                                 CODE OF VIRGINIA

STATEWIDE FRAUD CONTROL PROGRAM (§ 63.2-526)

A. The Department shall establish a statewide fraud control program to ensure
that fraud prevention and investigation are pursued throughout the Commonwealth.
The Board shall adopt regulations to implement the provisions of this section.

B. Each local department shall establish fraud prevention and investigation
units only insofar as money is appropriated therefor, which shall be staffed
with sufficient qualified personnel to fulfill the regulations adopted by the
Board. Solely for the purposes of obtaining motor vehicle licensing and
registration information from entities within and without the Commonwealth, each
local department fraud prevention and investigation unit shall be deemed to be a
criminal justice agency as defined in &#xA7; 9.1-101. The local departments may
contract with other local departments to share a fraud prevention and
investigation unit and may contract with private entities to perform fraud
investigation. Any private entity performing fraud investigations shall comply
with the requirements of &#xA7; 30-138 and shall not be 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 assistance
administered by the local board and (ii) investigating whether persons who
receive public assistance through the local board are receiving it fraudulently.
The fraud unit shall provide whatever assistance is necessary to attorneys for
the Commonwealth in prosecuting cases involving fraud.

D. There is hereby created in the state treasury a special nonreverting fund to
be known as the Fraud Recovery Special Fund, hereafter referred to as &#8220;the
Fund.&#8221; The Fund shall be established on the books of the Comptroller. All
overpayment moneys collected or recovered by local departments related to food
stamp, Temporary Assistance for Needy Families, and other federal benefit
programs administered by the Department net of any refunds due the federal
government shall be paid into the state treasury and credited to the Fund,
except as prohibited by federal law or regulation. Any moneys remaining in the
Fund at the end of each fiscal year shall not revert to the general fund but
shall remain in the Fund. Moneys in the Fund shall be used solely for 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 funds
available for this purpose, and (iii) balances in the Fund.

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

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