Bill Text: IA SF494 | 2023-2024 | 90th General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to public assistance program oversight. (Formerly SSB 1105.) Effective date: 07/01/2023.
Spectrum: Committee Bill
Status: (Passed) 2023-06-01 - Signed by Governor. S.J. 1087. [SF494 Detail]
Download: Iowa-2023-SF494-Amended.html
Bill Title: A bill for an act relating to public assistance program oversight. (Formerly SSB 1105.) Effective date: 07/01/2023.
Spectrum: Committee Bill
Status: (Passed) 2023-06-01 - Signed by Governor. S.J. 1087. [SF494 Detail]
Download: Iowa-2023-SF494-Amended.html
Senate
File
494
-
Reprinted
SENATE
FILE
494
BY
COMMITTEE
ON
HEALTH
AND
HUMAN
SERVICES
(SUCCESSOR
TO
SSB
1105)
(As
Amended
and
Passed
by
the
Senate
March
22,
2023
)
A
BILL
FOR
An
Act
relating
to
public
assistance
program
oversight.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
SF
494
(6)
90
pf/rh/mb
S.F.
494
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.
“Asset”
means
the
following
assets
of
the
members
of
the
6
applicant’s
household:
7
a.
All
liquid
assets.
8
b.
All
other
personal
property
excluding
one
vehicle
and
9
the
fair
market
value
in
excess
of
ten
thousand
dollars
of
an
10
additional
vehicle.
11
3.
“Asset
test”
means
the
comparison
of
the
collective
12
value
of
all
countable
assets
of
the
members
of
the
applicant’s
13
household
to
the
maximum
allowed
household
asset
limit
of
14
fifteen
thousand
dollars.
15
4.
“Department”
means
the
department
of
health
and
human
16
services.
17
5.
“Public
assistance”
means
the
supplemental
nutrition
18
assistance
program
or
SNAP,
the
Medicaid
program
or
Medicaid
19
as
defined
in
section
249A.2,
the
family
investment
program
or
20
FIP
as
defined
in
section
239B.1,
and
the
children’s
health
21
insurance
program
or
CHIP.
22
6.
“Real-time
eligibility
system”
means
real-time
electronic
23
access
to
a
system
that
allows
verification
of
all
applicable
24
public
assistance
program
eligibility
information
based
on
the
25
most
recent
information
available
to
the
department
through
26
nonmodeled
earned
and
unearned
income,
such
as
commercially
27
available
wage
data.
28
7.
“Recipient”
means
an
individual
who
is
receiving
public
29
assistance
benefits
in
the
state.
30
8.
“Supplemental
nutrition
assistance
program”
or
“SNAP”
31
means
benefits
provided
by
the
federal
program
administered
32
through
7
C.F.R.
pts.
270
–
283,
as
amended.
33
Sec.
2.
NEW
SECTION
.
239.2
Supplemental
nutrition
34
assistance
program
——
income
eligibility.
35
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The
department
shall
establish
the
gross
countable
monthly
1
income
threshold
for
the
supplemental
nutrition
assistance
2
program
at
less
than
or
equal
to
one
hundred
sixty
percent
of
3
the
federal
poverty
level
for
the
household
size.
4
Sec.
3.
NEW
SECTION
.
239.3
Identity
authentication.
5
Unless
otherwise
prohibited
by
federal
law
or
regulation,
6
prior
to
the
department
awarding
public
assistance
benefits,
an
7
applicant
shall
complete
a
computerized
identity
authentication
8
process
to
confirm
the
identity
of
the
applicant.
Identity
9
authentication
shall
be
accomplished
through
a
knowledge-based
10
questionnaire
consisting
of
financial
and
personal
questions.
11
The
questionnaire
shall
contain
questions
tailored
to
assist
12
persons
without
a
bank
account
or
those
who
have
poor
access
13
to
financial
and
banking
services
or
who
do
not
have
an
14
established
credit
history.
The
computerized
identity
15
authentication
process
and
questionnaire
may
be
completed
and
16
submitted
online,
in
person,
or
via
telephone
by
the
applicant
17
or
a
person
authorized
by
the
applicant.
