Page:United States Statutes at Large Volume 124.djvu/3267

124 STAT. 3241 PUBLIC LAW 111–296—DEC. 13, 2010 ‘‘(i) IN GENERAL.—In calculating the fine for a school food authority or school, the Secretary shall base the amount of the fine on the reimbursement earned by school food authority or school for the pro- gram in which the violation occurred. ‘‘(ii) AMOUNT.—The amount under clause (i) shall not exceed— ‘‘(I) 1 percent of the amount of meal reimburse- ments earned for the fiscal year for the first finding of 1 or more program violations under subpara- graph (A); ‘‘(II) 5 percent of the amount of meal reimbursements earned for the fiscal year for the second finding of 1 or more program violations under subparagraph (A); and ‘‘(III) 10 percent of the amount of meal reimbursements earned for the fiscal year for the third or subsequent finding of 1 or more program violations under subparagraph (A). ‘‘(2) STATE AGENCIES.— ‘‘(A) IN GENERAL.—The Secretary shall establish cri- teria by which the Secretary may impose a fine against any State agency administering a program authorized under this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) if the Secretary determines that the State agency has— ‘‘(i) failed to correct severe mismanagement of the program; ‘‘(ii) disregarded a program requirement of which the State had been informed; or ‘‘(iii) failed to correct repeated violations of pro- gram requirements. ‘‘(B) LIMITS.—In the case of a State agency, the amount of a fine under subparagraph (A) shall not exceed— ‘‘(i) 1 percent of funds made available under section 7(a) of the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)) for State administrative expenses during a fiscal year for the first finding of 1 or more program violations under subparagraph (A); ‘‘(ii) 5 percent of funds made available under sec- tion 7(a) of the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)) for State administrative expenses during a fiscal year for the second finding of 1 or more program violations under subparagraph (A); and ‘‘(iii) 10 percent of funds made available under section 7(a) of the Child Nutrition Act of 1966 (42 U.S.C. 1776(a)) for State administrative expenses during a fiscal year for the third or subsequent finding of 1 or more program violations under subparagraph (A). ‘‘(3) SOURCE OF FUNDING.—Funds to pay a fine imposed under paragraph (1) or (2) shall be derived from non-Federal sources.’’.