Bill Text: IA SF2370 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to public assistance program oversight and including effective date provisions. (Formerly SSB 3193.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2018-03-15 - Referred to Labor and Business Relations. S.J. 693. [SF2370 Detail]
Download: Iowa-2017-SF2370-Introduced.html
Senate File 2370 - Introduced SENATE FILE BY COMMITTEE ON LABOR AND BUSINESS RELATIONS (SUCCESSOR TO SSB 3193) A BILL FOR 1 An Act relating to public assistance program oversight and 2 including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5181SV (1) 87 pf/rh PAG LIN 1 1 Section 1. NEW SECTION. 217.41C Public assistance programs 1 2 ==== verification of applicant eligibility ==== residency. 1 3 1. The department of human services shall implement an 1 4 eligibility verification system for public assistance programs 1 5 to verify the eligibility of an individual who is an applicant 1 6 for any such program. The information to be verified and 1 7 sources to be examined for each individual shall include but 1 8 are not limited to all of the following: 1 9 a. Earned and unearned income. 1 10 b. Employment status and changes in employment. 1 11 c. Immigration status. 1 12 d. Residency status, including a nationwide best=address 1 13 source to verify that individuals are residents of the state. 1 14 e. Enrollment status in other state=administered public 1 15 assistance programs. 1 16 f. Incarceration status. 1 17 g. Death records. 1 18 h. Enrollment status in public assistance programs outside 1 19 of this state. 1 20 i. Records of any potential identity fraud or identity 1 21 theft. 1 22 2. The department of human services shall enter into a 1 23 memorandum of understanding with any department, division, 1 24 bureau, section, unit, or any other subunit of a department, as 1 25 necessary, to obtain the information specified in subsection 1. 1 26 3. The department of human services may contract with a 1 27 third=party vendor to provide the information specified in 1 28 subsection 1. Any such contract shall include a provision 1 29 that ensures that annualized savings to the state exceed the 1 30 contract's total annual cost to the state. 1 31 4. Nothing in this section shall preclude the department 1 32 of human services from receiving, reviewing, or verifying 1 33 additional information related to the eligibility of an 1 34 individual not specified in this section or from contracting 1 35 with a third=party vendor to provide additional information not 2 1 specified in this section. 2 2 5. The department of human services shall require that an 2 3 applicant for a public assistance program demonstrate residency 2 4 in the state for at least one year prior to submission of the 2 5 application. The department shall require that the applicant 2 6 specify the county in which the applicant has resided, 2 7 the length of residence in the state, and state that the 2 8 maintenance of the residence has been in good faith and not for 2 9 the purposes of obtaining public assistance benefits only. An 2 10 individual who fails to demonstrate residency in the state for 2 11 at least one year prior to submission of an application for 2 12 public assistance benefits shall be ineligible to receive such 2 13 benefits. 2 14 6. For the purposes of this section, "public assistance 2 15 program" shall include but is not limited to the Medicaid 2 16 program, the family investment program (FIP), and the 2 17 supplemental nutrition assistance program (SNAP). 2 18 Sec. 2. NEW SECTION. 217.41D Public assistance programs ==== 2 19 real=time eligibility monitoring. 2 20 1. At least quarterly, the department of human services 2 21 shall obtain and review all of the following information and 2 22 sources to determine ongoing eligibility of an enrollee in a 2 23 public assistance program: 2 24 a. Earned and unearned income. 2 25 b. Employment status and changes in employment. 2 26 c. Residency status. 2 27 d. Enrollment status in other state=administered public 2 28 assistance programs. 2 29 e. Financial resources. 2 30 f. Incarceration status. 2 31 g. Death records. 2 32 h. Lottery winnings. 2 33 i. Enrollment status in public assistance programs outside 2 34 of the state. 2 35 2. The department of human services shall enter into a 3 1 memorandum of understanding with any department, division, 3 2 bureau, section, unit, or any other subunit of a department to 3 3 obtain the information specified in subsection 1. 