S.F. 2272 DIVISION I 1 DATA MATCHING —— PREVENTION OF MULTIPLE ISSUANCES OF 2 SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP) BENEFITS 3 Section 1. DATA MATCHING —— PREVENTION OF MULTIPLE 4 ISSUANCES OF SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP) 5 BENEFITS. By July 1, 2020, the department of human services 6 shall request any federal waiver or approval necessary from the 7 food and nutrition service of the United States department of 8 agriculture in order to comply with section 4011 of the federal 9 Agriculture Improvement Act of 2018, Pub. L. No. 115-334, and 10 the regulations adopted under the Act. Upon receipt of any 11 necessary federal waiver or approval, the department shall 12 contract with a third-party vendor to conduct national accuracy 13 clearinghouse matches and corresponding actions in accordance 14 with the federal law and regulations to provide real-time 15 prevention of duplicate participation upon a potential 16 beneficiary’s application for SNAP benefits. 17 Sec. 2. EFFECTIVE DATE. This division of this Act, being 18 deemed of immediate importance, takes effect upon enactment. 19 DIVISION II 20 INCOME AND IDENTITY VERIFICATION —— PUBLIC ASSISTANCE PROGRAMS 21 Sec. 3. NEW SECTION . 239.1 Definitions. 22 As used in this chapter, unless the context otherwise 23 requires: 24 1. “Applicant” means an individual who is applying for 25 public assistance benefits in the state. 26 2. “Asset” or “asset test” means all assets of the members 27 of the applicant’s household, including all of the following: 28 a. All bank accounts, excluding retirement accounts of 29 members of the household. 30 b. All cash, excluding the first two thousand dollars of 31 members of the household. 32 c. All lottery and gambling income of the household whether 33 received as a lump sum or installment payments. 34 d. All real estate, excluding the primary household 35 -1- LSB 5725SV (2) 88 pf/rh 1/ 15

S.F. 2272 residence and surrounding lot. 1 e. All other personal property excluding personal 2 belongings, household goods, and one vehicle. 3 3. “Department” means the department of human services. 4 4. “Public assistance” means SNAP (the supplemental 5 nutrition assistance program), the Medicaid program, FIP (the 6 family investment program), and CHIP (the children’s health 7 insurance program). 8 5. “Recipient” means an individual who is receiving public 9 assistance benefits in the state. 10 Sec. 4. NEW SECTION . 239.2 Asset test for supplemental 11 nutrition assistance program. 12 1. For the purposes of determining eligibility for receipt 13 of SNAP benefits, the department shall conduct an asset test 14 on all members of the applicant’s household. The allowable 15 financial resources to be included in or excluded from a 16 determination of eligibility for SNAP shall be those specified 17 in 7 U.S.C. §2014(g)(1). 18 2. Prior to determining eligibility for SNAP benefits, 19 the department shall access, at a minimum, for every member 20 of the applicant’s household, the following information from 21 the following federal, state, and miscellaneous sources, or 22 successor sources: 23 a. Federal sources and information: 24 (1) Earned and unearned income information maintained by 25 the internal revenue service. 26 (2) The following sources and information maintained by the 27 United States social security administration: 28 (a) Earned income information. 29 (b) Death register information. 30 (c) Prisoner or incarceration status information. 31 (d) Supplemental security income information maintained in 32 the state data exchange database. 33 (e) Beneficiary records and earnings information maintained 34 in the beneficiary and earnings data exchange database. 35 -2- LSB 5725SV (2) 88 pf/rh 2/ 15

