Senate
Study
Bill
3193
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
LABOR
AND
BUSINESS
RELATIONS
BILL
BY
CHAIRPERSON
SCHULTZ)
A
BILL
FOR
An
Act
relating
to
public
assistance
program
oversight
and
1
including
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
217.41C
Public
assistance
programs
1
——
verification
of
applicant
eligibility
——
residency.
2
1.
The
department
of
human
services
shall
implement
an
3
eligibility
verification
system
for
public
assistance
programs
4
to
verify
the
eligibility
of
an
individual
who
is
an
applicant
5
for
any
such
program.
The
information
to
be
verified
and
6
sources
to
be
examined
for
each
individual
shall
include
but
7
are
not
limited
to
all
of
the
following:
8
a.
Earned
and
unearned
income.
9
b.
Employment
status
and
changes
in
employment.
10
c.
Immigration
status.
11
d.
Residency
status,
including
a
nationwide
best-address
12
source
to
verify
that
individuals
are
residents
of
the
state.
13
e.
Enrollment
status
in
other
state-administered
public
14
assistance
programs.
15
f.
Incarceration
status.
16
g.
Death
records.
17
h.
Enrollment
status
in
public
assistance
programs
outside
18
of
this
state.
19
i.
Records
of
any
potential
identity
fraud
or
identity
20
theft.
21
2.
The
department
of
human
services
shall
enter
into
a
22
memorandum
of
understanding
with
any
department,
division,
23
bureau,
section,
unit,
or
any
other
subunit
of
a
department,
as
24
necessary,
to
obtain
the
information
specified
in
subsection
1.
25
3.
The
department
of
human
services
may
contract
with
a
26
third-party
vendor
to
provide
the
information
specified
in
27
subsection
1.
Any
such
contract
shall
include
a
provision
28
that
ensures
that
annualized
savings
to
the
state
exceed
the
29
contract’s
total
annual
cost
to
the
state.
30
4.
Nothing
in
this
section
shall
preclude
the
department
31
of
human
services
from
receiving,
reviewing,
or
verifying
32
additional
information
related
to
the
eligibility
of
an
33
individual
not
specified
in
this
section
or
from
contracting
34
with
a
third-party
vendor
to
provide
additional
information
not
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specified
in
this
section.
1
5.
The
department
of
human
services
shall
require
that
an
2
applicant
for
a
public
assistance
program
demonstrate
residency
3
in
the
state
for
at
least
one
year
prior
to
submission
of
the
4
application.
The
department
shall
require
that
the
applicant
5
specify
the
county
in
which
the
applicant
has
resided,
6
the
length
of
residence
in
the
state,
and
state
that
the
7
maintenance
of
the
residence
has
been
in
good
faith
and
not
for
8
the
purposes
of
obtaining
public
assistance
benefits
only.
An
9
individual
who
fails
to
demonstrate
residency
in
the
state
for
10
at
least
one
year
prior
to
submission
of
an
application
for
11
public
assistance
benefits
shall
be
ineligible
to
receive
such
12
benefits.
13
6.
For
the
purposes
of
this
section,
“public
assistance
14
program”
shall
include
but
is
not
limited
to
the
Medicaid
15
program,
the
family
investment
program
(FIP),
and
the
16
supplemental
nutrition
assistance
program
(SNAP).
17
Sec.
2.
NEW
SECTION
.
217.41D
Public
assistance
programs
——
18
real-time
eligibility
monitoring.
19
1.
At
least
quarterly,
the
department
of
human
services
20
shall
obtain
and
review
all
of
the
following
information
and
21
sources
to
determine
ongoing
eligibility
of
an
enrollee
in
a
22
public
assistance
program:
23
a.
Earned
and
unearned
income.
24
b.
Employment
status
and
changes
in
employment.
25
c.
Residency
status.
26
d.
Enrollment
status
in
other
state-administered
public
27
assistance
programs.
28
e.
Financial
resources.
29
f.
Incarceration
status.
30
g.
Death
records.
31
h.
Lottery
winnings.
32
i.
Enrollment
status
in
public
assistance
programs
outside
33
of
the
state.
34
2.
The
department
of
human
services
shall
enter
into
a
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memorandum
of
understanding
with
any
department,
division,
1
bureau,
section,
unit,
or
any
other
subunit
of
a
department
to
2
obtain
the
information
specified
in
subsection
1.
3
3.
The
department
of
human
services
may
contract
with
a
4
third-party
vendor
to
provide
the
information
specified
in
5
subsection
1.
Any
such
contract
shall
include
a
provision
that
6
ensures
that
any
annualized
savings
to
the
state
exceed
the
7
contract’s
total
annual
cost
to
the
state.
8
4.
