Bill Text - HB1658 (2012)

(New Title) establishing an income and identity verification system for public assistance recipients; relative to the department of health and human services payment of residential care services; and relative to implementation of the Sean William Corey pilot program.


Revision: March 29, 2012, midnight

HB 1658-FN – AS AMENDED BY THE HOUSE

28Mar2012… 1376h

2012 SESSION

12-2795

05/09

HOUSE BILL 1658-FN

AN ACT establishing an income and identity verification system for public assistance recipients; relative to the department of health and human services payment of residential care services; and relative to implementation of the Sean William Corey pilot program.

SPONSORS: Rep. Kurk, Hills 7

COMMITTEE: Finance

AMENDED ANALYSIS

This bill:

I. Establishes an income and identity verification system for public assistance recipients.

II. Makes funds available to the department of health and human services for payment of certain residential care providers.

III. Directs the department of health and human services to implement the Sean William Corey pilot program, a previously enacted program to provide home health aide services for medically fragile children.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

28Mar2012… 1376h

12-2795

05/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT establishing an income and identity verification system for public assistance recipients; relative to the department of health and human services payment of residential care services; and relative to implementation of the Sean William Corey pilot program.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Section; Income and Identity Verification System. Amend RSA 167 by inserting after section 4-b the following new section:

167:4-c Income and Identity Verification System.

I. The department shall establish uniform procedures to identify, investigate, and resolve potential cases of fraud, misrepresentation, or inadequate documentation prior to determining an applicant’s eligibility for assistance under this chapter and RSA 161. The procedures shall ensure that every case is reviewed. Each review shall include utilization of the income and identity verification system established under this section.

II. The department shall establish a computerized income and identity eligibility verification system in order to verify eligibility, eliminate duplication of assistance, and deter fraud.

III. Prior to awarding or continuing assistance under this chapter or RSA 161, the department shall, to the extent such data bases are available to the department, match the name, date of birth, and social security number of each applicant and recipient against the following:

(a) Unearned income information maintained by the Internal Revenue Service.

(b) Employer quarterly reports of income and unemployment insurance payment information maintained by the department of employment security.

(c) Earned income information maintained by the Social Security Administration.

(d) Immigration status information maintained by the United States Citizenship and Immigration Services.

(e) Death register information maintained by the Social Security Administration.

(f) Prisoner information maintained by the Social Security Administration.

(g) Public housing and Section 8 Housing Assistance payment information maintained by the Department of Housing and Urban Development.

(h) National fleeing felon information maintained by the Federal Bureau of Investigation.

(i) Wage reporting and similar information maintained by states contiguous to this state.

(j) Beneficiary records and earnings information maintained by the Social Security Administration in its Beneficiary and Earnings Data Exchange (BENDEX) database.

(k) Earnings and pension information maintained by the Social Security Administration in its Beneficiary Earnings Exchange Record System (BEERS) database.

(l) Employment information maintained by the department of employment security in its new hire directory database.

(m) Employment information maintained by the United States Department of Health and Human Services in its National Directory of New Hires database.

(n) Supplemental Security Income information maintained by the Social Security Administration in its State Data Exchange (SDX) database.

(o) Veterans’ benefits information maintained by the United States Department of Health and Human Services, in coordination with the Department of Health and Human Services and the Department of Veterans’ Affairs, in the federal Public Assistance Reporting Information System (PARIS) database.

(p) Child care services information maintained by the department of health and human services under its child care assistance program.

(q) Utility payments information maintained by the office of energy and planning under the fuel assistance program.

(r) A database which is substantially similar to or a successor of a database established in this section.

(s) A database of all persons who currently hold a license, permit, or certificate from a state agency.

IV. Prior to awarding or continuing assistance under this chapter or RSA 161, the department shall match the name, date of birth, and social security number of each applicant and recipient against the following public records:

(a) A nationwide public records data source of physical asset ownership such as real property, automobiles, watercraft, aircraft and luxury vehicles.

