S.F. 494 Section 1. NEW SECTION . 239.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Applicant” means an individual who is applying for 4 public assistance benefits in the state. 5 2. “Asset” means the following assets of the members of the 6 applicant’s household: 7 a. All liquid assets. 8 b. All other personal property excluding one vehicle and 9 the fair market value in excess of ten thousand dollars of an 10 additional vehicle. 11 3. “Asset test” means the comparison of the collective 12 value of all countable assets of the members of the applicant’s 13 household to the maximum allowed household asset limit of 14 fifteen thousand dollars. 15 4. “Department” means the department of health and human 16 services. 17 5. “Public assistance” means the supplemental nutrition 18 assistance program or SNAP, the Medicaid program or Medicaid 19 as defined in section 249A.2, the family investment program or 20 FIP as defined in section 239B.1, and the children’s health 21 insurance program or CHIP. 22 6. “Real-time eligibility system” means real-time electronic 23 access to a system that allows verification of all applicable 24 public assistance program eligibility information based on the 25 most recent information available to the department through 26 nonmodeled earned and unearned income, such as commercially 27 available wage data. 28 7. “Recipient” means an individual who is receiving public 29 assistance benefits in the state. 30 8. “Supplemental nutrition assistance program” or “SNAP” 31 means benefits provided by the federal program administered 32 through 7 C.F.R. pts. 270 – 283, as amended. 33 Sec. 2. NEW SECTION . 239.2 Supplemental nutrition 34 assistance program —— income eligibility. 35 -1- SF 494 (6) 90 pf/rh/mb 1/ 12

S.F. 494 The department shall establish the gross countable monthly 1 income threshold for the supplemental nutrition assistance 2 program at less than or equal to one hundred sixty percent of 3 the federal poverty level for the household size. 4 Sec. 3. NEW SECTION . 239.3 Identity authentication. 5 Unless otherwise prohibited by federal law or regulation, 6 prior to the department awarding public assistance benefits, an 7 applicant shall complete a computerized identity authentication 8 process to confirm the identity of the applicant. Identity 9 authentication shall be accomplished through a knowledge-based 10 questionnaire consisting of financial and personal questions. 11 The questionnaire shall contain questions tailored to assist 12 persons without a bank account or those who have poor access 13 to financial and banking services or who do not have an 14 established credit history. The computerized identity 15 authentication process and questionnaire may be completed and 16 submitted online, in person, or via telephone by the applicant 17 or a person authorized by the applicant. The department may 18 adopt rules pursuant to chapter 17A to administer this section. 19 Sec. 4. NEW SECTION . 239.4 Asset test for supplemental 20 nutrition assistance program. 21 1. For the purposes of determining eligibility for receipt 22 of SNAP benefits, the department shall conduct an asset test 23 on all members of the applicant’s household. The allowable 24 financial resources to be included in or excluded from a 25 determination of eligibility for SNAP shall be those specified 26 in 7 U.S.C. §2014(g)(1), to the extent consistent with the term 27 “asset” as defined in this chapter. 28 2. Prior to determining eligibility for SNAP benefits, 29 the department shall access, at a minimum, for every member 30 of the applicant’s household, the following information from 31 the following federal, state, and miscellaneous sources, or 32 successor sources: 33 a. Federal sources and information: 34 (1) Earned and unearned income information maintained by 35 -2- SF 494 (6) 90 pf/rh/mb 2/ 12

S.F. 494 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 information maintained in the beneficiary 11 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 b. State sources and information: 22 (1) The department’s sources and information including but 23 not limited to all of the following: 24 (a) Income and employment information maintained by child 25 support services. 26 (b) Child care assistance information maintained by the 27 department. 28 (c) Enrollment status in other public assistance programs. 29 (2) The department of workforce development sources and 30 information including all of the following: 31 (a) Employment information. 32 (b) Employer weekly, monthly, and quarterly reports of 33 income and unemployment insurance payments. 34 c. Miscellaneous sources: 35 -3- SF 494 (6) 90 pf/rh/mb 3/ 12