3 4 3. The department of human services may contract with a 3 5 third=party vendor to provide the information specified in 3 6 subsection 1. Any such contract shall include a provision that 3 7 ensures that any annualized savings to the state exceed the 3 8 contract's total annual cost to the state. 3 9 4. The department of human services shall explore 3 10 opportunities to join existing multistate collaborations to 3 11 identify individuals who are also enrolled in public assistance 3 12 programs outside of the state, including the national accuracy 3 13 clearinghouse. 3 14 5. Nothing in this section shall preclude the department 3 15 of human services from receiving or reviewing additional 3 16 information related to the eligibility of an individual 3 17 not specified in this section or from contracting with a 3 18 third=party vendor to provide additional information not 3 19 specified in this section. 3 20 6. If the department of human services receives information 3 21 about an enrollee in a public assistance program that indicates 3 22 a potential change or discrepancy in circumstances that may 3 23 affect the individual's eligibility for that public assistance 3 24 program, the department shall review the individual's 3 25 circumstances and respond appropriately, as follows: 3 26 a. If the review does not result in the department 3 27 confirming any discrepancy or change in an individual's 3 28 circumstances that may affect eligibility, the department shall 3 29 take no further action. 3 30 b. If the review results in the department finding 3 31 a potential discrepancy or change in the individual's 3 32 circumstances that may affect eligibility, the department shall 3 33 promptly notify the individual. 3 34 (1) The department shall provide written notice to the 3 35 enrollee, which shall describe in sufficient detail the 4 1 circumstances of the potential discrepancy or change, the 4 2 manner in which the enrollee may respond, and the consequences 4 3 of failing to take action. However, a self=declaration of an 4 4 enrollee alone shall not be accepted as verification to refute 4 5 the information. 4 6 (2) The enrollee shall have ten business days, or the 4 7 minimum required by federal or state law, to respond to the 4 8 department in writing, to provide information to refute and 4 9 resolve the potential discrepancy or change. After receiving 4 10 the enrollee's written response, the department may request 4 11 additional documentation if the department determines that 4 12 the documentation is inadequate or that a risk of fraud or 4 13 misrepresentation exists. A self=declaration of an enrollee 4 14 refuting the information shall not, alone, constitute a 4 15 refutation of the potential discrepancy or change. 4 16 (3) If the enrollee does not respond to the written 4 17 notice in a timely manner, the department shall provide 4 18 notice to terminate the individual's enrollment, based upon 4 19 the individual's failure to cooperate, and shall terminate 4 20 the individual's enrollment in any applicable public 4 21 assistance program. The individual's eligibility shall not be 4 22 reestablished until the discrepancy or change is resolved. 4 23 (4) If the enrollee responds to the written notice in a 4 24 timely manner and disagrees with the findings, the department 4 25 shall reevaluate the enrollee's situation. If the department 4 26 determines through the reevaluation that the information upon 4 27 which the discrepancy or change was based is in error, the 4 28 department shall take immediate action to correct the error and 4 29 no further action on the enrollee's eligibility status shall be 4 30 taken. If the department affirms through the reevaluation that 4 31 a discrepancy or change exists, the department shall determine 4 32 the effect on the enrollee's eligibility and take appropriate 4 33 action. Written notice of the results of the department's 4 34 reevaluation and the actions to be taken shall be provided to 4 35 the individual. 5 1 (5) If the enrollee responds to the written notice in a 5 2 timely manner and agrees with the findings, the department 5 3 shall determine the effect on the enrollee's circumstances and 5 4 take appropriate action. Written notice of the actions to be 5 5 taken by the department shall be provided to the individual. 5 6 7. For the purposes of this section, "public assistance 5 7 program" shall include but is not limited to the Medicaid 5 8 program, the family investment program (FIP), and the 5 9 supplemental nutrition assistance program (SNAP). 