42 U.S.C. 9858g(b)(2)changedby H.R. 7726 Sec. 2
…program for which assistance is provided under this subchapter there is a failure by the State to comply substantially with any provision of this subchapter; In the case of a finding of noncompliance made pursuant to subparagraph (A), the Secretary maySecretary shall, in addition to imposing the sanctions described in such subparagraph, impose other appropriate sanctions, including recoupment of money improperly expended for purposes prohibited or not authorized by this subchapter, and…
The bill says: Section 658I(b)(2)(B) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858g(b)(2)) is amended by striking "Secretary may" and inserting "Secretary shall".
Bill text · Current law (42 U.S.C. 9858g)
42 U.S.C. 9858c(c)(2)added (W)by H.R. 7726 Sec. 3
(W) program integrity and accountability.— The plan shall include a description of—Such description shall include how the State utilizes data within and across other State and local agencies that have oversight of child care providers that serve children who receive assistance under this subchapter.(i) the State's internal controls to ensure program integrity and accountability;(ii) the processes in place—(I) to investigate and recover fraudulent payments; and(II) to impose sanctions on clients or providers in response to fraud; and(iii) the procedures in place to document and verify eligibility.
The bill says: Section 658E(c)(2) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(2)) is amended by adding at the end the following:
Bill text · Current law (42 U.S.C. 9858c)
42 U.S.C. 9858g(b)renumberedby H.R. 7726 Sec. 4(1)
The bill says: by redesignating paragraph (3) as paragraph (4); and
Bill text · Current law (42 U.S.C. 9858g)
42 U.S.C. 9858g(b)added (3)by H.R. 7726 Sec. 4(2)
(3) Determination of fraud.—(A) Investigation.— The Secretary shall investigate fraud with respect to financial assistance available under this subchapter.(B) Debarment.— In the case that the Secretary makes, or finds that there has been, a final determination of fraud against a child care provider that received financial assistance available under this subchapter, the Secretary shall permanently debar such child care provider from receiving such financial assistance.(C) Providers debarred from Child and Adult Care Food Program.— In the case that a child care provider has been debarred from participating in the Child and Adult Care Food Program under section 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766) in accordance with subsection (d)(5)(E)(i) of such section, the Secretary shall permanently debar such child care provider from receiving financial assistance under this subchapter.(D) Final determination of fraud definition.— In this paragraph, the term final determination of fraud means a determination reached in an administrative order or as part of a judicial decision, for which any rights to review or appeal have been exhausted or waived, that a child care provider—(i) knowingly submitted a false statement or documentation to obtain financial assistance available under this subchapter;(ii) misrepresented ownership of, enrollment at, attendance at, or services provided through a program of child care services, or the eligibility of the provider to provide such services, to obtain such financial assistance;(iii) to obtain such financial assistance, operated without the State licensing described in section 658E(c)(2)(F) and without receiving an exception to such licensing;(iv) made a knowing and improper expenditure of such financial assistance; or(v) engaged in any other conduct related to such financial assistance that constituted fraud under Federal or State law.
The bill says: by inserting after paragraph (2) the following:
Bill text · Current law (42 U.S.C. 9858g)
42 U.S.C. 9858hrenumberedby H.R. 7726 Sec. 5(1)
The bill says: by redesignating subsection (c) as subsection (e); and
Bill text · Current law (42 U.S.C. 9858h)
42 U.S.C. 9858hadded (c)by H.R. 7726 Sec. 5(2)
(c) improper payment threshold requiring corrective action plan.— If for a fiscal year the improper payment rate of a State is more than 5 percent of the aggregate amount of payments made to carry out this subchapter by such State for such fiscal year, then such State shall submit to the Secretary—(1) for review and approval a corrective action plan to reduce such rate to not more than 5 percent for each subsequent fiscal year; and(2) such reports as the Secretary may require to show that such State is complying with the requirements of such plan as approved by the Secretary.(d) Conditional ineligibility.— If for each of 2 consecutive fiscal years the improper payment rate of a State determined under this section is more 5 percent, then such State shall be ineligible to receive funds under this subchapter unless such State demonstrates to the satisfaction of the Secretary that such State for the next fiscal year will—(1) reduce such improper payment rate to not more than 5 percent for the next fiscal year; or(2) make significant progress to comply with the corrective action plan approved under subsection (c).