The
department
of
human
services
shall
explore
9
opportunities
to
join
existing
multistate
collaborations
to
10
identify
individuals
who
are
also
enrolled
in
public
assistance
11
programs
outside
of
the
state,
including
the
national
accuracy
12
clearinghouse.
13
5.
Nothing
in
this
section
shall
preclude
the
department
14
of
human
services
from
receiving
or
reviewing
additional
15
information
related
to
the
eligibility
of
an
individual
16
not
specified
in
this
section
or
from
contracting
with
a
17
third-party
vendor
to
provide
additional
information
not
18
specified
in
this
section.
19
6.
If
the
department
of
human
services
receives
information
20
about
an
enrollee
in
a
public
assistance
program
that
indicates
21
a
potential
change
or
discrepancy
in
circumstances
that
may
22
affect
the
individual’s
eligibility
for
that
public
assistance
23
program,
the
department
shall
review
the
individual’s
24
circumstances
and
respond
appropriately,
as
follows:
25
a.
If
the
review
does
not
result
in
the
department
26
confirming
any
discrepancy
or
change
in
an
individual’s
27
circumstances
that
may
affect
eligibility,
the
department
shall
28
take
no
further
action.
29
b.
If
the
review
results
in
the
department
finding
30
a
potential
discrepancy
or
change
in
the
individual’s
31
circumstances
that
may
affect
eligibility,
the
department
shall
32
promptly
notify
the
individual.
33
(1)
The
department
shall
provide
written
notice
to
the
34
enrollee,
which
shall
describe
in
sufficient
detail
the
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circumstances
of
the
potential
discrepancy
or
change,
the
1
manner
in
which
the
enrollee
may
respond,
and
the
consequences
2
of
failing
to
take
action.
However,
a
self-declaration
of
an
3
enrollee
alone
shall
not
be
accepted
as
verification
to
refute
4
the
information.
5
(2)
The
enrollee
shall
have
ten
business
days,
or
the
6
minimum
required
by
federal
or
state
law,
to
respond
to
the
7
department
in
writing,
to
provide
information
to
refute
and
8
resolve
the
potential
discrepancy
or
change.
After
receiving
9
the
enrollee’s
written
response,
the
department
may
request
10
additional
documentation
if
the
department
determines
that
11
the
documentation
is
inadequate
or
that
a
risk
of
fraud
or
12
misrepresentation
exists.
A
self-declaration
of
an
enrollee
13
refuting
the
information
shall
not,
alone,
constitute
a
14
refutation
of
the
potential
discrepancy
or
change.
15
(3)
If
the
enrollee
does
not
respond
to
the
written
16
notice
in
a
timely
manner,
the
department
shall
provide
17
notice
to
terminate
the
individual’s
enrollment,
based
upon
18
the
individual’s
failure
to
cooperate,
and
shall
terminate
19
the
individual’s
enrollment
in
any
applicable
public
20
assistance
program.
The
individual’s
eligibility
shall
not
be
21
reestablished
until
the
discrepancy
or
change
is
resolved.
22
(4)
If
the
enrollee
responds
to
the
written
notice
in
a
23
timely
manner
and
disagrees
with
the
findings,
the
department
24
shall
reevaluate
the
enrollee’s
situation.
If
the
department
25
determines
through
the
reevaluation
that
the
information
upon
26
which
the
discrepancy
or
change
was
based
is
in
error,
the
27
department
shall
take
immediate
action
to
correct
the
error
and
28
no
further
action
on
the
enrollee’s
eligibility
status
shall
be
29
taken.
If
the
department
affirms
through
the
reevaluation
that
30
a
discrepancy
or
change
exists,
the
department
shall
determine
31
the
effect
on
the
enrollee’s
eligibility
and
take
appropriate
32
action.
Written
notice
of
the
results
of
the
department’s
33
reevaluation
and
the
actions
to
be
taken
shall
be
provided
to
34
the
individual.
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(5)
If
the
enrollee
responds
to
the
written
notice
in
a
1
timely
manner
and
agrees
with
the
findings,
the
department
2
shall
determine
the
effect
on
the
enrollee’s
circumstances
and
3
take
appropriate
action.
Written
notice
of
the
actions
to
be
4
taken
by
the
department
shall
be
provided
to
the
individual.
5
7.
For
the
purposes
of
this
section,
“public
assistance
6
program”
shall
include
but
is
not
limited
to
the
Medicaid
7
program,
the
family
investment
program
(FIP),
and
the
8
supplemental
nutrition
assistance
program
(SNAP).
9
Sec.
3.
NEW
SECTION
.
217.41E
Supplemental
nutrition
10
assistance
program
——
resource
limitations
——
child
support
11
cooperation
as
a
condition
of
eligibility
——
work
requirements.
12
1.
The
department
of
human
services
shall
not
establish
13
resource
limits
for
the
supplemental
nutrition
assistance
14
program
(SNAP)
that
exceed
the
resource
limitations
specified
15
in
7
U.S.C.