S.F. 2272 (f) Earnings and pension information maintained in the 1 beneficiary earnings exchange record system database. 2 (3) The following sources and information maintained by the 3 United States department of health and human services: 4 (a) Income and employment information maintained in the 5 national directory of new hires database by the office of child 6 support enforcement of the administration for children and 7 families. 8 (b) Other federal data sources maintained by the office of 9 child support enforcement of the administration for children 10 and families. 11 b. State sources and information: 12 (1) The department’s sources and information including but 13 not limited to all of the following: 14 (a) Income and employment information maintained by the 15 child support recovery unit. 16 (b) Child care assistance information maintained by the 17 division of child and family services. 18 (c) Enrollment status in other public assistance programs. 19 (2) The department of workforce development sources and 20 information including all of the following: 21 (a) Employment information. 22 (b) Employer weekly, monthly, and quarterly reports of 23 income and unemployment insurance payments. 24 (3) The Iowa public employees’ retirement system for 25 earnings and pension information. 26 c. Miscellaneous sources: 27 (1) Any existing real-time database of persons currently 28 receiving benefits in other states, such as the national 29 accuracy clearinghouse. 30 (2) Any databases maintained by the Iowa lottery 31 commission. 32 3. Prior to determining eligibility for SNAP benefits, the 33 department shall access information for every member of the 34 applicant’s household from the following public records: 35 -3- LSB 5725SV (2) 88 pf/rh 3/ 15

S.F. 2272 a. A nationwide public records data source of physical asset 1 ownership. The data source may include but is not limited to 2 real property, automobiles, watercraft, aircraft, and luxury 3 vehicles, or any other vehicle owned by the applicant. 4 b. National and state financial institutions in order 5 to locate undisclosed depository accounts or verify account 6 balances of disclosed accounts. 7 4. The department shall enter into a memorandum of 8 understanding with any department, division, bureau, section, 9 unit, or any other subunit of a department to obtain the 10 information specified in this section. 11 5. The provisions of this section shall not apply if every 12 member of the applicant’s household receives supplemental 13 security income. 14 Sec. 5. NEW SECTION . 239.3 Cooperation with child support 15 enforcement —— supplemental nutrition assistance program 16 eligibility. 17 An applicant for SNAP benefits shall be required to 18 cooperate with the child support recovery unit as a condition 19 of eligibility as specified in 7 C.F.R. §273.11(o). 20 Sec. 6. NEW SECTION . 239.4 Verification and authentication 21 systems —— public assistance programs. 22 1. By July 1, 2021, the department shall redesign an 23 existing system; establish a new computerized income, asset, 24 and identity eligibility verification system; or contract with 25 a third-party vendor to provide for identity verification, 26 identity authentication, asset verification, and dual 27 enrollment prevention in order to deter waste, fraud, and 28 abuse in each public assistance program administered by the 29 department. 30 2. The department may contract with a third-party 31 vendor to develop a system or provide a service to verify 32 or authenticate income, assets, and identity eligibility of 33 applicants and recipients to prevent fraud, misrepresentation, 34 and inadequate documentation when determining eligibility 35 -4- LSB 5725SV (2) 88 pf/rh 4/ 15

S.F. 2272 for public assistance programs. The system or service shall 1 be accessed prior to determining eligibility, periodically 2 between eligibility redeterminations, and during eligibility 3 redeterminations and reviews. The department may also contract 4 with a third-party vendor to provide information to facilitate 5 reviews of recipient eligibility conducted by the department. 6 3. A contract entered into under this section shall provide, 7 at a minimum, for all of the following: 8 a. The establishment of the annual savings amount from 9 utilization of the system or service, and a provision that the 10 contract may be terminated contingent upon the savings not 11 exceeding the total yearly cost to the state for utilization of 12 the system or service. 13 b. That the contract shall not preclude the department 14 from continuing to conduct additional eligibility verification 15 or authentication processes, to receive, review, or verify 16 additional information related to the eligibility of an 17 individual, or from contracting with a third-party vendor to 18 provide additional eligibility authentication or verification 19 information. 20 4. The department shall seek federal approval as necessary 21 to implement and administer this section. 22 Sec. 7. NEW SECTION . 239.5 Public assistance programs —— 23 applicant and recipient eligibility verification. 24 1. All applications for initial public assistance 25 program benefits and all determinations of ongoing recipient 26 eligibility shall be processed through a system as specified 27 in this section. Complete initial applications shall be 28 processed within the minimum period required by federal law. 29 Prior to determining initial eligibility of an applicant for, 30 or ongoing eligibility of a recipient of, public assistance, 31 the department shall access information for every applicant or 32 recipient from the following federal, state, and other sources: 33 a. Federal sources and information: 34 (1) Earned and unearned income information maintained by 35 -5- LSB 5725SV (2) 88 pf/rh 5/ 15

