Iowa-2019-HF2030-Introduced

H.F. 2030 Section 1. NEW SECTION . 249O.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Department” means the department of human services. 4 2. “Fleeing felon” means a person who is a fleeing felon 5 pursuant to 7 C.F.R. 273.11. 6 3. “Public assistance” shall include but is not limited to 7 the Medicaid program, the family investment program, and the 8 supplemental nutrition assistance program. 9 4. “Significant discrepancy” means information regarding 10 the assets, income, resources, or status of an applicant or 11 recipient of public assistance, derived from one or more of the 12 databases as specified in this chapter, which provides grounds 13 for the department to suspect either of the following: 14 a. An applicant or recipient is ineligible to receive public 15 assistance, under federal or state law, due to the applicant’s 16 or recipient’s status. 17 b. The assets, income, or resources of an applicant 18 or recipient are at least, in terms of a dollar amount, 19 twenty-five percent greater than the dollar amount reflected in 20 the information the department possesses about the applicant 21 or recipient with respect to the applicant’s or recipient’s 22 assets, income, or resources. 23 5. “Status” means whether the applicant or recipient is in 24 the United States illegally, is no longer living, is an inmate 25 in a prison or jail, or is a fleeing felon. 26 Sec. 2. NEW SECTION . 249O.2 Public Assistance Programs —— 27 Verification of Eligibility. 28 1. The department shall implement a computerized income 29 eligibility verification system for public assistance programs 30 in order to eliminate duplication in the provision of public 31 assistance and to deter fraud. 32 2. The department shall require that as a condition of 33 receiving public assistance, an applicant or a recipient supply 34 the social security number of the applicant or recipient to the 35 -1- LSB 5197YH (5) 88 pf/rh 1/ 8

H.F. 2030 department. The department shall match the social security 1 number of all applicants and recipients with the following 2 databases, or with databases that are substantially similar to, 3 or are successors of, the following databases: 4 a. Unearned income information maintained by the federal 5 internal revenue service. 6 b. Employer quarterly reports of income and unemployment 7 insurance benefit payment information maintained by the 8 department of workforce development. 9 c. Earned income information maintained by the United States 10 social security administration. 11 d. Immigration status information maintained by the United 12 States citizenship and immigration services. 13 e. Death register information maintained by the United 14 States social security administration. 15 f. Prisoner information maintained by the United States 16 social security administration. 17 g. Public housing and United States department of housing 18 and urban development section 8 guidelines payment information 19 maintained by the United States department of housing and urban 20 development. 21 h. National fleeing felon information maintained by the 22 United States federal bureau of investigation. 23 i. Wage reporting and similar information maintained by 24 contiguous states. 25 j. The beneficiary earnings and data exchange database 26 maintained by the United States social security administration. 27 k. The beneficiary earnings exchange record system database 28 maintained by the United States social security administration. 29 l. The new hire database maintained by the department of 30 workforce development. 31 m. The new hire database maintained by the federal 32 government. 33 n. The state data exchange interface maintained by the 34 United States social security administration. 35 -2- LSB 5197YH (5) 88 pf/rh 2/ 8

H.F. 2030 o. The public assistance reporting information system 1 maintained by the administration of children and families of 2 the United States department of health and human services. 3 p. The state child care assistance database maintained by 4 the state. 5 q. The low-income home energy assistance program database 6 maintained by the state. 7 3. The department shall enter into a memorandum of 8 understanding with any department or any subunit of a 9 department, as necessary, to obtain the information specified 10 in subsection 1. 11 4. Notwithstanding any provision of law to the contrary, the 12 income eligibility verification system shall be utilized for an 13 applicant at the time of application for assistance, and for a 14 recipient on a quarterly basis. 15 5. The department shall notify applicants and recipients of 16 the requirement of providing a social security number at the 17 time of application for assistance and as needed thereafter and 18 pursuant to the provisions of this chapter. 19 Sec. 3. NEW SECTION . 249O.3 Significant discrepancy. 20 1. If, as the result of a match between an applicant’s 21 or recipient’s social security number and one or more of the 22 databases specified in this chapter, the department determines 23 that a potential significant discrepancy exists, the department 24 shall review the applicant’s or recipient’s information 25 and shall investigate the circumstances of the potential 26 significant discrepancy in order to determine eligibility of 27 the applicant or recipient. 28 2. The department shall institute the following procedure 29 to review and investigate the circumstances of a potential 30 significant discrepancy: 31 a. If the review and investigation does not result in the 32 department confirming a significant discrepancy that may affect 33 eligibility, the department shall take no further action. 34 b. If the review and investigation results in the department 35 -3- LSB 5197YH (5) 88 pf/rh 3/ 8

