House File 3 - Introduced
HOUSE FILE 3
BY GRASSLEY, HOLT, GOLDING,
WHEELER, STONE, DUNWELL,
MOMMSEN, COLLINS,
GUSTOFF, FISHER, MOORE,
JENEARY, CARLSON, VONDRAN,
STOLTENBERG, WULF, SHIPLEY,
BRADLEY, SHERMAN, DEYOE,
GRABER, WILLS, RINKER, P.
THOMPSON, JOHNSON, HARRIS,
BODEN, NORDMAN, SORENSEN,
GEHLBACH, KAUFMANN,
OSMUNDSON, THOMSON, M.
THOMPSON, WOOD, HORA,
WINDSCHITL, BOSSMAN, and
GERHOLD
A BILL FOR
1 An Act relating to public assistance program integrity, making
2 appropriations, and including effective date provisions.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 DIVISION I
2 AUTHENTICATION SYSTEM FOR PUBLIC ASSISTANCE PROGRAMS
3 Section 1. NEW SECTION. 239.1 Definitions.
4 As used in this chapter, unless the context otherwise
5 requires:
6 1. “Applicant” means an individual who is applying for
7 public assistance benefits in the state.
8 2. “Asset” or “asset test” means all assets of the members
9 of the applicant’s household, including all of the following:
10 a. All bank accounts, excluding retirement accounts of
11 members of the household.
12 b. All cash, excluding the first two thousand dollars of
13 members of the household.
14 c. All lottery and gambling income of the household whether
15 received as a lump sum or installment payments.
16 d. All real estate, excluding the primary household
17 residence and surrounding lot.
18 e. All other personal property excluding personal
19 belongings, household goods, and one vehicle.
20 3. “Department” means the department of health and human
21 services.
22 4. “Public assistance” means the supplemental nutrition
23 assistance program or SNAP, the medical assistance program
24 or Medicaid program as defined in section 249A.2, the family
25 investment program as defined in section 239B.1, and the
26 children’s health insurance program.
27 5. “Real-time eligibility system” means real-time electronic
28 access to a system that allows verification of all applicable
29 public assistance program eligibility information based on the
30 most recent information available to the department through
31 nonmodeled earned and unearned income, such as commercially
32 available wage data.
33 6. “Recipient” means an individual who is receiving public
34 assistance benefits in the state.
35 7. “Supplemental nutrition assistance program” or “SNAP”
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1 means benefits provided by the federal program administered
2 through 7 C.F.R. pts. 270 – 283, as amended.
3 Sec. 2. NEW SECTION. 239.2 Identity authentication ——
4 rules.
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. 3. NEW SECTION. 239.3 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).
27 2. Prior to determining eligibility for SNAP benefits,
28 the department shall access, at a minimum, for every member
29 of the applicant’s household, the following information from
30 the following federal, state, and miscellaneous sources, or
31 successor sources:
32 a. Federal sources and information:
33 (1) Earned and unearned income information maintained by
34 the internal revenue service.
35 (2) The following sources and information maintained by the
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1 United States social security administration:
2 (a) Earned income information.
3 (b) Death register information.
4 (c) Prisoner or incarceration status information.
5 (d) Supplemental security income information maintained in
6 the state data exchange database.
7 (e) Beneficiary records and earnings information maintained
8 in the beneficiary and earnings data exchange database.
9 (f) Earnings and pension information maintained in the
10 beneficiary earnings exchange record system database.
11 (3) The following sources and information maintained by the
12 United States department of health and human services:
13 (a) Income and employment information maintained in the
14 national directory of new hires database by the office of child
15 support enforcement of the administration for children and
16 families.
17 (b) Other federal data sources maintained by the office of
18 child support enforcement of the administration for children
19 and families.
20 b. State sources and information:
21 (1) The department’s sources and information including but
22 not limited to all of the following:
23 (a) Income and employment information maintained by the
24 child support recovery unit.