§2014(g)(1),
unless
specifically
required
under
16
federal
law.
Additionally,
categorical
eligibility
shall
not
17
exempt
households
from
these
resource
limits
for
any
noncash,
18
in-kind,
or
other
benefit,
unless
expressly
required
by
federal
19
law.
20
2.
The
department
of
human
services
shall
require,
as
a
21
condition
of
eligibility
for
SNAP,
that
an
individual
cooperate
22
with
the
child
support
recovery
unit
in
establishing
and
23
enforcing
a
child
support
order
pursuant
to
7
C.F.R.
§273.11(o)
24
and
(p).
25
3.
a.
The
department
of
human
services
shall
not
seek,
26
apply
for,
accept,
or
renew
any
waiver
of
the
work
requirements
27
applicable
to
an
individual
to
be
eligible
for
SNAP
pursuant
to
28
7
U.S.C.
§2015(o).
29
b.
The
department
of
human
services
shall
assign
an
30
individual
who
is
subject
to
the
work
requirements
specified
31
in
7
U.S.C.
§2015(d)(1),
but
who
is
exempt
from
the
work
32
requirements
pursuant
to
7
U.S.C.
§2015(o),
to
participate
in
33
an
employment
and
training
program
established
pursuant
to
7
34
U.S.C.
§2015(d)(4).
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Sec.
4.
NEW
SECTION
.
217.41F
Work
requirements
——
Medicaid
1
program.
2
1.
The
department
of
human
services
shall
require
that,
3
unless
an
individual
is
exempt
pursuant
to
subsection
2,
as
a
4
condition
of
eligibility
for
Medicaid,
a
recipient
shall
do
one
5
of
the
following:
6
a.
Work
twenty
hours
or
more
per
week,
averaged
on
a
monthly
7
basis.
8
b.
Participate
in
and
comply
with
the
requirements
of
a
work
9
program
for
twenty
hours
or
more
per
week,
as
determined
by
the
10
department.
11
c.
Volunteer
twenty
hours
or
more
per
week,
as
determined
12
by
the
department.
13
d.
Meet
a
combination
of
work
and
work
program
participation
14
requirements
for
a
total
of
twenty
hours
or
more
per
week,
as
15
determined
by
the
department.
16
e.
Participate
in
and
comply
with
the
PROMISE
JOBS
program
17
pursuant
to
chapter
239B.
18
2.
The
following
individuals
shall
be
exempt
from
the
19
requirements
specified
in
subsection
1:
20
a.
An
individual
under
the
age
of
nineteen.
21
b.
An
individual
over
the
age
of
sixty-four.
22
c.
An
individual
medically
certified
as
physically
or
23
mentally
unfit
for
employment.
24
d.
An
individual
who
is
pregnant.
25
e.
A
parent
or
caretaker
responsible
for
the
care
of
a
26
dependent
child
under
one
year
of
age.
27
f.
A
parent
or
caretaker
personally
providing
the
care
for
a
28
dependent
child
with
a
serious
medical
condition
or
disability,
29
as
determined
by
the
department.
30
g.
An
individual
receiving
unemployment
compensation
31
and
complying
with
work
requirements
of
the
federal
or
state
32
unemployment
compensation
system.
33
h.
An
individual
participating
in
a
drug
or
alcohol
34
treatment
and
rehabilitation
program.
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Sec.
5.
NEW
SECTION
.
217.41G
Drug
testing
for
applicants.
1
1.
For
the
purposes
of
this
section,
unless
the
context
2
otherwise
requires:
3
a.
“Confirmed
positive
test
result”
means
the
results
of
a
4
urine,
hair,
or
sweat
test
in
which
the
level
of
drugs
or
their
5
metabolites
in
the
sample
analyzed
meets
or
exceeds
nationally
6
accepted
standards
for
determining
the
detectable
levels
of
7
drugs
as
adopted
by
the
federal
substance
abuse
and
mental
8
health
services
administration.
9
b.
“Drug”
means
the
same
as
defined
in
section
730.5.
10
c.
“Licensed
substance
abuse
treatment
program”
means
an
11
inpatient
or
outpatient
substance
abuse
treatment
program
12
licensed
by
the
department
of
public
health
under
chapter
125.
13
d.
“Sample”
means
a
sample
from
the
human
body
capable
of
14
revealing
the
presence
of
drugs,
or
their
metabolites,
which
15
shall
include
urine,
hair,
or
sweat.
16
2.
a.
As
a
condition
of
eligibility
for
an
applicant
17
to
receive
benefits
under
a
public
assistance
program,
the
18
applicant
shall
agree
to
participate
in
drug
testing
in
19
accordance
with
this
section.
20
b.
Dependent
children
under
the
age
of
eighteen
years
are
21
exempt
from
the
drug
testing
requirements
of
this
section.
