Sec. 116. Improvements to school lunch facilities
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The Richard B. Russell National School Lunch Act is amended by inserting after section 26 ( 42 U.S.C. 1769g ) the following: In this section: The term durable equipment means durable food preparation, handling, cooking, serving, and storage equipment greater than $500 in value. The term eligible entity means— a local educational agency or a school food authority administering or operating a school lunch program under this Act; a tribal organization; or a consortium that includes a local educational agency or school food authority described in subparagraph (A), a tribal organization, or both.
The term infrastructure means a food storage facility, kitchen, food service facility, cafeteria, dining room, or food preparation facility. The term local educational agency has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 ). The term school food authority has the meaning given the term in section 210.2 of title 7, Code of Federal Regulations (or a successor regulation). The term tribal organization has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 450b ).
The Secretary shall issue a loan guarantee to an eligible lender for purposes of financing the construction, remodeling, or expansion of infrastructure or the purchase of durable equipment that will assist the eligible entity in providing healthy meals through the school lunch program authorized under this Act. In issuing a loan guarantee under this subsection, the Secretary shall give a preference to an eligible entity that, as compared with other eligible entities seeking a loan guarantee under this subsection, demonstrates substantial or disproportionate— need for infrastructure improvement or durable equipment; or impairment in durable equipment.
The Secretary, acting through the Under Secretary for Rural Development, shall establish procedures to oversee any project or purchase for which a loan guarantee is issued under this subsection. A loan guarantee issued under this subsection may not guarantee more than 80 percent of the principal amount of the loan. The Secretary shall establish fees for loan guarantees under this subsection that are, to the maximum extent practicable, equal to all costs of the loan guarantees as determined under the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et. seq.), as determined by the Secretary.
To the extent that the Secretary determines that fees described in subparagraph
(A)are not sufficient to pay for all of the costs for the loan guarantees pursuant to the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et. seq.), the Secretary may use funds described in paragraph
(6)to pay for the costs of loan guarantees not paid for by the fees. Subject to the availability of appropriations provided in advance in an appropriations Act specifically for the purpose of carrying out this subsection, there is authorized to be appropriated $5,000,000 for fiscal year 2016 and each fiscal year thereafter. Beginning in fiscal year 2016 and subject to the availability of appropriations provided in advance in an appropriations Act specifically for the purpose of carrying out this subsection, the Secretary shall make grants, on a competitive basis, to eligible entities for the purchase of durable equipment and infrastructure needed to serve healthier meals and improve food safety. In awarding grants under this subsection, the Secretary shall give priority to eligible entities that— are located in States that have enacted comparable statutory grant funding mechanisms or that have otherwise appropriated funds for the purpose described in paragraph (1); and have identified and are reasonably expected to meet an unmet local or community need— through a public-private partnership or partnership with a food pantry or other low-income assistance agency; or by allowing related community organizations to use kitchen or cafeteria space. The Federal share of costs for assistance funded through a grant awarded under this subsection shall not exceed 80 percent of the total cost of the durable equipment or infrastructure. To receive a grant under this subsection, an eligible entity shall provide matching support in the form of cash or in-kind contributions. The Secretary may waive or vary the requirements of subparagraphs
(A)and
(B)if the Secretary determines that undue hardship or effective exclusion from participation would otherwise result. There is authorized to be appropriated $30,000,000 to carry out this subsection for fiscal year 2016 and each fiscal year thereafter. The Secretary may use not more than 5 percent of the funds made available under subparagraph
(A)to provide technical assistance. Not later than 90 days after the date of enactment of the Improving Child Nutrition Integrity and Access Act of 2016 , the Secretary shall review or revise any guidance in existence on that date of enactment so as to ensure that school food authorities have flexibility in the establishment and implementation of salad bars. The Secretary shall develop and implement a plan to encourage the use of salad bars in schools participating in the school lunch program authorized under this Act. In carrying out the plan described in paragraph (2), the Secretary shall provide training and technical assistance to eligible entities to assist in establishing salad bars in schools. Not later than 1 year after the date on which funds are made available to carry out this section, and annually thereafter, the Secretary shall submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes— the implementation of this section; and the impact the purchase of new equipment is having on the ability of school food authorities to meet the purposes of the school lunch program authorized under this Act. .
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