25 (b) Child care assistance information maintained by the
26 department.
27 (c) Enrollment status in other public assistance programs.
28 (2) The department of workforce development sources and
29 information including all of the following:
30 (a) Employment information.
31 (b) Employer weekly, monthly, and quarterly reports of
32 income and unemployment insurance payments.
33 (3) The Iowa public employees’ retirement system for
34 earnings and pension information.
35 c. Miscellaneous sources:
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1 (1) Any existing real-time database of persons currently
2 receiving benefits in other states, such as the national
3 accuracy clearinghouse.
4 (2) Any databases maintained by the Iowa lottery
5 commission.
6 (3) Any existing real-time eligibility system that includes
7 employment and income information maintained by a consumer
8 reporting agency, as defined by the federal Fair Credit
9 Reporting Act, 15 U.S.C. §1681a, for the purpose of obtaining
10 real-time employment and income information.
11 3. Prior to determining eligibility for SNAP benefits, the
12 department shall access information for every member of the
13 applicant’s household from the following public records:
14 a. A nationwide public records data source of physical asset
15 ownership. The data source may include but is not limited to
16 real property, automobiles, watercraft, aircraft, and luxury
17 vehicles, or any other vehicle owned by the applicant.
18 b. National and state financial institutions in order
19 to locate undisclosed depository accounts or verify account
20 balances of disclosed accounts.
21 4. The department shall enter into a memorandum of
22 understanding with any department, division, bureau, section,
23 unit, or any other subunit of a department to obtain the
24 information specified in this section.
25 5. The provisions of this section shall not apply if every
26 member of the applicant’s household receives supplemental
27 security income.
28 Sec. 4. PROGRAM REPORT. The department of health and human
29 services shall submit a report to the governor and the general
30 assembly by January 15, 2025, and by January 15 annually
31 thereafter through January 15, 2030, detailing the impact of
32 the identity authentication measures taken under this division
33 of this Act.
34 DIVISION II
35 SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM AND MEDICAID PROGRAM
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1 INTEGRITY AND COOPERATION
2 Sec. 5. Section 234.1, subsection 3, Code 2023, is amended
3 by striking the subsection.
4 Sec. 6. Section 234.1, Code 2023, is amended by adding the
5 following new subsections:
6 NEW SUBSECTION. 3A. “Department” means the department of
7 health and human services.
8 NEW SUBSECTION. 5A. “Supplemental nutrition assistance
9 program” or “SNAP” means the same as defined in section 239.1.
10 Sec. 7. Section 234.12A, Code 2023, is amended to read as
11 follows:
12 234.12A Electronic benefits transfer program.
13 1. The department of human services shall maintain an
14 electronic benefits transfer program utilizing electronic funds
15 transfer systems for the food supplemental nutrition assistance
16 program. The electronic benefits transfer program implemented
17 under this section shall not require a retailer to make cash
18 disbursements or to provide, purchase, or upgrade electronic
19 funds transfer system equipment as a condition of participation
20 in the program.
21 2. A point-of-sale terminal which is used only for purchases
22 from a retailer by electronic benefits transfer utilizing
23 electronic funds transfer systems is not a satellite terminal
24 as defined in section 527.2.
25 3. For the purposes of this section, “retailer” means
26 a business authorized by the United States department of
27 agriculture to accept food supplemental nutrition assistance
28 program benefits.
29 Sec. 8. NEW SECTION. 234.12B Ensuring integrity in the
30 supplemental nutrition assistance program —— rules.
31 1. State records —— individuals. The department shall
32 receive and review all of the following information concerning
33 individuals enrolled in the supplemental nutrition assistance
34 program that indicates a change in circumstances that may
35 affect eligibility:
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1 a. Death records. On at least a monthly basis, information
2 from the department including but not limited to death records.
3 b. Employment information. On at least a quarterly basis,
4 information from the department of workforce development
5 including but not limited to changes in employment or wages.
