryDiscretionary

• Not in effect until final rule issuedNot in effect until final rule issued

• Comments Comments

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Reauthorization Act 2004:Reauthorization Act 2004:Interim RulesInterim Rules

• Congress gave USDA authority to Congress gave USDA authority to implementimplement

• Go into effect 30 days after Go into effect 30 days after publication or as specified in rulepublication or as specified in rule

• Comments solicited Comments solicited

• Review and address comments Review and address comments

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Reauthorization Act 2004:Reauthorization Act 2004:Final RulesFinal Rules

• Non-discretionary, orNon-discretionary, or

• Complete action on an Complete action on an

interim rule, orinterim rule, or

• Implement a proposed ruleImplement a proposed rule

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Commenting on RulesCommenting on Rules

• Understand issueUnderstand issue

• Express general agreementExpress general agreement

or disagreementor disagreement

• Be specificBe specific

• Suggest improvementSuggest improvement

or clarification or clarification

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Child Nutrition and WIC Child Nutrition and WIC Reauthorization Act of 2004Reauthorization Act of 2004

Overview of the Overview of the Provisions for the Provisions for the Child Nutrition Child Nutrition

ProgramsPrograms

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Reauthorization Act of Reauthorization Act of 2004:2004:

Title I -- Amendments Title I -- Amendments to the Richard B. to the Richard B. Russell National Russell National

School Lunch Act School Lunch Act (NSLA)(NSLA)

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Program Integrity

• Household Application

• Electronic Signatures

• Verification

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Household ApplicationHousehold Application

• Requires use of household applications.Requires use of household applications.

• SAs and LEAs SAs and LEAs cannotcannot request individual request individual applications within a LEAapplications within a LEA

• Goals: One eligibility determinationGoals: One eligibility determination

Retrievable by schoolRetrievable by school

• Effective July 1, 2005 Effective July 1, 2005

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Allowed if:Allowed if:

• the application is submitted the application is submitted electronicallyelectronically

• the application filing system meets the application filing system meets confidentiality standards set by the confidentiality standards set by the Secretary Secretary

• Effective July 1, 2005Effective July 1, 2005

Electronic SignaturesElectronic Signatures

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• New verification requirementsNew verification requirements specified by lawspecified by law

• Provides alternatives depending Provides alternatives depending on improvements made to non-on improvements made to non-response rateresponse rate

VerificationVerification

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The lesser of:The lesser of:

– 3% of all approved applications selected 3% of all approved applications selected from “error-prone” applications; from “error-prone” applications;

oror

– 3,000 approved error-prone applications.3,000 approved error-prone applications.

Basic Sample SizeBasic Sample Size

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• Error-prone Error-prone income is within income is within $100/month $100/month ($1,200/year) of ($1,200/year) of the eligibility limit the eligibility limit for F/RP benefitsfor F/RP benefits

Verification Verification Basic Sample Size (cont.)Basic Sample Size (cont.)

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In effect, same as current In effect, same as current randomrandom sampling sampling• The lesser of 3000 / 3% of applications The lesser of 3000 / 3% of applications

selected at random from approved selected at random from approved applicationsapplications

OROR• The lesser of 1000 / 1% of error prone The lesser of 1000 / 1% of error prone

applications selected from approved applications selected from approved applications PLUSapplications PLUS

• The lesser of 500 or ½ of 1% of all The lesser of 500 or ½ of 1% of all approved applications that provided a approved applications that provided a FSP, FDPIR, or TANF case number FSP, FDPIR, or TANF case number

Alternate Sample Size OptionsAlternate Sample Size Options

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• Any LEA with preceding school year Any LEA with preceding school year nonresponse rate less than 20%nonresponse rate less than 20%

• ODE will communicate directly with ODE will communicate directly with each LEA on the verification sampling each LEA on the verification sampling method they are to use in 2005 -06method they are to use in 2005 -06

Eligibility for Alternate Eligibility for Alternate Sample SizesSample Sizes

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• If there are not enough “error-If there are not enough “error-prone” applications for basic sample prone” applications for basic sample size or alternate sample sizes, LEAs size or alternate sample sizes, LEAs must randomly select additional must randomly select additional applications to fulfill the percentage applications to fulfill the percentage or number requirement.or number requirement.