S.F. 2272 the internal revenue service. 1 (2) The following sources and information maintained by the 2 United States social security administration: 3 (a) Earned income information. 4 (b) Death register information. 5 (c) Prisoner or incarceration status information. 6 (d) Supplemental security income information maintained in 7 the state data exchange database. 8 (e) Beneficiary records and earnings information maintained 9 in the beneficiary and earnings data exchange database. 10 (f) Earnings and pension information maintained in the 11 beneficiary earnings exchange record system database. 12 (3) The following sources and information maintained by the 13 United States department of health and human services: 14 (a) Income and employment information maintained in the 15 national directory of new hires database by the office of child 16 support enforcement of the administration for children and 17 families. 18 (b) Other federal data sources maintained by the office of 19 child support enforcement of the administration for children 20 and families. 21 (4) Information maintained by the United States citizenship 22 and immigration services of the United States department of 23 homeland security. 24 (5) Payment information for public housing and section 8 25 housing assistance guidelines maintained by the United States 26 department of housing and urban development. 27 (6) National fleeing felon information maintained by the 28 United States federal bureau of investigation. 29 b. State sources and information: 30 (1) The department’s sources and information including but 31 not limited to all of the following: 32 (a) Income and employment information maintained by the 33 child support recovery unit. 34 (b) Child care assistance information maintained by the 35 -6- LSB 5725SV (2) 88 pf/rh 6/ 15

S.F. 2272 division of child and family services. 1 (c) Enrollment status in other public assistance programs. 2 (2) The department of workforce development sources and 3 information including all of the following: 4 (a) Employment information. 5 (b) Employer weekly, monthly, and quarterly reports of 6 income and unemployment insurance payments. 7 (3) The Iowa public employees’ retirement system for 8 earnings and pension information. 9 c. Other sources including all of the following: 10 (1) Any existing real-time database of persons currently 11 receiving benefits in other states, such as the national 12 accuracy clearinghouse. 13 (2) An available database of persons who currently hold a 14 license, permit, or certificate from any state agency, the cost 15 of which exceeds five hundred dollars. 16 (3) Wage reporting and similar information maintained by 17 states contiguous to Iowa. 18 (4) A database which is substantially similar to, or a 19 successor of, a database established in this chapter. 20 2. Prior to determining the initial eligibility of an 21 applicant for, or the ongoing eligibility of a recipient 22 of, public assistance benefits, the department shall access 23 information for every applicant or recipient from, at a 24 minimum, the following public records: 25 a. A nationwide public records data source of physical asset 26 ownership. The data source may include but is not limited to 27 real property, automobiles, watercraft, aircraft, and luxury 28 vehicles, or any other vehicle owned by the applicant for or 29 recipient of assistance. 30 b. A nationwide public records data source of incarcerated 31 individuals. 32 c. A nationwide best address and driver’s license data 33 source to verify that individuals are residents of the state. 34 d. A comprehensive public records database from which the 35 -7- LSB 5725SV (2) 88 pf/rh 7/ 15

S.F. 2272 department may identify potential identity fraud or identity 1 theft that is capable of closely associating name, social 2 security number, date of birth, phone, and address information. 3 e. National and local financial institutions in order 4 to locate undisclosed depository accounts or verify account 5 balances of disclosed accounts. 6 f. Outstanding default or arrest warrant information. 7 Sec. 8. NEW SECTION . 239.6 Identity authentication. 8 Prior to the department awarding public assistance 9 benefits, an applicant shall complete a computerized identity 10 authentication process to confirm the identity of the 11 applicant. Identity authentication shall be accomplished 12 through a knowledge-based questionnaire consisting of financial 13 and personal questions. The questionnaire shall contain 14 questions tailored to assist persons without a bank account or 15 those who have poor access to financial and banking services 16 or who do not have an established credit history. The 17 questionnaire may be submitted by the applicant online, in 18 person, or via telephone. 19 Sec. 9. NEW SECTION . 239.7 Case review of applicant and 20 recipient information —— fraudulent activity —— child support 21 obligation. 22 1. If the information obtained from a review of an 23 applicant’s or recipient’s information under this chapter does 24 not result in the department finding a discrepancy or change 25 in an individual’s circumstances affecting eligibility, the 26 department shall take no further action. 27 2. If the information obtained from a review of the 28 applicant’s or recipient’s information under this chapter 29 results in the department finding a discrepancy or change in 30 the individual’s circumstances affecting eligibility, the 31 department shall respond in accordance with the provisions of 32 section 239.8. 33 Sec. 10. NEW SECTION . 239.8 Notice and right to be heard. 34 1. An applicant for, or recipient of, public assistance 35 -8- LSB 5725SV (2) 88 pf/rh 8/ 15

