STATE LIABILITY FOR PAYMENTS TO AGGRIEVED CHILD CARE INSTITUTIONS.

SEC. 332. STATE LIABILITY FOR PAYMENTS TO AGGRIEVED CHILD CARE INSTITUTIONS. Section 17(e) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(e)) is amended—(1) in paragraph (3), by striking “(3) If a State” and inserting the following:“(5) Secretarial hearing.—If a State”; and(2) by striking “(e) Except as provided” and all that follows through “(2) A State” and inserting the following:“(e) Hearings.—“(1) In general.—Except as provided in paragraph (4), each State agency shall provide, in accordance with regulations promulgated by the Secretary, an opportunity for a fair hearing and a prompt determination to any institution aggrieved by any action of the State agency that affects—“(A) the participation of the institution in the program authorized by this section; or“(B) the claim of the institution for reimbursement under this section.124 STAT. 3251“(2) Reimbursement.—In accordance with paragraph (3), a State agency that fails to meet timeframes for providing an opportunity for a fair hearing and a prompt determination to any institution under paragraph (1) in accordance with regulations promulgated by the Secretary, shall pay, from non-Federal sources, all valid claims for reimbursement to the institution and the facilities of the institution during the period beginning on the day after the end of any regulatory deadline for providing the opportunity and making the determination and ending on the date on which a hearing determination is made.“(3) Notice to state agency.—The Secretary shall provide written notice to a State agency at least 30 days prior to imposing any liability for reimbursement under paragraph (2).“(4) Federal audit determination.—A State”.