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Senate Study Bill 1105 - IntroducedA Bill ForAn Act 1relating to public assistance program oversight.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 239.1 Definitions.
2As used in this chapter, unless the context otherwise
3requires:
41. “Applicant” means an individual who is applying for
5public assistance benefits in the state.
62. “Asset” or “asset test” means all assets of the members
7of the applicant’s household, including all of the following:
8a. All bank accounts, excluding retirement accounts of
9members of the household.
10b. All cash, excluding the first two thousand dollars of
11members of the household.
12c. All lottery and gambling income of the household whether
13received as a lump sum or installment payments.
14d. All real estate, excluding the primary household
15residence and surrounding lot.
16e. All other personal property excluding personal
17belongings, household goods, and one vehicle.
183. “Department” means the department of health and human
19services.
204. “Public assistance” means the supplemental nutrition
21assistance program or SNAP, the Medicaid program or Medicaid
22as defined in section 249A.2, the family investment program or
23FIP as defined in section 239B.1, and the children’s health
24insurance program or CHIP.
255. “Real-time eligibility system” means real-time electronic
26access to a system that allows verification of all applicable
27public assistance program eligibility information based on the
28most recent information available to the department through
29nonmodeled earned and unearned income, such as commercially
30available wage data.
316. “Recipient” means an individual who is receiving public
32assistance benefits in the state.
33 Sec. 2. NEW SECTION. 239.2 Asset test for supplemental
34nutrition assistance program.
351. For the purposes of determining eligibility for receipt
-1-1of SNAP benefits, the department shall conduct an asset test
2on all members of the applicant’s household. The allowable
3financial resources to be included in or excluded from a
4determination of eligibility for SNAP shall be those specified
5in 7 U.S.C.§2014(g)(1).
62. Prior to determining eligibility for SNAP benefits,
7the department shall access, at a minimum, for every member
8of the applicant’s household, the following information from
9the following federal, state, and miscellaneous sources, or
10successor sources:
11a. Federal sources and information:
12(1) Earned and unearned income information maintained by
13the internal revenue service.
14(2) The following sources and information maintained by the
15United States social security administration:
16(a) Earned income information.
17(b) Death register information.
18(c) Prisoner or incarceration status information.
19(d) Supplemental security income information maintained in
20the state data exchange database.
21(e) Beneficiary records and earnings information maintained
22in the beneficiary and earnings data exchange database.
23(f) Earnings and pension information maintained in the
24beneficiary earnings exchange record system database.
25(3) The following sources and information maintained by the
26United States department of health and human services:
27(a) Income and employment information maintained in the
28national directory of new hires database by the office of child
29support enforcement of the administration for children and
30families.
31(b) Other federal data sources maintained by the office of
32child support enforcement of the administration for children
33and families.
34b. State sources and information:
35(1) The department’s sources and information including but
-2-1not limited to all of the following:
2(a) Income and employment information maintained by the
3child support recovery unit.
4(b) Child care assistance information maintained by the
5division of child and family services.
6(c) Enrollment status in other public assistance programs.
7(2) The department of workforce development sources and
8information including all of the following:
9(a) Employment information.
10(b) Employer weekly, monthly, and quarterly reports of
11income and unemployment insurance payments.
12(3) The Iowa public employees’ retirement system for
13earnings and pension information.
14c. Miscellaneous sources:
15(1) Any existing real-time database of persons currently
16receiving benefits in other states, such as the national
17accuracy clearinghouse.
18(2) Any databases maintained by the Iowa lottery
19commission.
20(3) Any existing real-time eligibility system that includes
21employment and income information maintained by a consumer
22reporting agency, as defined by the federal Fair Credit
23Reporting Act, 15 U.S.C. §1681a, for the purpose of obtaining
24real-time employment and income information.
253. Prior to determining eligibility for SNAP benefits, the
26department shall access information for every member of the
27applicant’s household from the following public records:
28a. A nationwide public records data source of physical asset
29ownership. The data source may include but is not limited to
30real property, automobiles, watercraft, aircraft, and luxury
31vehicles, or any other vehicle owned by the applicant.
32b. National and state financial institutions in order
33to locate undisclosed depository accounts or verify account
34balances of disclosed accounts.
354. The department shall enter into a memorandum of
-3-1understanding with any department, division, bureau, section,
2unit, or any other subunit of a department to obtain the
3information specified in this section.
45. The provisions of this section shall not apply if every
5member of the applicant’s household receives supplemental
6security income.
7 Sec. 3. NEW SECTION. 239.3 Cooperation with child support
8enforcement — supplemental nutrition assistance program
9eligibility.
10An applicant for SNAP benefits shall be required to
11cooperate with the child support recovery unit as a condition
12of eligibility as specified in 7 C.F.R.§273.11(o).
13 Sec. 4. NEW SECTION. 239.4 Verification and authentication
14systems — public assistance programs.
151. By July 1, 2024, the department shall redesign an
16existing system; establish a new computerized income, asset,
17and identity eligibility verification system; or contract with
18a third-party vendor to provide for identity verification,
19identity authentication, asset verification, and dual
20enrollment prevention in order to deter waste, fraud, and
21abuse in each public assistance program administered by the
22department.