H.F. 2030 confirming a potential significant discrepancy that may affect 1 eligibility, the applicant or recipient shall be given an 2 opportunity to explain the potential significant discrepancy. 3 The department shall provide written notice to the applicant 4 or recipient which shall describe in sufficient detail the 5 circumstances of the potential significant discrepancy, the 6 opportunity and manner by which to resolve the potential 7 significant discrepancy, and the consequences of failing to 8 respond to the notice or to resolve the potential significant 9 discrepancy. The applicant’s or recipient’s response may be 10 provided telephonically, in person, or in writing. After 11 receiving the explanation from the applicant or recipient, the 12 department may request additional documentation in person or 13 in writing if the department determines the documentation is 14 inadequate or that a substantial risk of fraud exists. 15 (1) If the applicant or recipient does not respond to 16 the notice in a timely manner, the department shall provide 17 notice to terminate the applicant’s or recipient’s application 18 or enrollment, based upon the applicant’s or recipient’s 19 failure to cooperate, and shall terminate the applicant’s or 20 recipient’s application for or enrollment in any applicable 21 public assistance program. The applicant’s or recipient’s 22 eligibility for such public assistance program shall not be 23 reestablished until the potential significant discrepancy is 24 resolved. 25 (2) If the applicant or recipient responds to the notice 26 in a timely manner and disagrees with the notice of potential 27 significant discrepancy, the department shall reevaluate the 28 circumstances and make a determination regarding whether the 29 position of the applicant or recipient is valid. If, after 30 reevaluation, the department finds that the department is in 31 error, the department shall take immediate action to correct 32 the error, and no further action regarding the applicant’s 33 or recipient’s eligibility shall be taken. If, through the 34 reevaluation, the department affirms that the applicant’s or 35 -4- LSB 5197YH (5) 88 pf/rh 4/ 8

H.F. 2030 recipient’s position is invalid, the department shall determine 1 the effect on the applicant’s or recipient’s eligibility and 2 take appropriate action. Written notice of the department’s 3 reevaluation and the actions taken shall be provided to the 4 applicant or recipient. 5 (3) If the applicant or recipient responds to the notice 6 in a timely manner and agrees with the notice of potential 7 significant discrepancy, the department shall determine the 8 effect on the applicant’s or recipient’s eligibility and 9 take appropriate action. Written notice of the department’s 10 determination and actions shall be provided to the applicant 11 or recipient. 12 3. The department may, in the department’s discretion, 13 review and investigate an applicant’s or recipient’s 14 circumstances when there is a match between the social security 15 number of the applicant or recipient and one or more of the 16 databases specified in this chapter that does not otherwise 17 constitute a significant discrepancy. Under such circumstance, 18 the department shall utilize the procedure applicable to the 19 review and investigation of a potential significant discrepancy 20 as specified in this chapter. 21 4. The department shall establish a single statewide 22 toll-free telephone number and call center to be used by 23 applicants and recipients in resolving potential significant 24 discrepancies subject to review and investigation under this 25 chapter. The call center shall have sufficient capacity 26 and staff to promptly handle incoming telephone calls. In 27 addition, the department shall assign sufficient staff to 28 make determinations regarding eligibility pursuant to this 29 chapter. The call center shall use available technology to 30 route and track the calls. The department may issue a request 31 for proposals to operate the call center. 32 Sec. 4. NEW SECTION . 249O.4 Reporting fraud. 33 If, through the department’s activities under this chapter, 34 the department discovers potential fraudulent activity, 35 -5- LSB 5197YH (5) 88 pf/rh 5/ 8