5 10 Sec. 3. NEW SECTION. 217.41E Supplemental nutrition 5 11 assistance program ==== resource limitations ==== child support 5 12 cooperation as a condition of eligibility ==== work requirements. 5 13 1. The department of human services shall not establish 5 14 resource limits for the supplemental nutrition assistance 5 15 program (SNAP) that exceed the resource limitations specified 5 16 in 7 U.S.C. {2014(g)(1), unless specifically required under 5 17 federal law. Additionally, categorical eligibility shall not 5 18 exempt households from these resource limits for any noncash, 5 19 in=kind, or other benefit, unless expressly required by federal 5 20 law. 5 21 2. The department of human services shall require, as a 5 22 condition of eligibility for SNAP, that an individual cooperate 5 23 with the child support recovery unit in establishing and 5 24 enforcing a child support order pursuant to 7 C.F.R. {273.11(o) 5 25 and (p). 5 26 3. a. The department of human services shall not seek, 5 27 apply for, accept, or renew any waiver of the work requirements 5 28 applicable to an individual to be eligible for SNAP pursuant to 5 29 7 U.S.C. {2015(o). 5 30 b. The department of human services shall assign an 5 31 individual who is subject to the work requirements specified 5 32 in 7 U.S.C. {2015(d)(1), but who is exempt from the work 5 33 requirements pursuant to 7 U.S.C. {2015(o), to participate in 5 34 an employment and training program established pursuant to 7 5 35 U.S.C. {2015(d)(4). 6 1 Sec. 4. NEW SECTION. 217.41F Work requirements ==== Medicaid 6 2 program. 6 3 1. The department of human services shall require that, 6 4 unless an individual is exempt pursuant to subsection 2, as a 6 5 condition of eligibility for Medicaid, a recipient shall do one 6 6 of the following: 6 7 a. Work twenty hours or more per week, averaged on a monthly 6 8 basis. 6 9 b. Participate in and comply with the requirements of a work 6 10 program for twenty hours or more per week, as determined by the 6 11 department. 6 12 c. Volunteer twenty hours or more per week, as determined 6 13 by the department. 6 14 d. Meet a combination of work and work program participation 6 15 requirements for a total of twenty hours or more per week, as 6 16 determined by the department. 6 17 e. Participate in and comply with the PROMISE JOBS program 6 18 pursuant to chapter 239B. 6 19 2. The following individuals shall be exempt from the 6 20 requirements specified in subsection 1: 6 21 a. An individual under the age of nineteen. 6 22 b. An individual over the age of sixty=four. 6 23 c. An individual medically certified as physically or 6 24 mentally unfit for employment. 6 25 d. An individual who is pregnant. 6 26 e. A parent or caretaker responsible for the care of a 6 27 dependent child under one year of age. 6 28 f. A parent or caretaker personally providing the care for a 6 29 dependent child with a serious medical condition or disability, 6 30 as determined by the department. 6 31 g. An individual receiving unemployment compensation 6 32 and complying with work requirements of the federal or state 6 33 unemployment compensation system. 6 34 h. An individual participating in a drug or alcohol 6 35 treatment and rehabilitation program. 7 1 Sec. 5. NEW SECTION. 217.41G Drug testing for applicants. 7 2 1. For the purposes of this section, unless the context 7 3 otherwise requires: 7 4 a. "Confirmed positive test result" means the results of a 7 5 urine, hair, or sweat test in which the level of drugs or their 7 6 metabolites in the sample analyzed meets or exceeds nationally 7 7 accepted standards for determining the detectable levels of 7 8 drugs as adopted by the federal substance abuse and mental 7 9 health services administration. 7 10 b. "Drug" means the same as defined in section 730.5. 7 11 c. "Licensed substance abuse treatment program" means an 7 12 inpatient or outpatient substance abuse treatment program 7 13 licensed by the department of public health under chapter 125. 7 14 d. "Sample" means a sample from the human body capable of 7 15 revealing the presence of drugs, or their metabolites, which 7 16 shall include urine, hair, or sweat. 7 17 2. a. As a condition of eligibility for an applicant 7 18 to receive benefits under a public assistance program, the 7 19 applicant shall agree to participate in drug testing in 7 20 accordance with this section. 