22
c.
The
department
shall
require
a
drug
test
that
is
similar
23
to
a
drug
test
as
a
condition
of
employment
under
section
730.5
24
to
screen
the
individuals
subject
to
this
section
for
the
25
presence
of
drugs.
The
individual
is
responsible
for
the
cost
26
of
the
individual’s
drug
test.
27
3.
a.
An
individual
who
is
subject
to
this
section
is
28
ineligible
to
receive
benefits
under
a
public
assistance
29
program
if
the
individual
does
not
participate
in
the
required
30
drug
testing.
31
b.
An
individual
who
is
subject
to
this
section
is
32
ineligible
to
receive
benefits
under
a
public
assistance
33
program
under
this
section
if
the
individual
has
a
confirmed
34
positive
test
result
for
the
presence
of
either
of
the
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following:
1
(1)
A
substance
listed
in
schedule
I
under
section
124.204.
2
(2)
A
substance
listed
in
schedule
II,
III,
or
IV
under
3
chapter
124
that
was
not
prescribed
for
the
individual.
4
4.
The
department
shall
do
all
of
the
following
in
5
implementing
this
section:
6
a.
(1)
Provide
notice
of
drug
testing
to
each
individual
7
who
is
subject
to
this
section
at
the
time
of
application.
The
8
notice
must
advise
the
individual
that
drug
testing
will
be
9
conducted
as
a
condition
for
receiving
benefits
under
a
public
10
assistance
program
and
that
the
individual
must
bear
the
cost
11
of
the
drug
testing.
If
the
individual’s
drug
test
results
in
12
a
confirmed
positive
test
result,
the
cost
of
the
drug
test
13
shall
not
be
reimbursed.
If
the
individual’s
drug
test
does
14
not
result
in
a
confirmed
positive
test
result,
the
cost
of
the
15
drug
test
shall
be
reimbursed
by
being
added
to
the
benefits
16
disbursed
pursuant
to
rules
adopted
by
the
department.
The
17
applicant
shall
be
advised
that
the
required
drug
testing
may
18
be
avoided
if
the
applicant
does
not
complete
or
withdraws
the
19
application
for
assistance.
20
(2)
Advise
each
individual
to
be
tested,
before
the
test
21
is
conducted,
that
the
individual
may,
but
is
not
required
to,
22
advise
the
agent
administering
the
test
of
any
prescription
or
23
over-the-counter
medication
the
individual
is
taking.
24
(3)
Require
each
individual
to
be
tested
to
sign
a
written
25
acknowledgment
that
the
individual
has
received
and
understood
26
the
notice
and
advice
provided
under
this
paragraph
“a”
.
27
b.
Ensure
that
each
individual
being
tested
has
a
reasonable
28
degree
of
dignity
while
producing
and
submitting
a
sample
for
29
drug
testing,
consistent
with
the
department’s
need
to
ensure
30
the
reliability
of
the
sample.
31
c.
Adopt
rules
specifying
circumstances
under
which
an
32
individual
with
a
confirmed
positive
test
result
has
the
right
33
to
retake
the
drug
test.
34
d.
Inform
an
individual
who
has
a
confirmed
positive
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test
result
and
is
deemed
ineligible
for
assistance
that
the
1
individual
may
not
reapply
for
assistance
for
one
year
after
2
the
date
of
the
confirmed
positive
test
result
unless
the
3
individual
meets
the
requirements
of
paragraph
“f”
.
If
the
4
individual
has
a
subsequent
confirmed
positive
test
result,
5
the
individual
shall
be
ineligible
to
receive
assistance
for
6
three
years
after
the
date
of
the
subsequent
result
unless
the
7
individual
meets
the
requirements
of
paragraph
“f”
.
8
e.
Provide
any
individual
with
a
confirmed
positive
test
9
result
with
a
list
of
licensed
substance
abuse
treatment
10
programs
available
in
the
area
in
which
the
individual
resides.
11
Neither
the
department
nor
the
state
is
responsible
for
12
providing
or
paying
for
substance
abuse
treatment
as
part
of
13
the
drug
testing
conducted
under
this
section.
14
f.
An
individual
with
a
confirmed
positive
test
result
15
who
is
denied
benefits
under
this
section
may
reapply
for
16
assistance
after
six
months
if
the
individual
can
document
the
17
successful
completion
of
a
licensed
substance
abuse
treatment
18
program.
An
individual
who
has
met
the
requirements
of
this
19
paragraph
and
reapplies
for
assistance
must
also
pass
the
20
initial
drug
test
required
under
subsection
2.
Any
drug
test
21
conducted
while
the
individual
is
undergoing
substance
abuse
22
treatment
must
meet
the
requirements
for
a
drug
test
under
23
subsection
2.
