63.2-526 - Statewide fraud control program. - Virginia Statutes

§ 63.2-526. Statewide fraud control program.

A. The Department shall establish a statewide fraud control program to ensurethat fraud prevention and investigation are pursued throughout theCommonwealth. The Board shall adopt regulations to implement the provisionsof this section.

B. Each local department shall establish fraud prevention and investigationunits only insofar as money is appropriated therefor, which shall be staffedwith sufficient qualified personnel to fulfill the regulations adopted by theBoard. Solely for the purposes of obtaining motor vehicle licensing andregistration information from entities within and without the Commonwealth,each local department fraud prevention and investigation unit shall be deemedto be a criminal justice agency as defined in § 9.1-101. The localdepartments may contract with other local departments to share a fraudprevention and investigation unit and may contract with private entities toperform fraud investigation. Any private entity performing fraudinvestigations shall comply with the requirements of § 30-138 and shall notbe deemed to be a criminal justice agency.

C. The duties of fraud units may include but shall not be limited to (i)developing methods to prevent the fraudulent receipt of public assistanceadministered by the local board and (ii) investigating whether persons whoreceive public assistance through the local board are receiving itfraudulently. The fraud unit shall provide whatever assistance is necessaryto attorneys for the Commonwealth in prosecuting cases involving fraud.

D. There is hereby created in the state treasury a special nonreverting fundto be known as the Fraud Recovery Special Fund, hereafter referred to as"the Fund." The Fund shall be established on the books of the Comptroller.All overpayment moneys collected or recovered by local departments related tofood stamp, Temporary Assistance for Needy Families, and other federalbenefit programs administered by the Department net of any refunds due thefederal government shall be paid into the state treasury and credited to theFund, except as prohibited by federal law or regulation. Any moneys remainingin the Fund at the end of each fiscal year shall not revert to the generalfund but shall remain in the Fund. Moneys in the Fund shall be used solelyfor the purpose of funding state and local fraud control programs.

Funding for local and state fraud control activities shall be comprised of(i) general funds appropriated for this activity, (ii) any federal fundsavailable for this purpose, and (iii) balances in the Fund.

E. Local departments shall apply to the Commissioner for reimbursement fromthe Fund for the local share of direct costs. The Commissioner shallauthorize reimbursements to the local departments from the Fund as providedin the general appropriation act. To receive or continue receivingreimbursements from the Fund, the local departments shall administer theirfraud and investigation units in compliance with Board regulations. Thenumber of local fraud workers for which the state will provide reimbursementin each locality shall be determined by Board regulations.

(1992, c. 190, § 63.1-58.2; 1998, c. 775; 2000, c. 459; 2002, c. 747.)