Food and Nutrition Program Optional Consolidation and Reorganization Act

Food and Nutrition Program Optional Consolidation and Reorganization Act - Provides the States with the option of consolidating and reorganizing the following food assistance programs: (1) the food stamp program of the Food Stamp Act of 1964, (2) the child feeding programs of the National School Lunch Act and the Child Nutrition Act of 1966, (3) the food and nutrition education program of the Smith- Lever Act, and (4) the commodity supplemental food program.

Allows any State to participate in the consolidation program, and guarantees that a participating State shall receive the funds it would otherwise have received under the above-mentioned programs. Stipulates the procedure by which a State may withdraw from the program.

Permits a State to receive a planning grant of up to two percent of the amount that State presently receives under the four existing programs, in order to prepare a consolidated plan conforming to this Act. Sets forth requirements for receiving such a grant.

Requires each State desiring to receive funds for the consolidation program to (1) designate a State agency to ascertain the food and nutrition needs of the State's needy population, to formulate and monitor the State consolidation plan and to receive and apportion State and Federal funds earmarked for the program; (2) publish, prior to consolidated assistance and every fourth year thereafter, a four- year comprehensive State plan which conforms to the requirements of this Act, and update that plan annually; (3) certify to the Secretary of Agriculture that the requirements of (2) have been complied with; and (4) provide for an annual audit of expenditures, and to report the findings of that audit to the Secretary.

Mandates that each State, in developing the State plan, establish procedures to assure that (1) an assessment is made to determine the food and nutrition needs of the State's needy, (2) an assessment is made to determine the need for food and nutrition education in the State, (3) funds used under this Act will be coordinated with State, local, and Federal funds and programs, (4) adequate notice and an opportunity for public comment is provided for proposed changes in the State plan, (5) procedures are established to assure that State regulations will be established, amended or repealed consistent with State administrative procedure and due process, and (6) Federal funds provided under this Act supplement and not supplant State or local funds.

Requires that a State plan (1) set forth the procedure for and results of the food and nutrition needs assessment, (2) state the goals to be achieved under the plan, (3) set forth the State's program of food and nutrition education, (4) provide for procedures, in conformance with this Act, for distribution of funds to local agencies and organizations, (5) set out the State's program for providing meals and nutrition education in connection with any federally funded program carried out with funds not provided under this Act, (6) provide procedures for monitoring activities of agencies and organizations responsible for administering the State plan, (7) provide for an audit of the expenditure of funds by those agencies and organizations, (8) prescribe procedures for State action when such agencies fail to implement a program plan, and provide an appeal process for an agency which is dissatisfied with that State action, and (9) provide that an annual audit be prepared of all expenditures, and that the audit be reported to the Secretary.

Requires the Secretary to notify a State, within 60 days after receiving its comprehensive State plan, whether such plan complies with this Act. Mandates that the Secretary indicate in what respect the plan fails to comply, and the action the State must take to comply.

Provides that a State participating in a consolidated program is eligible to receive an additional grant for carrying out that program equal to 10 percent of its total entitlement, provided that such amount is matched by the State with an equal amount of non-Federal funds.

States that the amounts that all States are entitled to in a fiscal year shall be ratably reduced if the sums appropriated in that year for State payments are not sufficient to pay each state the entire amount to which it is entitled.

Requires the Secretary to furnish the same services-in-kind which would have been furnished to the State had the State not participated in the consolidated program. Permits the States to purchase food-service equipment and facilities with funds made available under this Act.

Forbids any State from using more than 2 1/2 percent of the funds made available under this Act for administrative expenses.

Provides for evaluations and monitoring of the program authorized under this Act.

Requires the Secretary to carry out a program of grants to States which consolidate under this Act for purposes of interstate cooperation. Authorizes $3,000,000 to be appropriated in each of the ten fiscal years beginning October 1, 1977 to carry out this program.

Forbids payment of funds to any State which has not certified to the Secretary that it has published its comprehensive State plan or update in accordance with this Act. Provides sanctions which may be imposed by the Secretary if a State's comprehensive plan is not in compliance with this Act, or if the State fails to follow its comprehensive plan. Provides for both administrative and judicial review of any sanctions imposed.

Provides for the participation of children enrolled in private or Indian tribal schools if a State is prohibited by law from providing for their participation.

Imposes criminal penalties on anyone who embezzles, steals, or fraudulently obtains any funds authorized by this Act.