Text: HF02392 Text: HF02394 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 10A.404 CIVIL PENALTIES AND
1 2 PAYMENT OF INVESTIGATION COSTS – PRESUMPTION OF LIABILITY –
1 3 LIMITATION OF ACTIONS.
1 4 1. For the purposes of this section, unless the context
1 5 otherwise requires, "benefit" means a service, payment,
1 6 merchandise, or other assistance. In addition to any other
1 7 penalty or payment amount under law, a person is liable for
1 8 the civil penalty and payment of the investigation costs
1 9 listed in subsection 2 if the person receives a benefit to
1 10 which the person was not entitled or for which the person was
1 11 not eligible under any of the following chapters administered
1 12 by the state:
1 13 a. Chapter 234, relating to child and family services.
1 14 b. Chapter 237A, relating to child care.
1 15 c. Chapter 239B, relating to the family investment
1 16 program.
1 17 d. Chapter 249, relating to the state supplementary
1 18 assistance program.
1 19 e. Chapter 249A, relating to the medical assistance
1 20 program.
1 21 2. a. If the person liable under subsection 1 was the
1 22 program benefit recipient of the benefit to which the person
1 23 was not entitled or eligible under any of the chapters listed
1 24 in subsection 1 and the total dollar amount of such benefit
1 25 received was proven to be more than one thousand dollars, the
1 26 person is liable for both of the following amounts:
1 27 (1) A civil penalty of not more than treble the total
1 28 dollar amount of the benefit to which the person was not
1 29 entitled or eligible to receive.
1 30 (2) Not more than five hundred dollars of the costs
1 31 incurred by the department in investigating the matter.
1 32 b. If the person liable under subsection 1 was a provider
1 33 of service, merchandise, or other assistance under any of the
1 34 chapters listed in subsection 1, the person is liable for both
1 35 of the following amounts:
2 1 (1) A civil penalty of five thousand dollars or twenty-
2 2 five percent of the proven total dollar amount of the benefit
2 3 received to which the person was not entitled or eligible,
2 4 whichever amount is greater up to a maximum of treble the
2 5 proven total dollar amount of such benefit.
2 6 (2) Not more than five thousand dollars of the costs
2 7 incurred by the department in investigating the matter.
2 8 3. Liability for the civil penalty and payment of costs of
2 9 investigation under subsections 1 and 2 is separate from and
2 10 cumulative with any other administrative, civil, or criminal
2 11 penalty or payments ordered under federal law or regulation.
2 12 Institution of a criminal proceeding is not a prerequisite or
2 13 condition for an action to enforce subsections 1 and 2.
2 14 4. Liability for the civil penalty and payment of costs of
2 15 investigation under subsections 1 and 2 may be established by
2 16 any of the following means:
2 17 a. Upon a criminal conviction, entry of a guilty plea, or
2 18 entry of a finding of guilt in a state or federal prosecution
2 19 that is directly related to a benefit administered by the
2 20 state under a chapter listed in subsection 1, the sentencing
2 21 court may order payment in accordance with subsections 1 and
2 22 2. However, if the sentencing court fails to order the
2 23 payment, a civil proceeding to enforce payment may be
2 24 instituted in accordance with subsection 5.
2 25 b. Upon entry of a civil judgment or confession of
2 26 judgment in a state or federal court proceeding that is
2 27 directly related to a benefit administered by the state under
2 28 a chapter listed in subsection 1, the sentencing court may
2 29 order payment in accordance with subsections 1 and 2.
2 30 However, if the sentencing court fails to order the payment, a
2 31 civil proceeding to enforce payment may be instituted in
2 32 accordance with subsection 5.
2 33 c. Upon an administrative finding in a state or federal
2 34 proceeding that is directly related to a benefit administered
2 35 by the state under a chapter listed in subsection 1, a civil
3 1 proceeding to enforce payment may be instituted in accordance
3 2 with subsection 5.