The
department
may
18
adopt
rules
pursuant
to
chapter
17A
to
administer
this
section.
19
Sec.
4.
NEW
SECTION
.
239.4
Asset
test
for
supplemental
20
nutrition
assistance
program.
21
1.
For
the
purposes
of
determining
eligibility
for
receipt
22
of
SNAP
benefits,
the
department
shall
conduct
an
asset
test
23
on
all
members
of
the
applicant’s
household.
The
allowable
24
financial
resources
to
be
included
in
or
excluded
from
a
25
determination
of
eligibility
for
SNAP
shall
be
those
specified
26
in
7
U.S.C.
§2014(g)(1),
to
the
extent
consistent
with
the
term
27
“asset”
as
defined
in
this
chapter.
28
2.
Prior
to
determining
eligibility
for
SNAP
benefits,
29
the
department
shall
access,
at
a
minimum,
for
every
member
30
of
the
applicant’s
household,
the
following
information
from
31
the
following
federal,
state,
and
miscellaneous
sources,
or
32
successor
sources:
33
a.
Federal
sources
and
information:
34
(1)
Earned
and
unearned
income
information
maintained
by
35
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the
internal
revenue
service.
1
(2)
The
following
sources
and
information
maintained
by
the
2
United
States
social
security
administration:
3
(a)
Earned
income
information.
4
(b)
Death
register
information.
5
(c)
Prisoner
or
incarceration
status
information.
6
(d)
Supplemental
security
income
information
maintained
in
7
the
state
data
exchange
database.
8
(e)
Beneficiary
records
and
earnings
information
maintained
9
in
the
beneficiary
and
earnings
data
exchange
database.
10
(f)
Earnings
information
maintained
in
the
beneficiary
11
earnings
exchange
record
system
database.
12
(3)
The
following
sources
and
information
maintained
by
the
13
United
States
department
of
health
and
human
services:
14
(a)
Income
and
employment
information
maintained
in
the
15
national
directory
of
new
hires
database
by
the
office
of
child
16
support
enforcement
of
the
administration
for
children
and
17
families.
18
(b)
Other
federal
data
sources
maintained
by
the
office
of
19
child
support
enforcement
of
the
administration
for
children
20
and
families.
21
b.
State
sources
and
information:
22
(1)
The
department’s
sources
and
information
including
but
23
not
limited
to
all
of
the
following:
24
(a)
Income
and
employment
information
maintained
by
child
25
support
services.
26
(b)
Child
care
assistance
information
maintained
by
the
27
department.
28
(c)
Enrollment
status
in
other
public
assistance
programs.
29
(2)
The
department
of
workforce
development
sources
and
30
information
including
all
of
the
following:
31
(a)
Employment
information.
32
(b)
Employer
weekly,
monthly,
and
quarterly
reports
of
33
income
and
unemployment
insurance
payments.
34
c.
Miscellaneous
sources:
35
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(1)
Any
existing
real-time
database
of
persons
currently
1
receiving
benefits
in
other
states,
such
as
the
national
2
accuracy
clearinghouse.
3
(2)
Any
lottery
winner
databases
maintained
by
the
Iowa
4
lottery.
5
(3)
Any
existing
real-time
eligibility
system
that
includes
6
employment
and
income
information
maintained
by
a
consumer
7
reporting
agency,
as
defined
by
the
federal
Fair
Credit
8
Reporting
Act,
15
U.S.C.
§1681a,
for
the
purpose
of
obtaining
9
real-time
employment
and
income
information.
10
3.
Prior
to
determining
eligibility
for
SNAP
benefits,
the
11
department
shall
access
information
for
every
member
of
the
12
applicant’s
household
from
the
following
public
records:
13
a.
A
nationwide
public
records
data
source
of
physical
asset
14
ownership.
The
data
source
may
include
but
is
not
limited
to
15
real
property,
automobiles,
watercraft,
aircraft,
and
luxury
16
vehicles,
or
any
other
vehicle
owned
by
the
applicant.
