(i)
Definitions.—
In this subparagraph:
(I)
Error prone application.—
The term “error prone application” means an approved household application that—
(aa)
indicates monthly income that is within $100, or an annual income that is within $1,200, of the income eligibility limitation for free or reduced price meals; or
(bb)
in lieu of the criteria established under item (aa), meets criteria established by the Secretary.
(II)
Non-response rate.—
The term “non-response rate” means (in accordance with guidelines established by the Secretary) the percentage of approved household applications for which verification information has not been obtained by a local educational agency after attempted verification under subparagraphs (F) and (G).
(iii)
Sample size.—
Except as otherwise provided in this paragraph, the sample for a local educational agency for a school year shall equal the lesser of—
(I)
3 percent of all applications approved by the local educational agency for the school year, as of October 1 of the school year, selected from error prone applications; or
(II)
3,000 error prone applications approved by the local educational agency for the school year, as of October 1 of the school year.
(iv)
Alternative sample size.—
(I)
In general.—
If the conditions described in subclause (IV) are met, the verification sample size for a local educational agency shall be the sample size described in subclause (II) or (III), as determined by the local educational agency.
(II)
3,000/3 percent option.—
The sample size described in this subclause shall be the lesser of 3,000, or 3 percent of, applications selected at random from applications approved by the local educational agency for the school year, as of October 1 of the school year.
(III)
1,000/1 percent plus option.—
(aa)
In general.—
The sample size described in this subclause shall be the sum of—
(AA)
the lesser of 1,000, or 1 percent of, all applications approved by the local educational agency for the school year, as of October 1 of the school year, selected from error prone applications; and
(BB)
the lesser of 500, or ½ of 1 percent of, applications approved by the local educational agency for the school year, as of October 1 of the school year, that provide a case number (in lieu of income information) showing participation in a program described in item (bb) selected from those approved applications that provide a case number (in lieu of income information) verifying the participation.
(bb)
Programs.—
The programs described in this item are—
(AA)
the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (
7 U.S.C. 2011 et seq.);
(BB)
the food distribution program on Indian reservations established under section 4(b) of the Food and Nutrition Act of 2008 (
7 U.S.C. 2013(b)); and
(CC)
a State program funded under the program of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Security Act (
42 U.S.C. 601 et seq.) that the Secretary determines complies with standards established by the Secretary that ensure that the standards under the State program are comparable to or more restrictive than those in effect on
June 1, 1995.
(IV)
Conditions.—
The conditions referred to in subclause (I) shall be met for a local educational agency for a school year if—
(aa)
the nonresponse rate for the local educational agency for the preceding school year is less than 20 percent; or
(bb)
the local educational agency has more than 20,000 children approved by application by the local educational agency as eligible for free or reduced price meals for the school year, as of October 1 of the school year, and—
(AA)
the nonresponse rate for the preceding school year is at least 10 percent below the nonresponse rate for the second preceding school year; or
(BB)
in the case of the school year beginning July 2005, the local educational agency attempts to verify all approved household applications selected for verification through use of public agency records from at least 2 of the programs or sources of information described in subparagraph (F)(i).