H.R. 7923: Stop Fraud by Strengthening Oversight and More Accountability for Lying and Illegal Activity Act

This bill, officially titled the "Stop Fraud by Strengthening Oversight and More Accountability for Lying and Illegal Activity Act," aims to strengthen regulations surrounding child care providers, particularly in addressing fraud within that sector. Below is a summary of its key provisions:

Fraud Definition and Reporting

The bill defines specific fraudulent actions that child care providers may engage in, such as:

• Submitting false statements or documents to obtain financial assistance.
• Misrepresenting ownership, enrollment, attendance, or services in order to secure funds.
• Operating without the required state licensing.
• Making improper expenditures of the funds received.
• Any other acts of fraud related to the funds, as defined by federal or state law.

Consequences for Fraudulent Activities

If a child care provider is found to have committed fraud, the following measures will be taken:

• The Secretary of Health and Human Services will notify the state and require reimbursement for funds obtained through fraud.
• The Secretary can impose additional sanctions, which may include recouping improperly spent money and disqualifying the provider from receiving further financial assistance.
• If fraud is determined, the provider will face mandatory permanent debarment from any federal child care assistance programs.
• No waiver or reduction of the debarment can occur, even if the provider changes its structure or name.
• Providers found guilty will be subject to mandatory referral for federal criminal investigation and prosecution.

Impact on Immigrant Child Care Providers

The bill also introduces provisions affecting immigrant child care providers:

• Alien child care providers who have been debarred for fraud will be considered inadmissible to the United States.
• Such providers may also be deported and will be ineligible for asylum or adjustment of status.
• Ineligibility will extend to those who supported terrorism through funds acquired fraudulently.

Mandatory Detention and Expedited Removal

The legislation mandates the expedited removal of alien child care providers who are deemed inadmissible due to fraud, allowing immigration officers to remove these individuals quickly without further hearings. Additionally, it specifies mandatory detention for alien providers convicted of fraud-related crimes.

Exemptions from Legal Procedures

The bill states that certain laws, including the Paperwork Reduction Act and the Administrative Procedure Act, do not apply when implementing the provisions of this bill. This allows for faster implementation without the usual bureaucratic processes.

Severability Clause

Should any part of the bill be deemed unenforceable, the remaining provisions will continue to be valid. This is intended to ensure that a ruling against a portion of the bill does not invalidate the entire legislation.

Effective Date

The bill will become effective upon enactment, with specific provisions applying to fraudulent actions that occurred on or after September 30, 1996, for which the individual has not yet been arrested or charged.

Relevant Companies

None found