Bill Text: IA SF494 | 2023-2024 | 90th General Assembly | Enrolled

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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-Enrolled.html

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Senate File 494 - Enrolled
Senate File 494
AN ACT
RELATING TO PUBLIC ASSISTANCE PROGRAM OVERSIGHT.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. NEW SECTION . 239.1 Definitions.
As used in this chapter, unless the context otherwise
requires:
1. “Applicant” means an individual who is applying for
public assistance benefits in the state.
2. “Asset” means the following assets of the members of the
applicant’s household:
a. All liquid assets.
b. All other personal property excluding one vehicle and
the fair market value in excess of ten thousand dollars of an
additional vehicle.
3. “Asset test” means the comparison of the collective
value of all countable assets of the members of the applicant’s
household to the maximum allowed household asset limit of
fifteen thousand dollars.
4. “Department” means the department of health and human
services.
5. “Public assistance” means the supplemental nutrition
assistance program or SNAP, the Medicaid program or Medicaid
as defined in section 249A.2, the family investment program or
FIP as defined in section 239B.1, and the children’s health
insurance program or CHIP.
6. “Real-time eligibility system” means real-time electronic

Senate File 494, p. 2
access to a system that allows verification of all applicable
public assistance program eligibility information based on the
most recent information available to the department through
nonmodeled earned and unearned income, such as commercially
available wage data.
7. “Recipient” means an individual who is receiving public
assistance benefits in the state.
8. “Supplemental nutrition assistance program” or “SNAP”
means benefits provided by the federal program administered
through 7 C.F.R. pts. 270 – 283, as amended.
Sec. 2. NEW SECTION . 239.2 Supplemental nutrition
assistance program —— income eligibility.
The department shall establish the gross countable monthly
income threshold for the supplemental nutrition assistance
program at less than or equal to one hundred sixty percent of
the federal poverty level for the household size.
Sec. 3. NEW SECTION . 239.3 Identity authentication.
Unless otherwise prohibited by federal law or regulation,
prior to the department awarding public assistance benefits, an
applicant shall complete a computerized identity authentication
process to confirm the identity of the applicant. Identity
authentication shall be accomplished through a knowledge-based
questionnaire consisting of financial and personal questions.
The questionnaire shall contain questions tailored to assist
persons without a bank account or those who have poor access
to financial and banking services or who do not have an
established credit history. The computerized identity
authentication process and questionnaire may be completed and
submitted online, in person, or via telephone by the applicant
or a person authorized by the applicant. The department may
adopt rules pursuant to chapter 17A to administer this section.
Sec. 4. NEW SECTION . 239.4 Asset test for supplemental
nutrition assistance program.
1. For the purposes of determining eligibility for receipt
of SNAP benefits, the department shall conduct an asset test
on all members of the applicant’s household. The allowable
financial resources to be included in or excluded from a
determination of eligibility for SNAP shall be those specified
in 7 U.S.C. §2014(g)(1), to the extent consistent with the term

Senate File 494, p. 3
“asset” as defined in this chapter.
2. Prior to determining eligibility for SNAP benefits,
the department shall access, at a minimum, for every member
of the applicant’s household, the following information from
the following federal, state, and miscellaneous sources, or
successor sources:
a. Federal sources and information:
(1) Earned and unearned income information maintained by
the internal revenue service.
(2) The following sources and information maintained by the
United States social security administration:
(a) Earned income information.
(b) Death register information.
(c) Prisoner or incarceration status information.
(d) Supplemental security income information maintained in
the state data exchange database.
(e) Beneficiary records and earnings information maintained
in the beneficiary and earnings data exchange database.
(f) Earnings information maintained in the beneficiary
earnings exchange record system database.
(3) The following sources and information maintained by the
United States department of health and human services:
(a) Income and employment information maintained in the
national directory of new hires database by the office of child
support enforcement of the administration for children and
families.
(b) Other federal data sources maintained by the office of
child support enforcement of the administration for children
and families.
b. State sources and information:
(1) The department’s sources and information including but
not limited to all of the following:
(a) Income and employment information maintained by child
support services.
(b) Child care assistance information maintained by the
department.
(c) Enrollment status in other public assistance programs.
(2) The department of workforce development sources and
information including all of the following:

