103 STAT. 910 PUBLIC LAW 101-147—NOV. 10, 1989 Regulations. 42 USC 1766 note. State and local governments. (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; (2) by inserting "(1)" after "(d)"; and (3) by adding at the end the following new paragraph: "(2)(A) The Secretary shall develop a policy that allows institu- tions providing child care that participate in the program under this section, at the option of the State agency, to reapply for assistance under this section at 2-year intervals. "(B) Each State agency that exercises the option authorized by subparagraph (A) shall confirm on an annual basis that each such institution is in compliance with the licensing or approval provisions of subsection (a)(l).". (b) IMPLEMENTATION. — Not later than July 1, 1990, the Secretary shall issue final regulations to implement the amendments made by subsection (a). SEC. 205. PILOT PROJECTS FOR ALTERNATIVE COUNTING METHODS. (a) GENERAL AUTHORITY.—Section 18 of the National School Lunch Act (as amended by section 107(2) of this Act) (42 U.S.C. 1769) is amended by adding at the end the following new subsection: "(g)(l)(A) The Secretary shall carry out a pilot program for pur- poses of identifying alternatives to— "(i) daily counting by category of meals provided by school lunch programs under this Act; and "(ii) annual applications for eligibility to receive free meals or reduced price meals. "(B) For the purposes of carrying out the pilot program under this paragraph, the Secretary may waive requirements of this Act relat- ing to counting of meals provided by school lunch programs and applications for eligibility. (C) For the purposes of carrying out the pilot program under this paragraph, the Secretary shall solicit proposals from State edu- cational agencies and local educational agencies for the alternatives described in subparagraph (A). "(2)(A) The Secretary shall carry out a pilot program under which a limited number of schools participating in the special assistance program under section ll(a)(l) that have in attendance children at least 80 percent of whom are eligible for free lunches or reduced price lunches shall submit applications for a 3-year period. "(B) Each school participating in the pilot program under this paragraph shall have the option of determining the number of free meals, reduced price me£ds, and paid meals provided daily under the school lunch program operated by such school by applying percent- ages determined under subparagraph (C) to the daily tot^ student meal count. "(C) The percentages determined under this subparagraph shall be established on the basis of the master roster of students enrolled in the school concerned, which— "(i) shall include a notation as to the eligibility status of each student with respect to the school lunch program; and "(ii) shall be updated not later than September 30 of each year. "(3)(A) The Secretary shall carry out a pilot program under which a limited number of schools participating in the special assistance program under section ll(a)(l) that have universal free school lunch programs shall have the option of determining the number of free meals, reduced price meals, and paid me£ds provided daily under the
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