7 21 b. Dependent children under the age of eighteen years are 7 22 exempt from the drug testing requirements of this section. 7 23 c. The department shall require a drug test that is similar 7 24 to a drug test as a condition of employment under section 730.5 7 25 to screen the individuals subject to this section for the 7 26 presence of drugs. The individual is responsible for the cost 7 27 of the individual's drug test. 7 28 3. a. An individual who is subject to this section is 7 29 ineligible to receive benefits under a public assistance 7 30 program if the individual does not participate in the required 7 31 drug testing. 7 32 b. An individual who is subject to this section is 7 33 ineligible to receive benefits under a public assistance 7 34 program under this section if the individual has a confirmed 7 35 positive test result for the presence of either of the 8 1 following: 8 2 (1) A substance listed in schedule I under section 124.204. 8 3 (2) A substance listed in schedule II, III, or IV under 8 4 chapter 124 that was not prescribed for the individual. 8 5 4. The department shall do all of the following in 8 6 implementing this section: 8 7 a. (1) Provide notice of drug testing to each individual 8 8 who is subject to this section at the time of application. The 8 9 notice must advise the individual that drug testing will be 8 10 conducted as a condition for receiving benefits under a public 8 11 assistance program and that the individual must bear the cost 8 12 of the drug testing. If the individual's drug test results in 8 13 a confirmed positive test result, the cost of the drug test 8 14 shall not be reimbursed. If the individual's drug test does 8 15 not result in a confirmed positive test result, the cost of the 8 16 drug test shall be reimbursed by being added to the benefits 8 17 disbursed pursuant to rules adopted by the department. The 8 18 applicant shall be advised that the required drug testing may 8 19 be avoided if the applicant does not complete or withdraws the 8 20 application for assistance. 8 21 (2) Advise each individual to be tested, before the test 8 22 is conducted, that the individual may, but is not required to, 8 23 advise the agent administering the test of any prescription or 8 24 over=the=counter medication the individual is taking. 8 25 (3) Require each individual to be tested to sign a written 8 26 acknowledgment that the individual has received and understood 8 27 the notice and advice provided under this paragraph "a". 8 28 b. Ensure that each individual being tested has a reasonable 8 29 degree of dignity while producing and submitting a sample for 8 30 drug testing, consistent with the department's need to ensure 8 31 the reliability of the sample. 8 32 c. Adopt rules specifying circumstances under which an 8 33 individual with a confirmed positive test result has the right 8 34 to retake the drug test. 8 35 d. Inform an individual who has a confirmed positive 9 1 test result and is deemed ineligible for assistance that the 9 2 individual may not reapply for assistance for one year after 9 3 the date of the confirmed positive test result unless the 9 4 individual meets the requirements of paragraph "f". If the 9 5 individual has a subsequent confirmed positive test result, 9 6 the individual shall be ineligible to receive assistance for 9 7 three years after the date of the subsequent result unless the 9 8 individual meets the requirements of paragraph "f". 9 9 e. Provide any individual with a confirmed positive test 9 10 result with a list of licensed substance abuse treatment 9 11 programs available in the area in which the individual resides. 9 12 Neither the department nor the state is responsible for 9 13 providing or paying for substance abuse treatment as part of 9 14 the drug testing conducted under this section. 9 15 f. An individual with a confirmed positive test result 9 16 who is denied benefits under this section may reapply for 9 17 assistance after six months if the individual can document the 9 18 successful completion of a licensed substance abuse treatment 9 19 program. An individual who has met the requirements of this 9 20 paragraph and reapplies for assistance must also pass the 9 21 initial drug test required under subsection 2. Any drug test 9 22 conducted while the individual is undergoing substance abuse 9 23 treatment must meet the requirements for a drug test under 9 24 subsection 2. The cost of any drug testing or substance 9 25 abuse treatment provided under this subsection shall be the 9 26 responsibility of the individual being tested or receiving 9 27 treatment. An individual with a confirmed positive test result 9 28 from the drug test required under subsection 2 may reapply for 9 29 assistance under this paragraph only once. 9 30 5. a. If an applicant is deemed ineligible for assistance 9 31 as a result of having a confirmed positive test result from a 9 32 drug test conducted under this section, the eligibility of the 9 33 applicant's dependent child for assistance is not affected. 