HF 429 (LSB 2201YH (9) 85)

HOUSE FILE 429

BY  WATTS

A BILL FOR

An Act addressing fraud and abuse in public welfare programs.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 217.35, Code 2013, is amended to read as follows:
   217.35  Fraud and recoupment activities.
   1.  Notwithstanding the requirement for deposit of recovered moneys under section 239B.14, recovered moneys generated through fraud and recoupment activities are appropriated to the department of human services
 
inspections and appeals to be used for additional fraud and recoupment activities performed by the department of human services or the department of inspections and appeals. The department of human services
 
inspections and appeals may use the recovered moneys appropriated to add not more than five full-time equivalent positions, in addition to those funded by annual appropriations. The appropriation of the recovered moneys is subject to both of the following conditions:
   1.

a.  The director of human services
 
the department of inspections and appeals determines that the investment can reasonably be expected to increase recovery of assistance paid in error, due to fraudulent or nonfraudulent actions, in excess of the amount recovered in the previous fiscal year.
   2.

b.  The amount expended for the additional fraud and recoupment activities shall not exceed the amount of the projected increase in assistance recovered.
   2.
  a.  For the purposes of this subsection, “public welfare programs” means welfare programs for persons with low income that are wholly or partially funded by the federal government, including but not limited to food programs administered under section 234.12, state child care assistance administered under section 237A.13, the family investment program and PROMISE-JOBS program administered under chapter 239B, and the medical assistance program administered under chapter 249A. The term also includes programs with state-only funding directed to the populations participating in the public welfare programs.
   b.  The authority granted to the department of human services by federal or state statute or administrative rule to engage in program evaluation, ensure program integrity, identify or prevent fraud or abuse, address fraud or abuse, or other related efforts in relation to public welfare programs shall be deemed to extend to the department of inspections and appeals. The department of human services shall collaborate and coordinate with the department of inspections and appeals in exercising this authority.
    Sec. 2.  Section 234.12A, Code 2013, is amended by adding the following new subsections:
   NEW SUBSECTION.  4.  The same card or other benefit transfer instrument used under the electronic benefits transfer program for food assistance program benefits shall also be used to provide family investment program cash assistance.
   NEW SUBSECTION.  5.  The department of human services’ requirements for the electronic benefits transfer program used to provide food assistance and family investment program cash assistance shall require cancellation of a card or other benefit transfer instrument that is lost or stolen. The department shall implement an efficient process for a cardholder to replace a lost or stolen card or other instrument.
   NEW SUBSECTION.  6.  The department of human services’ requirements for the electronic benefits transfer program used to provide food assistance and family investment program cash assistance shall provide that if the card or other benefit transfer instrument may be used by more than one member of a family or household, the card or other instrument shall bear the name of each user.
    Sec. 3.  WELFARE FRAUD TASK FORCE.
   1.  A welfare fraud task force is created to review the state laws, policies, procedures, and processes applied to prevent and address fraud and abuse in public welfare programs and make recommendations for improvements, including proposed legislation. Staffing for the task force shall be provided by the department of inspections and appeals. The provisions considered by the task force may include but are not limited to all of the following:
   a.  A review of the penalties for applicants or vendors who provide false information and for any fraudulent use of benefits.
   b.  A review of the current processes for information sharing and data matching between the department of human services, department of inspections and appeals, other relevant agencies in this state, and comparable agencies of neighboring states.
   c.  A review of the potential for fraud and abuse that may be caused by categorical eligibility provisions and of the methods available to reduce that potential.
   d.  Identification of options for requiring a periodic audit or other review to improve program integrity and program processes.
   2.  The voting membership of the task force shall include all of the following:
   a.  The director of the department of inspections and appeals or the director’s designee.
   b.  The auditor of state or the auditor’s designee.
   c.  The director of human services or the director’s designee.
   d.  The commissioner of public safety or the commissioner’s designee.
   e.  A public member appointed by the director of the department of inspections and appeals.
   f.  Other members with appropriate expertise appointed by the task force.
   3.  The following members of the general assembly shall serve in a nonvoting, ex officio capacity:
   a.  A member of the senate appointed by the majority leader of the senate.
   b.  A member of the senate appointed by the minority leader of the senate.
   c.  A member of the house of representatives appointed by the speaker of the house of representatives.
   d.  A member of the house of representatives appointed by the minority leader of the house of representatives.
   4.  The task force shall submit a final report to the governor and general assembly on or before December 15, 2013, making findings and recommendations.
   5.  For the purposes of this section, “public welfare programs” means welfare programs for persons with low income that are wholly or partially funded by the federal government, including but not limited to food programs administered under section 234.12, state child care assistance administered under section 237A.13, the family investment program and PROMISE-JOBS program administered under chapter 239B, and the medical assistance program administered under chapter 249A. The term also includes programs with state-only funding directed to the populations participating in the public welfare programs.
EXPLANATION
   This bill addresses fraud and abuse in public welfare programs.
   Code section 217.35, appropriating moneys recovered through efforts to address fraud and recoupment activities, is amended to provide the moneys are appropriated to the department of inspections and appeals instead of the department of human services and that authority granted to the department of human services to engage in program evaluation, ensure program integrity, identify or prevent fraud or abuse, address fraud or abuse, or related efforts is deemed to extend to the department of inspections and appeals. The two departments are required to collaborate and coordinate in exercising this authority.
   Code section 234.12A, relating to the electronic benefits transfer program maintained by DHS for the food assistance programs, is amended. The bill requires the electronic benefits transfer program card or other benefit transfer instrument utilized to provide food assistance program benefits to also be used to provide family investment program cash assistance. If a card or other benefit transfer instrument used for the program is lost or stolen, the instrument must be canceled. If a card or other benefit transfer instrument may be used by more than one member of a family or household, the card or other instrument is required to bear the name of each user.
   A welfare fraud task force is created to review the state laws, policies, procedures, and processes applied to prevent and address fraud and abuse in public welfare programs for persons with low income and make recommendations for improvements. Staffing for the task force is to be provided by the department of inspections and appeals. The task force is required to report to the governor and general assembly in December 2013. The task force membership includes members of the general assembly.