ments in technology and information management systems 
described in subsection (e)(2).’’. 
(b) CONFORMING AMENDMENT.—Section 7(b) of the 
Child Nutrition Act of 1966 (42 U.S.C. 1776(b)) is amended 
by striking ‘‘and for staff development’’ and inserting ‘‘for 
staff development; and technology and information manage-
ment systems’’. 
SEC. 206. MINIMUM STATE ADMINISTRATIVE EXPENSE 
GRANTS. 
Section 7(a) of the Child Nutrition Act (42 U.S.C. 
1776(a)(1)) is further amended—
(1) by striking the heading and all that follows 
through paragraph (1), and inserting the following: 
‘‘SEC. 7. STATE ADMINISTRATIVE EXPENSES. 
‘‘(a) AMOUNT AND ALLOCATION OF FUNDS.—
‘‘(1) AMOUNT AVAILABLE.—
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), each fiscal year the Secretary 
shall make available to the States for their ad-
ministrative costs an amount equal to not less 
than 11⁄2 percent of the Federal funds expended 
under sections 4, 11, 17, and 17A of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 
1753, 1759a, 1766, and 1766a)) and sections 3
and 4 of this Act during the second preceding 
fiscal year. 
‘‘(B) MINIMUM
AMOUNT.—In the case of 
each of fiscal years 2005 through 2007, the Sec-
retary shall make available to each State for 
their administrative costs not less than the ini-
tial allocation made to the State under this sub-
section for fiscal year 2004. 
‘‘(C) ALLOCATION.—The Secretary shall al-
locate the funds so provided in accordance with 
paragraphs (2), (3), and (4) of this subsection. 
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated 
such sums as may be necessary to carry out the 
purposes of this section.’’; and 
(2) in paragraph (2), by striking ‘‘$100,000’’ 
and inserting ‘‘$200,000’’. 
SEC. 207. DISTRICT-WIDE ELIGIBILITY FOR SPECIAL ASSIST-
ANCE. 
Section 11(a)(1) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1759a(a)(1)) is amended—
(1) in subparagraph (C)—
(A) in clause (i)—
(i) by inserting ‘‘or school district’’ 
after ‘‘in the case of any school’’;
(ii) by inserting ‘‘or school district’’ 
after ‘‘in the school’’ both times it appears; 
(iii) by inserting ‘‘or school district’’ 
after ‘‘in the case of a school’’; and 
(iv) by inserting ‘‘or school district’’ 
after ‘‘with respect to the school’’; 
(B) in clause (ii)—
(i) by inserting ‘‘or school district’’ 
after ‘‘served by a school’’; and 
(ii) by inserting ‘‘or school district’’ 
after ‘‘served by the school’’; and 
(C) in clause (iii) by inserting ‘‘or school 
district’’ after ‘‘a school’’; 
(2) in subparagraph (D)—
(A) in clause (i)—
(i) by inserting ‘‘or school district’’ 
after ‘‘any school’’; and 
(ii) by inserting ‘‘or school district’’ 
after ‘‘the school’’; 
(B) in clause (ii)—
(i) by inserting ‘‘or school district’’ 
after ‘‘A school’’; and 
(ii) by inserting ‘‘or school district’’ 
after ‘‘the school’’; 
(C) in clause (iii)—
(i) by inserting ‘‘or school district’’ 
after ‘‘a school’’; and 
(ii) by inserting ‘‘or school district’’ 
after ‘‘the school’’; and 
(D) in clause (iv) by inserting ‘‘or school 
district’’ after ‘‘levels, a school’’; and 
(3) in subparagraph (E)—
(A) in clause (i)—
(i) by inserting ‘‘or school district’’ 
after ‘‘In the case of any school’’; 
(ii) by inserting ‘‘or school district’’ 
after ‘‘in the school’’ both times it appears; 
(iii) by inserting ‘‘or school district’’ 
after ‘‘in the case of a school’’; 
(iv) by inserting ‘‘or school district’’ 
after ‘‘with respect to the school’’; 
(v) by inserting ‘‘or school district’’ 
after ‘‘received by the school’’; and 
(vi) by inserting ‘‘or school district’’ 
after ‘‘for which the school’’; and 
(B) in clause (ii)— 
(i) by inserting ‘‘or school district’’ 
after ‘‘A school’’;
(ii) by inserting ‘‘or school district’’ 
after ‘‘for which the school’’ both times it 
appears; and 
(iii) by inserting ‘‘or school district’’ 
after ‘‘population of the school’’ both times 
it appears. 
SEC. 208. ADMINISTRATIVE ERROR REDUCTION. 
(a) FEDERAL SUPPORT FOR TRAINING AND TECH-
NICAL ASSISTANCE.—Section 21 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769b–1) is amend-
ed—
(1) by redesignating subsection (e) as subsection 
(g); and 
(2) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) ADMINISTRATIVE TRAINING AND TECHNICAL AS-
SISTANCE MATERIALS.—In collaboration with State edu-
cational agencies, school food authorities, and local edu-
cational agencies of varying sizes, the Secretary shall de-
velop and distribute training and technical assistance ma-
terials relating to the administration of school meal pro-
grams that are—
‘‘(1) prepared by the Secretary (based on re-
search or other sources), a State educational agency,
a school food authority, or a local educational agency; 
and 
‘‘(2) representative of the best management and 
administrative practices of State agencies, school food 
authorities, and local educational agencies as deter-
mined by the Secretary. 