3 3 5. A civil proceeding to enforce payment under this
3 4 section shall be instituted in the district court of the
3 5 county in which the person received under a chapter listed in
3 6 subsection 1 a benefit to which the person was not entitled or
3 7 for which the person under rule was not eligible. The office
3 8 of the attorney general or the county attorney may institute
3 9 the civil proceeding, which may commence after or at the same
3 10 time as any related state or federal criminal, civil, or
3 11 administrative proceeding directly related to a benefit under
3 12 a chapter listed in subsection 1 to which the person was not
3 13 entitled or eligible to receive.
3 14 6. A rebuttable presumption arises that a person is liable
3 15 for the civil penalty and payment of costs of investigation
3 16 under subsections 1 and 2. The presumption may only be
3 17 rebutted by clear and convincing evidence that the person was
3 18 properly entitled to or eligible to receive such benefit under
3 19 a chapter listed in subsection 1. The rebuttable presumption
3 20 arises after any of the following occurs in a state or federal
3 21 criminal, civil, or administrative proceeding that is directly
3 22 related to payment or collection of payments received by a
3 23 person for a service or benefit administered by the state
3 24 under a chapter listed in subsection 1:
3 25 a. Entry of a criminal conviction, plea of guilty, or
3 26 finding of guilt.
3 27 b. Entry of a judgment or confession of judgment in a
3 28 civil proceeding.
3 29 c. Entry of an administrative finding adverse to the
3 30 person or establishing the person's liability.
3 31 7. The departments of human services and inspections and
3 32 appeals may cooperate in adopting rules pursuant to chapter
3 33 17A for administration, collection, and allocation of civil
3 34 penalties described in subsection 2. The department of
3 35 inspections and appeals may adopt rules pursuant to chapter
4 1 17A for the administration, collection, and allocation of
4 2 costs of investigation described in subsection 2.
4 3 8. An action under this section shall not be instituted
4 4 more than five years after the date the state discovered that
4 5 a person received a benefit under a chapter listed in
4 6 subsection 1 to which the person was not entitled or for which
4 7 the person under rule was not eligible.
4 8 Sec. 2. NEW SECTION. 234.13A CIVIL PENALTIES – PAYMENT
4 9 OF INVESTIGATION COSTS.
4 10 If a person receives under this chapter a service, payment,
4 11 merchandise, or other assistance to which the person was not
4 12 entitled or for which the person was not eligible, the
4 13 person's liability for civil penalties and investigation costs
4 14 shall be determined in accordance with section 10A.404.
4 15 Sec. 3. NEW SECTION. 237A.14 FRAUDULENT PRACTICES –
4 16 RECOVERY OF OVERPAYMENTS.
4 17 1. An individual who receives, or attempts to receive, or
4 18 aids or abets an individual in receiving, by means of a
4 19 willfully false statement or representation, by knowingly
4 20 failing to disclose a material fact, or by impersonation, or
4 21 through any fraudulent device, any assistance, payment, or
4 22 other benefit under this chapter to which the individual is
4 23 not entitled, commits a fraudulent practice.
4 24 2. An individual who commits a fraudulent practice under
4 25 this section is personally liable for the amount of
4 26 assistance, payment, or other benefit fraudulently received.
4 27 The amount of the assistance, payment, or other benefit may be
4 28 recovered from the offender or the offender's estate in an
4 29 action brought or by claim filed in the name of the state and
4 30 the recovered funds are appropriated to the department to be
4 31 used for state child care assistance under section 237A.13.
4 32 The action or claim filed in the name of the state shall not
4 33 be considered an election of remedies to the exclusion of
4 34 other remedies.
4 35 3. The department shall adopt rules pursuant to chapter
5 1 17A as necessary to recover overpayments of assistance,
5 2 payments, and benefits provided under this chapter. The
5 3 recovery methods shall include but are not limited to reducing
5 4 the amount of assistance, payments, or benefits provided.
5 5 Sec. 4. NEW SECTION. 237A.15 CIVIL PENALTIES – PAYMENT
5 6 OF INVESTIGATION COSTS.
5 7 If a person receives under this chapter assistance,
5 8 payment, or other benefit to which the person was not entitled
5 9 or for which the person was not eligible, the person's
5 10 liability for civil penalties and investigation costs shall be
5 11 determined in accordance with section 10A.404.
