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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 person liable under subsection 1 is liable for both
1 22 of the following amounts:
1 23 a. A civil penalty of at least five hundred dollars and
1 24 not more than treble the total dollar amount of the benefit to
1 25 which the person was not entitled or eligible to receive.
1 26 b. The costs incurred by the department of inspections and
1 27 appeals in investigating the matter.
1 28 3. Liability for the civil penalty and payment of costs of
1 29 investigation under subsections 1 and 2 is separate from and
1 30 cumulative with any other administrative, civil, or criminal
1 31 penalty or payments ordered under federal law or regulation.
1 32 Institution of a criminal proceeding is not a prerequisite or
1 33 condition for an action to enforce subsections 1 and 2.
1 34 4. Liability for the civil penalty and payment of costs of
1 35 investigation under subsections 1 and 2 may be established by
2 1 any of the following means:
2 2 a. Upon a criminal conviction, entry of a guilty plea, or
2 3 entry of a finding of guilt in a state or federal prosecution
2 4 that is directly related to a benefit administered by the
2 5 state under a chapter listed in subsection 1, the sentencing
2 6 court may order payment in accordance with subsections 1 and
2 7 2. However, if the sentencing court fails to order the
2 8 payment, a civil proceeding to enforce payment may be
2 9 instituted in accordance with subsection 5.
2 10 b. Upon entry of a civil judgment or confession of
2 11 judgment in a state or federal court proceeding that is
2 12 directly related to a benefit administered by the state under
2 13 a chapter listed in subsection 1, the sentencing court may
2 14 order payment in accordance with subsections 1 and 2.
2 15 However, if the sentencing court fails to order the payment, a
2 16 civil proceeding to enforce payment may be instituted in
2 17 accordance with subsection 5.
2 18 c. Upon an administrative finding in a state or federal
2 19 proceeding that is directly related to a benefit administered
2 20 by the state under a chapter listed in subsection 1, a civil
2 21 proceeding to enforce payment may be instituted in accordance
2 22 with subsection 5.
2 23 5. A civil proceeding to enforce payment under this
2 24 section shall be instituted in the district court of the
2 25 county in which the person received under a chapter listed in
2 26 subsection 1 a benefit to which the person was not entitled or
2 27 for which the person under rule was not eligible. The office
2 28 of the attorney general or the county attorney may institute
2 29 the civil proceeding, which may commence after or at the same
2 30 time as any related state or federal criminal, civil, or
2 31 administrative proceeding directly related to a benefit under
2 32 a chapter listed in subsection 1 to which the person was not
2 33 entitled or eligible to receive.
2 34 6. A rebuttable presumption arises that a person is liable
2 35 for the civil penalty and payment of costs of investigation
3 1 under subsections 1 and 2. The presumption may only be
3 2 rebutted by clear and convincing evidence that the person was
3 3 properly entitled to or eligible to receive such benefit under
3 4 a chapter listed in subsection 1. The rebuttable presumption
3 5 arises after any of the following occurs in a state or federal
3 6 criminal, civil, or administrative proceeding that is directly
3 7 related to payment or collection of payments received by a
3 8 person for a service or benefit administered by the state
3 9 under a chapter listed in subsection 1:
3 10 a. Entry of a criminal conviction, plea of guilty, or
3 11 finding of guilt.
3 12 b. Entry of a judgment or confession of judgment in a
3 13 civil proceeding.
3 14 c. Entry of an administrative finding adverse to the
3 15 person or establishing the person's liability.
3 16 7. The departments of human services and inspections and
3 17 appeals may cooperate in adopting rules pursuant to chapter
3 18 17A for administration, collection, and allocation of civil
3 19 penalties described in subsection 2. The department of
3 20 inspections and appeals may adopt rules pursuant to chapter
3 21 17A for the administration, collection, and allocation of
3 22 costs of investigation described in subsection 2.
3 23 8. An action under this section shall not be instituted
3 24 more than five years after the date the state discovered that
3 25 a person received a benefit under a chapter listed in
3 26 subsection 1 to which the person was not entitled or for which
3 27 the person under rule was not eligible.
3 28 Sec. 2. NEW SECTION. 234.13A CIVIL PENALTIES – PAYMENT
3 29 OF INVESTIGATION COSTS.
3 30 If a person receives under this chapter a service, payment,
3 31 merchandise, or other assistance to which the person was not
3 32 entitled or for which the person was not eligible, the
3 33 person's liability for civil penalties and investigation costs
3 34 shall be determined in accordance with section 10A.404.
3 35 Sec. 3. NEW SECTION. 237A.14 FRAUDULENT PRACTICES –
4 1 RECOVERY OF OVERPAYMENTS.
4 2 1. An individual who receives, or attempts to receive, or
4 3 aids or abets an individual in receiving, by means of a
4 4 willfully false statement or representation, by knowingly
4 5 failing to disclose a material fact, or by impersonation, or
4 6 through any fraudulent device, any assistance, payment, or
4 7 other benefit under this chapter to which the individual is
4 8 not entitled, commits a fraudulent practice.
