A. Public school districts and charter schools operating the national school lunch program and the school breakfast program shall establish a program to offer high- quality meals at no charge to all students. Bureau of Indian education schools, tribally controlled schools and private schools operating the national school lunch and the school breakfast program may establish a program to offer high-quality meals at no charge to students. All participating school food authorities shall offer one breakfast and one lunch at no cost to students during each school day to any student who requests a meal without consideration of the student’s eligibility for a federally funded free or reduced-price meal, with a maximum of one free meal for each meal service period.

B. The department shall award funding to each school food authority that establishes a program pursuant to the provisions of Subsection E of this section as follows:

(1)     for school food authorities that meet the meal quality improvement requirements established pursuant to Subsection E of this section, the department shall distribute to each such school food authority an amount that is equal to the federal free meal reimbursement rate multiplied by the total number of eligible meals served during the applicable budget year, minus an amount equal to the federal paid meal reimbursement for eligible meals served during the applicable budget year; or

(2)     for school food authorities that do not meet by July 1, 2025 the meal quality improvement requirements established pursuant to Subsection E of this section, the department shall distribute to each such school food authority an amount that is equal to the paid meal rate multiplied by the total number of eligible meals served during the applicable budget year.

C. School food authorities shall use the money received pursuant to this section to purchase commodities necessary to improve meal quality, including food and other consumables, equipment, staffing, labor needs or training and technical assistance.

D. By August 1 of each year, the department shall inform eligible school food authorities of the amount of program funding they will receive during the upcoming school year. When calculating the amount of program funding that is due to a school food authority, the department shall assume that student participation will remain at the same level as the previous school year.

E. The department shall promulgate rules necessary for implementation of this section, including rules providing for:

(1)     meal quality improvement requirements for the program, which may include purchasing New Mexico-produced food, freshly preparing scratch-cooked foods, providing culturally relevant meals and engaging student and family voices and choices in menu development; and

(2)     procedures for annual certification.

F. School food authorities shall maximize access to federal funds for the cost of school breakfast and lunch programs by adopting the United States department of agriculture’s community eligibility provision or any other federal provision that, in the opinion of the department, results in the most possible federal funding for meals served in that program. Each school food authority that has a school or site with an identified student percentage of at least forty percent, or an identified student percentage of less than forty percent if authorized by federal law, as determined annually by the deadline set by the United States department of agriculture, shall participate in the federal community eligibility provision in the subsequent school year and throughout the duration of the community eligibility provision’s four-year cycle. School food authorities, to the extent practicable, shall group public schools for purposes of maximizing the number of schools eligible to participate in the community eligibility provision.

G. If a school food authority does not elect the community eligibility provision or any other federal provision that, in the opinion of the department, results in the most possible federal funding for meals served in that program, school meal applications shall be collected and direct certification shall be used to identify students receiving free, reduced-price and paid meals based on United States department of agriculture guidance.

H. School food authorities shall take steps to maximize federal revenues and minimize debt on families by, at least monthly, taking steps to directly certify students for free school meal status pursuant to protocol determined by the department.