(b) A nationwide public records data source of incarcerated individuals.

(c) A nationwide best-address and driver's license data source to verify individuals are residents of the state.

(d) A comprehensive public records database that identifies potential identity fraud or identity theft that can closely associate name, social security number, date of birth, phone and address information.

V. If a discrepancy results between an applicant’s or recipient’s social security number and one or more of the databases or information tools listed under paragraph II, III, or IV, the department shall review the applicant’s or recipient’s case using the following procedures:

(a) If the information discovered under paragraph III and IV does not result in the department finding the applicant or recipient ineligible for assistance under this section, the department shall take no further action.

(b) If the information discovered results in the department finding the applicant or recipient ineligible for assistance, the applicant or recipient shall be given an opportunity to explain the discrepancy. The department shall provide written notice to the applicant or recipient which shall describe in sufficient detail the circumstances of the discrepancy, the manner in which the applicant or recipient may respond, and the consequences of failing to take action. The applicant or recipient shall have 10 business days to respond in an attempt to resolve the discrepancy. The explanation provided by the recipient or applicant shall be given in writing. After receiving the explanation, the department may request additional documentation if it determines that there is a substantial risk of fraud.

(c) If the applicant or recipient does not respond to the notice, the department shall deny assistance for failure to cooperate, in which case the department shall provide notice of intent to discontinue assistance. Eligibility for assistance shall not be reestablished until the discrepancy has been resolved.

(d) If an applicant or recipient responds to the notice and disagrees with the findings of the match between his or her social security number and one or more databases or information tools listed under this section, the department shall reinvestigate the matter. If the department finds that there has been an error, the department shall take immediate action to correct it and no further action shall be taken. If, after an investigation, the department determines that there is no error, the department shall determine the effect on the applicant’s or recipient’s case and take appropriate action. Written notice of the department’s action shall be given to the applicant or recipient.

(e) If the applicant or recipient agrees with the findings of the match between the applicant’s or recipient’s social security number and one or more databases or information tools listed under this section, the department shall determine the effect on the applicant’s or recipient’s case and take appropriate action. Written notice of the department’s action shall be given to the applicant or recipient. In no case shall the department discontinue medical assistance coverage as a result of a match between the applicant’s or recipient’s social security number and one more databases or information tools listed under this section until the applicant or recipient has been given notice of the discrepancy and the opportunity to respond.

(f) The applicant or recipient have an opportunity for a fair hearing in the event of any adverse action affecting eligibility for assistance under this chapter or RSA 161.

VI. The department may contract with third party entities to perform the review of such enrollees as authorized under this section or to provide information to facilitate such reviews.

VII. The department shall, pursuant to RSA 541-A, adopt any rules necessary to implement this section.

2 Department of Health and Human Services; Residential Childcare Services. From sums already appropriated to the department of health and human services, a sum of up to $3,925,000 for the fiscal year ending June 30, 2013 shall be made available for the purpose of paying certain residential care providers pursuant to the supreme court order in Chase Home for Children and another v. New Hampshire Division for Children, Youth and Families, No. 2010-548, 162 N.H. 720 (2011) and in accordance with RSA 491:8. Of the amount made available, up to $2,600,000 shall be from the state general fund savings realized pursuant to section 1 and up to $1,325,000 shall be from federal funds.

3 Department of Heath and Human Services; Sean William Corey Program. The department of health and human services shall implement, as soon as practicable, the Sean William Corey pilot program established in 2011, 224:298. The program shall be funded within existing appropriations to the department of health and human services.

4 Effective Date.

I. Sections 1 and 2 of this act shall take effect 6 months after its passage.

II. The remainder of this act shall take effect upon its passage.

LBAO

12-2795

12/23/11

HB 1658-FN - FISCAL NOTE

AN ACT establishing an income and identity verification system for public assistance recipients; relative to the department of health and human services payment of residential care services; and relative to implementation of the Sean William Corey pilot program.

