,,ii  #aai? ,,congress  #b;d ,session   
,s4 #dghh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #af1 #bjbf,mrs4  
,moody introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,heal?1 ,education1 ,labor1 & ,p5sions  
,a ,,bill  ,to am5d ! ,*ild ,c>e &      
,developm5t ,block ,grant ,act ( #aiij  
to )hold funds f noncompliant ,/ates "u 
su* ,act4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,/op ,*ild ,c>e ,scams ,act
 ( #bjbf4  #b4 ,/r5g!n+ ! au?ority to   
)hold funds = fraud ,section            
#feh;,i7b77#b77;,b7 ( ! ,*ild ,c>e &    
,developm5t ,block ,grant ,act ( #aiij  
7#db ,u4,s4,c4 #iheh;g7b77#b77;,b77 is  
am5d$ by /rik+ ,secret>y may & ins]t+   
,secret>y %all4  #c4 ,program integrity 
& acc\ntability ,section #feh;,e7c77#b7 
( ! ,*ild ,c>e & ,developm5t ,block     
,grant ,act ( #aiij 7#db ,u4,s4,c4      
#iheh;c7c77#b77 is am5d$ by add+ at !   
end ! foll[+3  7,w7 program integrity & 
acc\ntability ,! plan %all include a    
description (-- 7i7 ! ,/ate's int]nal   

controls to ensure program integrity &  
acc\ntability2  7ii7 ! processes 9      
place-- 7,i7 to inve/igate & recov]     
fraudul5t paym5ts2 &  7,,ii7 to impose  
sanctions on cli5ts or provid]s 9       
response to fraud2 &  7iii7 ! proc$ures 
9 place to docum5t & v]ify eligibility4 
,su* description %all include h[ ! ,/ate
 utilizes data )9 & across o!r ,/ate &  
local ag5cies t h ov]sight ( *ild c>e   
provid]s t s]ve *ildr5 :o receive       
assi/ance "u ?is sub*apt]4  4  #d4      
,prev5t+ fraud 9 ! *ild c>e & developm5t
 block grant program ,section #feh;,i7b7
 ( ! ,*ild ,c>e & ,developm5t ,block    
,grant ,act ( #aiij 7#db ,u4,s4,c4      
#iheh;g7b77 is am5d$-- 7#a7 by          
r$esignat+ p>agraph 7#c7 z p>agraph     
7#d72 &  7#b7 by ins]t+ aft] p>agraph   
7#b7 ! foll[+3  7#c7 ,det]m9ation (     
fraud  7,a7 ,inve/igation ,! ,secret>y  
%all inve/igate fraud ) respect to      
f9ancial assi/ance available "u ?is     
sub*apt]4  7,b7 ,deb>m5t ,9 ! case t !  
,secret>y makes1 or f9ds t !re has be51 

a f9al det]m9ation ( fraud aga9/ a *ild 
c>e provid] t receiv$ f9ancial assi/ance
 available "u ?is sub*apt]1 ! ,secret>y 
%all p]man5tly deb> su* *ild c>e provid]
 f receiv+ su* f9ancial assi/ance4  7,c7
 ,provid]s deb>r$ f ,*ild & ,adult ,c>e 
,food ,program ,9 ! case t a *ild c>e   
provid] has be5 deb>r$ f p>ticipat+ 9 ! 
,*ild & ,adult ,c>e ,food ,program "u   
section #ag ( ! ,ri*>d ,b4 ,russell     
,national ,s*ool ,lun* ,act 7#db        
,u4,s4,c4 #agff7 9 accordance )         
subsection 7d77#e77;,e77i7 ( su*        
section1 ! ,secret>y %all p]man5tly deb>
 su* *ild c>e provid] f receiv+ f9ancial
 assi/ance "u ?is sub*apt]4  7,d7 ,f9al 
det]m9ation ( fraud def9ition ,9 ?is    
p>agraph1 ! t]m f9al det]m9ation ( fraud
 means a det]m9ation rea*$ 9 an         
adm9i/rative ord] or z "p ( a judicial  
decision1 = :i* any rights to review or 
appeal h be5 exhau/$ or waiv$1 t a *ild 
c>e provid]-- 7i7 kn[+ly submitt$ a     
false /atem5t or docum5tation to obta9  
f9ancial assi/ance available "u ?is     