232. The department may contract with a third-party vendor
24to develop or provide a service for a real-time eligibility
25system that allows the department to verify or authenticate
26income, assets, and identity eligibility of applicants and
27recipients to prevent fraud, misrepresentation, and inadequate
28documentation when determining eligibility for public
29assistance programs. The system shall be accessed prior to
30determining eligibility, periodically between eligibility
31redeterminations, and during eligibility redeterminations
32and reviews. The department may also contract with a
33third-party vendor to provide information to facilitate
34reviews of recipient eligibility conducted by the department.
35Specifically, the department may contract with a third-party
-4-1consumer reporting agency, as defined by the federal Fair
2Credit Reporting Act, 15 U.S.C. §1681a, for the purpose of
3obtaining real-time employment and income information.
43. A contract entered into under this section shall provide,
5at a minimum, for all of the following:
6a. The establishment of the annual savings amount from
7utilization of the system or service, and a provision that the
8contract may be terminated contingent upon the savings not
9exceeding the total yearly cost to the state for utilization of
10the system or service.
11b. That the contract shall not preclude the department
12from continuing to conduct additional eligibility verification
13or authentication processes, to receive, review, or verify
14additional information related to the eligibility of an
15individual, or from contracting with a third-party vendor to
16provide additional eligibility authentication or verification
17information.
184. The department shall seek federal approval as necessary
19to implement and administer this section.
20 Sec. 5. NEW SECTION. 239.5 Public assistance programs —
21applicant and recipient eligibility verification.
221. All applications for initial public assistance
23program benefits and all determinations of ongoing recipient
24eligibility shall be processed through a system as specified
25in this section. Complete initial applications shall be
26processed within the minimum period required by federal law.
27Prior to determining initial eligibility of an applicant for,
28or ongoing eligibility of a recipient of, public assistance,
29the department shall access information for every applicant or
30recipient from the following federal, state, and other sources:
31a. Federal sources and information:
32(1) Earned and unearned income information maintained by
33the internal revenue service.
34(2) The following sources and information maintained by the
35United States social security administration:
-5- 1(a) Earned income information.
2(b) Death register information.
3(c) Prisoner or incarceration status information.
4(d) Supplemental security income information maintained in
5the state data exchange database.
6(e) Beneficiary records and earnings information maintained
7in the beneficiary and earnings data exchange database.
8(f) Earnings and pension information maintained in the
9beneficiary earnings exchange record system database.
10(3) The following sources and information maintained by the
11United States department of health and human services:
12(a) Income and employment information maintained in the
13national directory of new hires database by the office of child
14support enforcement of the administration for children and
15families.
16(b) Other federal data sources maintained by the office of
17child support enforcement of the administration for children
18and families.
19(4) Information maintained by the United States citizenship
20and immigration services of the United States department of
21homeland security.
22(5) Payment information for public housing and section 8
23housing assistance guidelines maintained by the United States
24department of housing and urban development.
25(6) National fleeing felon information maintained by the
26United States federal bureau of investigation.
27b. State sources and information:
28(1) The department’s sources and information including but
29not limited to all of the following:
30(a) Income and employment information maintained by the
31child support recovery unit.
32(b) Child care assistance information maintained by the
33division of child and family services.
34(c) Enrollment status in other public assistance programs.
35(2) The department of workforce development sources and
-6-1information including all of the following:
2(a) Employment information.
3(b) Employer weekly, monthly, and quarterly reports of
4income and unemployment insurance payments.
5(3) The Iowa public employees’ retirement system for
6earnings and pension information.
7c. Other sources including all of the following:
8(1) Any existing real-time database of persons currently
9receiving benefits in other states, such as the national
10accuracy clearinghouse.
11(2) An available database of persons who currently hold a
12license, permit, or certificate from any state agency, the cost
13of which exceeds five hundred dollars.
14(3) Wage reporting and similar information maintained by
15states contiguous to Iowa.
16(4) A third-party consumer reporting agency, as defined
17by the federal Fair Credit Reporting Act, 15 U.S.C. §1681a,
18for the purpose of obtaining real-time employment and income
19information.
202. Prior to determining the initial eligibility of an
21applicant for, or the ongoing eligibility of a recipient
22of, public assistance benefits, the department shall access
23information for every applicant or recipient from, at a
24minimum, the following public records:
25a. A nationwide public records data source of physical asset
26ownership. The data source may include but is not limited to
27real property, automobiles, watercraft, aircraft, and luxury
28vehicles, or any other vehicle owned by the applicant for or
29recipient of assistance.
30b. A nationwide public records data source of incarcerated
31individuals.
32c. A nationwide best address and driver’s license data
33source to verify that individuals are residents of the state.
34d. A comprehensive public records database from which the
35department may identify potential identity fraud or identity
-7-1theft that is capable of closely associating name, social
2security number, date of birth, phone, and address information.
3e. National and local financial institutions in order
4to locate undisclosed depository accounts or verify account
5balances of disclosed accounts.
6f. Outstanding default or arrest warrant information.
73. The state may contract with a third-party consumer
8reporting agency, as defined by the federal Fair Credit
9Reporting Act, 15 U.S.C. §1681a, for the purpose of obtaining
10real-time employment and income information under this section.
11 Sec. 6. NEW SECTION. 239.6 Identity authentication.
12Unless otherwise prohibited by federal law or regulation,
13prior to the department awarding public assistance benefits, an
14applicant shall complete a computerized identity authentication
15process to confirm the identity of the applicant. Identity
16authentication shall be accomplished through a knowledge-based
17questionnaire consisting of financial and personal questions.