Senate File 494, p. 4
(a) Employment information.
(b) Employer weekly, monthly, and quarterly reports of
income and unemployment insurance payments.
c. Miscellaneous sources:
(1) Any existing real-time database of persons currently
receiving benefits in other states, such as the national
accuracy clearinghouse.
(2) Any lottery winner databases maintained by the Iowa
lottery.
(3) Any existing real-time eligibility system that includes
employment and income information maintained by a consumer
reporting agency, as defined by the federal Fair Credit
Reporting Act, 15 U.S.C. §1681a, for the purpose of obtaining
real-time employment and income information.
3. Prior to determining eligibility for SNAP benefits, the
department shall access information for every member of the
applicant’s household from the following public records:
a. A nationwide public records data source of physical asset
ownership. The data source may include but is not limited to
real property, automobiles, watercraft, aircraft, and luxury
vehicles, or any other vehicle owned by the applicant.
b. National and state financial institutions in order
to locate undisclosed depository accounts or verify account
balances of disclosed accounts.
4. The department shall enter into a memorandum of
understanding with any department, division, bureau, section,
unit, or any other subunit of a department to obtain the
information specified in this section.
5. The provisions of this section shall not apply if every
member of the applicant’s household receives supplemental
security income.
Sec. 5. NEW SECTION . 239.5 Verification and authentication
systems —— public assistance programs.
1. No later than July 1, 2025, the department shall
redesign an existing system; establish a new computerized
income, asset, and identity eligibility verification system;
or contract with a third-party vendor to provide for identity
verification, identity authentication, asset verification, and
dual enrollment prevention in order to deter waste, fraud, and

Senate File 494, p. 5
abuse in each public assistance program administered by the
department.
2. The department may contract with a third-party vendor
to develop or provide a service for a real-time eligibility
system that allows the department to verify or authenticate
income, assets, and identity eligibility of applicants and
recipients to prevent fraud, misrepresentation, and inadequate
documentation when determining eligibility for public
assistance programs. The system shall be accessed prior to
determining eligibility, periodically between eligibility
redeterminations, and during eligibility redeterminations
and reviews. The department may also contract with a
third-party vendor to provide information to facilitate
reviews of recipient eligibility conducted by the department.
Specifically, the department may contract with a third-party
consumer reporting agency, as defined by the federal Fair
Credit Reporting Act, 15 U.S.C. §1681a, for the purpose of
obtaining real-time employment and income information.
3. A contract entered into under this section shall provide,
at a minimum, for all of the following:
a. The establishment of the annual savings amount from
utilization of the system or service, and a provision that the
contract may be terminated contingent upon the savings not
exceeding the total yearly cost to the state for utilization of
the system or service.
b. That the contract shall not preclude the department
from continuing to conduct additional eligibility verification
or authentication processes, to receive, review, or verify
additional information related to the eligibility of an
individual, or from contracting with a third-party vendor to
provide additional eligibility authentication or verification
information.
4. The department shall seek federal approval as necessary
to implement and administer this section.
Sec. 6. NEW SECTION . 239.6 Public assistance programs ——
applicant and recipient eligibility verification.
1. All applications for initial public assistance
program benefits and all determinations of ongoing recipient
eligibility shall be processed through a system as specified

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in this section. Complete initial applications shall be
processed within the minimum period required by federal law.
Prior to determining initial eligibility of an applicant for,
or ongoing eligibility of a recipient of, public assistance,
the department shall access information for every applicant or
recipient from the following federal, state, and other sources:
a. Federal sources and information:
(1) Earned and unearned income information maintained by
the internal revenue service.
(2) The following sources and information maintained by the
United States social security administration:
(a) Earned income information.
(b) Death register information.
(c) Prisoner or incarceration status information.
(d) Supplemental security income information maintained in
the state data exchange database.
(e) Beneficiary records and earnings information maintained
in the beneficiary and earnings data exchange database.
(f) Earnings information maintained in the beneficiary
earnings exchange record system database.
(3) The following sources and information maintained by the
United States department of health and human services:
(a) Income and employment information maintained in the
national directory of new hires database by the office of child
support enforcement of the administration for children and
families.
(b) Other federal data sources maintained by the office of
child support enforcement of the administration for children
and families.
(4) Information maintained by the United States citizenship
and immigration services of the United States department of
homeland security.
(5) National fleeing felon information maintained by the
United States federal bureau of investigation.
b. State sources and information:
(1) The department’s sources and information including but
not limited to all of the following:
(a) Income and employment information maintained by child
support services.

