ENTITLED An Act to establish parameters for the reimbursement of school districts that provide free or reduced-price meals to students.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 13-35-2 be AMENDED:

13-35-2. The board of a school district may impose a charge for any meal provided through the school district's food services program to:

(1) Any student other than a student who is eligible for free or reduced-price meals through the National School Lunch Program, 42 U.S.C. § 1751, et seq. (January 1, 2026), or the School Breakfast Program, 42 U.S.C. § 1773 (January 1, 2026);

(2) An employee of the school district; or

(3) Any other individual, not otherwise exempted in accordance with section 2 of this Act.

Section 2. That a NEW SECTION be added to chapter 13-35:

If a student is eligible for reduced-price meals through the National School Lunch Program, 42 U.S.C. § 1751, et seq. (January 1, 2026), or the School Breakfast Program, 42 U.S.C. § 1773 (January 1, 2026), the board of a school district may not impose a charge upon the student for any meals served by the district through the National School Lunch Program or the School Breakfast Program.

Section 3. That a NEW SECTION be added to chapter 13-35:

On or before June thirtieth of each year, the department shall, based on information forwarded by each school district, calculate the amount to be reimbursed by the department for the cost of meals served to students who may not be charged, pursuant to section 2 of this Act. The department shall:

(1) Subtract the amount to be reimbursed to the district for each meal served to a student eligible for reduced-price meals through the National School Lunch Program, 42 U.S.C. § 1751, et seq. (January 1, 2026), or the School Breakfast Program, 42 U.S.C. § 1773 (January 1, 2026), from the amount reimbursed to the district for a meal served to a student eligible for free meals through either program; and

(2) Multiply the difference of subdivision (1) by the number of meals served to students who may not be charged, pursuant to section 2 of this Act.

The Department of Education shall, with moneys appropriated in the general appropriation bill, reimburse each school district in accordance with this section.

An Act to establish parameters for the reimbursement of school districts that provide free or reduced-price meals to students.