17
b.
National
and
state
financial
institutions
in
order
18
to
locate
undisclosed
depository
accounts
or
verify
account
19
balances
of
disclosed
accounts.
20
4.
The
department
shall
enter
into
a
memorandum
of
21
understanding
with
any
department,
division,
bureau,
section,
22
unit,
or
any
other
subunit
of
a
department
to
obtain
the
23
information
specified
in
this
section.
24
5.
The
provisions
of
this
section
shall
not
apply
if
every
25
member
of
the
applicant’s
household
receives
supplemental
26
security
income.
27
Sec.
5.
NEW
SECTION
.
239.5
Verification
and
authentication
28
systems
——
public
assistance
programs.
29
1.
No
later
than
July
1,
2025,
the
department
shall
30
redesign
an
existing
system;
establish
a
new
computerized
31
income,
asset,
and
identity
eligibility
verification
system;
32
or
contract
with
a
third-party
vendor
to
provide
for
identity
33
verification,
identity
authentication,
asset
verification,
and
34
dual
enrollment
prevention
in
order
to
deter
waste,
fraud,
and
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abuse
in
each
public
assistance
program
administered
by
the
1
department.
2
2.
The
department
may
contract
with
a
third-party
vendor
3
to
develop
or
provide
a
service
for
a
real-time
eligibility
4
system
that
allows
the
department
to
verify
or
authenticate
5
income,
assets,
and
identity
eligibility
of
applicants
and
6
recipients
to
prevent
fraud,
misrepresentation,
and
inadequate
7
documentation
when
determining
eligibility
for
public
8
assistance
programs.
The
system
shall
be
accessed
prior
to
9
determining
eligibility,
periodically
between
eligibility
10
redeterminations,
and
during
eligibility
redeterminations
11
and
reviews.
The
department
may
also
contract
with
a
12
third-party
vendor
to
provide
information
to
facilitate
13
reviews
of
recipient
eligibility
conducted
by
the
department.
14
Specifically,
the
department
may
contract
with
a
third-party
15
consumer
reporting
agency,
as
defined
by
the
federal
Fair
16
Credit
Reporting
Act,
15
U.S.C.
§1681a,
for
the
purpose
of
17
obtaining
real-time
employment
and
income
information.
18
3.
A
contract
entered
into
under
this
section
shall
provide,
19
at
a
minimum,
for
all
of
the
following:
20
a.
The
establishment
of
the
annual
savings
amount
from
21
utilization
of
the
system
or
service,
and
a
provision
that
the
22
contract
may
be
terminated
contingent
upon
the
savings
not
23
exceeding
the
total
yearly
cost
to
the
state
for
utilization
of
24
the
system
or
service.
25
b.
That
the
contract
shall
not
preclude
the
department
26
from
continuing
to
conduct
additional
eligibility
verification
27
or
authentication
processes,
to
receive,
review,
or
verify
28
additional
information
related
to
the
eligibility
of
an
29
individual,
or
from
contracting
with
a
third-party
vendor
to
30
provide
additional
eligibility
authentication
or
verification
31
information.
32
4.
The
department
shall
seek
federal
approval
as
necessary
33
to
implement
and
administer
this
section.
34
Sec.
6.
NEW
SECTION
.
239.6
Public
assistance
programs
——
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applicant
and
recipient
eligibility
verification.
1
1.
All
applications
for
initial
public
assistance
2
program
benefits
and
all
determinations
of
ongoing
recipient
3
eligibility
shall
be
processed
through
a
system
as
specified
4
in
this
section.
Complete
initial
applications
shall
be
5
processed
within
the
minimum
period
required
by
federal
law.
6
Prior
to
determining
initial
eligibility
of
an
applicant
for,
7
or
ongoing
eligibility
of
a
recipient
of,
public
assistance,
8
the
department
shall
access
information
for
every
applicant
or
9
recipient
from
the
following
federal,
state,
and
other
sources:
10
a.
Federal
sources
and
information:
11
(1)
Earned
and
unearned
income
information
maintained
by
12
the
internal
revenue
service.