S.F. 494 (1) Any existing real-time database of persons currently 1 receiving benefits in other states, such as the national 2 accuracy clearinghouse. 3 (2) Any lottery winner databases maintained by the Iowa 4 lottery. 5 (3) Any existing real-time eligibility system that includes 6 employment and income information maintained by a consumer 7 reporting agency, as defined by the federal Fair Credit 8 Reporting Act, 15 U.S.C. §1681a, for the purpose of obtaining 9 real-time employment and income information. 10 3. Prior to determining eligibility for SNAP benefits, the 11 department shall access information for every member of the 12 applicant’s household from the following public records: 13 a. A nationwide public records data source of physical asset 14 ownership. The data source may include but is not limited to 15 real property, automobiles, watercraft, aircraft, and luxury 16 vehicles, or any other vehicle owned by the applicant. 17 b. National and state financial institutions in order 18 to locate undisclosed depository accounts or verify account 19 balances of disclosed accounts. 20 4. The department shall enter into a memorandum of 21 understanding with any department, division, bureau, section, 22 unit, or any other subunit of a department to obtain the 23 information specified in this section. 24 5. The provisions of this section shall not apply if every 25 member of the applicant’s household receives supplemental 26 security income. 27 Sec. 5. NEW SECTION . 239.5 Verification and authentication 28 systems —— public assistance programs. 29 1. No later than July 1, 2025, the department shall 30 redesign an existing system; establish a new computerized 31 income, asset, and identity eligibility verification system; 32 or contract with a third-party vendor to provide for identity 33 verification, identity authentication, asset verification, and 34 dual enrollment prevention in order to deter waste, fraud, and 35 -4- SF 494 (6) 90 pf/rh/mb 4/ 12

S.F. 494 abuse in each public assistance program administered by the 1 department. 2 2. The department may contract with a third-party vendor 3 to develop or provide a service for a real-time eligibility 4 system that allows the department to verify or authenticate 5 income, assets, and identity eligibility of applicants and 6 recipients to prevent fraud, misrepresentation, and inadequate 7 documentation when determining eligibility for public 8 assistance programs. The system shall be accessed prior to 9 determining eligibility, periodically between eligibility 10 redeterminations, and during eligibility redeterminations 11 and reviews. The department may also contract with a 12 third-party vendor to provide information to facilitate 13 reviews of recipient eligibility conducted by the department. 14 Specifically, the department may contract with a third-party 15 consumer reporting agency, as defined by the federal Fair 16 Credit Reporting Act, 15 U.S.C. §1681a, for the purpose of 17 obtaining real-time employment and income information. 18 3. A contract entered into under this section shall provide, 19 at a minimum, for all of the following: 20 a. The establishment of the annual savings amount from 21 utilization of the system or service, and a provision that the 22 contract may be terminated contingent upon the savings not 23 exceeding the total yearly cost to the state for utilization of 24 the system or service. 25 b. That the contract shall not preclude the department 26 from continuing to conduct additional eligibility verification 27 or authentication processes, to receive, review, or verify 28 additional information related to the eligibility of an 29 individual, or from contracting with a third-party vendor to 30 provide additional eligibility authentication or verification 31 information. 32 4. The department shall seek federal approval as necessary 33 to implement and administer this section. 34 Sec. 6. NEW SECTION . 239.6 Public assistance programs —— 35 -5- SF 494 (6) 90 pf/rh/mb 5/ 12

S.F. 494 applicant and recipient eligibility verification. 1 1. All applications for initial public assistance 2 program benefits and all determinations of ongoing recipient 3 eligibility shall be processed through a system as specified 4 in this section. Complete initial applications shall be 5 processed within the minimum period required by federal law. 6 Prior to determining initial eligibility of an applicant for, 7 or ongoing eligibility of a recipient of, public assistance, 8 the department shall access information for every applicant or 9 recipient from the following federal, state, and other sources: 10 a. Federal sources and information: 11 (1) Earned and unearned income information maintained by 12 the internal revenue service. 13 (2) The following sources and information maintained by the 14 United States social security administration: 15 (a) Earned income information. 16 (b) Death register information. 17 (c) Prisoner or incarceration status information. 18 (d) Supplemental security income information maintained in 19 the state data exchange database. 20 (e) Beneficiary records and earnings information maintained 21 in the beneficiary and earnings data exchange database. 22 (f) Earnings information maintained in the beneficiary 23 earnings exchange record system database. 24 (3) The following sources and information maintained by the 25 United States department of health and human services: 26 (a) Income and employment information maintained in the 27 national directory of new hires database by the office of child 28 support enforcement of the administration for children and 29 families. 30 (b) Other federal data sources maintained by the office of 31 child support enforcement of the administration for children 32 and families. 33 (4) Information maintained by the United States citizenship 34 and immigration services of the United States department of 35 -6- SF 494 (6) 90 pf/rh/mb 6/ 12

