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House Study Bill 148 - IntroducedA Bill ForAn Act 1relating to financial exploitation, conversion and
2misappropriation of funds, and other violations relative to
3older individuals and individuals with a disability, and
4providing penalties.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 714I.1 Definitions.
2As used in this chapter, unless the context otherwise
3requires:
41. “Individual with a disability” means an individual
5with a physical, mental, or developmental disability that
6substantially impairs the individual’s ability to provide
7adequately for the individual’s own care or protection.
82. “Nursing facility” means as defined in section 135C.1.
93. “Older individual” means a person who is sixty years of
10age or older.
114. “Resident” means an older individual or an individual
12with a disability who resides in a nursing facility.
135. “Spenddown obligation” means the amount by which an
14individual’s countable income exceeds the applicable income
15standard or nonexempt resources exceed the applicable resource
16disregard in order for the individual to be eligible for the
17Medicaid program.
18 Sec. 2. NEW SECTION. 714I.2 Financial exploitation of an
19older individual or individual with a disability — penalties.
201. A person commits financial exploitation of an older
21individual or an individual with a disability when the person
22knowingly obtains control over the income or assets of an older
23individual or an individual with a disability with the intent
24to permanently deprive the older individual or individual with
25a disability of the use, benefit, or possession of the income,
26assets, or property of the older individual or individual
27with a disability, thereby benefitting such other person or
28detrimentally affecting the older individual or individual with
29a disability.
302. A person who commits financial exploitation of an older
31individual or an individual with a disability is guilty of the
32following:
33a. A simple misdemeanor if the value of the income, assets,
34or property is less than fifty dollars.
35b. A serious misdemeanor if the value of the income, assets,
-1-1or property is at least fifty dollars but less than five
2hundred dollars.
3c. An aggravated misdemeanor if the value of the income,
4assets, or property is at least five hundred dollars but less
5than one thousand dollars.
6d. A class “D” felony if the value of the income, assets, or
7property is at least one thousand dollars but less than fifty
8thousand dollars.
9e. A class “C” felony if the value of the income, assets, or
10property is at least fifty thousand dollars or more.
11 Sec. 3. NEW SECTION. 714I.3 Conversion or misappropriation
12of assets — nonpayment of Medicaid services — liability.
131. A person who assumes the responsibility of managing the
14financial affairs of an older individual or an individual with
15a disability and who willfully converts or misappropriates
16the income or assets belonging to the older individual or an
17individual with a disability which constitute the spenddown
18obligation of the individual for the purposes of meeting
19eligibility requirements under the Medicaid program, resulting
20in nonpayment of costs incurred by the individual for care
21provided by a health care provider, shall be liable to the
22health care provider for any outstanding payment of such costs.
23If such liability is established against such person by the
24health care provider, the health care provider may recover any
25reasonable attorney fees incurred.
262. A person who assumes the responsibility of managing
27the financial affairs of a resident and who fails to pay a
28nursing facility for the care provided to the resident from
29such income or assets which constitute the spenddown obligation
30of the resident for the purposes of meeting eligibility
31requirements under the Medicaid program shall be liable to the
32nursing facility for any outstanding payment of such costs.
33If such liability is established against such person, the
34nursing facility may also recover any reasonable attorney fees
35incurred.
-2- 13. For the purposes of this section, a person assumes the
2responsibility of managing the financial affairs of an older
3individual, an individual with a disability, or a resident
4when the person receives, has access to, handles, or controls
5the income or assets of the older individual, individual
6with a disability, or resident including income from any
7source including but not limited to social security, railroad
8retirement, or other sources disclosed as income contained
9in the records of the department of human services or other
10appropriate state agency.
114. a. The department of human services, or other
12appropriate agency, may release information from the agency’s
13records containing information regarding the income and assets
14of an older individual, individual with a disability, or a
15resident to the attorney general or any county attorney in
16the state for purposes of investigating or prosecuting any
17suspected violation of this section.
18b. The attorney general or the county attorney of any county
19in which an affected provider or nursing facility is located,
20who successfully prosecutes a violation of this section, may
21request of the sentencing court as a condition of the sentence
22that restitution of all amounts unlawfully withheld from the
23affected provider or nursing facility be made by the offender.
24c. Any order of restitution entered by the court or by
25agreement shall provide that ten percent of any restitution
26installment or payment paid by or on behalf of the offender
27shall be paid to the county attorney successfully prosecuting
28the violation to compensate for the cost of prosecution, and
29any remaining amount shall be paid to the affected provider or
30nursing facility up to the amount owed.
31 Sec. 4. NEW SECTION. 714I.4 Application and construction.
321. Nothing in this chapter shall be construed to limit
33the remedies otherwise available to an older individual or
34individual with a disability pursuant to any state law.