13
(2)
The
following
sources
and
information
maintained
by
the
14
United
States
social
security
administration:
15
(a)
Earned
income
information.
16
(b)
Death
register
information.
17
(c)
Prisoner
or
incarceration
status
information.
18
(d)
Supplemental
security
income
information
maintained
in
19
the
state
data
exchange
database.
20
(e)
Beneficiary
records
and
earnings
information
maintained
21
in
the
beneficiary
and
earnings
data
exchange
database.
22
(f)
Earnings
information
maintained
in
the
beneficiary
23
earnings
exchange
record
system
database.
24
(3)
The
following
sources
and
information
maintained
by
the
25
United
States
department
of
health
and
human
services:
26
(a)
Income
and
employment
information
maintained
in
the
27
national
directory
of
new
hires
database
by
the
office
of
child
28
support
enforcement
of
the
administration
for
children
and
29
families.
30
(b)
Other
federal
data
sources
maintained
by
the
office
of
31
child
support
enforcement
of
the
administration
for
children
32
and
families.
33
(4)
Information
maintained
by
the
United
States
citizenship
34
and
immigration
services
of
the
United
States
department
of
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homeland
security.
1
(5)
National
fleeing
felon
information
maintained
by
the
2
United
States
federal
bureau
of
investigation.
3
b.
State
sources
and
information:
4
(1)
The
department’s
sources
and
information
including
but
5
not
limited
to
all
of
the
following:
6
(a)
Income
and
employment
information
maintained
by
child
7
support
services.
8
(b)
Child
care
assistance
information
maintained
by
the
9
department.
10
(c)
Enrollment
status
in
other
public
assistance
programs.
11
(2)
The
department
of
workforce
development
sources
and
12
information
including
all
of
the
following:
13
(a)
Employment
information.
14
(b)
Employer
weekly,
monthly,
and
quarterly
reports
of
15
income
and
unemployment
insurance
payments.
16
c.
Other
sources
including
all
of
the
following:
17
(1)
Any
existing
real-time
database
of
persons
currently
18
receiving
benefits
in
other
states,
such
as
the
national
19
accuracy
clearinghouse.
20
(2)
An
available
database
of
persons
who
currently
hold
a
21
license,
permit,
or
certificate
from
any
state
agency,
the
cost
22
of
which
exceeds
five
hundred
dollars.
23
(3)
Wage
reporting
and
similar
information
maintained
by
24
states
contiguous
to
Iowa.
25
(4)
A
third-party
consumer
reporting
agency,
as
defined
26
by
the
federal
Fair
Credit
Reporting
Act,
15
U.S.C.
§1681a,
27
for
the
purpose
of
obtaining
real-time
employment
and
income
28
information.
29
2.
Prior
to
determining
the
initial
eligibility
of
an
30
applicant
for,
or
the
ongoing
eligibility
of
a
recipient
31
of,
public
assistance
benefits,
the
department
shall
access
32
information
for
every
applicant
or
recipient
from,
at
a
33
minimum,
the
following
public
records:
34
a.
A
nationwide
public
records
data
source
of
physical
asset
35
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ownership.
The
data
source
may
include
but
is
not
limited
to
1
real
property,
automobiles,
watercraft,
aircraft,
and
luxury
2
vehicles,
or
any
other
vehicle
owned
by
the
applicant
for
or
3
recipient
of
assistance.
4
b.
A
nationwide
public
records
data
source
of
incarcerated
5
individuals.
6
c.
A
nationwide
best
address
and
driver’s
license
data
7
source
to
verify
that
individuals
are
residents
of
the
state.
8
d.
A
comprehensive
public
records
database
from
which
the
9
department
may
identify
potential
identity
fraud
or
identity
10
theft
that
is
capable
of
closely
associating
name,
social
11
security
number,
date
of
birth,
phone,
and
address
information.
12
e.
National
and
local
financial
institutions
in
order
13
to
locate
undisclosed
depository
accounts
or
verify
account
14
balances
of
disclosed
accounts.
15
f.
Outstanding
default
or
arrest
warrant
information.