18The questionnaire shall contain questions tailored to assist
19persons without a bank account or those who have poor access
20to financial and banking services or who do not have an
21established credit history. The questionnaire may be submitted
22by the applicant online, in person, or via telephone.
23 Sec. 7. NEW SECTION. 239.7 Case review of applicant and
24recipient information.
251. If the information obtained from a review of an
26applicant’s or recipient’s information under this chapter does
27not result in the department finding a discrepancy or change
28in an individual’s circumstances affecting eligibility, the
29department shall take no further action.
302. If the information obtained from a review of the
31applicant’s or recipient’s information under this chapter
32results in the department finding a discrepancy or change in
33the individual’s circumstances affecting eligibility, the
34department shall respond in accordance with the provisions of
35section 239.8.
-8-1 Sec. 8. NEW SECTION. 239.8 Notice and right to be heard.
21. An applicant for, or recipient of, public assistance
3shall be provided written notice and the opportunity to explain
4any issues identified in a review performed under this chapter
5for initial eligibility or redetermination of eligibility.
6Unless otherwise prohibited by federal law or regulation,
7a self-declaration by an applicant or recipient shall not
8be accepted as verification of categorical and financial
9eligibility during such review.
102. The notice provided to the applicant or recipient shall
11describe in sufficient detail the circumstances of the issue
12identified, the manner in which the applicant or recipient
13may respond, and the consequences of failing to respond to
14the notice or resolve the issue identified. The applicant or
15recipient shall be provided ten days to respond to the notice.
16The department may request additional information as necessary
17to reach a decision.
183. An applicant or recipient may respond to the notice as
19follows:
20a. By disagreeing with the findings of the department. If
21the applicant or recipient responds in a timely manner and
22disagrees with the findings of the department, the department
23shall reevaluate the circumstances to determine if the
24applicant’s or recipient’s position is valid. If, through
25reevaluation, the department finds that the department is in
26error, the department shall take immediate action to correct
27the error. If, through reevaluation, the department affirms
28that the applicant’s or recipient’s position is invalid, the
29department shall determine the effect on the applicant’s or
30recipient’s eligibility and take appropriate action. Written
31notice of the department’s determination and the actions taken
32shall be provided to the applicant or recipient.
33b. By agreeing with the findings of the department. If
34the applicant or recipient responds in a timely manner and
35agrees with the findings of the department, the department
-9-1shall determine the effect on the applicant’s or recipient’s
2eligibility and take appropriate action. Written notice of the
3department’s determination and actions taken shall be provided
4to the applicant or recipient.
54. If the applicant or recipient fails to respond to the
6notice in a timely manner, the department shall provide notice
7to terminate the applicant’s application or to discontinue
8the recipient’s enrollment for failure to cooperate, and
9shall terminate the applicant’s application or discontinue
10the recipient’s enrollment. The applicant’s or recipient’s
11eligibility for such public assistance shall not be established
12or reestablished until the issue has been resolved.
13 Sec. 9. NEW SECTION. 239.9 Referrals for fraud,
14misrepresentation, or inadequate documentation.
151. Following a review of an applicant’s or recipient’s
16eligibility under this chapter, the department may refer cases
17of suspected fraud along with any supportive information to the
18department of inspections and appeals for review.
192. In cases of substantiated fraud, upon conviction, the
20state shall review all appropriate legal options including
21but not limited to removal of a recipient from other public
22assistance programs and garnishment of wages or state income
23tax refunds until the department recovers an equal amount of
24benefits fraudulently claimed.
253. The department may refer suspected cases of fraud,
26misrepresentation, or inadequate documentation relating to
27initial or continued eligibility to appropriate state agencies,
28divisions, or departments for review of eligibility issues in
29programs providing public benefits other than those as defined
30in this chapter.
31 Sec. 10. NEW SECTION. 239.10 Administration — rules —
32reporting.
331. The department of health and human services shall adopt
34rules pursuant to chapter 17A to administer this chapter.
352. The department shall submit a report to the governor
-10-1and the general assembly by January 15, 2025, and by January
215 annually thereafter through January 15, 2030, detailing the
3impact of the verification and authentication measures taken
4under this chapter. The report shall include data for all
5affected public assistance programs including the number of
6cases reviewed, the number of cases closed, the number of fraud
7investigation referrals made, and the amount of savings and
8cost avoidance realized from the provisions of this chapter.
9 Sec. 11. IMPLEMENTATION.
101. The department of health and human services shall request
11federal approval including for any state plan amendment or
12waiver necessary to administer this Act.
132. The provisions of this Act requiring federal approval
14shall be implemented upon receipt of such federal approval.
153. The provisions of this Act not requiring federal approval
16shall be implemented as specified in this Act, or if not
17specified in this Act, no later than July 1, 2025.
184. The department may contract with multiple third-party
19vendors to administer this Act.
20EXPLANATION
21The inclusion of this explanation does not constitute agreement with
22the explanation’s substance by the members of the general assembly.
23This bill relates to public assistance program oversight.
24The bill relates to various eligibility verification and
25authentication measures under new Code chapter 239.
26The bill provides definitions used in the new Code chapter.
27The bill requires the department of health and human
28services (HHS or the department) to conduct an asset test on
29all members of the household of an applicant for SNAP benefits.