The
cost
of
any
drug
testing
or
substance
24
abuse
treatment
provided
under
this
subsection
shall
be
the
25
responsibility
of
the
individual
being
tested
or
receiving
26
treatment.
An
individual
with
a
confirmed
positive
test
result
27
from
the
drug
test
required
under
subsection
2
may
reapply
for
28
assistance
under
this
paragraph
only
once.
29
5.
a.
If
an
applicant
is
deemed
ineligible
for
assistance
30
as
a
result
of
having
a
confirmed
positive
test
result
from
a
31
drug
test
conducted
under
this
section,
the
eligibility
of
the
32
applicant’s
dependent
child
for
assistance
is
not
affected.
33
b.
An
appropriate
protective
payee
shall
be
designated
34
to
receive
assistance
on
behalf
of
the
dependent
child.
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The
parent
may
choose
to
designate
an
individual
as
the
1
protective
payee.
The
individual
designated
by
the
parent
as
2
the
protective
payee
must
be
a
specified
relative
or
other
3
immediate
family
member
unless
such
family
member
is
not
4
available
or
the
family
member
declines
the
designation.
In
5
such
a
case,
another
individual,
approved
by
the
department,
6
shall
be
designated
as
the
protective
payee.
The
individual
7
must
also
undergo
drug
testing
before
being
approved
to
be
8
the
protective
payee.
If
the
designated
individual
has
a
9
confirmed
positive
test
result,
the
designated
individual
shall
10
be
ineligible
to
be
the
protective
payee.
11
6.
For
the
purposes
of
this
section,
“public
assistance
12
program”
shall
include
but
not
be
limited
to
the
Medicaid
13
program,
the
family
investment
program
(FIP),
and
the
14
supplemental
nutrition
assistance
program
(SNAP).
15
Sec.
6.
NEW
SECTION
.
217.41H
Reporting
of
fraud.
16
If,
through
the
activities
of
the
department
of
human
17
services
under
this
subchapter,
the
department
discovers
18
potential
fraudulent
activity,
the
department
shall
report
its
19
findings
and
any
supportive
information
to
the
office
of
the
20
attorney
general
for
review.
21
Sec.
7.
NEW
SECTION
.
217.41I
Reporting.
22
The
department
of
human
services
shall
submit
a
report
to
23
the
governor
and
the
general
assembly
by
January
15,
2019,
and
24
by
January
15
annually
thereafter,
detailing
the
impact
of
25
verification
of
applicant
eligibility
for
public
assistance
26
programs
and
real-time
eligibility
monitoring
of
recipients
27
of
public
assistance
programs
as
provided
in
this
subchapter.
28
The
initial
report
shall
provide
information
for
the
period
29
beginning
July
1,
2018,
and
ending
December
31,
2018.
The
30
reports
shall
include
the
number
of
cases
reviewed,
the
number
31
of
cases
closed,
the
number
of
fraud
investigation
referrals
32
made,
and
the
amount
of
savings
and
cost
avoidance
realized
33
from
the
provisions
of
the
subchapter.
34
Sec.
8.
NEW
SECTION
.
234.13A
Eligible
food
items.
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1.
The
department
of
human
services
shall
maintain
a
list
of
1
eligible
food
and
food
items
for
the
food
assistance
program
2
utilizing
a
numeric-based
code
assigned
to
the
food
item
3
wherever
the
food
item
is
sold
throughout
the
state.
4
2.
A
retailer
shall
not
allow
a
food
assistance
program
5
recipient
to
use
a
benefit
transfer
instrument
to
purchase
food
6
and
food
items
that
are
not
included
on
the
eligible
food
item
7
list.
8
3.
The
department
of
human
services
shall
assess
a
civil
9
penalty
against
a
retailer
who
violates
this
section
of
not
10
more
than
one
thousand
dollars
for
a
first
violation,
two
11
thousand
dollars
for
a
second
violation
occurring
within
five
12
years
from
the
date
of
the
first
violation,
or
five
thousand
13
dollars
for
any
subsequent
violations.
14
4.
For
purposes
of
this
section,
“retailer”
means
the
same
15
as
defined
in
section
234.12A.
16
Sec.
9.
FOOD
ASSISTANCE
PROGRAM
——
AUTHORITY
TO
RESTRICT
17
USE
OF
BENEFITS.
The
department
of
human
services
shall
submit
18
a
request
to
the
United
States
department
of
agriculture
19
for
authorization
for
a
five-year
waiver,
pilot
project,
or
20
other
approach
for
restricting
the
use
of
food
assistance
21
benefits,
as
administered
by
the
state
under
the
federal
22
supplemental
nutrition
assistance
program
for
food
and
food
23
items
with
a
low
nutritional
value
that
cost
more
than
eight
24
dollars
per
pound
or
that
purport
to
provide
an
additional
25
potential
health
benefit
or
reduce
a
potential
adverse
health
26
effect
to
consumers
when
compared
to
less
expensive
food
27
items.