16
3.
The
state
may
contract
with
a
third-party
consumer
17
reporting
agency,
as
defined
by
the
federal
Fair
Credit
18
Reporting
Act,
15
U.S.C.
§1681a,
for
the
purpose
of
obtaining
19
real-time
employment
and
income
information
under
this
section.
20
Sec.
7.
NEW
SECTION
.
239.7
Case
review
of
applicant
and
21
recipient
information.
22
1.
If
the
information
obtained
from
a
review
of
an
23
applicant’s
or
recipient’s
information
under
this
chapter
does
24
not
result
in
the
department
finding
a
discrepancy
or
change
25
in
an
individual’s
circumstances
affecting
eligibility,
the
26
department
shall
take
no
further
action.
27
2.
If
the
information
obtained
from
a
review
of
the
28
applicant’s
or
recipient’s
information
under
this
chapter
29
results
in
the
department
finding
a
discrepancy
or
change
in
30
the
individual’s
circumstances
affecting
eligibility,
the
31
department
shall
respond
in
accordance
with
the
provisions
of
32
sections
239.8
and
239.9.
33
Sec.
8.
NEW
SECTION
.
239.8
Notice
and
right
to
be
heard.
34
1.
An
applicant
for,
or
recipient
of,
public
assistance
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shall
be
provided
written
notice
and
the
opportunity
to
explain
1
any
issues
identified
in
a
review
performed
under
this
chapter
2
for
initial
eligibility
or
redetermination
of
eligibility.
3
Unless
otherwise
prohibited
by
federal
law
or
regulation,
4
a
self-declaration
by
an
applicant
or
recipient
shall
not
5
be
accepted
as
verification
of
categorical
and
financial
6
eligibility
during
such
review.
7
2.
The
notice
provided
to
the
applicant
or
recipient
shall
8
describe
in
sufficient
detail
the
circumstances
of
the
issue
9
identified,
the
manner
in
which
the
applicant
or
recipient
10
may
respond,
and
the
consequences
of
failing
to
respond
to
11
the
notice
or
resolve
the
issue
identified.
The
applicant
or
12
recipient
shall
be
provided
ten
days
to
respond
to
the
notice.
13
The
department
may
request
additional
information
as
necessary
14
to
reach
a
decision.
15
3.
An
applicant
or
recipient
may
respond
to
the
notice
as
16
follows:
17
a.
By
disagreeing
with
the
findings
of
the
department.
If
18
the
applicant
or
recipient
responds
in
a
timely
manner
and
19
disagrees
with
the
findings
of
the
department,
the
department
20
shall
reevaluate
the
circumstances
to
determine
if
the
21
applicant’s
or
recipient’s
position
is
valid.
If,
through
22
reevaluation,
the
department
finds
that
the
department
is
in
23
error,
the
department
shall
take
immediate
action
to
correct
24
the
error.
If,
through
reevaluation,
the
department
affirms
25
that
the
applicant’s
or
recipient’s
position
is
invalid,
the
26
department
shall
determine
the
effect
on
the
applicant’s
or
27
recipient’s
eligibility
and
take
appropriate
action.
Written
28
notice
of
the
department’s
determination
and
the
actions
taken
29
shall
be
provided
to
the
applicant
or
recipient.
30
b.
By
agreeing
with
the
findings
of
the
department.
If
31
the
applicant
or
recipient
responds
in
a
timely
manner
and
32
agrees
with
the
findings
of
the
department,
the
department
33
shall
determine
the
effect
on
the
applicant’s
or
recipient’s
34
eligibility
and
take
appropriate
action.
Written
notice
of
the
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department’s
determination
and
actions
taken
shall
be
provided
1
to
the
applicant
or
recipient.
2
4.
If
the
applicant
or
recipient
fails
to
respond
to
the
3
notice
in
a
timely
manner,
the
department
shall
provide
notice
4
to
terminate
the
applicant’s
application
or
to
discontinue
5
the
recipient’s
enrollment
for
failure
to
cooperate,
and
6
shall
terminate
the
applicant’s
application
or
discontinue
7
the
recipient’s
enrollment.