352. Nothing in this chapter shall be construed to impose
-3-1criminal liability on a person who has made a good-faith effort
2to assist an older individual or individual with a disability
3in the management of the property of the older individual or
4individual with a disability, who through no fault of such
5person is unable to provide assistance to the older individual
6or individual with a disability.
73. Nothing in this chapter shall limit the ability of an
8older individual or an individual with a disability to engage
9in bona fide estate planning, to transfer property, and to
10otherwise seek to reduce estate and inheritance taxes provided
11that such actions do not adversely impact the standard of
12living to which the older individual or individual with a
13disability has become accustomed at the time of such actions.
144. It shall not be a defense under this chapter that
15a person alleged to have violated this chapter reasonably
16believed the victim was not an older individual or an
17individual with a disability.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21This bill relates to financial exploitation, conversion
22and misappropriation of funds, and other violations relative
23to older individuals and individuals with a disability. The
24bill includes definitions of “individual with a disability”,
25“nursing facility”, “older individual”, “resident”, and
26“spenddown obligation” for the purposes of the bill.
27The bill provides criminal penalties applicable when a
28person commits financial exploitation as described in the bill
29based upon the value of the property ranging from less than $50
30(a simple misdemeanor which is punishable by confinement for no
31more than 30 days or a fine of at least $65 but not more than
32$625 or by both) to at least $50,000 (a class “C” felony which
33is punishable by confinement for no more than 10 years and a
34fine of at least $1,000 but not more than $10,000).
35The bill provides that a person who assumes the
-4-1responsibility of managing the financial affairs of an older
2individual or an individual with a disability and who willfully
3converts or misappropriates the income or assets belonging to
4the older individual or individual with a disability which
5constitute the spenddown obligation of the individual for
6the purposes of meeting eligibility requirements under the
7Medicaid program, resulting in nonpayment of costs incurred by
8the individual for care provided by a health care provider,
9shall be liable to the health care provider for any outstanding
10payment of such costs. If such liability is established, the
11provider may recover any reasonable attorney fees incurred.
12The bill also provides that a person who assumes the
13responsibility of managing the financial affairs of a resident
14of a nursing facility and who fails to pay a nursing facility
15for the care provided to the resident from such income or
16assets which constitute the spenddown obligation of the
17resident for the purposes of meeting eligibility requirements
18under the Medicaid program shall be liable to the nursing
19facility for any outstanding payment of such costs. If such
20liability is established, the nursing facility may also recover
21any reasonable attorney fees incurred.
22Under the bill, a person assumes the responsibility of
23managing the financial affairs of an older individual, an
24individual with a disability, or a resident when the person
25receives, has access to, handles, or controls the income or
26assets of the older individual, individual with a disability,
27or resident including income from any source including but
28not limited to social security, railroad retirement, or other
29sources disclosed as income contained in the records of the
30department of human services (DHS) or other appropriate state
31agency.
32The bill authorizes DHS or other appropriate agency to
33release information from the agency’s records containing
34information regarding the income and assets of the older
35individual or individual with a disability to the attorney
-5-1general or any county attorney in the state for purposes of
2investigating or prosecuting any suspected violation related
3to managing the financial affairs of an individual who is a
4recipient of Medicaid resulting in nonpayment of costs of a
5health care provider or nursing facility.
6The attorney general or the county attorney of any county
7in which an affected provider or nursing facility is located,
8who successfully prosecutes a violation of the bill, may
9request of the sentencing court as a condition of the sentence,
10that restitution of all amounts unlawfully withheld from the
11affected provider or nursing facility be made by the offender.
12Any order of restitution entered by the court or by agreement
13shall provide that 10 percent of any restitution installment
14or payment paid by or on behalf of the offender shall be paid
15to the county attorney successfully prosecuting the violation
16to compensate for the cost of prosecution, and any remaining
17amount shall be paid to the affected provider or nursing
18facility up to the amount owed.
19Nothing in the bill is to be construed to limit the remedies
20otherwise available to the older individual or individual with
21a disability pursuant to any state law; or to impose criminal
22liability on a person who has made a good-faith effort to
23assist the older individual or individual with a disability
24in the management of the property of the older individual or
25individual with a disability, who through no fault of such
26person is unable to provide assistance to the older individual
27or individual with a disability.
28Nothing in the bill is to limit the ability of an older
29individual or an individual with a disability to engage in bona
30fide estate planning, to transfer property, and to otherwise
31seek to reduce estate and inheritance taxes provided that such
32actions do not adversely impact the standard of living to which
33the older individual or individual with a disability has become
34accustomed at the time of such actions.
35Under the bill, it is not a defense that a person alleged to
-6-1have violated the bill reasonably believed the victim was not
2an older individual or an individual with a disability.
