1. (a) The Agency or Board may take the following actions pursuant to Agency policy if the Agency or Board finds that a provider has committed fraud:

   1. (1) Temporarily or permanently withholding payments to the provider for child care services delivered;
   2. (2) Recoupment of funds from the provider;
   3. (3) Stop authorizing care at the provider's facility or location;

   4. (4) Prohibiting future eligibility to provide Commission-funded child care services or to participate in the management, ownership, or operation of a provider engaged in Commission-funded child care services for any of the following:

      1. (A) the provider;
      2. (B) an owner or director of the provider;
      3. (C) an individual who, either alone or in connection with others, has the ability to influence or direct the management, expenditures, or policies of the provider;
      4. (D) a family member of subparagraph (A), (B), or (C) of this paragraph; or
      5. (E) an individual who was found to have engaged, aided, or abetted in the fraudulent activities; or
   5. (5) Any other action consistent with the intent of the governing statutes or regulations to investigate, prevent, or stop suspected fraud.

2. (b) The Agency or Board may take the following actions pursuant to Agency policy if the Agency or Board finds that a parent has committed fraud:

   1. (1) recouping funds from the parent;
   2. (2) prohibiting future child care eligibility, provided that the prohibition does not result in a Choices or SNAP E&T participant becoming ineligible for child care;
   3. (3) limiting the enrollment of the parent's child to a regulated child care provider;
   4. (4) terminating care during the eligibility period if eligibility was determined using fraudulent information provided by the parent; or
   5. (5) any other action consistent with the intent of the governing statutes or regulations to investigate, prevent, or stop suspected fraud.

Source Note:The provisions of this §809.113 adopted to be effective January 29, 2007, 32 TexReg 336; amended to be effective January 8, 2013, 38 TexReg 155; amended to be effective October 1, 2016, 41 TexReg 7529; amended to be effective June 8, 2026, 51 TexReg 3809.