10A NCAC 10 .0308. SANCTIONS AND APPEALS FOR FRAUDULENT MISREPRESENTATION

(a)  The local purchasing agency shall impose sanctions for fraudulent misrepresentation when a person, whether a provider or recipient of child care subsidies, or someone claiming to be a provider or recipient of child care subsidies, does the following:

(1)           With the intent to deceive, makes a false statement or representation regarding a material fact, or fails to disclose a material fact; and

(2)           As a result of the false statement or representation or the omission, obtains, attempts to obtain, or continues to receive a child care subsidy for himself or herself or for another person.

(b)  The local purchasing agency shall impose the following sanctions for fraudulent misrepresentation in addition to requiring the recipient or provider to repay the amount of child care subsidy for which he or she is ineligible to receive:

(1)           After the first incidence of fraudulent misrepresentation by a recipient, the recipient shall be ineligible to receive subsidized child care services until overpayment is recouped in full or the local purchasing agency shall enter into a repayment agreement with the recipient if the recipient so desires;

(2)           After the second incidence of fraudulent misrepresentation by a recipient, the recipient shall be ineligible to participate in the subsidized child care program for three months; and

(A)          shall repay the overpayment in full; or

(B)          the local purchasing agency shall enter into a new repayment agreement with the recipient if the recipient so desires;

(3)           After the third incidence of fraudulent misrepresentation by a recipient, the recipient shall be permanently ineligible to participate in the subsidized child care program and shall repay the overpayment in full;

(4)           After the first incidence of fraudulent misrepresentation by a provider, the provider shall not be paid with subsidized child care funds for any new children who enroll in the provider's program for 12 months; and

(A)          the provider shall repay the overpayment in full; or

(B)          the local purchasing agency shall enter into a repayment agreement with the provider if the provider so desires; and

(5)           After the second incidence of fraudulent misrepresentation by a provider, the provider shall repay the overpayment in full, shall be permanently ineligible to participate in the subsidized child care program, and shall not be reimbursed for any services provided to children enrolled in the provider’s program from the date of notification of sanction in accordance with G.S. 150B-23(c).

(c)  If a recipient or provider enters into a repayment agreement and fails to comply with terms of that agreement, eligibility to participate in the subsidized child care program shall cease until repayment is made in full or the recipient or provider and the local purchasing agency agree to modify the repayment agreement.

(d)  Notwithstanding Subparagraphs (b)(4), (5), and (6) of this Rule, the recipient or provider shall be permanently ineligible to participate in the subsidized child care program if:

(1)           the total dollar amount of the fraudulent misrepresentation exceeds ten thousand dollars ($10,000); or

(2)           the recipient or provider is convicted of fraudulent misrepresentation pursuant to G.S. 110-107.

(e)  Sanctions pursuant to this Rule shall be effective 10 days from the date of notice of the sanction.  Appeal of a sanction shall not stay the termination of payments under this Rule.

(f)  A child care provider may appeal any sanction imposed in Paragraph (b) of this Rule pursuant to 10A NCAC 10 .0311 and 10A NCAC 10. 0312.  A recipient may appeal any sanction imposed in Paragraph (b) of this Rule by following the appeals procedures pursuant to G.S. 108A-79.

(g)  When a court of competent jurisdiction finds a recipient or provider guilty of fraudulent misrepresentation pursuant to Subparagraph (d)(2) of this Rule, the sanction imposed is not subject to appeal under this Section.

(h)  Nothing in this Rule shall be construed as limiting child care services pursuant to 10A NCAC 10 .0906.

 

History Note:        Authority G.S. 143B-153;

Eff. April 1, 2001;

Amended Eff. December 1, 2011.