30The bill specifies the minimum information from federal, state,
31and other data sources and public records that HHS must access
32prior to determining eligibility for an applicant’s SNAP
33benefits. The bill requires HHS to enter into a memorandum of
34understanding with any department or subunit of a department
35to obtain the information specified. The bill provisions do
-11-1not apply if every member of the applicant’s household receives
2supplemental security income.
3The bill requires that an applicant for SNAP benefits shall
4cooperate with the child support recovery unit as a condition
5of eligibility for SNAP benefits.
6The bill requires that by July 1, 2024, HHS shall redesign
7an existing system; establish a new computerized income,
8asset, and identity eligibility verification system; or
9contract with a third-party vendor to provide for identity
10verification, identity authentication, asset verification,
11and dual enrollment prevention in each public assistance
12program administered by HHS. The department may contract
13with a third-party vendor to develop or provide a real-time
14eligibility system to verify or authenticate income, assets,
15and identity eligibility of applicants and recipients. The
16system shall be accessed prior to determining eligibility,
17periodically between eligibility redeterminations, and during
18eligibility redeterminations and reviews. The department may
19contract with a third-party vendor to provide information to
20facilitate reviews of recipient eligibility conducted by HHS.
21A contract entered into to provide a system or service must
22establish the annual savings amount from utilization of the
23system or service, and include a provision that the contract
24may be terminated contingent upon the savings not exceeding the
25total yearly cost to the state for utilization of the system or
26service. The contract does not preclude HHS from continuing to
27conduct additional eligibility verification or authentication
28processes to receive, review, or verify additional information
29related to the eligibility of an individual; or from
30contracting with a third-party vendor to provide additional
31eligibility authentication or verification information.
32The department shall seek federal approval as necessary to
33implement and administer this provision of the bill.
34The bill requires that for all applications for initial
35public assistance program benefits and all determinations of
-12-1ongoing recipient eligibility processed by HHS, HHS shall
2access information for every applicant or recipient from
3specified federal, state, and other sources, and from specified
4public records.
5The bill requires that prior to awarding public assistance
6benefits to an applicant, the applicant shall complete a
7computerized identity authentication process to confirm the
8identity of the applicant through the use of a knowledge-based
9questionnaire consisting of financial and personal questions
10tailored to assist persons without a bank account or those who
11have poor access to financial and banking services or who do
12not have an established credit history. The questionnaire
13may be submitted by the applicant online, in person, or via
14telephone.
15The bill provides that if information obtained from a review
16of an applicant’s or recipient’s information under the bill
17does not result in HHS finding a discrepancy or change in an
18individual’s circumstances affecting eligibility, HHS shall
19take no further action.
20If the information obtained from a review of the applicant’s
21or recipient’s information under the bill results in HHS
22finding a discrepancy or a change in the individual’s
23circumstances affecting eligibility, HHS shall provide written
24notice to the individual and the opportunity to explain any
25issues identified. Unless otherwise prohibited by federal law
26or regulation, a self-declaration by an applicant or recipient
27shall not be accepted as verification of categorical and
28financial eligibility during such review.
29The notice provided to the applicant or recipient shall
30describe in sufficient detail the circumstances of the issue
31identified, the manner in which the applicant or recipient
32may respond, and the consequences of failing to respond to
33the notice or resolve the issue identified. The applicant or
34recipient shall be provided 10 days to respond to the notice.
35The department may request additional information as necessary
-13-1to reach a decision.
2The bill specifies the processes and results dependent upon
3whether an applicant or recipient responds by disagreeing
4or agreeing with the findings of a review by HHS. If the
5applicant or recipient fails to respond to the notice in a
6timely manner, HHS shall provide notice to terminate the
7applicant’s application or to discontinue the recipient’s
8enrollment for failure to cooperate, and shall terminate
9the applicant’s application or discontinue the recipient’s
10enrollment. The applicant’s or recipient’s eligibility
11for such public assistance shall not be established or
12reestablished until the issue has been resolved.
13Following a review of an applicant’s or recipient’s
14eligibility, HHS may refer cases of suspected fraud along with
15any supportive information to the department of inspections
16and appeals for review. In cases of substantiated fraud,
17upon conviction, the state shall review all appropriate legal
18options including but not limited to removal of a recipient
19from other public assistance programs and garnishment of wages
20or state income tax refunds until HHS recovers an equal amount
21of benefits fraudulently claimed. The department may refer
22suspected cases of fraud, misrepresentation, or inadequate
23documentation relating to initial or continued eligibility
24to appropriate state agencies, divisions, or departments
25for review of eligibility issues in other public assistance
26programs.
27Under the bill, HHS shall adopt administrative rules to
28administer the Code chapter. The department shall submit a
29report to the governor and the general assembly by January
3015, 2025, and by January 15 annually thereafter through
31January 15, 2030, detailing the impact of the verification
32and authentication measures taken under the bill. The report
33shall include data for all affected public assistance programs
34including the number of cases reviewed, the number of cases
35closed, the number of fraud investigation referrals made, and
-14-1the amount of savings and cost avoidance realized from the
2provisions of the bill.
3The department shall request federal approval including for
4any state plan amendment or waiver necessary to administer the
5bill, and the provisions of the bill requiring federal approval
6shall be implemented upon receipt of such federal approval.
7The provisions of the bill that do not require federal approval
8shall be implemented as specified in the bill or, if not
9specified in the bill, no later than July 1, 2024.