9 34 b. An appropriate protective payee shall be designated 9 35 to receive assistance on behalf of the dependent child. 10 1 The parent may choose to designate an individual as the 10 2 protective payee. The individual designated by the parent as 10 3 the protective payee must be a specified relative or other 10 4 immediate family member unless such family member is not 10 5 available or the family member declines the designation. In 10 6 such a case, another individual, approved by the department, 10 7 shall be designated as the protective payee. The individual 10 8 must also undergo drug testing before being approved to be 10 9 the protective payee. If the designated individual has a 10 10 confirmed positive test result, the designated individual shall 10 11 be ineligible to be the protective payee. 10 12 6. For the purposes of this section, "public assistance 10 13 program" shall include but not be limited to the Medicaid 10 14 program, the family investment program (FIP), and the 10 15 supplemental nutrition assistance program (SNAP). 10 16 Sec. 6. NEW SECTION. 217.41H Reporting of fraud. 10 17 If, through the activities of the department of human 10 18 services under this subchapter, the department discovers 10 19 potential fraudulent activity, the department shall report its 10 20 findings and any supportive information to the office of the 10 21 attorney general for review. 10 22 Sec. 7. NEW SECTION. 217.41I Reporting. 10 23 The department of human services shall submit a report to 10 24 the governor and the general assembly by January 15, 2019, and 10 25 by January 15 annually thereafter, detailing the impact of 10 26 verification of applicant eligibility for public assistance 10 27 programs and real=time eligibility monitoring of recipients 10 28 of public assistance programs as provided in this subchapter. 10 29 The initial report shall provide information for the period 10 30 beginning July 1, 2018, and ending December 31, 2018. The 10 31 reports shall include the number of cases reviewed, the number 10 32 of cases closed, the number of fraud investigation referrals 10 33 made, and the amount of savings and cost avoidance realized 10 34 from the provisions of the subchapter. 10 35 Sec. 8. NEW SECTION. 234.13A Eligible food items. 11 1 1. The department of human services shall maintain a list of 11 2 eligible food and food items for the food assistance program 11 3 utilizing a numeric=based code assigned to the food item 11 4 wherever the food item is sold throughout the state. 11 5 2. A retailer shall not allow a food assistance program 11 6 recipient to use a benefit transfer instrument to purchase food 11 7 and food items that are not included on the eligible food item 11 8 list. 11 9 3. The department of human services shall assess a civil 11 10 penalty against a retailer who violates this section of not 11 11 more than one thousand dollars for a first violation, two 11 12 thousand dollars for a second violation occurring within five 11 13 years from the date of the first violation, or five thousand 11 14 dollars for any subsequent violations. 11 15 4. For purposes of this section, "retailer" means the same 11 16 as defined in section 234.12A. 11 17 Sec. 9. FOOD ASSISTANCE PROGRAM ==== AUTHORITY TO RESTRICT 11 18 USE OF BENEFITS. The department of human services shall submit 11 19 a request to the United States department of agriculture 11 20 for authorization for a five=year waiver, pilot project, or 11 21 other approach for restricting the use of food assistance 11 22 benefits, as administered by the state under the federal 11 23 supplemental nutrition assistance program for food and food 11 24 items with a low nutritional value that cost more than eight 11 25 dollars per pound or that purport to provide an additional 11 26 potential health benefit or reduce a potential adverse health 11 27 effect to consumers