Bill Text: IA HSB503 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to public assistance program fraud.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-02-09 - Subcommittee returns the bill to Committee without recommendation. Vote Total: 0-0 [HSB503 Detail]
Download: Iowa-2021-HSB503-Introduced.html
House
Study
Bill
503
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
HUMAN
RESOURCES
BILL
BY
CHAIRPERSON
MEYER)
A
BILL
FOR
An
Act
relating
to
public
assistance
program
fraud.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
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Section
1.
NEW
SECTION
.
239.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Applicant”
means
an
individual
who
is
applying
for
4
public
assistance
benefits
in
the
state.
5
2.
“Department”
means
the
department
of
human
services.
6
3.
“Public
assistance”
means
SNAP
(the
supplemental
7
nutrition
assistance
program),
the
Medicaid
program,
FIP
(the
8
family
investment
program),
and
CHIP
(the
children’s
health
9
insurance
program).
10
4.
“Recipient”
means
an
individual
who
is
receiving
public
11
assistance
benefits
in
the
state.
12
Sec.
2.
NEW
SECTION
.
239.2
Referrals
for
public
assistance
13
fraud,
misrepresentation,
or
inadequate
documentation
——
rules
14
——
reports.
15
1.
Following
a
review
of
a
public
assistance
applicant’s
16
or
recipient’s
eligibility
under
this
chapter,
the
department
17
shall
refer
cases
of
suspected
fraud
along
with
any
supportive
18
information
to
the
department
of
inspections
and
appeals
for
19
review.
20
2.
In
cases
of
substantiated
fraud,
upon
conviction,
the
21
state
shall
review
all
appropriate
legal
options
including
22
but
not
limited
to
removal
of
a
recipient
from
other
public
23
assistance
programs
and
garnishment
of
wages
or
state
income
24
tax
refunds
until
the
department
recovers
an
equal
amount
of
25
benefits
fraudulently
claimed.
26
3.
The
department
shall
refer
suspected
cases
of
fraud,
27
misrepresentation,
or
inadequate
documentation
relating
to
28
initial
or
continued
eligibility
to
appropriate
state
agencies,
29
divisions,
or
departments
for
review
of
eligibility
issues
in
30
programs
providing
public
benefits
other
than
public
assistance
31
benefits.
32
4.
The
department
of
human
services
shall
adopt
rules
33
pursuant
to
chapter
17A
to
administer
this
chapter.
34
5.
The
department
shall
submit
a
report
to
the
governor
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_____
and
the
general
assembly
by
January
15,
2024,
and
by
January
1
15
annually
thereafter
through
January
15,
2029,
detailing
the
2
impact
of
the
measures
taken
under
this
chapter.
The
report
3
shall
include
data
for
all
affected
public
assistance
programs
4
including
the
number
of
cases
reviewed,
the
number
of
cases
5
closed,
the
number
of
fraud
investigation
referrals
made,
and
6
the
amount
of
savings
and
cost
avoidance
realized
from
the
7
provisions
of
this
chapter.
8
Sec.
3.
IMPLEMENTATION.
9
1.
The
department
of
human
services
shall
request
federal
10
approval
including
for
any
state
plan
amendment
or
waiver
11
necessary
to
administer
this
Act.
12
2.
The
provisions
of
this
Act
requiring
federal
approval
13
shall
be
implemented
upon
receipt
of
such
federal
approval.
14
3.
The
provisions
of
this
Act
not
requiring
federal
approval
15
shall
be
implemented
no
later
than
July
1,
2023.
16
4.
The
department
may
contract
with
multiple
third-party
17
vendors
to
administer
this
Act.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
provides
that
following
a
review
of
a
public
22
assistance
applicant’s
or
recipient’s
eligibility,
the
23
department
of
human
services
(DHS)
shall
refer
cases
of
24
suspected
fraud
along
with
any
supportive
information
to
the
25
department
of
inspections
and
appeals
for
review.
In
cases
of
26
substantiated
fraud,
upon
conviction,
the
state
shall
review
27
all
appropriate
legal
options
including
but
not
limited
to
28
removal
of
a
recipient
from
other
public
assistance
programs
29
and
garnishment
of
wages
or
state
income
tax
refunds
until
DHS
30
recovers
an
equal
amount
of
benefits
fraudulently
claimed.
31
DHS
shall
refer
suspected
cases
of
fraud,
misrepresentation,
32
or
inadequate
documentation
relating
to
initial
or
continued
33
eligibility
to
appropriate
state
agencies,
divisions,
or
34
departments
for
review
of
eligibility
issues
in
other
public
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benefits
programs.
1
Under
the
bill,
DHS
shall
adopt
administrative
rules
to
2
administer
the
Code
chapter.
DHS
shall
submit
a
report
to
the
3
governor
and
the
general
assembly
by
January
15,
2024,
and
4
by
January
15
annually
thereafter
through
January
15,
2029,
5
detailing
the
impact
of
the
measures
taken
under
the
bill.
The
6
report
shall
include
data
for
all
affected
public
assistance
7
programs
including
the
number
of
cases
reviewed,
the
number
of
8
cases
closed,
the
number
of
fraud
investigation
referrals
made,
9
and
the
amount
of
savings
and
cost
avoidance
realized
from
the
10
provisions
of
the
bill.
11
DHS
shall
request
federal
approval
including
for
any
state
12
plan
amendment
or
waiver
necessary
to
administer
the
bill,
and
13
the
provisions
of
the
bill
requiring
federal
approval
shall
14
be
implemented
upon
receipt
of
such
federal
approval.
The
15
provisions
of
the
bill
that
do
not
require
federal
approval
16
shall
be
implemented
no
later
than
July
1,
2023.
DHS
may
17
contract
with
multiple
third-party
vendors
to
administer
the
18
bill.
19
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