The
request
shall
include
a
proposal
for
a
thorough
28
process
evaluation
to
document
how
the
restrictions
will
be
29
implemented
by
both
the
state
and
retailers,
with
a
study
30
design
that
includes
counterfactual
data
indicating
the
31
effects
of
the
absence
of
such
restrictions
on
food
assistance
32
program
recipients,
and
a
full
cost
estimate
that
addresses
33
both
federal
and
state
costs
and
savings
associated
with
34
such
restrictions.
The
request
shall
be
submitted
within
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ninety
days
of
the
effective
date
of
this
section
of
this
Act.
1
The
department
shall
regularly
report
on
the
status
of
the
2
request
to
the
chairpersons
and
ranking
members
of
the
general
3
assembly’s
standing
committees
on
commerce
and
the
legislative
4
services
agency.
5
Sec.
10.
ADMINISTRATION
AND
IMPLEMENTATION.
6
1.
The
department
of
human
services
shall
adopt
rules
7
pursuant
to
chapter
17A
to
administer
this
Act.
8
2.
The
department
of
human
services
shall
submit,
to
the
9
centers
for
Medicare
and
Medicaid
services
(CMS)
of
the
United
10
States
department
of
health
and
human
services
any
Medicaid
11
state
plan
amendment
or
waiver
request
necessary
to
administer
12
this
Act.
13
3.
The
provisions
of
this
Act
requiring
approval
of
a
14
Medicaid
state
plan
amendment
or
waiver
shall
be
implemented
15
upon
receipt
of
such
federal
approval.
16
4.
The
section
of
this
Act
enacting
section
234.13A
is
17
contingent
upon
receipt
of
approval
from
the
United
States
18
department
of
agriculture
for
a
five-year
waiver,
pilot
19
project,
or
other
approach
for
restricting
the
use
of
certain
20
food
assistance
benefits.
The
department
of
human
services
21
shall
notify
the
Code
editor
upon
the
receipt
of
such
approval.
22
5.
The
provisions
of
this
Act
not
requiring
approval
of
a
23
Medicaid
state
plan
amendment
or
waiver
or
approval
from
the
24
United
States
department
of
agriculture
shall
be
implemented
25
on
January
1,
2019.
26
Sec.
11.
DIRECTIVE
TO
CODE
EDITOR.
The
Code
editor
shall
27
codify
the
provisions
of
this
Act
enacting
sections
217.41C,
28
217.41D,
217.41E,
217.41F,
217.41G,
217.41H,
and
217.41I
as
29
chapter
217,
subchapter
III.
30
Sec.
12.
EFFECTIVE
DATE.
The
section
of
this
Act
directing
31
the
department
of
human
services
to
submit
a
request
for
a
32
five-year
waiver,
pilot
project,
or
other
approach
to
the
33
United
States
department
of
agriculture,
being
deemed
of
34
immediate
importance,
takes
effect
upon
enactment.
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EXPLANATION
1
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
2
the
explanation’s
substance
by
the
members
of
the
general
assembly.
3
This
bill
relates
to
public
assistance
program
oversight.
4
For
purposes
of
the
bill,
“public
assistance
program”
includes
5
but
is
not
limited
to
the
Medicaid
program,
the
family
6
investment
program
(FIP),
and
the
supplemental
nutrition
7
assistance
program
(SNAP).
8
The
bill
provides
for
verification
of
a
public
assistance
9
program
applicant’s
eligibility.
The
department
of
human
10
services
(DHS)
is
required
to
implement
an
eligibility
11
verification
system
for
public
assistance
programs
to
verify
12
the
eligibility
of
an
individual
who
is
an
applicant
for
13
any
such
program.
The
bill
specifies
the
information
to
14
be
verified;
requires
DHS
to
enter
into
a
memorandum
of
15
understanding
with
any
department
or
subunit
of
a
department,
16
as
necessary,
to
obtain
the
information
specified;
and
17
authorizes
DHS
to
contract
with
a
third-party
vendor
to
18
provide
the
information
specified,
subject
to
a
provision
19
in
the
contract
that
ensures
that
annualized
savings
to
the
20
state
exceed
the
contract’s
total
annual
cost
to
the
state.
21
The
bill
does
not
preclude
DHS
from
receiving,
reviewing,
or
22
verifying
additional
information
related
to
the
eligibility
of
23
an
individual
not
specified
in
the
bill
or
from
contracting
24
with
a
third-party
vendor
to
provide
additional
information
not
25
specified
in
the
bill.
26
The
bill
requires
DHS
to
require
that
an
applicant
for
a
27
public
assistance
program
demonstrate
residency
in
the
state
28
for
at
least
one
year
prior
to
submission
of
the
application.