The bill says: by inserting after subsection (b) the following:
Bill text · Current law (42 U.S.C. 9858h)
42 U.S.C. 9858iadded (c)by H.R. 7726 Sec. 6
(c) Periodic monitoring by the Secretary.— At 3-year intervals, the Secretary shall conduct a comprehensive review of the performance of each State that receives assistance under this subchapter. Based on the results of such review, the Secretary shall designate as high risk a State that has—(1) a high level of unresolved or repeated adverse audit findings submitted under subsection (b);(2) a high level of unresolved issues under, or repeated performance failures to carry out, corrective action plans submitted by such State under section 659J(c); or(3) unresolved or repeat findings of noncompliance with the State plan approved under section 658E(c).(d) Required additional monitoring.— If a State is designated as high risk under subsection (a), then the performance of such State shall be subject to additional monitoring, as determined by the Secretary.
The bill says: Section 658K of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858i) is amended by adding at the end the following:
Bill text · Current law (42 U.S.C. 9858i)
42 U.S.C. 1766(d)(5)a new sectionrenumberedby H.R. 7726 Sec. 7(1)
The bill says: by redesignating subparagraph (E) as subparagraph (F); and
Bill text
42 U.S.C. 1766(d)(5)a new sectionadded (E)by H.R. 7726 Sec. 7(2)
(E) Termination due to fraud.—(i) Debarment.— In the case that the participation of an institution or family or group day care home under the program is terminated due to a final determination of fraud, the Secretary shall permanently debar such institution or family or group day care home from participating in the program.(ii) Providers debarred from Child Care and Development Block Grant program.— In the case that an institution or family or group day care home has been debarred from receiving financial assistance under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.) in accordance with section 658I(b)(3)(B) of such Act, the Secretary shall permanently debar such institution or family or group day care home from participating in the program.(iii) Final determination of fraud definition.— In this subparagraph, the term final determination of fraud means a determination reached in accordance with the procedures and requirements of this section, for which any rights to review or appeal have been exhausted or waived, that an institution or family or group day care home—(I) knowingly submitted a false statement or documentation to obtain funds disbursed under subsection (f)(1)(A);(II) misrepresented ownership, enrollment, attendance, or services in connection with the operation of the program by such institution or family or group day care home, or the eligibility of such institution or family or group day care home to operate the program, to obtain such funds;(III) made a knowing and improper expenditure of such funds; or(IV) engaged in any other conduct related to such funds that constituted fraud under Federal or State law.
The bill says: by inserting after subparagraph (D) the following:
Bill text
42 U.S.C. 9858lg(c)(1)a new sectionchangedby H.R. 7726 Sec. 8(1)
The bill says: in paragraph (1) by striking "or sanctions imposed upon a State in accordance with subsection (b)(2)";
Bill text
42 U.S.C. 9858lg(c)(2)(A)a new sectionchangedby H.R. 7726 Sec. 8(2)
The bill says: in subparagraph (A) by striking "sanction or"; and
Bill text
42 U.S.C. 9858lg(c)(2)(B)a new sectionchangedby H.R. 7726 Sec. 8(2)
The bill says: in subparagraph (B) by striking "sanction or";
Bill text
42 U.S.C. 9858lg(c)(7)a new sectionchangedby H.R. 7726 Sec. 8(4)
The bill says: in paragraph (7) by striking "sanction(s) or".
Bill text
42 U.S.C. 9858h(b)(1)changedby H.R. 7726 Sec. 10(1)
(1) In general. Subject to paragraph (2), the Secretary may make payments to a State in installments, and in advance or by way of reimbursement, with necessary adjustments on account of overpayments (including fraudulent payments) or underpayments, as the Secretary may determine.
The bill says: in paragraph (1) by inserting "(including fraudulent payments)" after "overpayments"; and
Bill text · Current law (42 U.S.C. 9858h)
42 U.S.C. 9858h(b)added (3)by H.R. 7726 Sec. 10(2)
(3) Report.— The State shall submit to the Secretary an annual report that identifies the dollar and percentage amount of improper payments made by the State, disaggregated as specified by the Secretary by standardized payment categories (including suspected and verified fraudulent payments, non-fraudulent overpayments, underpayments, and technically improper payments (e.g., system error payments)).
The bill says: by adding at the end the following:
Bill text · Current law (42 U.S.C. 9858h)