H.F. 2030 the department shall report its findings and any supportive 1 information to the department of inspections and appeals for 2 review. 3 Sec. 5. NEW SECTION . 249O.5 Administration —— reporting. 4 1. The department shall adopt rules pursuant to chapter 17A 5 to administer this chapter. 6 2. The department shall submit a report to the governor and 7 the general assembly by January 15, 2021, and by January 15, 8 annually, thereafter, detailing the results of the verification 9 system established in this chapter, including the number of 10 cases reviewed, the number of cases closed, and the amount of 11 savings and cost avoidance realized from the provisions of this 12 chapter. 13 3. a. The department shall ensure that public assistance 14 staff maintain close contact with applicants and recipients. 15 Home visits shall be scheduled as frequently as required by 16 the circumstances of the applicant or recipient in order that 17 any treatment or service tending to restore the applicant 18 or recipient to a condition of self-support and to relieve 19 distress is rendered and in order that public assistance is 20 provided only in such an amount as necessary and as long as 21 necessary. The department may issue a request for proposals 22 to conduct home visits. 23 b. If public assistance staff identify inconsistencies or 24 gaps in information presented by an applicant or recipient, or 25 if circumstances indicate to a prudent individual that further 26 information is needed, the staff person shall seek additional 27 information. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill relates to verification of income eligibility for 32 public assistance programs. 33 The bill provides definitions for “department”, “fleeing 34 felon”, “public assistance”, “significant discrepancy”, and 35 -6- LSB 5197YH (5) 88 pf/rh 6/ 8

H.F. 2030 “status”. 1 The bill requires the department of human services (DHS) 2 to implement a computerized income eligibility verification 3 system for public assistance programs in order to eliminate 4 duplication in the provision of public assistance and to deter 5 fraud. The bill provides that DHS shall require that as a 6 condition of receiving public assistance, an applicant or 7 recipient supply the social security number of the applicant or 8 recipient to the department. The department shall match the 9 social security number of all applicants and recipients with 10 databases as specified in the bill. The bill directs DHS to 11 enter into a memorandum of understanding with any department 12 or any subunit of a department, as necessary, to obtain the 13 information specified. The income eligibility verification 14 system shall be utilized for an applicant at the time of 15 application for assistance, and for a recipient on a quarterly 16 basis. The bill requires DHS to notify applicants and 17 recipients of the requirement of providing a social security 18 number at the time of application for assistance and as needed 19 thereafter. 20 The bill provides the procedure to be followed by DHS if, 21 as the result of a match between an applicant’s or recipient’s 22 social security number and one or more of the databases 23 specified in the bill, DHS determines that a potential 24 significant discrepancy exists. In such a case, DHS shall 25 review the applicant’s or recipient’s information and shall 26 investigate the circumstances of the potential significant 27 discrepancy in order to determine eligibility of the applicant 28 or recipient, and proceed accordingly. In addition, DHS may 29 use the same procedure in the department’s discretion to review 30 and investigate an applicant’s or recipient’s circumstances 31 when there is a match between the social security number of 32 the applicant or recipient and one or more of the databases 33 specified in the bill that does not otherwise constitute a 34 significant discrepancy. 35 -7- LSB 5197YH (5) 88 pf/rh 7/ 8

H.F. 2030 The bill directs DHS to establish a single statewide 1 toll-free telephone number and call center to be used by 2 applicants and recipients in resolving potential significant 3 discrepancies subject to review and investigation under the 4 bill; requires the call center to have sufficient capacity 5 and staff to promptly handle incoming telephone calls; and 6 requires DHS to assign sufficient staff to make determinations 7 regarding eligibility under the bill. The call center shall 8 use available technology to route and track the calls and DHS 9 may issue a request for proposals to operate the call center. 10 The bill also provides that if, through activities under 11 the bill, DHS discovers potential fraudulent activity, DHS 12 shall report its findings and any supportive information to the 13 department of inspections and appeals for review. 14 The bill requires DHS to adopt administrative rules to 15 administer the bill; requires DHS to submit a report to the 16 governor and the general assembly by January 15, 2021, and by 17 January 15, annually, thereafter, detailing the results of the 18 verification system established in the bill; and requires DHS 19 to ensure that public assistance staff maintain close contact 20 with applicants and recipients provide home visits in order 21 that any treatment or service tending to restore the applicant 22 or recipient to a condition of self-support and to relieve 23 distress is rendered and in order that public assistance is 24 provided only in such an amount as necessary and as long as 25 necessary. The department may issue a request for proposals to 26 conduct home visits. The bill requires public assistance staff 27 to seek additional information from an applicant or recipient 28 when the public assistance staff identifies inconsistencies or 29 gaps in information presented by an applicant or recipient or 30 when circumstances indicate to a prudent person that further 31 information is needed. 32 -8- LSB 5197YH (5) 88 pf/rh 8/ 8