sub*apt]2  7ii7 misrepres5t$ own]%ip (1 
enrollm5t at1 att5dance at1 or s]vices  
provid$ ?r\gh a program ( *ild c>e      
s]vices1 or ! eligibility ( ! provid] to
 provide su* s]vices1 to obta9 su*      
f9ancial assi/ance2  7iii7 to obta9 su* 
f9ancial assi/ance1 op]at$ )\t ! ,/ate  
lic5s+ describ$ 9 section               
#feh;,e7c77#b77;,f7 & )\t receiv+ an    
exception to su* lic5s+2  7iv7 made a   
kn[+ & improp] exp5diture ( su* f9ancial
 assi/ance2 or  7v7 engag$ 9 any o!r    
conduct relat$ to su* f9ancial assi/ance
 t con/itut$ fraud "u ,f$]al or ,/ate   
law4  4  #e4 ,improp] paym5t rate       
requir+ corrective action plan2         
conditional ineligibility ,section      
#feh;,j ( ! ,*ild ,c>e & ,developm5t    
,block ,grant ,act ( #aiij 7#db         
,u4,s4,c4 #iheh;h7 is am5d$-- 7#a7 by   
r$esignat+ subsection 7c7 z subsection  
7e72 &  7#b7 by ins]t+ aft] subsection  
7b7 ! foll[+3  7c7 improp] paym5t       
?re%old requir+ corrective action plan  
,if = a fiscal ye> ! improp] paym5t rate

 ( a ,/ate is m ?an #e p]c5t ( !        
aggregate am\nt ( paym5ts made to c>ry  
out ?is sub*apt] by su* ,/ate = su*     
fiscal ye>1 !n su* ,/ate %all submit to 
! ,secret>y-- 7#a7 = review & approval a
 corrective action plan to r$uce su*    
rate to n m ?an #e p]c5t = ea* subsequ5t
 fiscal ye>2 &  7#b7 su* reports z !    
,secret>y may require to %[ t su* ,/ate 
is comply+ ) ! requirem5ts ( su* plan z 
approv$ by ! ,secret>y4  7d7            
,conditional ineligibility ,if = ea* (  
#b consecutive fiscal ye>s ! improp]    
paym5t rate ( a ,/ate det]m9$ "u ?is    
section is m ?an #e p]c5t1 !n su* ,/ate 
%all be ineligible to receive funds "u  
?is sub*apt] unless su* ,/ate           
demon/rates to ! satisfaction ( !       
,secret>y t su* ,/ate = ! next fiscal   
ye> w--  7#a7 r$uce su* improp] paym5t  
rate to n m ?an #e p]c5t = ! next fiscal
 ye>2 or  7#b7 make significant progress
 to comply ) ! corrective action plan   
approv$ "u subsection 7c74  4  #f4      
,cyclical monitor+ ( ,/ate p]=mance     

,section #feh,k ( ! ,*ild ,c>e &        
,developm5t ,block ,grant ,act ( #aiij  
7#db ,u4,s4,c4 #iheh;i7 is am5d$ by add+
 at ! end ! foll[+3  7c7 ,p]iodic       
monitor+ by ! ,secret>y ,at #c-ye>      
int]vals1 ! ,secret>y %all conduct a    
compreh5sive review ( ! p]=mance ( ea*  
,/ate t receives assi/ance "u ?is       
sub*apt]4 ,bas$ on ! results ( su*      
review1 ! ,secret>y %all designate z    
high risk a ,/ate t has-- 7#a7 a high   
level ( unresolv$ or repeat$ adv]se     
audit f9d+s submitt$ "u subsection 7b72 
7#b7 a high level ( unresolv$ issues "u1
 or repeat$ p]=mance failures to c>ry   
out1 corrective action plans submitt$ by
 su* ,/ate "u section #feh;,j7c72 or    
7#c7 unresolv$ or repeat f9d+s (        
noncompliance ) ! ,/ate plan approv$ "u 
section #feh;,e7c74  7d7 ,requir$       
additional monitor+ ,if a ,/ate is      
designat$ z high risk "u subsection 7c71
 !n ! p]=mance ( su* ,/ate %all be      
subject to additional monitor+1 z       
det]m9$ by ! ,secret>y4  4  #g4 ,prev5t+