S.F. 2272 shall be provided written notice and the opportunity to explain 1 any issues identified in a review performed under this chapter 2 for initial eligibility or redetermination of eligibility. 3 A self-declaration by an applicant or recipient shall not 4 be accepted as verification of categorical and financial 5 eligibility during such review. 6 2. The notice provided to the applicant or recipient shall 7 describe in sufficient detail the circumstances of the issue 8 identified, the manner in which the applicant or recipient 9 may respond, and the consequences of failing to respond to 10 the notice or resolve the issue identified. The applicant 11 or recipient shall be provided thirty days to respond to the 12 notice. The applicant’s or recipient’s response shall be in 13 writing. The department may request additional information as 14 necessary to reach a decision. 15 3. An applicant or recipient may respond to the notice as 16 follows: 17 a. By disagreeing with the findings of the department. If 18 the applicant or recipient responds in a timely manner and 19 disagrees with the findings of the department, the department 20 shall reevaluate the circumstances to determine if the 21 applicant’s or recipient’s position is valid. If, through 22 reevaluation, the department finds that the department is in 23 error, the department shall take immediate action to correct 24 the error. If, through reevaluation, the department affirms 25 that the applicant’s or recipient’s position is invalid, the 26 department shall determine the effect on the applicant’s or 27 recipient’s eligibility and take appropriate action. Written 28 notice of the department’s determination and the actions taken 29 shall be provided to the applicant or recipient. 30 b. By agreeing with the findings of the department. If 31 the applicant or recipient responds in a timely manner and 32 agrees with the findings of the department, the department 33 shall determine the effect on the applicant’s or recipient’s 34 eligibility and take appropriate action. Written notice of the 35 -9- LSB 5725SV (2) 88 pf/rh 9/ 15

S.F. 2272 department’s determination and actions taken shall be provided 1 to the applicant or recipient. 2 4. If the applicant or recipient fails to respond to the 3 notice in a timely manner, the department shall provide notice 4 to terminate the applicant’s application or to discontinue 5 the recipient’s enrollment for failure to cooperate, and 6 shall terminate the applicant’s application or discontinue 7 the recipient’s enrollment. The applicant’s or recipient’s 8 eligibility for such public assistance shall not be established 9 or reestablished until the issue has been resolved. 10 Sec. 11. NEW SECTION . 239.9 Referrals for fraud, 11 misrepresentation, or inadequate documentation. 12 1. Following a review of an applicant’s or recipient’s 13 eligibility under this chapter, the department may refer cases 14 of suspected fraud along with any supportive information to the 15 department of inspections and appeals for review. 16 2. In cases of substantiated fraud, upon conviction, the 17 state shall review all appropriate legal options including 18 but not limited to removal of a recipient from other public 19 assistance programs and garnishment of wages or state income 20 tax refunds until the department recovers an equal amount of 21 benefits fraudulently claimed. 22 3. The department may refer suspected cases of fraud, 23 misrepresentation, or inadequate documentation relating to 24 initial or continued eligibility to appropriate state agencies, 25 divisions, or departments for review of eligibility issues in 26 programs providing public benefits other than those as defined 27 in this chapter. 28 Sec. 12. NEW SECTION . 239.10 Administration —— rules —— 29 reporting. 30 1. The department of human services shall adopt rules 31 pursuant to chapter 17A to administer this chapter. 32 2. The department shall submit a report to the governor 33 and the general assembly by January 15, 2022, and by January 34 15 annually thereafter through January 15, 2027, detailing the 35 -10- LSB 5725SV (2) 88 pf/rh 10/ 15