-15-pf/rh
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 239.1 Definitions.
2As used in this chapter, unless the context otherwise
3requires:
41. “Applicant” means an individual who is applying for
5public assistance benefits in the state.
62. “Asset” or “asset test” means all assets of the members
7of the applicant’s household, including all of the following:
8a. All bank accounts, excluding retirement accounts of
9members of the household.
10b. All cash, excluding the first two thousand dollars of
11members of the household.
12c. All lottery and gambling income of the household whether
13received as a lump sum or installment payments.
14d. All real estate, excluding the primary household
15residence and surrounding lot.
16e. All other personal property excluding personal
17belongings, household goods, and one vehicle.
183. “Department” means the department of health and human
19services.
204. “Public assistance” means the supplemental nutrition
21assistance program or SNAP, the Medicaid program or Medicaid
22as defined in section 249A.2, the family investment program or
23FIP as defined in section 239B.1, and the children’s health
24insurance program or CHIP.
255. “Real-time eligibility system” means real-time electronic
26access to a system that allows verification of all applicable
27public assistance program eligibility information based on the
28most recent information available to the department through
29nonmodeled earned and unearned income, such as commercially
30available wage data.
316. “Recipient” means an individual who is receiving public
32assistance benefits in the state.
33 Sec. 2. NEW SECTION. 239.2 Asset test for supplemental
34nutrition assistance program.
351. For the purposes of determining eligibility for receipt
-1-1of SNAP benefits, the department shall conduct an asset test
2on all members of the applicant’s household. The allowable
3financial resources to be included in or excluded from a
4determination of eligibility for SNAP shall be those specified
5in 7 U.S.C.§2014(g)(1).
62. Prior to determining eligibility for SNAP benefits,
7the department shall access, at a minimum, for every member
8of the applicant’s household, the following information from
9the following federal, state, and miscellaneous sources, or
10successor sources:
11a. Federal sources and information:
12(1) Earned and unearned income information maintained by
13the internal revenue service.
14(2) The following sources and information maintained by the
15United States social security administration:
16(a) Earned income information.
17(b) Death register information.
18(c) Prisoner or incarceration status information.
19(d) Supplemental security income information maintained in
20the state data exchange database.
21(e) Beneficiary records and earnings information maintained
22in the beneficiary and earnings data exchange database.
23(f) Earnings and pension information maintained in the
24beneficiary earnings exchange record system database.
25(3) The following sources and information maintained by the
26United States department of health and human services:
27(a) Income and employment information maintained in the
28national directory of new hires database by the office of child
29support enforcement of the administration for children and
30families.
31(b) Other federal data sources maintained by the office of
32child support enforcement of the administration for children
33and families.
34b. State sources and information:
35(1) The department’s sources and information including but
-2-1not limited to all of the following:
2(a) Income and employment information maintained by the
3child support recovery unit.
4(b) Child care assistance information maintained by the
5division of child and family services.
6(c) Enrollment status in other public assistance programs.
7(2) The department of workforce development sources and
8information including all of the following:
9(a) Employment information.
10(b) Employer weekly, monthly, and quarterly reports of
11income and unemployment insurance payments.
12(3) The Iowa public employees’ retirement system for
13earnings and pension information.
14c. Miscellaneous sources:
15(1) Any existing real-time database of persons currently
16receiving benefits in other states, such as the national
17accuracy clearinghouse.
18(2) Any databases maintained by the Iowa lottery
19commission.
20(3) Any existing real-time eligibility system that includes
21employment and income information maintained by a consumer
22reporting agency, as defined by the federal Fair Credit
23Reporting Act, 15 U.S.C. §1681a, for the purpose of obtaining
24real-time employment and income information.
253. Prior to determining eligibility for SNAP benefits, the
26department shall access information for every member of the
27applicant’s household from the following public records:
28a. A nationwide public records data source of physical asset
29ownership. The data source may include but is not limited to
30real property, automobiles, watercraft, aircraft, and luxury
31vehicles, or any other vehicle owned by the applicant.
32b. National and state financial institutions in order
33to locate undisclosed depository accounts or verify account
34balances of disclosed accounts.
354. The department shall enter into a memorandum of
-3-1understanding with any department, division, bureau, section,
2unit, or any other subunit of a department to obtain the
3information specified in this section.
45. The provisions of this section shall not apply if every
5member of the applicant’s household receives supplemental
6security income.
7 Sec. 3. NEW SECTION. 239.3 Cooperation with child support
8enforcement — supplemental nutrition assistance program
9eligibility.
10An applicant for SNAP benefits shall be required to
11cooperate with the child support recovery unit as a condition
12of eligibility as specified in 7 C.F.R.§273.11(o).
13 Sec. 4. NEW SECTION. 239.4 Verification and authentication
14systems — public assistance programs.
151. By July 1, 2024, the department shall redesign an
16existing system; establish a new computerized income, asset,
17and identity eligibility verification system; or contract with
18a third-party vendor to provide for identity verification,
19identity authentication, asset verification, and dual
20enrollment prevention in order to deter waste, fraud, and
21abuse in each public assistance program administered by the
22department.