VerificationVerification

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Selection Date

• The sample size is determined based on the number of approved applications as of October 1October 1

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• On individual case review, LEAs On individual case review, LEAs may “decline” up to 5% of their may “decline” up to 5% of their verification sample and replace verification sample and replace them with other approved them with other approved applications.applications.

Sample SelectionSample Selection

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Prior to verification of a selected application:Prior to verification of a selected application:

• LEAs must have the initial determination LEAs must have the initial determination on selected applications reviewed for on selected applications reviewed for accuracy by someone other than the accuracy by someone other than the original approving official. original approving official.

• Exception: requirement waived if the Exception: requirement waived if the LEA uses a “technology-based solution” LEA uses a “technology-based solution” that makes accurate eligibility that makes accurate eligibility determinations.determinations.

Confirmation reviews of Confirmation reviews of approved applicationsapproved applications

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If the initial determination is If the initial determination is incorrect, the LEA must: incorrect, the LEA must:

(1) Correct the household’s (1) Correct the household’s eligibility status; eligibility status;

(2) Notify the household of the (2) Notify the household of the change and explain changes; andchange and explain changes; and

(3) Allow household to reapply and (3) Allow household to reapply and provide documentationprovide documentation

Confirmation reviews (cont.)Confirmation reviews (cont.)

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• If a confirmation review indicates that a If a confirmation review indicates that a household is eligible, the LEA must household is eligible, the LEA must proceed to verify the application.proceed to verify the application.

Confirmation reviews (cont.)Confirmation reviews (cont.)

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• Permits LEAs to use “direct verification”.Permits LEAs to use “direct verification”.• Direct Verification is using income and Direct Verification is using income and

program participation information from program participation information from public agencies administering certain public agencies administering certain programs with comparable income programs with comparable income eligibility limitseligibility limits

• The programs are: The programs are: 1) Food stamps 1) Food stamps 2) FDPIR 2) FDPIR 3) State TANF 3) State TANF 4) State Medicaid 4) State Medicaid

Direct VerificationDirect Verification

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• In order to facilitate “direct verification” In order to facilitate “direct verification” through the Medicaid program, this through the Medicaid program, this section amends Medicaid law.section amends Medicaid law.

• Amendment allows States to exchange Amendment allows States to exchange information necessary to verify eligibility information necessary to verify eligibility for free or reduced-price school meals. for free or reduced-price school meals.

• Effective July 1, 2005 Effective July 1, 2005

Direct Verification (cont.)Direct Verification (cont.)

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• LEA must notify household it was LEA must notify household it was selected for verificationselected for verification

• Notice requires household to Notice requires household to submit information to confirm submit information to confirm eligibilityeligibility

• LEA must include a toll free LEA must include a toll free number (call without charge)number (call without charge)

• Effective July 1, 2005Effective July 1, 2005

Written Notice to HouseholdsWritten Notice to Households

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• If household does not respond to If household does not respond to verification requests, LEA must verification requests, LEA must make at least 1 additional attempt to make at least 1 additional attempt to obtain verificationobtain verification

• LEAs may contract with a third LEAs may contract with a third party to assist with “follow-up”party to assist with “follow-up”

Verification Follow-up ActivitiesVerification Follow-up Activities

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• November 15November 15 (changed from (changed from previous December 15)previous December 15)

• Requires LEAs to make appropriate Requires LEAs to make appropriate modifications to eligibility modifications to eligibility determinations based on their determinations based on their verification activitiesverification activities

• Effective July 1, 2005 Effective July 1, 2005

Verification DeadlinesVerification Deadlines

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• Act restates current Act restates current confidentiality/disclosure confidentiality/disclosure requirementsrequirements

• Extends disclosure of information Extends disclosure of information to State Medicaid agencies for to State Medicaid agencies for direct verification purposesdirect verification purposes

Confidentiality/DisclosureConfidentiality/Disclosure