A bill to reauthorize the authority for the Secretary of Agriculture to pay costs associated with removal of commodities that pose a health or safety risk and to make adjustments to certain child nutrition programs.

Summary: Amends the Child Nutrition Act of 1996 respecting the special supplemental nutrition program for women, infants, and children (WIC) to: (1) authorize the exclusion of cost-of-living allowances for members of the uniformed services on duty outside the contiguous States (currently continental) of the United States; and (2) limit to 20 the number of demonstration projects relating to the use of the WIC program for identification and enrollment of children in certain health programs.
Amends the Richard B. Russell National School Lunch Act to authorize, and set forth the conditions under which, a State agency may suspend without prior hearing a participating institution for false or fraudulent claims under the child and adult care food program.

SECTION 1. PAYMENT OF COSTS ASSOCIATED WITH REMOVAL OF COMMODITIES THAT 
              POSE A HEALTH OR SAFETY RISK.

    Section 15(e) of the Commodity Distribution Reform Act and WIC 
Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237) is amended 
by striking ``2000'' and inserting ``2003''.

SEC. 2. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND 
              CHILDREN.

    (a) Cost-of-Living Allowances for Members of Uniformed Services.--
Section 17(d)(2)(B)(ii) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(d)(2)(B)(ii)) is amended by striking ``continental'' and inserting 
``contiguous States of the''.
    (b) Demonstration Project.--Effective October 1, 2000, section 
17(r)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(r)(1)) is 
amended by striking ``at least 20 local agencies'' and inserting ``not 
more than 20 local agencies''.

SEC. 3. CHILD AND ADULT CARE FOOD PROGRAM.

    (a) Technical Amendments.--Section 17 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1766) is amended--
            (1) by striking the section heading and all that follows 
        through ``Sec. 17.'' and inserting the following:

``SEC. 17. CHILD AND ADULT CARE FOOD PROGRAM.'';

        and
            (2) in subsection (a)(6)(C)(ii), by striking ``and'' at the 
        end.
    (b) Exceptions to Hearing Requirements.--Section 17(d)(5)(D) of the 
Richard B. Russell National School Lunch Act (42 U.S.C. 1766(d)(5)(D)) 
is amended--
            (1) by striking ``(D) Hearing.--An institution'' and 
        inserting the following:
                    ``(D) Hearing.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), an institution''; and
            (2) by adding at the end the following:
                            ``(ii) Exception for false or fraudulent 
                        claims.--
                                    ``(I) In general.--If a State 
                                agency determines that an institution 
                                has knowingly submitted a false or 
                                fraudulent claim for reimbursement, the 
                                State agency may suspend the 
                                participation of the institution in the 
                                program in accordance with this clause.
                                    ``(II) Requirement for review.--
                                Prior to any determination to suspend 
                                participation of an institution under 
                                subclause (I), the State agency shall 
                                provide for an independent review of 
                                the proposed suspension in accordance 
                                with subclause (III).
                                    ``(III) Review procedure.--The 
                                review shall--
                                            ``(aa) be conducted by an 
                                        independent and impartial 
                                        official other than, and not 
                                        accountable to, any person 
                                        involved in the determination 
                                        to suspend the institution;
                                            ``(bb) provide the State 
                                        agency and the institution the 
                                        right to submit written 
                                        documentation relating to the 
                                        suspension, including State 
                                        agency documentation of the 
                                        alleged false or fraudulent 
                                        claim for reimbursement and the 
                                        response of the institution to 
                                        the documentation;
                                            ``(cc) require the 
                                        reviewing official to 
                                        determine, based on the review, 
                                        whether the State agency has 
                                        established, based on a 
                                        preponderance of the evidence, 
                                        that the institution has 
                                        knowingly submitted a false or 
                                        fraudulent claim for 
                                        reimbursement;
                                            ``(dd) require the 
                                        suspension to be in effect for 
                                        not more than 120 calendar days 
                                        after the institution has 
                                        received notification of a 
                                        determination of suspension in 
                                        accordance with this clause; 
                                        and
                                            ``(ee) require the State 
                                        agency during the suspension to 
                                        ensure that payments continue 
                                        to be made to sponsored centers 
                                        and family and group day care 
                                        homes meeting the requirements 
                                        of the program.
                                    ``(IV) Hearing.--A State agency 
                                shall provide an institution that has 
                                been suspended from participation in 
                                the program under this clause an 
                                opportunity for a fair hearing on the 
                                suspension conducted in accordance with 
                                subsection (e)(1).''.
    (c) Statewide Demonstration Projects Involving Private For-Profit 
Organizations Providing Nonresidential Day Care Services.--Section 
17(p)(3)(C) of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1766(p)(3)(C)) is amended--
            (1) in clause (iii), by striking ``all families'' and 
        inserting ``all low-income families''; and
            (2) in clause (iv), by striking ``made'' and inserting 
        ``reported for fiscal year 1998''.