Senate File 494, p. 7
(b) Child care assistance information maintained by the
department.
(c) Enrollment status in other public assistance programs.
(2) The department of workforce development sources and
information including all of the following:
(a) Employment information.
(b) Employer weekly, monthly, and quarterly reports of
income and unemployment insurance payments.
c. Other sources including all of the following:
(1) Any existing real-time database of persons currently
receiving benefits in other states, such as the national
accuracy clearinghouse.
(2) An available database of persons who currently hold a
license, permit, or certificate from any state agency, the cost
of which exceeds five hundred dollars.
(3) Wage reporting and similar information maintained by
states contiguous to Iowa.
(4) A third-party consumer reporting agency, as defined
by the federal Fair Credit Reporting Act, 15 U.S.C. §1681a,
for the purpose of obtaining real-time employment and income
information.
2. Prior to determining the initial eligibility of an
applicant for, or the ongoing eligibility of a recipient
of, public assistance benefits, the department shall access
information for every applicant or recipient from, at a
minimum, the following public records:
a. A nationwide public records data source of physical asset
ownership. The data source may include but is not limited to
real property, automobiles, watercraft, aircraft, and luxury
vehicles, or any other vehicle owned by the applicant for or
recipient of assistance.
b. A nationwide public records data source of incarcerated
individuals.
c. A nationwide best address and driver’s license data
source to verify that individuals are residents of the state.
d. A comprehensive public records database from which the
department may identify potential identity fraud or identity
theft that is capable of closely associating name, social
security number, date of birth, phone, and address information.

Senate File 494, p. 8
e. National and local financial institutions in order
to locate undisclosed depository accounts or verify account
balances of disclosed accounts.
f. Outstanding default or arrest warrant information.
3. The state may contract with a third-party consumer
reporting agency, as defined by the federal Fair Credit
Reporting Act, 15 U.S.C. §1681a, for the purpose of obtaining
real-time employment and income information under this section.
Sec. 7. NEW SECTION . 239.7 Case review of applicant and
recipient information.
1. If the information obtained from a review of an
applicant’s or recipient’s information under this chapter does
not result in the department finding a discrepancy or change
in an individual’s circumstances affecting eligibility, the
department shall take no further action.
2. If the information obtained from a review of the
applicant’s or recipient’s information under this chapter
results in the department finding a discrepancy or change in
the individual’s circumstances affecting eligibility, the
department shall respond in accordance with the provisions of
sections 239.8 and 239.9.
Sec. 8. NEW SECTION . 239.8 Notice and right to be heard.
1. An applicant for, or recipient of, public assistance
shall be provided written notice and the opportunity to explain
any issues identified in a review performed under this chapter
for initial eligibility or redetermination of eligibility.
Unless otherwise prohibited by federal law or regulation,
a self-declaration by an applicant or recipient shall not
be accepted as verification of categorical and financial
eligibility during such review.
2. The notice provided to the applicant or recipient shall
describe in sufficient detail the circumstances of the issue
identified, the manner in which the applicant or recipient
may respond, and the consequences of failing to respond to
the notice or resolve the issue identified. The applicant or
recipient shall be provided ten days to respond to the notice.
The department may request additional information as necessary
to reach a decision.
3. An applicant or recipient may respond to the notice as

