PUBLIC LAW 106-224 -^JUNE 20, 2000 114 STAT. 419 if the organization provides justification to the State that the organization requires funds in excess of 15 percent of the funds provided under paragraph (1) to pay the administrative expenses of the organization.". (f) LIMITATIONS ON ABILITY OF FAMILY OR GROUP DAY CARE HOMES TO TRANSFER SPONSORING ORGANIZATIONS. —Section 17(f)(3) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by striking subparagraph (D) and inserting the following: " (D) LIMITATIONS ON ABILITY OF FAMILY OR GROUP DAY CARE HOMES TO TRANSFER SPONSORING ORGANIZATIONS.— "(i) IN GENERAL.— Subject to clause (ii), a State agency shall limit the ability of a family or group day care home to transfer from a sponsoring organization to another sponsoring organization more frequently than once a year. "(ii) GoOD CAUSE.— The State agency may permit or require a family or group day care home to transfer from a sponsoring organization to another sponsoring organization more frequently than once a year for good cause (as determined by the State agency), including circumstances in which the sponsoring organization of the family or group day care home ceases to participate in the child and adult care food program.". (g) STATE-WIDE DEMONSTRATION PROJECTS INVOLVING PRIVATE FOR-PROFIT ORGANIZATIONS THAT PROVIDE NONRESIDENTIAL DAY CARE SERVICES.— (1) IN GENERAL.— Section 17(p) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(p)) is amended— (A) in the first sentence of paragraph (1), by striking "2 statewide demonstration projects" and inserting "Statewide demonstration projects in three States"; and (B) in paragraph (3)— (i) by inserting "in" after "subsection"; (ii) in subparagraph (A), by striking "and" at the end; (iii) in subparagraph (B), by striking the period at the end and inserting "; and"; and (iv) by adding at the end the following: "(C) one other State— "(i) with fewer than 60,000 children below 5 yeeirs of age; "(ii) that serves more than the national average proportion of children potentially eligible for assistance provided under the Child Care and Development Fund (as indicated in data published by the Department of Health and Htraian Services in October 1999); "(iii) that exempts all families from cost sharing requirements under programs funded by the Child Care and Development Fund; and "(iv) in which State spending represents more than 50 percent of total expenditures made under the Child Care and Development Fund.". (2) EFFECTIVE DATE.— The Secretary may carry out dem- 42 USC 1766 onstration projects in the State described in section 17(p)(3)(C) noteof the RichEu*d B. Russell National School Lunch Act, as added
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