1.  Condition of schools receiving state reimbursement for school lunch and school breakfast.  A public school or a private school approved for tuition purposes that receives state funding under section 6602, subsection 1, paragraph B, D, H or I shall maximize the amount of federal reimbursement funds that the school receives in order to receive state funding equal to the difference between the federal reimbursement for a free regular breakfast and the federal reimbursement for a reduced-price regular breakfast and equal to the difference between the federal reimbursement for a free lunch and the federal reimbursement for a reduced-price lunch, and funding equal to the difference between the federal reimbursement for a free breakfast or lunch and the federal reimbursement for a full-price breakfast or lunch for each publicly funded student receiving breakfast or lunch. The public school or private school approved for tuition purposes, if eligible for any provisional school food service program, including, but not limited to, the community eligibility provision under the federal Healthy, Hunger-Free Kids Act of 2010, Public Law 111-296, Section 104(a), shall maximize participation in that provisional school food service program. The department shall determine whether the school is maximizing federal reimbursement funds.  

2.  Department to communicate options to public schools and private schools to maximize federal funding.  The department shall annually communicate school food service program options available to a public school or a private school approved for tuition purposes to the school for the school to maximize federal funding in the school food service program. The department may provide technical assistance to a public school or a private school approved for tuition purposes and may contract with a 3rd-party entity.  

3.  School not eligible for state funding if school does not participate in National School Lunch Program or provisional school food service program if eligible.  A public school or a private school approved for tuition purposes that does not participate in the National School Lunch Program in accordance with 7 Code of Federal Regulations, Part 210 (2007) and does not participate in any provisional school food service program, if eligible, or that chooses a provisional school food service program option other than a school food service program option communicated to the public school or private school approved for tuition purposes under subsection 2 by the department may not receive state funding equal to the difference between the federal reimbursement for a free breakfast and the federal reimbursement for a reduced-price breakfast and equal to the difference between the federal reimbursement for a free lunch and the federal reimbursement for a reduced-price lunch, and funding equal to the difference between the federal reimbursement for a free breakfast or lunch and the federal reimbursement for a full-price breakfast or lunch for each publicly funded student receiving breakfast or lunch.