S.F. 494 homeland security. 1 (5) National fleeing felon information maintained by the 2 United States federal bureau of investigation. 3 b. State sources and information: 4 (1) The department’s sources and information including but 5 not limited to all of the following: 6 (a) Income and employment information maintained by child 7 support services. 8 (b) Child care assistance information maintained by the 9 department. 10 (c) Enrollment status in other public assistance programs. 11 (2) The department of workforce development sources and 12 information including all of the following: 13 (a) Employment information. 14 (b) Employer weekly, monthly, and quarterly reports of 15 income and unemployment insurance payments. 16 c. Other sources including all of the following: 17 (1) Any existing real-time database of persons currently 18 receiving benefits in other states, such as the national 19 accuracy clearinghouse. 20 (2) An available database of persons who currently hold a 21 license, permit, or certificate from any state agency, the cost 22 of which exceeds five hundred dollars. 23 (3) Wage reporting and similar information maintained by 24 states contiguous to Iowa. 25 (4) A third-party consumer reporting agency, as defined 26 by the federal Fair Credit Reporting Act, 15 U.S.C. §1681a, 27 for the purpose of obtaining real-time employment and income 28 information. 29 2. Prior to determining the initial eligibility of an 30 applicant for, or the ongoing eligibility of a recipient 31 of, public assistance benefits, the department shall access 32 information for every applicant or recipient from, at a 33 minimum, the following public records: 34 a. A nationwide public records data source of physical asset 35 -7- SF 494 (6) 90 pf/rh/mb 7/ 12

S.F. 494 ownership. The data source may include but is not limited to 1 real property, automobiles, watercraft, aircraft, and luxury 2 vehicles, or any other vehicle owned by the applicant for or 3 recipient of assistance. 4 b. A nationwide public records data source of incarcerated 5 individuals. 6 c. A nationwide best address and driver’s license data 7 source to verify that individuals are residents of the state. 8 d. A comprehensive public records database from which the 9 department may identify potential identity fraud or identity 10 theft that is capable of closely associating name, social 11 security number, date of birth, phone, and address information. 12 e. National and local financial institutions in order 13 to locate undisclosed depository accounts or verify account 14 balances of disclosed accounts. 15 f. Outstanding default or arrest warrant information. 16 3. The state may contract with a third-party consumer 17 reporting agency, as defined by the federal Fair Credit 18 Reporting Act, 15 U.S.C. §1681a, for the purpose of obtaining 19 real-time employment and income information under this section. 20 Sec. 7. NEW SECTION . 239.7 Case review of applicant and 21 recipient information. 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 sections 239.8 and 239.9. 33 Sec. 8. NEW SECTION . 239.8 Notice and right to be heard. 34 1. An applicant for, or recipient of, public assistance 35 -8- SF 494 (6) 90 pf/rh/mb 8/ 12

S.F. 494 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 Unless otherwise prohibited by federal law or regulation, 4 a self-declaration by an applicant or recipient shall not 5 be accepted as verification of categorical and financial 6 eligibility during such review. 7 2. The notice provided to the applicant or recipient shall 8 describe in sufficient detail the circumstances of the issue 9 identified, the manner in which the applicant or recipient 10 may respond, and the consequences of failing to respond to 11 the notice or resolve the issue identified. The applicant or 12 recipient shall be provided ten days to respond to the notice. 13 The department may request additional information as necessary 14 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- SF 494 (6) 90 pf/rh/mb 9/ 12

S.F. 494 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. 9. 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. 10. NEW SECTION . 239.10 Administration —— rules —— 29 reporting. 30 1. The department of health and human services shall adopt 31 rules 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, 2025, and by January 34 15 annually thereafter through January 15, 2030, detailing the 35 -10- SF 494 (6) 90 pf/rh/mb 10/ 12

S.F. 494 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. 11. NEW SECTION . 249A.59 Cooperation with child 7 support services. 8 1. Unless exempt pursuant to state or federal law or 9 regulation, an applicant for or recipient of medical assistance 10 shall be required to cooperate with child support services as a 11 condition of eligibility. 12 2. The department shall adopt rules pursuant to chapter 17A 13 to administer this section. 14 Sec. 12. IMPLEMENTATION. 15 1. The department of health and human services shall request 16 federal approval including for any state plan amendment or 17 waiver necessary to administer this Act. 18 2. If the department of health and human services determines 19 that any provision of this Act would result in the denial 20 of funds or services from the federal government that would 21 otherwise be available or would be inconsistent with the 22 requirements of federal law or regulation, such provision shall 23 be suspended, but only to the extent necessary to eliminate the 24 inconsistency with federal requirements. 25 3. Unless otherwise provided in this Act, the department 26 of health and human services shall implement the provisions of 27 this Act in an incremental fashion, beginning July 1, 2023, 28 with a goal of full implementation no later than July 1, 2025, 29 to minimize duplication of efforts and to maximize coordination 30 with the implementation time frames of other departmental 31 resource enhancements. 32 4. The provisions of this Act requiring federal approval 33 shall be implemented upon receipt of such federal approval. 34 5. The provisions of this Act not requiring federal approval 35 -11- SF 494 (6) 90 pf/rh/mb 11/ 12