The
applicant’s
or
recipient’s
8
eligibility
for
such
public
assistance
shall
not
be
established
9
or
reestablished
until
the
issue
has
been
resolved.
10
Sec.
9.
NEW
SECTION
.
239.9
Referrals
for
fraud,
11
misrepresentation,
or
inadequate
documentation.
12
1.
Following
a
review
of
an
applicant’s
or
recipient’s
13
eligibility
under
this
chapter,
the
department
may
refer
cases
14
of
suspected
fraud
along
with
any
supportive
information
to
the
15
department
of
inspections
and
appeals
for
review.
16
2.
In
cases
of
substantiated
fraud,
upon
conviction,
the
17
state
shall
review
all
appropriate
legal
options
including
18
but
not
limited
to
removal
of
a
recipient
from
other
public
19
assistance
programs
and
garnishment
of
wages
or
state
income
20
tax
refunds
until
the
department
recovers
an
equal
amount
of
21
benefits
fraudulently
claimed.
22
3.
The
department
may
refer
suspected
cases
of
fraud,
23
misrepresentation,
or
inadequate
documentation
relating
to
24
initial
or
continued
eligibility
to
appropriate
state
agencies,
25
divisions,
or
departments
for
review
of
eligibility
issues
in
26
programs
providing
public
benefits
other
than
those
as
defined
27
in
this
chapter.
28
Sec.
10.
NEW
SECTION
.
239.10
Administration
——
rules
——
29
reporting.
30
1.
The
department
of
health
and
human
services
shall
adopt
31
rules
pursuant
to
chapter
17A
to
administer
this
chapter.
32
2.
The
department
shall
submit
a
report
to
the
governor
33
and
the
general
assembly
by
January
15,
2025,
and
by
January
34
15
annually
thereafter
through
January
15,
2030,
detailing
the
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impact
of
the
verification
and
authentication
measures
taken
1
under
this
chapter.
The
report
shall
include
data
for
all
2
affected
public
assistance
programs
including
the
number
of
3
cases
reviewed,
the
number
of
cases
closed,
the
number
of
fraud
4
investigation
referrals
made,
and
the
amount
of
savings
and
5
cost
avoidance
realized
from
the
provisions
of
this
chapter.
6
Sec.
11.
NEW
SECTION
.
249A.59
Cooperation
with
child
7
support
services.
8
1.
Unless
exempt
pursuant
to
state
or
federal
law
or
9
regulation,
an
applicant
for
or
recipient
of
medical
assistance
10
shall
be
required
to
cooperate
with
child
support
services
as
a
11
condition
of
eligibility.
12
2.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
13
to
administer
this
section.
14
Sec.
12.
IMPLEMENTATION.
15
1.
The
department
of
health
and
human
services
shall
request
16
federal
approval
including
for
any
state
plan
amendment
or
17
waiver
necessary
to
administer
this
Act.
18
2.
If
the
department
of
health
and
human
services
determines
19
that
any
provision
of
this
Act
would
result
in
the
denial
20
of
funds
or
services
from
the
federal
government
that
would
21
otherwise
be
available
or
would
be
inconsistent
with
the
22
requirements
of
federal
law
or
regulation,
such
provision
shall
23
be
suspended,
but
only
to
the
extent
necessary
to
eliminate
the
24
inconsistency
with
federal
requirements.
25
3.
Unless
otherwise
provided
in
this
Act,
the
department
26
of
health
and
human
services
shall
implement
the
provisions
of
27
this
Act
in
an
incremental
fashion,
beginning
July
1,
2023,
28
with
a
goal
of
full
implementation
no
later
than
July
1,
2025,
29
to
minimize
duplication
of
efforts
and
to
maximize
coordination
30
with
the
implementation
time
frames
of
other
departmental
31
resource
enhancements.
32
4.
The
provisions
of
this
Act
requiring
federal
approval
33
shall
be
implemented
upon
receipt
of
such
federal
approval.
34
5.
The
provisions
of
this
Act
not
requiring
federal
approval
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