FISCAL IMPACT:

    The Department of Health and Human Services states this bill will increase state expenditures by $167,810 and decrease state revenue by $15,138 in FY 2013. State expenditures will decrease by $64,380 and state revenue will decrease by $30,276 in FY 2014 and each year thereafter. The Department and the New Hampshire Municipal Association state this bill will have an indeterminable fiscal impact on local revenue and expenditures. There will be no fiscal impact on county revenue or expenditures.

METHODOLOGY:

    The Department of Health and Human Services states this bill would disallow an increase to Temporary Assistance to Needy Families (TANF) financial assistance when the increase would be due to the birth of a child. The bill would not apply to cases where the child is born fewer than 10 months after the family applies for and receives assistance, or in cases of rape or incest.

    The Department estimated the fiscal impact of this bill based on upon the following assumptions:

      • There were a total of 219 cash assistance cases with births during fiscal year 2011. 74 of the births occurred over 10 months after the assistance case was opened. The remainder, or 145 births, would not be affected by this bill.

      • Of the 74 births, 38 were to New Hampshire Employment Program (NHEP) participants, 14 were to Interim Disable Parent Program (IDP) participants, and 22 were to Family Assistance Program (FAP) participants.

      • The funding sources for the NHEP and FAP programs are 44% federal funds, 14% child support collections, and 42% state general funds. The IDP program is funded 100% with state general funds.

      • The Department assumes the birth rate and program participation would be the same in future years and the average births per month would be 6 (74 per year/ 12 months).

      • The average monthly increase in assistance attributable to a birth is $72.50.

      • One-time changes to the eligibility management system would be necessary at a cost of $200,000.

      • The TANF block grant requires the state to meet a Maintenance of Effort (MOE) level of spending. State funds reduced in one area would be used to satisfy the MOE in other areas.

      • Families who cannot meet their basic financial needs through cash assistance offered by the state TANF program may seek additional support for housing and food from local welfare offices.

      • The legislation would be effective January 1, 2013.

 

FY 2013 - 1/2 year

FY 2014

FY 2015

FY 2016

New Hampshire Employment Program

       

38 cases x $72.50 monthly grant X # of months (6 months in FY 2013)

($16,530)

($33,060)

($33,060)

($33,060)

Federal Funds 44%

($7,273)

($14,546)

($14,546)

($14,546)

Other Revenue - Child Support Collections 14%

($2,314)

($4,628)

($4,628)

($4,628)

General Funds

($6,943)

($13,886)

($13,886)

($13,886)

         

Family Assistance Program

       

22 cases x $72.50 monthly grant X # of months (6 months in FY 2013)

($9,570)

($19,140)

($19,140)

($19,140)

Federal Funds 44%

($4,211)

($8,422)

($8,422)

($8,422)

Other Revenue - Child Support Collections 14%

($1,340)

($2,680)

($2,680)

($2,680)

General Funds

($4,019)

($8,038)

($8,038)

($8,038)

         

Interim Disabled Parent Program

       

14 cases x $72.50 monthly grant X # of months (6 months in FY 2013) - All General Funds

($6,090)

($12,180)

($12,180)

($12,180)

         

Federal Revenue

($11,484)

($22,968)

($22,968)

($22,968)

Other Revenue - Child Support Collections

($3,654)

($7,308)

($7,308)

($7,308)

Total Revenue

($15,138)

($30,276)

($30,276)

($30,276)

         

Expenditures

($32,190)

($64,380)

($64,380)

($64,380)

Eligibility Management System Changes (one-time)

$200,000

$0

$0

$0

Total Expenditures

$167,810

($64,380)

($64,380)

($64,380)

         

Net State Impact Cost / (Savings)

$182,948

($34,104)

($34,104)

($34,104)

    The New Hampshire Municipal Association states this bill may result in additional costs to municipal welfare programs, but is not able to determine the fiscal impact.

None