-7-pf/nh
2misappropriation of funds, and other violations relative to
3older individuals and individuals with a disability, and
4providing penalties.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 714I.1 Definitions.
2As used in this chapter, unless the context otherwise
3requires:
41. “Individual with a disability” means an individual
5with a physical, mental, or developmental disability that
6substantially impairs the individual’s ability to provide
7adequately for the individual’s own care or protection.
82. “Nursing facility” means as defined in section 135C.1.
93. “Older individual” means a person who is sixty years of
10age or older.
114. “Resident” means an older individual or an individual
12with a disability who resides in a nursing facility.
135. “Spenddown obligation” means the amount by which an
14individual’s countable income exceeds the applicable income
15standard or nonexempt resources exceed the applicable resource
16disregard in order for the individual to be eligible for the
17Medicaid program.
18 Sec. 2. NEW SECTION. 714I.2 Financial exploitation of an
19older individual or individual with a disability — penalties.
201. A person commits financial exploitation of an older
21individual or an individual with a disability when the person
22knowingly obtains control over the income or assets of an older
23individual or an individual with a disability with the intent
24to permanently deprive the older individual or individual with
25a disability of the use, benefit, or possession of the income,
26assets, or property of the older individual or individual
27with a disability, thereby benefitting such other person or
28detrimentally affecting the older individual or individual with
29a disability.
302. A person who commits financial exploitation of an older
31individual or an individual with a disability is guilty of the
32following:
33a. A simple misdemeanor if the value of the income, assets,
34or property is less than fifty dollars.
35b. A serious misdemeanor if the value of the income, assets,
-1-1or property is at least fifty dollars but less than five
2hundred dollars.
3c. An aggravated misdemeanor if the value of the income,
4assets, or property is at least five hundred dollars but less
5than one thousand dollars.
6d. A class “D” felony if the value of the income, assets, or
7property is at least one thousand dollars but less than fifty
8thousand dollars.
9e. A class “C” felony if the value of the income, assets, or
10property is at least fifty thousand dollars or more.
11 Sec. 3. NEW SECTION. 714I.3 Conversion or misappropriation
12of assets — nonpayment of Medicaid services — liability.
131. A person who assumes the responsibility of managing the
14financial affairs of an older individual or an individual with
15a disability and who willfully converts or misappropriates
16the income or assets belonging to the older individual or an
17individual with a disability which constitute the spenddown
18obligation of the individual for the purposes of meeting
19eligibility requirements under the Medicaid program, resulting
20in nonpayment of costs incurred by the individual for care
21provided by a health care provider, shall be liable to the
22health care provider for any outstanding payment of such costs.
23If such liability is established against such person by the
24health care provider, the health care provider may recover any
25reasonable attorney fees incurred.
262. A person who assumes the responsibility of managing
27the financial affairs of a resident and who fails to pay a
28nursing facility for the care provided to the resident from
29such income or assets which constitute the spenddown obligation
30of the resident for the purposes of meeting eligibility
31requirements under the Medicaid program shall be liable to the
32nursing facility for any outstanding payment of such costs.
33If such liability is established against such person, the
34nursing facility may also recover any reasonable attorney fees
35incurred.
-2- 13. For the purposes of this section, a person assumes the
2responsibility of managing the financial affairs of an older
3individual, an individual with a disability, or a resident
4when the person receives, has access to, handles, or controls
5the income or assets of the older individual, individual
6with a disability, or resident including income from any
7source including but not limited to social security, railroad
8retirement, or other sources disclosed as income contained
9in the records of the department of human services or other
10appropriate state agency.
114. a. The department of human services, or other
12appropriate agency, may release information from the agency’s
13records containing information regarding the income and assets
14of an older individual, individual with a disability, or a
15resident to the attorney general or any county attorney in
16the state for purposes of investigating or prosecuting any
17suspected violation of this section.
18b. The attorney general or the county attorney of any county
19in which an affected provider or nursing facility is located,
20who successfully prosecutes a violation of this section, may
21request of the sentencing court as a condition of the sentence
22that restitution of all amounts unlawfully withheld from the
23affected provider or nursing facility be made by the offender.
24c. Any order of restitution entered by the court or by
25agreement shall provide that ten percent of any restitution
26installment or payment paid by or on behalf of the offender
27shall be paid to the county attorney successfully prosecuting
28the violation to compensate for the cost of prosecution, and
29any remaining amount shall be paid to the affected provider or
30nursing facility up to the amount owed.
31 Sec. 4. NEW SECTION. 714I.4 Application and construction.
321. Nothing in this chapter shall be construed to limit
33the remedies otherwise available to an older individual or
34individual with a disability pursuant to any state law.
