Compliance with school meal programs; incentives for pupil count day; violations; withholding of payments.

Sec. 164k. (1) If the department receives a report that a district or intermediate district is violating any of the following requirements, and the department confirms the violation, the department shall withhold 5% of the payment the district is eligible to receive under section 22b, or 5% of the payment the intermediate district is eligible to receive under section 81, as applicable, for as long as the district or intermediate district is out of compliance: (a) A district or intermediate district shall ensure that all food made available to a student in the breakfast or lunch program complies with all federal rules and regulations related to school meals, including provisions restricting access to soda and candy as described in federal Smart Snacks Standards. (b) To the extent practicable under federal regulations, a district or intermediate district shall require each student household to complete the child nutrition and education benefits application, as provided by the department, for free and reduced-price school meals regardless of whether the district or intermediate district opts to provide universal breakfast or lunch. (c) For pupil membership count days after the fall 2025 count, a district or intermediate district shall not provide a financial incentive to students for attending pupil membership count day. (d) Beginning with the 2026-2027 school year, the board of a district or intermediate district shall ensure that each school operated by the board implements the presidential fitness test for all students enrolled in physical education classes, consistent with guidance developed by the department under subsection (2) and except as otherwise stated in a student's individual education plan, in accordance with the suggestions and strategies promulgated under federal Executive Order No. 14327, 90 Fed. Reg. 37993 (July 31, 2025). (2) The department, in consultation with the Governor's Council on Physical Fitness, Health, and Sports, shall develop guidance for the implementation of the presidential fitness test under subsection (1)(d). The guidance must be consistent with applicable state and federal law. The guidance must include, but is not limited to, both of the following: (a) That any student with an individualized education plan (IEP) is not required to participate in the presidential fitness test, unless that student's IEP otherwise requires the presidential fitness test. (b) A requirement that the presidential fitness test may only be administered in physical education classes, if such classes are offered by the school.