29
The
department
shall
require
that
the
applicant
specify
the
30
county
in
which
the
applicant
has
resided,
the
length
of
31
residence
in
the
state,
and
state
that
the
maintenance
of
the
32
residence
has
been
in
good
faith
and
not
for
the
purposes
33
of
obtaining
public
assistance
benefits
only.
An
individual
34
who
fails
to
demonstrate
residency
in
the
state
for
at
least
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one
year
prior
to
submission
of
an
application
for
public
1
assistance
benefits
shall
be
ineligible
to
receive
such
2
benefits.
3
The
bill
provides
for
real-time
monitoring
of
the
4
eligibility
of
public
assistance
program
enrollees.
The
5
bill
requires
DHS,
as
least
quarterly,
to
obtain
and
review
6
specified
information
to
determine
ongoing
eligibility
of
7
an
individual
enrolled
in
a
public
assistance
program.
The
8
bill
requires
DHS
to
enter
into
memoranda
of
understanding
9
with
any
department
or
subunit
of
a
department,
as
necessary,
10
to
obtain
the
information
specified;
authorizes
DHS
to
11
contract
with
a
third-party
vendor
to
provide
the
information
12
specified,
subject
to
a
provision
in
the
contract
that
ensures
13
that
annualized
savings
to
the
state
exceed
the
contract’s
14
total
annual
cost
to
the
state;
and
requires
DHS
to
explore
15
opportunities
to
join
existing
multistate
collaborations
to
16
identify
individuals
who
are
also
enrolled
in
public
assistance
17
programs
outside
of
the
state,
including
the
national
accuracy
18
clearinghouse.
The
bill
does
not
preclude
DHS
from
receiving
19
or
reviewing
additional
information
related
to
the
eligibility
20
of
an
individual
not
specified
in
the
bill
or
from
contracting
21
with
a
third-party
vendor
to
provide
additional
information
not
22
specified
in
the
bill.
23
The
bill
provides
that
if
DHS
receives
information
about
24
an
individual
enrolled
in
a
public
assistance
program
that
25
indicates
a
potential
change
or
discrepancy
in
circumstances
26
that
may
affect
the
enrollee’s
eligibility
for
that
27
public
assistance
program,
DHS
shall
review
the
enrollee’s
28
circumstances
and
respond
appropriately.
The
bill
delineates
29
the
appropriate
response
based
upon
the
response
of
the
30
enrollee
following
notice.
31
The
bill
prohibits
DHS
from
establishing
resource
limits
32
for
the
supplemental
nutrition
assistance
program
(SNAP)
that
33
exceed
the
resource
limitations
specified
in
federal
law,
34
unless
specifically
required
under
federal
law.
Additionally,
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the
bill
provides
that
categorical
eligibility
shall
not
exempt
1
households
from
these
resource
limits
for
any
noncash,
in-kind,
2
or
other
benefit,
unless
expressly
required
by
federal
law.
3
The
bill
requires
DHS
to
require,
as
a
condition
of
4
eligibility
for
SNAP,
that
an
individual
cooperate
with
the
5
child
support
recovery
unit
in
establishing
and
enforcing
a
6
child
support
order
pursuant
to
federal
law.
7
The
bill
also
prohibits
DHS
from
seeking,
applying
for,
8
accepting,
or
renewing
any
waiver
of
the
work
requirements
9
applicable
to
an
individual
to
be
eligible
for
SNAP,
unless
10
the
individual
is
exempt
under
federal
law
and
requires
DHS
11
to
assign
an
individual
who
would
otherwise
be
subject
to
the
12
work
requirements
under
federal
law,
but
meets
the
criteria
for
13
one
of
the
exemptions
under
federal
law,
to
participate
in
an
14
employment
and
training
program
established
as
prescribed
in
15
federal
law.
16
The
bill
also
requires
DHS
to
require
that,
unless
an
17
individual
is
exempt
as
specified
in
the
bill,
as
a
condition
18
of
eligibility
for
Medicaid,
a
recipient
shall
work
or
19
participate
in
a
work
program
or
a
combination
of
both
for
20
a
certain
number
of
hours,
volunteer,
or
participate
in
the
21
PROMISE
JOBS
program.
22
The
bill
provides
that
if,
through
the
department’s
23
activities
under
the
bill,
the
department
discovers
potential
24
fraudulent
activity,
the
department
shall
report
its
25
findings
and
any
supportive
information
to
the
office
of
the
26
attorney
general
for
review.
The
bill
requires
DHS
to
adopt
27
administrative
rules
to
administer
the
bill.
28
The
bill
requires
DHS
to
submit
a
report
to
the
governor
and
29
the
general
assembly
by
January
15,
2019,
and
by
January
15
30
annually
thereafter,
detailing
the
impact
of
the
provisions
of
31
the
bill
relating
to
verification
of
applicant
eligibility
for
32
public
assistance
programs
and
real-time
eligibility
monitoring
33
of
recipients
of
public
assistance
programs.