6 c. Residency information. On at least a monthly basis,
7 information including but not limited to potential changes in
8 residency as identified by out-of-state electronic benefit
9 transfer transactions.
10 d. Incarceration information. On at least a monthly basis,
11 information from the department of corrections.
12 2. State records —— households. The department shall
13 receive and review all of the following information concerning
14 individuals in households enrolled in the supplemental
15 nutrition assistance program that indicates a change in
16 circumstances that may affect eligibility:
17 a. Tax information. On at least a quarterly basis,
18 information from the department of revenue including but not
19 limited to potential changes in income, wages, or residency as
20 identified by tax records.
21 b. Unemployment information. On at least a semi-monthly
22 basis, information from the department of workforce development
23 including but not limited to potential changes in employment,
24 income, or assets.
25 3. Federal records —— households. The department shall
26 cross-check information relating to individuals in households
27 enrolled in the supplemental nutrition assistance program with
28 federal databases including but not limited to all of the
29 following, on at least a monthly basis:
30 a. Earned income information, death register information,
31 incarceration records, supplemental security income
32 information, beneficiary records, earnings information, and
33 pension information maintained by the United States social
34 security administration.
35 b. Income and employment information maintained in the
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1 national directory of new hires database and child support
2 enforcement data maintained by the United States department of
3 health and human services.
4 c. Payment and earnings information maintained by the United
5 States department of housing and urban development.
6 d. National fleeing felon information maintained by the
7 United States federal bureau of investigation.
8 4. Rules. The department may adopt rules pursuant to
9 chapter 17A to administer this section.
10 Sec. 9. NEW SECTION. 234.12C Cooperation with child support
11 enforcement.
12 An applicant for supplemental nutrition assistance program
13 benefits shall be required to cooperate with the child support
14 recovery unit as a condition of eligibility as specified in 7
15 C.F.R. §273.11(o).
16 Sec. 10. NEW SECTION. 234.12D Required employment
17 and training for supplemental nutrition assistance program
18 eligibility.
19 The department shall not exercise the state option to
20 provide any exemptions from the employment and training
21 requirements as specified in 7 U.S.C. §2015(o)(6)(E).
22 Sec. 11. NEW SECTION. 249A.58 Ensuring integrity in the
23 medical assistance program —— recipient and applicant information
24 reviewed —— rules.
25 1. State records —— recipients. The department shall
26 receive and review all of the following information concerning
27 recipients that indicates a change in circumstances that may
28 affect eligibility:
29 a. Death records. On at least a monthly basis, information
30 from the department including but not limited to death records.
31 b. Employment information. On at least a quarterly basis,
32 information from the department of workforce development
33 including but not limited to changes in employment or wages.
34 c. Residency information. On at least a monthly basis,
35 information including but not limited to potential changes in
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1 residency as identified by out-of-state electronic benefit
2 transfer transactions.
3 d. Tax records. On at least a quarterly basis, information
4 from the department of revenue including but not limited to
5 potential changes in income, wages, or residency as identified
6 by tax records.
7 e. Unemployment information. On at least a semi-monthly
8 basis, information from the department of workforce development
9 including but not limited to potential changes in employment,
10 income, or assets.
11 2. Federal records —— recipients. The department shall
12 cross-check information relating to recipients with federal
13 databases including but not limited to all of the following, on
14 at least a monthly basis:
15 a. Earned income information, death register information,
16 incarceration records, supplemental security income
17 information, beneficiary records, earnings information, and
18 pension information maintained by the United States social
19 security administration.
20 b. Income and employment information maintained by the
21 national directory of new hires database and child support
22 enforcement data maintained by the United States department of
23 health and human services.
24 c. Payment and earnings information maintained by the United
25 States department of housing and urban development.
26 d. National fleeing felon information maintained by the
27 United States federal bureau of investigation.
28 3. Real-time record review —— applicants. Prior to
29 determining the eligibility of an applicant for Medicaid, the
30 department shall access information for ever