Establishes the price of school lunch in proportion to the total cost of operating the school food services program. Allows the DOE to adjust the price to maintain this proportion.

A BILL FOR AN ACT

SECTION 1. The purpose of this Act is to provide for the price of school lunch to be set in proportion to the total cost of operating the school food services program, and to allow the department of education to adjust the price to maintain this proportion.

SECTION 2. Section 302A-405, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The price for the school lunch shall be set by the department to ensure that moneys received from the sale of the lunches [shall] may be up to [one-third] one-half of the cost of preparing the school lunch, rounded to the nearest twenty-five cents, adjusted during the first year of the fiscal biennium. The price for the school lunch shall be based on the average cost of preparing the school lunch over the three years preceding the second year of the fiscal biennium; provided that the department by rule shall provide a lower rate or free lunches to children based on their economic need."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2005.