232. The department may contract with a third-party vendor
24to develop or provide a service for a real-time eligibility
25system that allows the department to verify or authenticate
26income, assets, and identity eligibility of applicants and
27recipients to prevent fraud, misrepresentation, and inadequate
28documentation when determining eligibility for public
29assistance programs. The system shall be accessed prior to
30determining eligibility, periodically between eligibility
31redeterminations, and during eligibility redeterminations
32and reviews. The department may also contract with a
33third-party vendor to provide information to facilitate
34reviews of recipient eligibility conducted by the department.
35Specifically, the department may contract with a third-party
-4-1consumer reporting agency, as defined by the federal Fair
2Credit Reporting Act, 15 U.S.C. §1681a, for the purpose of
3obtaining real-time employment and income information.
43. A contract entered into under this section shall provide,
5at a minimum, for all of the following:
6a. The establishment of the annual savings amount from
7utilization of the system or service, and a provision that the
8contract may be terminated contingent upon the savings not
9exceeding the total yearly cost to the state for utilization of
10the system or service.
11b. That the contract shall not preclude the department
12from continuing to conduct additional eligibility verification
13or authentication processes, to receive, review, or verify
14additional information related to the eligibility of an
15individual, or from contracting with a third-party vendor to
16provide additional eligibility authentication or verification
17information.
184. The department shall seek federal approval as necessary
19to implement and administer this section.
20 Sec. 5. NEW SECTION. 239.5 Public assistance programs —
21applicant and recipient eligibility verification.
221. All applications for initial public assistance
23program benefits and all determinations of ongoing recipient
24eligibility shall be processed through a system as specified
25in this section. Complete initial applications shall be
26processed within the minimum period required by federal law.
27Prior to determining initial eligibility of an applicant for,
28or ongoing eligibility of a recipient of, public assistance,
29the department shall access information for every applicant or
30recipient from the following federal, state, and other sources:
31a. Federal sources and information:
32(1) Earned and unearned income information maintained by
33the internal revenue service.
34(2) The following sources and information maintained by the
35United States social security administration:
-5- 1(a) Earned income information.
2(b) Death register information.
3(c) Prisoner or incarceration status information.
4(d) Supplemental security income information maintained in
5the state data exchange database.
6(e) Beneficiary records and earnings information maintained
7in the beneficiary and earnings data exchange database.
8(f) Earnings and pension information maintained in the
9beneficiary earnings exchange record system database.
10(3) The following sources and information maintained by the
11United States department of health and human services:
12(a) Income and employment information maintained in the
13national directory of new hires database by the office of child
14support enforcement of the administration for children and
15families.
16(b) Other federal data sources maintained by the office of
17child support enforcement of the administration for children
18and families.
19(4) Information maintained by the United States citizenship
20and immigration services of the United States department of
21homeland security.
22(5) Payment information for public housing and section 8
23housing assistance guidelines maintained by the United States
24department of housing and urban development.
25(6) National fleeing felon information maintained by the
26United States federal bureau of investigation.
27b. State sources and information:
28(1) The department’s sources and information including but
29not limited to all of the following:
30(a) Income and employment information maintained by the
31child support recovery unit.
32(b) Child care assistance information maintained by the
33division of child and family services.
34(c) Enrollment status in other public assistance programs.
35(2) The department of workforce development sources and
-6-1information including all of the following:
2(a) Employment information.
3(b) Employer weekly, monthly, and quarterly reports of
4income and unemployment insurance payments.
5(3) The Iowa public employees’ retirement system for
6earnings and pension information.
7c. Other sources including all of the following:
8(1) Any existing real-time database of persons currently
9receiving benefits in other states, such as the national
10accuracy clearinghouse.
11(2) An available database of persons who currently hold a
12license, permit, or certificate from any state agency, the cost
13of which exceeds five hundred dollars.
14(3) Wage reporting and similar information maintained by
15states contiguous to Iowa.
16(4) A third-party consumer reporting agency, as defined
17by the federal Fair Credit Reporting Act, 15 U.S.C. §1681a,
18for the purpose of obtaining real-time employment and income
19information.
202. Prior to determining the initial eligibility of an
21applicant for, or the ongoing eligibility of a recipient
22of, public assistance benefits, the department shall access
23information for every applicant or recipient from, at a
24minimum, the following public records:
25a. A nationwide public records data source of physical asset
26ownership. The data source may include but is not limited to
27real property, automobiles, watercraft, aircraft, and luxury
28vehicles, or any other vehicle owned by the applicant for or
29recipient of assistance.
30b. A nationwide public records data source of incarcerated
31individuals.
32c. A nationwide best address and driver’s license data
33source to verify that individuals are residents of the state.
34d. A comprehensive public records database from which the
35department may identify potential identity fraud or identity
-7-1theft that is capable of closely associating name, social
2security number, date of birth, phone, and address information.
3e. National and local financial institutions in order
4to locate undisclosed depository accounts or verify account
5balances of disclosed accounts.
6f. Outstanding default or arrest warrant information.
73. The state may contract with a third-party consumer
8reporting agency, as defined by the federal Fair Credit
9Reporting Act, 15 U.S.C. §1681a, for the purpose of obtaining
10real-time employment and income information under this section.
11 Sec. 6. NEW SECTION. 239.6 Identity authentication.
12Unless otherwise prohibited by federal law or regulation,
13prior to the department awarding public assistance benefits, an
14applicant shall complete a computerized identity authentication
15process to confirm the identity of the applicant. Identity
16authentication shall be accomplished through a knowledge-based
17questionnaire consisting of financial and personal questions.