S.F. 2272 impact of the verification and authentication measures taken 1 under this chapter. The report shall include data for all 2 affected public assistance programs including the number of 3 cases reviewed, the number of cases closed, the number of fraud 4 investigation referrals made, and the amount of savings and 5 cost avoidance realized from the provisions of this chapter. 6 Sec. 13. IMPLEMENTATION. 7 1. The department of human services shall request federal 8 approval including for any state plan amendment or waiver 9 necessary to administer this division of this Act. 10 2. The provisions of this division of this Act requiring 11 federal approval shall be implemented upon receipt of such 12 federal approval. 13 3. The provisions of this division of this Act not requiring 14 federal approval shall be implemented as specified in this Act, 15 or if not specified in this Act, no later than July 1, 2021. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill relates to public assistance program oversight. 20 Division I of the bill requires the department of human 21 services (DHS), by July 1, 2020, to request any federal waiver 22 or approval necessary from the food and nutrition service of 23 the United States department of agriculture in order to comply 24 with the provision of the federal Agriculture Improvement 25 Act of 2018 and the regulations adopted under the Act to 26 provide real-time prevention of duplicate participation upon a 27 potential beneficiary’s application for SNAP (the supplemental 28 nutrition assistance program). DHS is required, upon receipt 29 of any necessary federal waiver or approval, to contract with a 30 third-party vendor to conduct national accuracy clearinghouse 31 matches and corresponding actions in accordance with the 32 federal law and regulations. 33 Division II of the bill relates to various eligibility 34 verification and authentication measures under new Code chapter 35 -11- LSB 5725SV (2) 88 pf/rh 11/ 15

S.F. 2272 239. 1 The bill provides definitions used in the new Code chapter. 2 The bill requires DHS to conduct an asset test on all members 3 of the household of an applicant for SNAP benefits. The bill 4 specifies the minimum information, federal, state, and other 5 data sources, and public records that DHS must access prior to 6 determining eligibility for an applicant’s SNAP benefits. The 7 bill requires DHS to enter into a memorandum of understanding 8 with any department or subunit of a department to obtain the 9 information specified. The bill provisions do not apply if 10 every member of the applicant’s household receives supplemental 11 security income. 12 The bill requires that an applicant for SNAP benefits shall 13 cooperate with the child support recovery unit as a condition 14 of eligibility for SNAP benefits. 15 The bill requires that by July 1, 2021, DHS shall redesign 16 an existing system; establish a new computerized income, 17 asset, and identity eligibility verification system; or 18 contract with a third-party vendor to provide for identity 19 verification, identity authentication, asset verification, and 20 dual enrollment prevention in each public assistance program 21 administered by DHS. DHS may contract with a third-party 22 vendor to develop a system or provide a service to verify 23 income, assets, and identity eligibility of applicants and 24 recipients. The system or service shall be accessed prior 25 to determining eligibility, periodically between eligibility 26 redeterminations, and during eligibility redeterminations and 27 reviews. DHS may contract with a third-party vendor to provide 28 information to facilitate reviews of recipient eligibility 29 conducted by DHS. A contract entered into to provide a system 30 or service must establish the annual savings amount from 31 utilization of the system or service, and include a provision 32 that the contract may be terminated contingent upon the 33 savings not exceeding the total yearly cost to the state for 34 utilization of the system or service. The contract does not 35 -12- LSB 5725SV (2) 88 pf/rh 12/ 15