352. Nothing in this chapter shall be construed to impose
-3-1criminal liability on a person who has made a good-faith effort
2to assist an older individual or individual with a disability
3in the management of the property of the older individual or
4individual with a disability, who through no fault of such
5person is unable to provide assistance to the older individual
6or individual with a disability.
73. Nothing in this chapter shall limit the ability of an
8older individual or an individual with a disability to engage
9in bona fide estate planning, to transfer property, and to
10otherwise seek to reduce estate and inheritance taxes provided
11that such actions do not adversely impact the standard of
12living to which the older individual or individual with a
13disability has become accustomed at the time of such actions.
144. It shall not be a defense under this chapter that
15a person alleged to have violated this chapter reasonably
16believed the victim was not an older individual or an
17individual with a disability.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21This bill relates to financial exploitation, conversion
22and misappropriation of funds, and other violations relative
23to older individuals and individuals with a disability. The
24bill includes definitions of “individual with a disability”,
25“nursing facility”, “older individual”, “resident”, and
26“spenddown obligation” for the purposes of the bill.
27The bill provides criminal penalties applicable when a
28person commits financial exploitation as described in the bill
29based upon the value of the property ranging from less than $50
30(a simple misdemeanor which is punishable by confinement for no
31more than 30 days or a fine of at least $65 but not more than
32$625 or by both) to at least $50,000 (a class “C” felony which
33is punishable by confinement for no more than 10 years and a
34fine of at least $1,000 but not more than $10,000).
35The bill provides that a person who assumes the
-4-1responsibility of managing the financial affairs of an older
2individual or an individual with a disability and who willfully
3converts or misappropriates the income or assets belonging to
4the older individual or individual with a disability which
5constitute the spenddown obligation of the individual for
6the purposes of meeting eligibility requirements under the
7Medicaid program, resulting in nonpayment of costs incurred by
8the individual for care provided by a health care provider,
9shall be liable to the health care provider for any outstanding
10payment of such costs. If such liability is established, the
11provider may recover any reasonable attorney fees incurred.
12The bill also provides that a person who assumes the
13responsibility of managing the financial affairs of a resident
14of a nursing facility and who fails to pay a nursing facility
15for the care provided to the resident from such income or
16assets which constitute the spenddown obligation of the
17resident for the purposes of meeting eligibility requirements
18under the Medicaid program shall be liable to the nursing
19facility for any outstanding payment of such costs. If such
20liability is established, the nursing facility may also recover
21any reasonable attorney fees incurred.
22Under the bill, a person assumes the responsibility of
23managing the financial affairs of an older individual, an
24individual with a disability, or a resident when the person
25receives, has access to, handles, or controls the income or
26assets of the older individual, individual with a disability,
27or resident including income from any source including but
28not limited to social security, railroad retirement, or other
29sources disclosed as income contained in the records of the
30department of human services (DHS) or other appropriate state
31agency.
32The bill authorizes DHS or other appropriate agency to
33release information from the agency’s records containing
34information regarding the income and assets of the older
35individual or individual with a disability to the attorney
-5-1general or any county attorney in the state for purposes of
2investigating or prosecuting any suspected violation related
3to managing the financial affairs of an individual who is a
4recipient of Medicaid resulting in nonpayment of costs of a
5health care provider or nursing facility.
6The attorney general or the county attorney of any county
7in which an affected provider or nursing facility is located,
8who successfully prosecutes a violation of the bill, may
9request of the sentencing court as a condition of the sentence,
10that restitution of all amounts unlawfully withheld from the
11affected provider or nursing facility be made by the offender.
12Any order of restitution entered by the court or by agreement
13shall provide that 10 percent of any restitution installment
14or payment paid by or on behalf of the offender shall be paid
15to the county attorney successfully prosecuting the violation
16to compensate for the cost of prosecution, and any remaining
17amount shall be paid to the affected provider or nursing
18facility up to the amount owed.
19Nothing in the bill is to be construed to limit the remedies
20otherwise available to the older individual or individual with
21a disability pursuant to any state law; or to impose criminal
22liability on a person who has made a good-faith effort to
23assist the older individual or individual with a disability
24in the management of the property of the older individual or
25individual with a disability, who through no fault of such
26person is unable to provide assistance to the older individual
27or individual with a disability.
28Nothing in the bill is to limit the ability of an older
29individual or an individual with a disability to engage in bona
30fide estate planning, to transfer property, and to otherwise
31seek to reduce estate and inheritance taxes provided that such
32actions do not adversely impact the standard of living to which
33the older individual or individual with a disability has become
34accustomed at the time of such actions.
35Under the bill, it is not a defense that a person alleged to
-6-1have violated the bill reasonably believed the victim was not
2an older individual or an individual with a disability.
-7-pf/nh