SSB 1167 (LSB 1403DP (4) 91)

SENATE/HOUSE FILE _____

BY  (PROPOSED DEPARTMENT OF HOMELAND SECURITY AND EMERGENCY MANAGEMENT BILL)

A BILL FOR

An Act relating to the recovery of benefits inappropriately obtained from the department of homeland security and emergency management.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 10A.108, subsection 1, Code 2025, is amended to read as follows:
   1.  a.  If a person refuses or neglects to repay benefits or provider payments inappropriately obtained from the department of health and human services or the department of homeland security and emergency management, the amount inappropriately obtained, including any interest, penalty, or costs attached to the amount, constitutes a debt and is a lien in favor of the state upon all property and any rights or title to or interest in property, whether real or personal, belonging to the person for the period established in subsection 2, with the exception of property which is exempt from execution pursuant to chapter 627.
   b.  A lien under this section shall not attach to any amount of inappropriately obtained benefits or provider payments, or portions of the benefits or provider payments, attributable to errors by the department of health and human services or the department of homeland security and emergency management, as applicable. Liens shall only attach to the amounts of inappropriately obtained benefits or provider payments or portions of the benefits or provider payments which were obtained due to false, misleading, incomplete, or inaccurate information submitted by a person in connection with the application for or receipt of benefits or provider payments.
    Sec. 2.  Section 10A.108, subsection 4, unnumbered paragraph 1, Code 2025, is amended to read as follows:
   The county recorder of each county shall prepare and maintain in the recorder’s office an index of liens of debts established based upon benefits or provider payments inappropriately obtained from and owed the department of health and human services or the department of homeland security and emergency management, containing the applicable entries specified in sections 558.49 and 558.52, and providing appropriate columns for all of the following data, under the names of debtors, arranged alphabetically:
    Sec. 3.  Section 10A.108, subsection 4, paragraph b, Code 2025, is amended to read as follows:
   b.  “State of Iowa, Department of Health and Human Services” or “State of Iowa, Department of Homeland Security and Emergency Management” as claimant, as applicable.
    Sec. 4.  Section 10A.108, subsection 8, Code 2025, is amended to read as follows:
   8.  The department of inspections, appeals, and licensing, as provided in this chapter and chapter 626, shall proceed to collect all debts owed the department of health and human services and the department of homeland security and emergency management as soon as practicable after the debt becomes delinquent. If service has not been made on a distress warrant by the officer to whom addressed within five days from the date the distress warrant was received by the officer, the authorized investigators of the department of inspections, appeals, and licensing may serve and make return of the warrant to the clerk of the district court of the county named in the distress warrant, and all subsequent procedures shall be in compliance with chapter 626.
    Sec. 5.  NEW SECTION.  29C.26  Referrals —— fraud —— benefits inappropriately obtained.
   1.  Following a review of an applicant’s or recipient’s eligibility to receive moneys under section 29C.20A or 29C.20B, the department may refer cases of suspected fraud along with any supportive information to the department of inspections, appeals, and licensing for review.
   2.  In cases of substantiated fraud, upon conviction, the state shall review all appropriate legal options including but not limited to removal of a recipient from other public assistance programs and garnishment of wages or state income tax refunds until the department recovers an amount equal to the benefits fraudulently claimed.
   3.  The department may refer suspected cases of fraud, misrepresentation, or inadequate documentation relating to initial or continued eligibility, or suspected cases of benefits being otherwise inappropriately obtained, to appropriate state entities for review of such issues in other programs providing public benefits.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, the department of inspections, appeals, and licensing (DIAL) has the authority to collect payments inappropriately obtained from the department of health and human services. This bill expands those provisions to allow DIAL to collect payments inappropriately obtained from the department of homeland security and emergency management (HSEM).
   The bill makes benefits obtained through false, misleading, incomplete, or inaccurate information given to HSEM a lien in favor of the state upon a person’s property and requires county recorders to prepare and maintain in the recorder’s office an index of liens owed to HSEM. The bill requires DIAL to collect delinquent debts owed HSEM as soon as practicable. By operation of law, the associated provisions relating to lien attachment, length, preservation, and satisfaction, payment of recording fees by DIAL, distress warrants, and action by the attorney general apply to the inappropriately obtained HSEM benefits. HSEM may refer cases of suspected fraud from the disaster aid individual assistance grant program and the disaster case advocacy grant program to DIAL or other state entities for review. If a person is convicted of fraud, the state must review all legal options until HSEM recovers an amount equal to the benefits fraudulently claimed. HSEM may also refer suspected cases of impropriety in other programs to the appropriate state entity.