when compared to less expensive food 11 28 items. The request shall include a proposal for a thorough 11 29 process evaluation to document how the restrictions will be 11 30 implemented by both the state and retailers, with a study 11 31 design that includes counterfactual data indicating the 11 32 effects of the absence of such restrictions on food assistance 11 33 program recipients, and a full cost estimate that addresses 11 34 both federal and state costs and savings associated with 11 35 such restrictions. The request shall be submitted within 12 1 ninety days of the effective date of this section of this Act. 12 2 The department shall regularly report on the status of the 12 3 request to the chairpersons and ranking members of the general 12 4 assembly's standing committees on commerce and the legislative 12 5 services agency. 12 6 Sec. 10. ADMINISTRATION AND IMPLEMENTATION. 12 7 1. The department of human services shall adopt rules 12 8 pursuant to chapter 17A to administer this Act. 12 9 2. The department of human services shall submit, to the 12 10 centers for Medicare and Medicaid services (CMS) of the United 12 11 States department of health and human services any Medicaid 12 12 state plan amendment or waiver request necessary to administer 12 13 this Act. 12 14 3. The provisions of this Act requiring approval of a 12 15 Medicaid state plan amendment or waiver shall be implemented 12 16 upon receipt of such federal approval. 12 17 4. The section of this Act enacting section 234.13A is 12 18 contingent upon receipt of approval from the United States 12 19 department of agriculture for a five=year waiver, pilot 12 20 project, or other approach for restricting the use of certain 12 21 food assistance benefits. The department of human services 12 22 shall notify the Code editor upon the receipt of such approval. 12 23 5. The provisions of this Act not requiring approval of a 12 24 Medicaid state plan amendment or waiver or approval from the 12 25 United States department of agriculture shall be implemented 12 26 on January 1, 2019. 12 27 Sec. 11. DIRECTIVE TO CODE EDITOR. The Code editor shall 12 28 codify the provisions of this Act enacting sections 217.41C, 12 29 217.41D, 217.41E, 217.41F, 217.41G, 217.41H, and 217.41I as 12 30 chapter 217, subchapter III. 12 31 Sec. 12. EFFECTIVE DATE. The section of this Act directing 12 32 the department of human services to submit a request for a 12 33 five=year waiver, pilot project, or other approach to the 12 34 United States department of agriculture, being deemed of 12 35 immediate importance, takes effect upon enactment. 13 1 EXPLANATION 13 2 The inclusion of this explanation does not constitute agreement with 13 3 the explanation's substance by the members of the general assembly. 13 4 This bill relates to public assistance program oversight. 13 5 For purposes of the bill, "public assistance program" includes 13 6 but is not limited to the Medicaid program, the family 13 7 investment program (FIP), and the supplemental nutrition 13 8 assistance program (SNAP). 13 9 The bill provides for verification of a public assistance 13 10 program applicant's eligibility. The department of human 13 11 services (DHS) is required to implement an eligibility 13 12 verification system for public assistance programs to verify 13 13 the eligibility of an individual who is an applicant for 13 14 any such program. The bill specifies the information to 13 15 be verified; requires DHS to enter into a memorandum of 13 16 understanding with any department or subunit of a department, 13 17 as necessary, to obtain the information specified; and 13 18 authorizes DHS to contract with a third=party vendor to 13 19 provide the information specified, subject to a provision 13 20 in the contract that ensures that annualized savings to the 13 21 state exceed the contract's total annual cost to the state. 13 22 The bill does not preclude DHS from receiving, reviewing, or 13 23 verifying additional information related to the eligibility of 13 24 an individual not specified in the bill or from contracting 13 25 with a third=party vendor to provide additional information not 13 26 specified in the bill. 13 27 The bill requires DHS to require that an applicant for a 13 28 public assistance program demonstrate residency in the state 13 29 for at least one year prior to submission of the application. 