18The questionnaire shall contain questions tailored to assist
19persons without a bank account or those who have poor access
20to financial and banking services or who do not have an
21established credit history. The questionnaire may be submitted
22by the applicant online, in person, or via telephone.
23 Sec. 7. NEW SECTION. 239.7 Case review of applicant and
24recipient information.
251. If the information obtained from a review of an
26applicant’s or recipient’s information under this chapter does
27not result in the department finding a discrepancy or change
28in an individual’s circumstances affecting eligibility, the
29department shall take no further action.
302. If the information obtained from a review of the
31applicant’s or recipient’s information under this chapter
32results in the department finding a discrepancy or change in
33the individual’s circumstances affecting eligibility, the
34department shall respond in accordance with the provisions of
35section 239.8.
-8-1 Sec. 8. NEW SECTION. 239.8 Notice and right to be heard.
21. An applicant for, or recipient of, public assistance
3shall be provided written notice and the opportunity to explain
4any issues identified in a review performed under this chapter
5for initial eligibility or redetermination of eligibility.
6Unless otherwise prohibited by federal law or regulation,
7a self-declaration by an applicant or recipient shall not
8be accepted as verification of categorical and financial
9eligibility during such review.
102. The notice provided to the applicant or recipient shall
11describe in sufficient detail the circumstances of the issue
12identified, the manner in which the applicant or recipient
13may respond, and the consequences of failing to respond to
14the notice or resolve the issue identified. The applicant or
15recipient shall be provided ten days to respond to the notice.
16The department may request additional information as necessary
17to reach a decision.
183. An applicant or recipient may respond to the notice as
19follows:
20a. By disagreeing with the findings of the department. If
21the applicant or recipient responds in a timely manner and
22disagrees with the findings of the department, the department
23shall reevaluate the circumstances to determine if the
24applicant’s or recipient’s position is valid. If, through
25reevaluation, the department finds that the department is in
26error, the department shall take immediate action to correct
27the error. If, through reevaluation, the department affirms
28that the applicant’s or recipient’s position is invalid, the
29department shall determine the effect on the applicant’s or
30recipient’s eligibility and take appropriate action. Written
31notice of the department’s determination and the actions taken
32shall be provided to the applicant or recipient.
33b. By agreeing with the findings of the department. If
34the applicant or recipient responds in a timely manner and
35agrees with the findings of the department, the department
-9-1shall determine the effect on the applicant’s or recipient’s
2eligibility and take appropriate action. Written notice of the
3department’s determination and actions taken shall be provided
4to the applicant or recipient.
54. If the applicant or recipient fails to respond to the
6notice in a timely manner, the department shall provide notice
7to terminate the applicant’s application or to discontinue
8the recipient’s enrollment for failure to cooperate, and
9shall terminate the applicant’s application or discontinue
10the recipient’s enrollment. The applicant’s or recipient’s
11eligibility for such public assistance shall not be established
12or reestablished until the issue has been resolved.
13 Sec. 9. NEW SECTION. 239.9 Referrals for fraud,
14misrepresentation, or inadequate documentation.
151. Following a review of an applicant’s or recipient’s
16eligibility under this chapter, the department may refer cases
17of suspected fraud along with any supportive information to the
18department of inspections and appeals for review.
192. In cases of substantiated fraud, upon conviction, the
20state shall review all appropriate legal options including
21but not limited to removal of a recipient from other public
22assistance programs and garnishment of wages or state income
23tax refunds until the department recovers an equal amount of
24benefits fraudulently claimed.
253. The department may refer suspected cases of fraud,
26misrepresentation, or inadequate documentation relating to
27initial or continued eligibility to appropriate state agencies,
28divisions, or departments for review of eligibility issues in
29programs providing public benefits other than those as defined
30in this chapter.
31 Sec. 10. NEW SECTION. 239.10 Administration — rules —
32reporting.
331. The department of health and human services shall adopt
34rules pursuant to chapter 17A to administer this chapter.
352. The department shall submit a report to the governor
-10-1and the general assembly by January 15, 2025, and by January
215 annually thereafter through January 15, 2030, detailing the
3impact of the verification and authentication measures taken
4under this chapter. The report shall include data for all
5affected public assistance programs including the number of
6cases reviewed, the number of cases closed, the number of fraud
7investigation referrals made, and the amount of savings and
8cost avoidance realized from the provisions of this chapter.
9 Sec. 11. IMPLEMENTATION.
101. The department of health and human services shall request
11federal approval including for any state plan amendment or
12waiver necessary to administer this Act.
132. The provisions of this Act requiring federal approval
14shall be implemented upon receipt of such federal approval.
153. The provisions of this Act not requiring federal approval
16shall be implemented as specified in this Act, or if not
17specified in this Act, no later than July 1, 2025.
184. The department may contract with multiple third-party
19vendors to administer this Act.
20EXPLANATION
21The inclusion of this explanation does not constitute agreement with
22the explanation’s substance by the members of the general assembly.
23This bill relates to public assistance program oversight.
24The bill relates to various eligibility verification and
25authentication measures under new Code chapter 239.
26The bill provides definitions used in the new Code chapter.
27The bill requires the department of health and human
28services (HHS or the department) to conduct an asset test on
29all members of the household of an applicant for SNAP benefits.
