HSB 503

This bill provides that following a review of a public assistance applicant’s or recipient’s eligibility, the department of human services (DHS) shall refer cases of suspected fraud along with any supportive information to the department of inspections and appeals for review. In cases of substantiated fraud, upon conviction, the state shall review all appropriate legal options including but not limited to removal of a recipient from other public assistance programs and garnishment of wages or state income tax refunds until DHS recovers an equal amount of benefits fraudulently claimed. _____ benefits programs. Under the bill, DHS shall adopt administrative rules to administer the Code chapter. DHS shall submit a report to the governor and the general assembly by January 15, 2024, and by January annually thereafter through January 15, 2029, detailing the impact of the measures taken under the bill. The report shall include data for all affected public assistance programs including the number of cases reviewed, the number of cases closed, the number of fraud investigation referrals made, and the amount of savings and cost avoidance realized from the provisions of the bill. DHS shall request federal approval including for any state plan amendment or waiver necessary to administer the bill, and the provisions of the bill requiring federal approval shall be implemented upon receipt of such federal approval. The provisions of the bill that do not require federal approval shall be implemented no later than July 1, 2023. DHS may contract with multiple third-party vendors to administer the bill.