A. As used in this section:

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(1)     “reduced-price copayment” means the amount a reduced-price-eligible student would be charged for a reduced-price meal; and

(2)     “reduced-price-eligible student” means a student who meets the federal income eligibility guidelines for family-size income levels for meals at a reduced price pursuant to the national school lunch program and the federal school breakfast program.

B. School districts and charter schools that administer a school breakfast or school lunch program shall not charge a reduced-price-eligible student a reduced-price copayment for meals.

C. The department shall provide funding to each school district and charter school that administers a school breakfast or school lunch program to cover the cost of eliminating reduced-price copayments. Funding shall be based on a per-meal basis at the difference between the federal free meal rate and the reduced-price copayment rate. When calculating the amount due a school district or charter school, the department shall assume that the number of reduced-price-eligible students will remain at the same level as the previous year. If a school district or charter school has not previously had a school breakfast program or school lunch program in which meals were served to reduced-price-eligible students, the department shall work with the school district or charter school to determine an accurate estimate of funding for the program.

D. By August 1 of each year, the department shall inform school districts and charter schools of the amounts the school districts and charter schools will receive to offset the elimination of reduced-price copayments for the upcoming school year. School districts and charter schools are not required to demonstrate their expenses to receive funding pursuant to this section.

E. The department shall promulgate rules necessary to implement the provisions of this section, including procedures for reimbursing school districts and charter schools.