4 9 2. An individual who commits a fraudulent practice under
4 10 this section is personally liable for the amount of
4 11 assistance, payment, or other benefit fraudulently received.
4 12 The amount of the assistance, payment, or other benefit may be
4 13 recovered from the offender or the offender's estate in an
4 14 action brought or by claim filed in the name of the state and
4 15 the recovered funds are appropriated to the department to be
4 16 used for state child care assistance under section 237A.13.
4 17 The action or claim filed in the name of the state shall not
4 18 be considered an election of remedies to the exclusion of
4 19 other remedies.
4 20 3. The department shall adopt rules pursuant to chapter
4 21 17A as necessary to recover overpayments of assistance,
4 22 payments, and benefits provided under this chapter. The
4 23 recovery methods shall include but are not limited to reducing
4 24 the amount of assistance, payments, or benefits provided.
4 25 Sec. 4. NEW SECTION. 237A.15 CIVIL PENALTIES – PAYMENT
4 26 OF INVESTIGATION COSTS.
4 27 If a person receives under this chapter assistance,
4 28 payment, or other benefit to which the person was not entitled
4 29 or for which the person was not eligible, the person's
4 30 liability for civil penalties and investigation costs shall be
4 31 determined in accordance with section 10A.404.
4 32 Sec. 5. NEW SECTION. 239B.14A CIVIL PENALTIES – PAYMENT
4 33 OF INVESTIGATION COSTS.
4 34 If a person receives under this chapter assistance or
4 35 another benefit to which the person was not entitled or for
5 1 which the person was not eligible, the person's liability for
5 2 civil penalties and investigation costs shall be determined in
5 3 accordance with section 10A.404.
5 4 Sec. 6. NEW SECTION. 249.11A CIVIL PENALTIES – PAYMENT
5 5 OF INVESTIGATION COSTS.
5 6 If a person receives under this chapter payment to which
5 7 the person was not entitled or for which the person was not
5 8 eligible, the person's liability for civil penalties and
5 9 investigation costs shall be determined in accordance with
5 10 section 10A.404.
5 11 Sec. 7. NEW SECTION. 249A.8A CIVIL PENALTIES – PAYMENT
5 12 OF INVESTIGATION COSTS.
5 13 If a person receives under this chapter assistance or
5 14 payment for medical assistance or payment for services or
5 15 merchandise under this chapter to which the person was not
5 16 entitled or for which the person was not eligible, the
5 17 person's liability for civil penalties and investigation costs
5 18 shall be determined in accordance with section 10A.404.
5 19 EXPLANATION
5 20 This bill relates to public assistance benefits received by
5 21 persons who were not entitled or eligible to receive the
5 22 benefits. The bill includes requirements for establishing
5 23 liability for civil penalties and recovery of investigation
5 24 costs from such persons under the following Code chapters:
5 25 chapter 234, relating to child and family services, including
5 26 child welfare services and food programs; chapter 237A,
5 27 relating to child care services; chapter 239B, relating to the
5 28 family investment program; chapter 249, relating to state
5 29 supplementary assistance; and chapter 249A, relating to the
5 30 medical assistance program.
5 31 In new Code section 10A.404, the bill provides authority as
5 32 applicable under each of these chapters to establish liability
5 33 for a person who receives a benefit, defined as a service,
5 34 payment, merchandise, or other assistance to which the person
5 35 was not entitled or for which the person by rule was not
6 1 eligible, in addition to any other penalty or payment under
6 2 law. The liability has two components: a civil penalty of at
6 3 least $500 and not more than treble the value of assistance
6 4 received and the costs of the investigation concerning the
6 5 matter incurred by the department of inspections and appeals.
6 6 The liability may be established by a state or federal
6 7 court in a criminal or civil proceeding or pursuant to an
6 8 administrative finding. Otherwise the office of the attorney
6 9 general or county attorney is authorized to initiate the
6 10 proceedings in the county in which the person received the
6 11 benefit.
6 12 If a judgment or finding is issued in a criminal, civil, or
6 13 administrative proceeding that involves benefit programs
6 14 administered by the state, a rebuttable presumption arises
6 15 that the person is liable for the civil penalties and costs of
6 16 investigation. The presumption may be rebutted by showing
6 17 clear and convincing evidence that the person was eligible for
6 18 what was received.
6 19 The departments of human services and inspections and
6 20 appeals are authorized to adopt rules to implement the bill's
6 21 provisions.
6 22 In addition, new Code section 237A.14 establishes a
6 23 fraudulent practice crime involving persons obtaining child
6 24 care assistance, payments, or benefits. The state is
6 25 authorized to recover moneys to compensate for the
6 26 fraudulently obtained assistance, payment, or benefit, and
6 27 recovered moneys are appropriated to the department of human
6 28 services for the state child care assistance program.
6 29 LSB 5229DP 79
6 30 jp/pj/5
Text: SSB03070 Text: SSB03072 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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