The
initial
34
report
must
include
information
for
the
period
beginning
July
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1,
2018,
and
ending
December
31,
2018.
The
reports
shall
1
include
the
number
of
cases
reviewed,
the
number
of
cases
2
closed,
the
number
of
fraud
investigation
referrals
made,
and
3
the
amount
of
savings
and
cost
avoidance
resulting
from
the
4
provisions
of
the
bill.
5
The
bill
requires
DHS
to
submit,
to
the
centers
for
Medicare
6
and
Medicaid
services
(CMS)
of
the
United
States
department
of
7
health
and
human
services,
any
Medicaid
state
plan
amendment
or
8
waiver
request
necessary
to
administer
the
bill.
9
A
provision
of
the
bill
requiring
approval
of
a
Medicaid
10
state
plan
amendment
or
waiver
is
to
be
implemented
upon
11
receipt
of
such
federal
approval.
A
provision
of
the
bill
not
12
requiring
approval
of
a
Medicaid
state
plan
amendment
or
waiver
13
is
to
be
implemented
on
January
1,
2019.
14
The
bill
requires
drug
testing
of
applicants
for
public
15
assistance
programs.
16
With
the
exception
of
dependent
children
under
the
age
of
17
18
years,
DHS
is
directed
to
require
a
drug
test
for
each
18
individual
who
is
an
applicant
for
a
public
assistance
program.
19
The
individual
is
responsible
for
the
cost
of
the
drug
test.
20
An
applicant
who
does
not
participate
in
the
required
drug
21
testing
is
ineligible
for
public
assistance.
An
individual
who
22
has
a
confirmed
positive
test
result
shall
be
ineligible
to
23
reapply
for
assistance
for
one
year.
24
The
bill
specifies
requirements
for
administering
the
drug
25
testing
requirement.
If
a
parent
is
deemed
ineligible
for
26
assistance
as
a
result
of
having
a
confirmed
positive
test
27
result,
the
dependent
child
remains
eligible
for
assistance
and
28
a
protective
payee
is
to
be
designated
by
the
parent
to
receive
29
the
assistance
on
behalf
of
the
child.
If
a
specified
relative
30
or
other
immediate
family
member
declines
to
be
designated,
the
31
department
must
designate
the
protective
payee.
The
protective
32
payee
is
then
subject
to
drug
testing
before
being
approved
to
33
receive
benefits
on
behalf
of
the
child.
A
protective
payee
34
with
a
confirmed
positive
test
result
is
ineligible
to
receive
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assistance
on
behalf
of
the
child.
1
The
bill
requires
DHS
to
maintain
a
list
of
eligible
2
food
and
food
items
for
the
food
assistance
program
using
a
3
numeric-based
code
assignment
(new
Code
section
234.13A).
A
4
retailer
shall
not
allow
a
food
assistance
program
recipient
5
to
use
a
benefit
transfer
instrument
to
purchase
food
and
food
6
items
that
are
not
on
the
eligible
food
item
list.
The
bill
7
provides
civil
penalties
for
a
retailer
who
violates
this
8
provision
of
the
bill.
9
The
bill
requires
DHS
to
submit
a
request
to
the
United
10
States
department
of
agriculture
for
a
five-year
waiver,
pilot
11
project,
or
other
approach
for
restricting
the
use
of
food
12
assistance
benefits
for
food
items
with
a
low
nutritional
value
13
or
that
cost
more
than
$8
per
pound.
The
bill
requires
the
14
request
to
include
a
proposal
for
a
thorough
process
evaluation
15
to
document
how
the
restrictions
will
be
implemented
by
both
16
the
state
and
retailers,
with
a
study
design
that
includes
17
counterfactual
data
indicating
the
effects
of
the
absence
of
18
such
restrictions
on
food
assistance
program
recipients,
and
a
19
full
cost
estimate
that
addresses
both
federal
and
state
costs
20
and
savings
associated
with
such
restrictions.
The
department
21
is
to
submit
the
request
within
90
days
of
the
effective
22
date
of
the
bill.
The
bill
directs
the
department
to
submit
23
regular
reports
to
the
chairpersons
and
ranking
members
of
24
the
general
assembly’s
standing
committees
on
commerce
and
to
25
the
legislative
services
agency
on
the
status
of
the
request.
26
Implementation
of
the
pilot
program
is
contingent
upon
receipt
27
of
approval
from
the
United
States
department
of
agriculture.
28
The
department
of
human
services
is
required
to
notify
the
Code
29
editor
upon
receipt
of
the
approval.
30
The
directive
to
the
department
to
submit
a
request
for
a
31
waiver,
pilot
project,
or
other
approach
restricting
the
use
of
32
certain
food
assistance
benefits
takes
effect
upon
enactment.
33
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