30The bill specifies the minimum information from federal, state,
31and other data sources and public records that HHS must access
32prior to determining eligibility for an applicant’s SNAP
33benefits. The bill requires HHS to enter into a memorandum of
34understanding with any department or subunit of a department
35to obtain the information specified. The bill provisions do
-11-1not apply if every member of the applicant’s household receives
2supplemental security income.
3The bill requires that an applicant for SNAP benefits shall
4cooperate with the child support recovery unit as a condition
5of eligibility for SNAP benefits.
6The bill requires that by July 1, 2024, HHS shall redesign
7an existing system; establish a new computerized income,
8asset, and identity eligibility verification system; or
9contract with a third-party vendor to provide for identity
10verification, identity authentication, asset verification,
11and dual enrollment prevention in each public assistance
12program administered by HHS. The department may contract
13with a third-party vendor to develop or provide a real-time
14eligibility system to verify or authenticate income, assets,
15and identity eligibility of applicants and recipients. The
16system shall be accessed prior to determining eligibility,
17periodically between eligibility redeterminations, and during
18eligibility redeterminations and reviews. The department may
19contract with a third-party vendor to provide information to
20facilitate reviews of recipient eligibility conducted by HHS.
21A contract entered into to provide a system or service must
22establish the annual savings amount from utilization of the
23system or service, and include a provision that the contract
24may be terminated contingent upon the savings not exceeding the
25total yearly cost to the state for utilization of the system or
26service. The contract does not preclude HHS from continuing to
27conduct additional eligibility verification or authentication
28processes to receive, review, or verify additional information
29related to the eligibility of an individual; or from
30contracting with a third-party vendor to provide additional
31eligibility authentication or verification information.
32The department shall seek federal approval as necessary to
33implement and administer this provision of the bill.
34The bill requires that for all applications for initial
35public assistance program benefits and all determinations of
-12-1ongoing recipient eligibility processed by HHS, HHS shall
2access information for every applicant or recipient from
3specified federal, state, and other sources, and from specified
4public records.
5The bill requires that prior to awarding public assistance
6benefits to an applicant, the applicant shall complete a
7computerized identity authentication process to confirm the
8identity of the applicant through the use of a knowledge-based
9questionnaire consisting of financial and personal questions
10tailored to assist persons without a bank account or those who
11have poor access to financial and banking services or who do
12not have an established credit history. The questionnaire
13may be submitted by the applicant online, in person, or via
14telephone.
15The bill provides that if information obtained from a review
16of an applicant’s or recipient’s information under the bill
17does not result in HHS finding a discrepancy or change in an
18individual’s circumstances affecting eligibility, HHS shall
19take no further action.
20If the information obtained from a review of the applicant’s
21or recipient’s information under the bill results in HHS
22finding a discrepancy or a change in the individual’s
23circumstances affecting eligibility, HHS shall provide written
24notice to the individual and the opportunity to explain any
25issues identified. Unless otherwise prohibited by federal law
26or regulation, a self-declaration by an applicant or recipient
27shall not be accepted as verification of categorical and
28financial eligibility during such review.
29The notice provided to the applicant or recipient shall
30describe in sufficient detail the circumstances of the issue
31identified, the manner in which the applicant or recipient
32may respond, and the consequences of failing to respond to
33the notice or resolve the issue identified. The applicant or
34recipient shall be provided 10 days to respond to the notice.
35The department may request additional information as necessary
-13-1to reach a decision.
2The bill specifies the processes and results dependent upon
3whether an applicant or recipient responds by disagreeing
4or agreeing with the findings of a review by HHS. If the
5applicant or recipient fails to respond to the notice in a
6timely manner, HHS shall provide notice to terminate the
7applicant’s application or to discontinue the recipient’s
8enrollment for failure to cooperate, and shall terminate
9the applicant’s application or discontinue the recipient’s
10enrollment. The applicant’s or recipient’s eligibility
11for such public assistance shall not be established or
12reestablished until the issue has been resolved.
13Following a review of an applicant’s or recipient’s
14eligibility, HHS may refer cases of suspected fraud along with
15any supportive information to the department of inspections
16and appeals for review. In cases of substantiated fraud,
17upon conviction, the state shall review all appropriate legal
18options including but not limited to removal of a recipient
19from other public assistance programs and garnishment of wages
20or state income tax refunds until HHS recovers an equal amount
21of benefits fraudulently claimed. The department may refer
22suspected cases of fraud, misrepresentation, or inadequate
23documentation relating to initial or continued eligibility
24to appropriate state agencies, divisions, or departments
25for review of eligibility issues in other public assistance
26programs.
27Under the bill, HHS shall adopt administrative rules to
28administer the Code chapter. The department shall submit a
29report to the governor and the general assembly by January
3015, 2025, and by January 15 annually thereafter through
31January 15, 2030, detailing the impact of the verification
32and authentication measures taken under the bill. The report
33shall include data for all affected public assistance programs
34including the number of cases reviewed, the number of cases
35closed, the number of fraud investigation referrals made, and
-14-1the amount of savings and cost avoidance realized from the
2provisions of the bill.
3The department shall request federal approval including for
4any state plan amendment or waiver necessary to administer the
5bill, and the provisions of the bill requiring federal approval
6shall be implemented upon receipt of such federal approval.
7The provisions of the bill that do not require federal approval
8shall be implemented as specified in the bill or, if not
9specified in the bill, no later than July 1, 2024.
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