‘‘(f) FEDERAL ADMINISTRATIVE SUPPORT.—
‘‘(1) FUNDING.—
‘‘(A) IN GENERAL.—Out of any funds in the 
Treasury not otherwise appropriated, the Sec-
retary of the Treasury shall transfer to the Sec-
retary of Agriculture to carry out this sub-
section—
‘‘(i) on October 1, 2004 and October 1, 
2005, $3,000,000; and 
‘‘(ii) on October 1, 2006, and October 
1, 2007, $2,000,000. 
‘‘(B) RECEIPT AND ACCEPTANCE.—The Sec-
retary shall be entitled to receive, shall accept, 
and shall use to carry out this subsection the 
funds transferred under subparagraph (A), with-
out further appropriation. 
‘‘(C) 
AVAILABILITY
OF
FUNDS.—Funds 
transferred under subparagraph (A) shall re-
main available until expended.
‘‘(2) USE OF FUNDS.—The Secretary may use 
funds provided under this subsection—
‘‘(A) to provide training and technical as-
sistance related to administrative practices de-
signed to improve program integrity and admin-
istrative accuracy in school meals programs (in-
cluding administrative requirements established 
by the Child Nutrition Improvement and Integ-
rity Act and amendments made by that Act) to 
State educational agencies and, to the extent de-
termined by the Secretary, to school food au-
thorities and local educational agencies; 
‘‘(B) to assist State educational agencies in 
reviewing the administrative practices of school 
food authorities, to the extent determined by the 
Secretary; and 
‘‘(C) to carry out the activities described in 
subsection (e).’’. 
(b) SELECTED ADMINISTRATIVE REVIEWS.—Section 
22(b) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1769c(b)) is amended by adding at the end the 
following: 
‘‘(3) ADDITIONAL
REVIEW
REQUIREMENT
FOR 
SELECTED LOCAL EDUCATIONAL AGENCIES.—
‘‘(A) DEFINITION OF SELECTED LOCAL EDU-
CATIONAL AGENCY.—In this paragraph, the term 
‘selected local educational agency’ means a local 
educational agency that has demonstrated a high 
level of, or a high risk for, administrative error, 
as determined by the Secretary. 
‘‘(B) ADDITIONAL
ADMINISTRATIVE
RE-
VIEW.—In addition to any review required by 
subsection (a) or paragraph (1), each State edu-
cational agency shall conduct an administrative 
review of each selected local educational agency 
during the review cycle established under sub-
section (a). 
‘‘(C) SCOPE OF REVIEW.—In carrying out a 
review under subparagraph (B), a State edu-
cational agency shall only review the adminis-
trative processes of a selected local educational 
agency, 
including 
application, 
certification, 
verification, meal counting, and meal claiming 
procedures. 
‘‘(D) RESULTS OF REVIEW.—If the State 
educational agency determines (on the basis of a 
review conducted under subparagraph (B)) that 
a selected local educational agency fails to meet
performance criteria established by the Sec-
retary, the State educational agency shall—
‘‘(i) require the selected local edu-
cational agency to develop and carry out an 
approved plan of corrective action; 
‘‘(ii) except to the extent technical as-
sistance is provided directly by the Sec-
retary, provide technical assistance to assist 
the selected local educational agency in car-
rying out the corrective action plan; and 
‘‘(iii) conduct a follow-up review of the 
selected local educational agency under 
standards established by the Secretary. 
‘‘(4) RECOVERING
FUNDS
AFTER
ADMINISTRA-
TIVE REVIEWS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), if the local educational 
agency fails to meet administrative performance 
criteria established by the Secretary in both an 
initial review and a follow-up review under 
paragraph (1) or (3) or subsection (a), the Sec-
retary may require the State educational agency 
to recover funds from the local educational agen-
cy that would otherwise be paid to the school 
food authority or local educational agency for
school meals programs under procedures pre-
scribed by the Secretary. 
‘‘(B) AMOUNT.—The amount of funds recov-
ered under subparagraph (A) shall equal the 
value of any overpayments made to the school 
food authority or local educational agency as a 
result of an erroneous claim during the time pe-
riod described in subparagraph (C). 
‘‘(C) TIME PERIOD.—The period for deter-
mining the value of any such overpayments 
under subparagraph (B) shall be the period—
‘‘(i) beginning on the date the erro-
neous claim was made; and 
‘‘(ii) ending on the earlier of the date 
the erroneous claim is corrected or—
‘‘(I) in the case of the first review 
conducted by the State educational 
agency of the local educational agency 
under this section after July 1, 2005, 
the date that is 60 days after the be-
ginning of the period under clause (i); 
or 
‘‘(II) in the case of any subse-
quent review conducted by the State 
educational agency of the local edu-
cational agency under this section, the 
date that is 90 days after the begin-
ning of the period under clause (i). 
‘‘(5) USE OF RECOVERED FUNDS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), funds recovered under paragraph (4) 
shall—
‘‘(i) be returned to the Secretary under 
procedures established by the Secretary, and 
may be used—
‘‘(I) to provide training and tech-
nical assistance related to administra-
tive practices designed to improve pro-
gram integrity and administrative ac-
curacy in school meals programs (in-
cluding administrative requirements 
established by the Child Nutrition Im-
provement and Integrity Act and 
amendments made by that Act) to 
State educational agencies and, to the 
extent determined by the Secretary, to 
school food authorities and local edu-
cational agencies; 
‘‘(II) to assist State educational 
agencies in reviewing the administra-