13 30 The department shall require that the applicant specify the 13 31 county in which the applicant has resided, the length of 13 32 residence in the state, and state that the maintenance of the 13 33 residence has been in good faith and not for the purposes 13 34 of obtaining public assistance benefits only. An individual 13 35 who fails to demonstrate residency in the state for at least 14 1 one year prior to submission of an application for public 14 2 assistance benefits shall be ineligible to receive such 14 3 benefits. 14 4 The bill provides for real=time monitoring of the 14 5 eligibility of public assistance program enrollees. The 14 6 bill requires DHS, as least quarterly, to obtain and review 14 7 specified information to determine ongoing eligibility of 14 8 an individual enrolled in a public assistance program. The 14 9 bill requires DHS to enter into memoranda of understanding 14 10 with any department or subunit of a department, as necessary, 14 11 to obtain the information specified; authorizes DHS to 14 12 contract with a third=party vendor to provide the information 14 13 specified, subject to a provision in the contract that ensures 14 14 that annualized savings to the state exceed the contract's 14 15 total annual cost to the state; and requires DHS to explore 14 16 opportunities to join existing multistate collaborations to 14 17 identify individuals who are also enrolled in public assistance 14 18 programs outside of the state, including the national accuracy 14 19 clearinghouse. The bill does not preclude DHS from receiving 14 20 or reviewing additional information related to the eligibility 14 21 of an individual not specified in the bill or from contracting 14 22 with a third=party vendor to provide additional information not 14 23 specified in the bill. 14 24 The bill provides that if DHS receives information about 14 25 an individual enrolled in a public assistance program that 14 26 indicates a potential change or discrepancy in circumstances 14 27 that may affect the enrollee's eligibility for that 14 28 public assistance program, DHS shall review the enrollee's 14 29 circumstances and respond appropriately. The bill delineates 14 30 the appropriate response based upon the response of the 14 31 enrollee following notice. 14 32 The bill prohibits DHS from establishing resource limits 14 33 for the supplemental nutrition assistance program (SNAP) that 14 34 exceed the resource limitations specified in federal law, 14 35 unless specifically required under federal law. Additionally, 15 1 the bill provides that categorical eligibility shall not exempt 15 2 households from these resource limits for any noncash, in=kind, 15 3 or other benefit, unless expressly required by federal law. 15 4 The bill requires DHS to require, as a condition of 15 5 eligibility for SNAP, that an individual cooperate with the 15 6 child support recovery unit in establishing and enforcing a 15 7 child support order pursuant to federal law. 15 8 The bill also prohibits DHS from seeking, applying for, 15 9 accepting, or renewing any waiver of the work requirements 15 10 applicable to an individual to be eligible for SNAP, unless 15 11 the individual is exempt under federal law and requires DHS 15 12 to assign an individual who would otherwise be subject to the 15 13 work requirements under federal law, but meets the criteria for 15 14 one of the exemptions under federal law, to participate in an 15 15 employment and training program established as prescribed in 15 16 federal law. 15 17 The bill also requires DHS to require that, unless an 15 18 individual is exempt as specified in the bill, as a condition 15 19 of eligibility for Medicaid, a recipient shall work or 15 20 participate in a work program or a combination of both for 15 21 a certain number of hours, volunteer, or participate in the 15 22 PROMISE JOBS program. 15 23 The bill provides that if, through the department's 15 24 activities under the bill, the department discovers potential 15 25 fraudulent activity, the department shall report its 15 26 findings and any supportive information to the office of the 15 27 attorney general for review. The bill requires DHS to adopt 15 28 administrative rules to administer the bill. 15 29 The bill requires DHS to submit a report to the governor and 15 30 the general assembly by January 15, 2019, and by January 15 15 31 annually thereafter, detailing the impact of the provisions of 15 32 the bill relating to verification of applicant eligibility for 15 33 public assistance programs and