 fraud 9 ! *ild & adult c>e food program
 ,section #ag7;d77#e7 ( ! ,ri*>d ,b4    
,russell ,national ,s*ool ,lun* ,act    
7#db ,u4,s4,c4 #agff7;d77#e77 is am5d$--
 7#a7 by r$esignat+ subp>agraph 7,e7 z  
subp>agraph 7,f72 &  7#b7 by ins]t+ aft]
 subp>agraph 7,d7 ! foll[+3  7,e7       
,t]m9ation due to fraud  7i7 ,deb>m5t ,9
 ! case t ! p>ticipation ( an in/itution
 or family or gr\p day c>e home "u !    
program is t]m9at$ due to a f9al        
det]m9ation ( fraud1 ! ,secret>y %all   
p]man5tly deb> su* in/itution or family 
or gr\p day c>e home f p>ticipat+ 9 !   
program4  7ii7 ,provid]s deb>r$ f ,*ild 
,c>e & ,developm5t ,block ,grant program
 ,9 ! case t an in/itution or family or 
gr\p day c>e home has be5 deb>r$ f      
receiv+ f9ancial assi/ance "u ! ,*ild   
,c>e & ,developm5t ,block ,grant ,act ( 
#aiij 7#db ,u4,s4,c4 #iheg et seq47 9   
accordance ) section #feh;,i7b77#c77;,b7
 ( su* ,act1 ! ,secret>y %all p]man5tly 
deb> su* in/itution or family or gr\p   
day c>e home f p>ticipat+ 9 ! program4  

7iii7 ,f9al det]m9ation ( fraud         
def9ition ,9 ?is subp>agraph1 ! t]m f9al
 det]m9ation ( fraud means a det]m9ation
 rea*$ 9 accordance ) ! proc$ures &     
requirem5ts ( ?is section1 = :i* any    
rights to review or appeal h be5 exhau/$
 or waiv$1 t an in/itution or family or 
gr\p day c>e home-- 7,i7 kn[+ly submitt$
 a false /atem5t or docum5tation to     
obta9 funds disburs$ "u subsection      
7f77#a77;,a72  7,,ii7 misrepres5t$      
own]%ip1 enrollm5t1 att5dance1 or       
s]vices 9 connection ) ! op]ation ( !   
program by su* in/itution or family or  
gr\p day c>e home1 or ! eligibility (   
su* in/itution or family or gr\p day c>e
 home to op]ate ! program1 to obta9 su* 
funds2  7,,iii7 made a kn[+ & improp]   
exp5diture ( su* funds2 or  7,,iv7      
engag$ 9 any o!r conduct relat$ to su*  
funds t con/itut$ fraud "u ,f$]al or    
,/ate law4  4  #h4 ,elim9at+ au?ority to
 waive sanctions ,section #feh;,i7c7 ( !
 ,*ild ,c>e & ,developm5t ,block ,grant 
,act ( #aiij 7#db ,u4,s4,c4 #iheh;g7c77 

is am5d$-- 7#a7 9 p>agraph 7#a7 by /rik+
 or sanctions impos$ ^u a ,/ate 9       
accordance ) subsection 7b77#b72  7#b7 9
 p>agraph 7#b7-- 7,a7 9 subp>agraph 7,a7
 by /rik+ sanction or2 &  7,b7 9        
subp>agraph 7,b7 by /rik+ sanction or2  
7#c7 9 p>agraph 7#c7 /rik+ sanction or2 
&  7#d7 9 p>agraph 7#g7 by /rik+        
sanction7s7 or4  #i4 ,,gao /udy & report
 on provid]-relat$ fraud  7a7 ,/udy ,!  
,comptroll] ,g5]al ( ! ,unit$ ,/ates    
%all conduct a /udy reg>d+ fraud        
prev5tion measures 9 ,f$]al e>ly        
*ildhood education1 *ild c>e1 & *ild    
nutrition programs t %all include an    
analysis (-- 7#a7 ! effectiv5ess (      
proc$ures & measures to prev5t fraud    
c>ri$ out by provid]s ( s]vices "u su*  
programs2  7#b7 :e!r ! data ! ,f$]al    
,gov]nm5t receives 9 connection ) su*   
programs 7includ+ ?r\gh audits & report+
 requirem5ts7 is-- 7,a7 suffici5t to    
successfully id5tify fraud c>ri$ out "u 
su* programs2 &  7,b7 us$ effectively by
 ! ,f$]al ,gov]nm5t to id5tify pot5tial 

