Preventing fraud in the child and adult care food program

Section 17(d)(5) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(d)(5)) is amended— (1) by redesignating subparagraph (E) as subparagraph (F); and (2) by inserting after subparagraph (D) the following: (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..