STATE ADMINISTRATIVE EXPENSES.

SEC. 202. STATE ADMINISTRATIVE EXPENSES. (a) Minimum State Administrative Expense Grants.—Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 1776) is amended—(1) by striking the section heading and all that follows through “(a)(1) Each” 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” ; (2) in subsection (a)—(A) in paragraph (1)—(i) by inserting after the first sentence the following: “(B) Minimum amount.—In the case of each of fiscal years 2005 through 2007, the Secretary shall make available to each State for administrative costs not less than the initial allocation made to the State under this subsection for fiscal year 2004.”; (ii) by striking “The Secretary” and inserting the following: “(C) Allocation.—The Secretary”; and(iii) by striking the last sentence; and (B) in paragraph (2)—(i) by striking “(2) The” and inserting the following:“(2) Expense grants.—“(A) In general.—Subject to subparagraph (B), the”;(ii) in the second sentence—(I) by striking “In no case” and inserting the following:“(B) Minimum amount.—“(i) In general.—In no case”;(II) by striking “this subsection” and inserting “this paragraph”; and (III) by striking “$100,000” and inserting “$200,000 (as adjusted under clause (ii)”; and(iii) by adding at the end the following:“(ii) Adjustment.—On October 1, 2008, and each October 1 thereafter, the minimum dollar amount for a fiscal year specified in clause (i) shall be adjusted to reflect the percentage change between—“(I) the value of the index for State and local government purchases, as published by the Bureau of Economic Analysis of the Department of Commerce, for the 12-month period ending June 30 of the second preceding fiscal year; and“(II) the value of that index for the 12-month period ending June 30 of the preceding fiscal year.”.(b) Technology Infrastructure Improvement.—Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 1776) is amended by inserting after subsection (h) (as added by section 126(c)(3)) the following: 118 STAT. 770 “(i) Technology Infrastructure Improvement.—“(1) In general.—Each State shall submit to the Secretary, for approval by the Secretary, an amendment to the plan required by subsection (e) that describes the manner in which funds provided under this section will be used for technology and information management systems. “(2) Requirements.—The amendment shall, at a minimum, describe the manner in which the State will improve program integrity by—“(A) monitoring the nutrient content of meals served; “(B) providing training to local educational agencies, school food authorities, and schools on the use of technology and information management systems for activities including—“(i) menu planning; “(ii) collection of point-of-sale data; and “(iii) the processing of applications for free and reduced price meals; and “(C) using electronic data to establish benchmarks to compare and monitor program integrity, program participation, and financial data across schools and school food authorities. “(3) Technology infrastructure grants.—“(A) In general.—Subject to the availability of funds made available under paragraph (4) to carry out this paragraph, the Secretary shall, on a competitive basis, provide funds to States to be used to provide grants to local educational agencies, school food authorities, and schools to defray the cost of purchasing or upgrading technology and information management systems for use in programs authorized by this Act (other than section 17) and the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.). “(B) Infrastructure development plan.—To be eligible to receive a grant under this paragraph, a school or school food authority shall submit to the State a plan to purchase or upgrade technology and information management systems that addresses potential cost savings and methods to improve program integrity, including—“(i) processing and verification of applications for free and reduced price meals; “(ii) integration of menu planning, production, and serving data to monitor compliance with section 9(f)(1) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1758(f)(1)); and “(iii) compatibility with statewide reporting systems. “(4) Authorization of appropriations.—There are authorized to be appropriated to carry out this subsection such sums as are necessary for each of fiscal years 2005 through 2009, to remain available until expended.”. (c) Reauthorization.—Subsection (j) of section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 1776) (as redesignated by section 126(c)(2)) is amended by striking “2003” and inserting “2009”. 118 STAT. 771