S.F. 2272 preclude DHS from continuing to conduct additional eligibility 1 verification or authentication processes to receive, review, or 2 verify additional information related to the eligibility of an 3 individual; or from contracting with a third-party vendor to 4 provide additional eligibility authentication or verification 5 information. DHS shall seek federal approval as necessary to 6 implement and administer this provision of the bill. 7 The bill requires that for all applications for initial 8 public assistance program benefits and all determinations of 9 ongoing recipient eligibility processed by DHS, DHS shall 10 access information for every applicant or recipient from 11 specified federal, state, and other sources, and from specified 12 public records. 13 The bill requires that prior to awarding public assistance 14 benefits to an applicant, the applicant shall complete a 15 computerized identity authentication process to confirm the 16 identity of the applicant through the use of a knowledge-based 17 questionnaire consisting of financial and personal questions 18 tailored to assist persons without a bank account or those who 19 have poor access to financial and banking services or who do 20 not have an established credit history. The questionnaire 21 may be submitted by the applicant online, in person, or via 22 telephone. 23 The bill provides that if information obtained from a review 24 of an applicant’s or recipient’s information under the bill 25 does not result in DHS finding a discrepancy or change in an 26 individual’s circumstances affecting eligibility, DHS shall 27 take no further action. 28 If the information obtained from a review of the applicant’s 29 or recipient’s information under the bill results in DHS 30 finding a discrepancy or a change in the individual’s 31 circumstances affecting eligibility, DHS shall provide written 32 notice to the individual and the opportunity to explain any 33 issues identified. A self-declaration by an applicant or 34 recipient shall not be accepted as verification of categorical 35 -13- LSB 5725SV (2) 88 pf/rh 13/ 15

S.F. 2272 and financial eligibility during such review. 1 The notice provided to the applicant or recipient shall 2 describe in sufficient detail the circumstances of the issue 3 identified, the manner in which the applicant or recipient 4 may respond, and the consequences of failing to respond to 5 the notice or resolve the issue identified. The applicant or 6 recipient shall be provided 30 days to respond to the notice. 7 The applicant’s or recipient’s response shall be in writing. 8 DHS may request additional information as necessary to reach 9 a decision. 10 The bill specifies the processes and results depending upon 11 whether an applicant or recipient responds by disagreeing 12 or agreeing with the findings of a review by DHS. If the 13 applicant or recipient fails to respond to the notice in a 14 timely manner, DHS shall provide notice to terminate the 15 applicant’s application or to discontinue the recipient’s 16 enrollment for failure to cooperate, and shall terminate 17 the applicant’s application or discontinue the recipient’s 18 enrollment. The applicant’s or recipient’s eligibility 19 for such public assistance shall not be established or 20 reestablished until the issue has been resolved. 21 Following a review of an applicant’s or recipient’s 22 eligibility, DHS may refer cases of suspected fraud along with 23 any supportive information to the department of inspections 24 and appeals for review. In cases of substantiated fraud, 25 upon conviction, the state shall review all appropriate legal 26 options including but not limited to removal of a recipient 27 from other public assistance programs and garnishment of wages 28 or state income tax refunds until DHS recovers an equal amount 29 of benefits fraudulently claimed. DHS may refer suspected 30 cases of fraud, misrepresentation, or inadequate documentation 31 relating to initial or continued eligibility to appropriate 32 state agencies, divisions, or departments for review of 33 eligibility issues in other public assistance programs. 34 Under the bill, DHS shall adopt administrative rules to 35 -14- LSB 5725SV (2) 88 pf/rh 14/ 15

S.F. 2272 administer the Code chapter. DHS shall submit a report to the 1 governor and the general assembly by January 15, 2022, and 2 by January 15 annually thereafter through January 15, 2027, 3 detailing the impact of the verification and authentication 4 measures taken under the bill. The report shall include data 5 for all affected public assistance programs including the 6 number of cases reviewed, the number of cases closed, the 7 number of fraud investigation referrals made, and the amount of 8 savings and cost avoidance realized from the provisions of the 9 bill. 10 DHS shall request federal approval including for any state 11 plan amendment or waiver necessary to administer Division II of 12 the bill, and the provisions of Division II requiring federal 13 approval shall be implemented upon receipt of such federal 14 approval. The provisions of Division II that do not require 15 federal approval shall be implemented as specified in the bill 16 or, if not specified in the bill, no later than July 1, 2021. 17 -15- LSB 5725SV (2) 88 pf/rh 15/ 15