fraud c>ri$ out "u su* programs2 &  7#c7
 ) respect to ! ,*ild ,c>e & ,developm5t
 ,block ,grant program e/abli%$ "u !    
,*ild ,c>e & ,developm5t ,block ,grant  
,act ( #aiij 7#db ,u4,s4,c4 #iheg et    
seq47-- 7,a7 ! program integrity results
 = ,/ates t h delegat$ responsibilities 
relat$ to program managem5t &           
adm9i/ration to c\nties1 local          
municipalities1 or o!r entities2 &  7,b7
 :e!r any corrective action plans h be5 
implem5t$ by ,/ates to improve program  
integrity results1 includ+ any          
measurable outcomes f implem5t+ su* a   
corrective action plan4  7b7 ,report ,n 
lat] ?an #b ye>s aft] ! date ( enactm5t 
( ?is section1 ! ,comptroll] ,g5]al ( ! 
,unit$ ,/ates %all submit to !          
,committee on ,education & ,work=ce ( ! 
,h\se ( ,repres5tatives & ! ,committee  
on ,heal?1 ,education1 ,labor1 &        
,p5sions ( ! ,s5ate a report conta9+--  
7#a7 ! results ( ! /udy conduct$ "u     
subsection 7a72 &  7#b7 any regulatory  
or legislative recomm5dations to improve

 fraud prev5tion measures 9 ,f$]al e>ly 
*ildhood education1 *ild c>e1 & *ild    
nutrition programs4  7c7 ,f$]al e>ly    
*ildhood education1 *ild c>e1 & *ild    
nutrition programs def9$ ,= ! purposes (
 ?is section1 ! t]m ,f$]al e>ly *ildhood
 education1 *ild c>e1 & *ild nutrition  
programs includes-- 7#a7 ,head ,/>t     
programs 7includ+ ,e>ly ,head ,/>t      
programs7 c>ri$ out "u ! ,head ,/>t ,act
 7#db ,u4,s4,c4 #ihca et seq472  7#b7 ! 
,*ild & ,adult ,c>e ,food ,program "u   
section #ag ( ! ,ri*>d ,b4 ,russell     
,national ,s*ool ,lun* ,act 7#db        
,u4,s4,c4 #agff72 &  7#c7 ! ,*ild ,c>e &
 ,developm5t ,block ,grant program      
e/abli%$ "u ! ,*ild ,c>e & ,developm5t  
,block ,grant ,act ( #aiij 7#db         
,u4,s4,c4 #iheg et seq474  #aj4         
,fraudul5t paym5ts ,section #feh;,j7b7 (
 ! ,*ild ,c>e & ,developm5t ,block      
,grant ,act ( #aiij 7#db ,u4,s4,c4      
#iheh;h7b77 is am5d$-- 7#a7 9 p>agraph  
7#a7 by ins]t+ 7includ+ fraudul5t       
paym5ts7 aft] ov]paym5ts2 &  7#b7 by    

add+ at ! end ! foll[+3  7#c7 ,report ,!
 ,/ate %all submit to ! ,secret>y an    
annual report t id5tifies ! doll> &     
p]c5tage am\nt ( improp] paym5ts made by
 ! ,/ate1 disaggregat$ z specifi$ by !  
,secret>y by /&>diz$ paym5t categories  
7includ+ suspect$ & v]ifi$ fraudul5t    
paym5ts1 non-fraudul5t ov]paym5ts1      
und]paym5ts1 & te*nically improp]       
paym5ts 7e4g41 sy/em error paym5ts774  4