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follows:
a. By disagreeing with the findings of the department. If
the applicant or recipient responds in a timely manner and
disagrees with the findings of the department, the department
shall reevaluate the circumstances to determine if the
applicant’s or recipient’s position is valid. If, through
reevaluation, the department finds that the department is in
error, the department shall take immediate action to correct
the error. If, through reevaluation, the department affirms
that the applicant’s or recipient’s position is invalid, the
department shall determine the effect on the applicant’s or
recipient’s eligibility and take appropriate action. Written
notice of the department’s determination and the actions taken
shall be provided to the applicant or recipient.
b. By agreeing with the findings of the department. If
the applicant or recipient responds in a timely manner and
agrees with the findings of the department, the department
shall determine the effect on the applicant’s or recipient’s
eligibility and take appropriate action. Written notice of the
department’s determination and actions taken shall be provided
to the applicant or recipient.
4. If the applicant or recipient fails to respond to the
notice in a timely manner, the department shall provide notice
to terminate the applicant’s application or to discontinue
the recipient’s enrollment for failure to cooperate, and
shall terminate the applicant’s application or discontinue
the recipient’s enrollment. The applicant’s or recipient’s
eligibility for such public assistance shall not be established
or reestablished until the issue has been resolved.
Sec. 9. NEW SECTION . 239.9 Referrals for fraud,
misrepresentation, or inadequate documentation.
1. Following a review of an applicant’s or recipient’s
eligibility under this chapter, the department may refer cases
of suspected fraud along with any supportive information to the
department of inspections and appeals for review.
2. In cases of substantiated fraud, upon conviction, the
state shall review all appropriate legal options including
but not limited to removal of a recipient from other public
assistance programs and garnishment of wages or state income

Senate File 494, p. 10
tax refunds until the department recovers an equal amount of
benefits fraudulently claimed.
3. The department may refer suspected cases of fraud,
misrepresentation, or inadequate documentation relating to
initial or continued eligibility to appropriate state agencies,
divisions, or departments for review of eligibility issues in
programs providing public benefits other than those as defined
in this chapter.
Sec. 10. NEW SECTION . 239.10 Administration —— rules ——
reporting.
1. The department of health and human services shall adopt
rules pursuant to chapter 17A to administer this chapter.
2. The department shall submit a report to the governor
and the general assembly by January 15, 2025, and by January
15 annually thereafter through January 15, 2030, detailing the
impact of the verification and authentication measures taken
under this chapter. The report shall include data for all
affected public assistance programs including the number of
cases reviewed, the number of cases closed, the number of fraud
investigation referrals made, and the amount of savings and
cost avoidance realized from the provisions of this chapter.
Sec. 11. NEW SECTION . 249A.59 Cooperation with child
support services.
1. Unless exempt pursuant to state or federal law or
regulation, an applicant for or recipient of medical assistance
shall be required to cooperate with child support services as a
condition of eligibility.
2. The department shall adopt rules pursuant to chapter 17A
to administer this section.
Sec. 12. IMPLEMENTATION.
1. The department of health and human services shall request
federal approval including for any state plan amendment or
waiver necessary to administer this Act.
2. If the department of health and human services determines
that any provision of this Act would result in the denial
of funds or services from the federal government that would
otherwise be available or would be inconsistent with the
requirements of federal law or regulation, such provision shall
be suspended, but only to the extent necessary to eliminate the

Senate File 494, p. 11
inconsistency with federal requirements.
3. Unless otherwise provided in this Act, the department
of health and human services shall implement the provisions of
this Act in an incremental fashion, beginning July 1, 2023,
with a goal of full implementation no later than July 1, 2025,
to minimize duplication of efforts and to maximize coordination
with the implementation time frames of other departmental
resource enhancements.
4. The provisions of this Act requiring federal approval
shall be implemented upon receipt of such federal approval.
5. The provisions of this Act not requiring federal approval
shall be implemented as specified in this Act, or if not
specified in this Act, no later than July 1, 2025.
6. The department may contract with multiple third-party
vendors to administer this Act.
______________________________ ______________________________
AMY SINCLAIR PAT GRASSLEY
President of the Senate Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 494, Ninetieth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2023 ______________________________
KIM REYNOLDS
Governor