Ariz. Admin. Code § R7-2-1509 - Misuse of Funds
A. Based on a
finding that a parent knowingly misuses funds, the Department shall temporarily
suspend the account and provide notice to the parent. The notice shall:
1. Include the reason for the temporary
suspension and a detailed description of the disallowed expense; and
2. Provide the parent 15 days, not including
weekends, to either:
a. Present documentation
that demonstrates the expense is allowable or that the parent was victim to
identity theft or fraud; or
b.
Agree to repay the amount.
B. The Department shall review the
documentation submitted pursuant to
R7-2-1509(A)(2)(a)
within five days of receipt to determine if the expense is allowable or if the
parent was victim to identity theft or fraud. If the Department determines the
expense is allowable or that the parent was victim to identity theft or fraud,
the Department shall lift the temporary suspension, reinstate the account and
make any disbursements that were withheld during the suspension.
C. If the Department determines the
documentation fails to demonstrate the expense is allowable or that the parent
was victim to identity theft or fraud, the Department shall provide
notification to the parent that the amount must be repaid. The Department shall
withhold the disbursement of any additional ESA funds until repayment is made.
The Department may agree to a gradual repayment plans at the request of the
parent and shall reinstate additional ESA funding once repayment has begun. The
Department may remove a parent from the Program that fails to repay an amount
or agree to a repayment plan.
D.
Once a parent agrees to a gradual repayment plan or repays an amount pursuant
to R7-2-1509(A)(2)(b)
or R7-2-1509(C), the
Department shall lift the temporary suspension, reinstate the account and make
any disbursements that were withheld during the suspension as follows:
1. Within one day, if the repayment is made
by cashier's check or money order; or
2. Within seven days, if repayment is made by
personal check.
E. Except
in cases which the Attorney General determines that a parent or account holder
has committed fraud, any expenditure from an Arizona Empowerment Scholarship
Account for a purchase that is deemed ineligible pursuant to A.R.S. §
15-2402 and that is subsequently
repaid by the parent or account holder shall be credited back to the Arizona
Empowerment Scholarship Account balance within 30 days after the receipt of
payment.
F. Pursuant to
R7-2-1511, a parent who has been
removed from the Program pursuant to this Section may file a written request
for a hearing within 30 days after being served the notice of
removal.
G. The Department shall
refer a case to the Board if a parent does not file an appeal pursuant to
R7-2-1511 and either:
1. Fails to repay the amount of a disallowed
expense, or
2. Fails to make a
payment on a gradual repayment plan.
H. On a finding of misuse of monies, the
Board may refer the case to the Attorney General who may bring an action to
recover the monies. Upon obtaining evidence of fraudulent use of an account,
the Board may refer the case to the Attorney General for the purpose of a
criminal investigation.
I. A parent
or qualified student is not eligible to enroll a qualified student in the ESA
Program if that parent was an account holder on an account that was referred to
the Attorney General for misuse of monies unless the parent's expense was
subsequently found to be allowable or the parent was the victim of identity
theft or fraud.
J. If a parent
commits fraud, the Department shall withhold funds from all accounts in the
parent's name and close the accounts.
Notes
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