IMPROVING DIRECT CERTIFICATION.

SEC. 101. IMPROVING DIRECT CERTIFICATION.(a) Performance Awards.—Section 9(b)(4) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)(4)) is amended—(1) in the paragraph heading, by striking “food stamp” and inserting “supplemental nutrition assistance program”; and(2) by adding at the end the following:“(E) Performance awards.—“(i) In general.—Effective for each of the school years beginning July 1, 2011, July 1, 2012, and July 1, 2013, the Secretary shall offer performance awards to States to encourage the States to ensure that all children eligible for direct certification under this paragraph are certified in accordance with this paragraph.“(ii) Requirements.—For each school year described in clause (i), the Secretary shall—“(I) consider State data from the prior school year, including estimates contained in the report required under section 4301 of the Food, Conservation, and Energy Act of 2008 (42 U.S.C. 1758a); and“(II) make performance awards to not more than 15 States that demonstrate, as determined by the Secretary—“(aa) outstanding performance; and“(bb) substantial improvement.“(iii) Use of funds.—A State agency that receives a performance award under clause (i)—124 STAT. 3186“(I) shall treat the funds as program income; and“(II) may transfer the funds to school food authorities for use in carrying out the program.“(iv) Funding.—“(I) In general.—On October 1, 2011, and each subsequent October 1 through October 1, 2013, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary—“(aa) $2,000,000 to carry out clause (ii)(II)(aa); and“(bb) $2,000,000 to carry out clause (ii)(II)(bb).“(II) Receipt and acceptance.—The Secretary shall be entitled to receive, shall accept, and shall use to carry out this clause the funds transferred under subclause (I), without further appropriation.“(v) Payments not subject to judicial review.—A determination by the Secretary whether, and in what amount, to make a performance award under this subparagraph shall not be subject to administrative or judicial review.”.(b) Continuous Improvement Plans.—Section 9(b)(4) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)(4)) (as amended by subsection (a)) is amended by adding at the end the following:“(F) Continuous improvement plans.—“(i) Definition of required percentage.—In this subparagraph, the term ‘required percentage’ means—“(I) for the school year beginning July 1, 2011, 80 percent;“(II) for the school year beginning July 1, 2012, 90 percent; and“(III) for the school year beginning July 1, 2013, and each school year thereafter, 95 percent.“(ii) Requirements.—Each school year, the Secretary shall—“(I) identify, using data from the prior year, including estimates contained in the report required under section 4301 of the Food, Conservation, and Energy Act of 2008 (42 U.S.C. 1758a), States that directly certify less than the required percentage of the total number of children in the State who are eligible for direct certification under this paragraph;“(II) require the States identified under subclause (I) to implement a continuous improvement plan to fully meet the requirements of this paragraph, which shall include a plan to improve direct certification for the following school year; and“(III) assist the States identified under subclause (I) to develop and implement a continuous improvement plan in accordance with subclause (II).“(iii) Failure to meet performance standard.—124 STAT. 3187“(I) In general.—A State that is required to develop and implement a continuous improvement plan under clause (ii)(II) shall be required to submit the continuous improvement plan to the Secretary, for the approval of the Secretary.“(II) Requirements.—At a minimum, a continuous improvement plan under subclause (I) shall include—“(aa) specific measures that the State will use to identify more children who are eligible for direct certification, including improvements or modifications to technology, information systems, or databases;“(bb) a timeline for the State to implement those measures; and“(cc) goals for the State to improve direct certification results.”.(c) Without Further Application.—Section 9(b)(4) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(b)(4)) (as amended by subsection (b)) is amended by adding at the end the following:“(G) Without further application.—“(i) In general.—In this paragraph, the term ‘without further application’ means that no action is required by the household of the child.“(ii) Clarification.—A requirement that a household return a letter notifying the household of eligibility for direct certification or eligibility for free school meals does not meet the requirements of clause (i).”.