real=time eligibility monitoring 15 34 of recipients of public assistance programs. The initial 15 35 report must include information for the period beginning July 16 1 1, 2018, and ending December 31, 2018. The reports shall 16 2 include the number of cases reviewed, the number of cases 16 3 closed, the number of fraud investigation referrals made, and 16 4 the amount of savings and cost avoidance resulting from the 16 5 provisions of the bill. 16 6 The bill requires DHS to submit, to the centers for Medicare 16 7 and Medicaid services (CMS) of the United States department of 16 8 health and human services, any Medicaid state plan amendment or 16 9 waiver request necessary to administer the bill. 16 10 A provision of the bill requiring approval of a Medicaid 16 11 state plan amendment or waiver is to be implemented upon 16 12 receipt of such federal approval. A provision of the bill not 16 13 requiring approval of a Medicaid state plan amendment or waiver 16 14 is to be implemented on January 1, 2019. 16 15 The bill requires drug testing of applicants for public 16 16 assistance programs. 16 17 With the exception of dependent children under the age of 16 18 18 years, DHS is directed to require a drug test for each 16 19 individual who is an applicant for a public assistance program. 16 20 The individual is responsible for the cost of the drug test. 16 21 An applicant who does not participate in the required drug 16 22 testing is ineligible for public assistance. An individual who 16 23 has a confirmed positive test result shall be ineligible to 16 24 reapply for assistance for one year. 16 25 The bill specifies requirements for administering the drug 16 26 testing requirement. If a parent is deemed ineligible for 16 27 assistance as a result of having a confirmed positive test 16 28 result, the dependent child remains eligible for assistance and 16 29 a protective payee is to be designated by the parent to receive 16 30 the assistance on behalf of the child. If a specified relative 16 31 or other immediate family member declines to be designated, the 16 32 department must designate the protective payee. The protective 16 33 payee is then subject to drug testing before being approved to 16 34 receive benefits on behalf of the child. A protective payee 16 35 with a confirmed positive test result is ineligible to receive 17 1 assistance on behalf of the child. 17 2 The bill requires DHS to maintain a list of eligible 17 3 food and food items for the food assistance program using a 17 4 numeric=based code assignment (new Code section 234.13A). A 17 5 retailer shall not allow a food assistance program recipient 17 6 to use a benefit transfer instrument to purchase food and food 17 7 items that are not on the eligible food item list. The bill 17 8 provides civil penalties for a retailer who violates this 17 9 provision of the bill. 17 10 The bill requires DHS to submit a request to the United 17 11 States department of agriculture for a five=year waiver, pilot 17 12 project, or other approach for restricting the use of food 17 13 assistance benefits for food items with a low nutritional value 17 14 or that cost more than $8 per pound. The bill requires the 17 15 request to include a proposal for a thorough process evaluation 17 16 to document how the restrictions will be implemented by both 17 17 the state and retailers, with a study design that includes 17 18 counterfactual data indicating the effects of the absence of 17 19 such restrictions on food assistance program recipients, and a 17 20 full cost estimate that addresses both federal and state costs 17 21 and savings associated with such restrictions. The department 17 22 is to submit the request within 90 days of the effective 17 23 date of the bill. The bill directs the department to submit 17 24 regular reports to the chairpersons and ranking members of 17 25 the general assembly's standing committees on commerce and to 17 26 the legislative services agency on the status of the request. 17 27 Implementation of the pilot program is contingent upon receipt 17 28 of approval from the United States department of agriculture. 17 29 The department of human services is required to notify the Code 17 30 editor upon receipt of the approval. 17 31 The directive to the department to submit a request for a 17 32 waiver, pilot project, or other approach restricting the use of 17 33 certain food assistance benefits takes effect upon enactment. LSB 5181SV (1) 87 pf/rh