5 12 Sec. 5. NEW SECTION. 239B.14A CIVIL PENALTIES – PAYMENT
5 13 OF INVESTIGATION COSTS.
5 14 If a person receives under this chapter assistance or
5 15 another benefit to which the person was not entitled or for
5 16 which the person was not eligible, the person's liability for
5 17 civil penalties and investigation costs shall be determined in
5 18 accordance with section 10A.404.
5 19 Sec. 6. NEW SECTION. 249.11A CIVIL PENALTIES – PAYMENT
5 20 OF INVESTIGATION COSTS.
5 21 If a person receives under this chapter payment to which
5 22 the person was not entitled or for which the person was not
5 23 eligible, the person's liability for civil penalties and
5 24 investigation costs shall be determined in accordance with
5 25 section 10A.404.
5 26 Sec. 7. NEW SECTION. 249A.8A CIVIL PENALTIES – PAYMENT
5 27 OF INVESTIGATION COSTS.
5 28 If a person receives under this chapter assistance or
5 29 payment for medical assistance or payment for services or
5 30 merchandise under this chapter to which the person was not
5 31 entitled or for which the person was not eligible, the
5 32 person's liability for civil penalties and investigation costs
5 33 shall be determined in accordance with section 10A.404.
5 34 EXPLANATION
5 35 This bill relates to public assistance benefits received by
6 1 persons who were not entitled or eligible to receive the
6 2 benefits. The bill includes requirements for establishing
6 3 liability for civil penalties and recovery of investigation
6 4 costs from such persons under the following Code chapters:
6 5 chapter 234, relating to child and family services, including
6 6 child welfare services and food programs; chapter 237A,
6 7 relating to child care services; chapter 239B, relating to the
6 8 family investment program; chapter 249, relating to state
6 9 supplementary assistance; and chapter 249A, relating to the
6 10 medical assistance program.
6 11 In new Code section 10A.404, the bill provides authority as
6 12 applicable under each of these chapters to establish liability
6 13 for a person who receives a benefit, defined as a service,
6 14 payment, merchandise, or other assistance to which the person
6 15 was not entitled or for which the person by rule was not
6 16 eligible, in addition to any other penalty or payment under
6 17 law. The liability has two components: a civil penalty and
6 18 the costs of the investigation concerning the matter incurred
6 19 by the department of inspections and appeals.
6 20 The threshold for applying this liability to a recipient is
6 21 whether the recipient received more than $1,000 of benefits to
6 22 which the recipient was not entitled or eligible. The civil
6 23 liability limit for a recipient is treble the value of such
6 24 benefit and the liability for investigation costs is limited
6 25 to $500. The liability limits for a provider of service,
6 26 merchandise, or other assistance who received a benefit to
6 27 which the person was not entitled or eligible for civil
6 28 liability is treble the value of such benefit and for
6 29 investigation costs is $5,000.
6 30 The liability may be established by a state or federal
6 31 court in a criminal or civil proceeding or pursuant to an
6 32 administrative finding. Otherwise the office of the attorney
6 33 general or county attorney is authorized to initiate the
6 34 proceedings in the county in which the person received the
6 35 benefit.
7 1 If a judgment or finding is issued in a criminal, civil, or
7 2 administrative proceeding that involves benefit programs
7 3 administered by the state, a rebuttable presumption arises
7 4 that the person is liable for the civil penalties and costs of
7 5 investigation. The presumption may be rebutted by showing
7 6 clear and convincing evidence that the person was eligible for
7 7 what was received.
7 8 The departments of human services and inspections and
7 9 appeals are authorized to adopt rules to implement the bill's
7 10 provisions.
7 11 In addition, new Code section 237A.14 establishes a
7 12 fraudulent practice crime involving persons obtaining child
7 13 care assistance, payments, or benefits. The state is
7 14 authorized to recover moneys to compensate for the
7 15 fraudulently obtained assistance, payment, or benefit, and
7 16 recovered moneys are appropriated to the department of human
7 17 services for the state child care assistance program.
7 18
7 19 LSB 5229HV 79
7 20 jp/pj/5
Text: HF02392 Text: HF02394 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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