Welfare fraud prevention.

ORIGINAL
Senate
ENGROSSED
File No
.
SF0073

ENROLLED ACT NO. 57,

SENATE

SIXTY-THIRD LEGISLATURE OF THE STATE OF WYOMING
2016 Budget Session

AN ACT relating to welfare; providing for an enhanced eligibility and identity verification process; providing for referral of cases to other agencies; requiring a report; providing definitions; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 42
‑
10
‑
101 through 42
‑
10
‑
107

are
created to read:

CHAPTER
1
0
WELFARE FRAUD PREVENTION ACT

42
‑
10
‑
1
01
.

Definitions.

(a)

As used in this chapter:

(
i
)

"Identity information" includes the name, alias, date of birth, address, social security number and other related information of an applicant for or recipient of a public welfare benefit;

(ii)

"Public welfare benefit" means as provided in W.S. 42
‑
2
‑
102(
a)(vii).

42
‑
10
‑
1
02
.

Enhanced identity authentication process.

Prior to awarding any public welfare benefit the department
may
require
an
applicant to complete an identity authentication process that confirms the applicant owns the identity presented in the application. The identity authentication process under this section shall consist of financial or personal questions related to the applicant.

The
authentication process
shall be available
for applicant interviews
in person
or

by
telephone.

42
‑
10
‑
10
3
.

Enhanced eligibility verification process.

(a)

Prior to awarding any public welfare benefit, and on a quarterly basis after any benefit is awarded, the department shall
, to the extent practicable,

determine
the following information
as it relates to
each applicant for or recipient of a public welfare benefit:

(
i
)

Earned and unearned income information m
aintained by the United States i
nternal
r
evenue
s
ervice;

(ii)

Weekly, monthly or quarterly reports of income and unemployment insurance payment information maintained by the department of workforce services;

(iii)

Income information maintained by the United States
s
ocial
s
ecurity
a
dministration;

(iv)

Immigration
status information maintained by the United States
c
itizen
ship
and
i
mmigration
s
ervices;

(v)

Death
register
information maintained by the United States
s
ocial
s
ecurity
a
dministration;

(vi)

Prisoner
information maintained by the United States
s
ocial
s
ecurity
a
dministration;

(vii)

Public housing and section 8 housing assistance payment information;

(viii)

Fleeing felon
, probation or parole violation
information
;

(ix)

Wage reporting information maintained by states contiguous to Wyoming;

(x)

Beneficiary records and earnings information maintained by the United States
s
ocial
s
ecurity
a
dministration in the beneficiary and earnings data exchange
system
;

(xi)

Earnings and pension information maintained by the United States
s
ocial
s
ecurity
a
dministration in the beneficiary earnings
exchange record system
;

(xii)

Earnings and pension information maintained by the Wyoming retirement system;

(xi
i
i)

Employment information maintained by the department of workforce services;

(xiv
)

Employment information maintained by the United States
d
epartment of
h
ealth and
h
uman
s
ervices in the national directory of new hires;

(x
v)

Supplemental security income information maintained by the United States
s
ocial
s
ecurity
a
dministration in the social security
income state data exchange system
;

(xv
i
)

Veterans' benefits information
;

(xvi
i
)

Child care services information maintained by the department;

(xvii
i
)

Utility payment information maintained by the state under the low income home energy assistance program as provided in W.S. 42
‑
2
‑
501;

(xix
)

Emergency utility payment information maintained by the state or local
governmental
entities;
and

(xx)

Income and employment information maintained by the department and the United States
d
epartment of
h
ealth and
h
uman
s
ervices
o
ffice of
c
hild
s
upport
e
nforcement
.

(b)

The department is authorized to enter into agreements with third
‑
party vendors to obtain the following information
prior to awarding any public welfare benefit, and on a quarterly basis after any benefit is awarded
:

(
i
)

Information on public welfare benefits received in other states maintained in any real time national database, including the national accuracy clearinghouse
;

(i
i
)

A nationwide public records data source of physical asset ownership including real property, automobiles, watercraft, aircraft, luxury vehicles or any other vehicle;

(ii
i
)

A nationwide public records data source of incarcerated individuals;

(iv
)

A
nationwide best available
address and driver's license data source to verify individuals are residents of Wyoming;

(v)

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

(v
i
)

National
and local financial institutions, in order to locate undisclosed depository accounts or verify account
balances of disclosed accounts.

(c)

In addition to the
records
specified in subsections (a) and (b) of this section, the department may also consider
information from
a
ny database or source which is substantially similar to or a successor of any
record,
database or information specified under this section.

42
‑
10
‑
10
4
.

Case review process.

(a)

If the department finds a discrepancy
or change in circumstances
as a result of the activities required by
W.S. 42
‑
10
‑
10
2
or 42
‑
10
‑
10
3
, the department shall review the case using the following procedures:

(
i
)

If the
discrepancy or change in circumstances
does not affect eligibility, the department shall take no further action;

(ii)

If the
discrepancy or change in circumstances
may affect eligibility, the department shall:

(A)

Promptly
make a determination of the effect of the discrepancy or change in circumstances on the
eligibility
of the applicant or recipient
;
and

(B)

P
rovide written notice to the applicant or recipient describing in detail the circumstances of the discrepancy o
r change in circumstances, the manner in which the applicant or recipient may respond and the consequences
of failing to take any action.
The department shall give the applicant or recipient an opportunity to explain the discrepancy or change in circumstances.

(iii)

The applicant or recipient shall respond within
thirty
(
3
0) business days
from the date of the
written notice of the discrepancy or change in circumstances
;

(iv
)

If an applicant or recipient does not respond to a notice of a discrepancy or change in circumstances as provided in paragraph
(ii) of this subsection
and the department determines that the
discrepancy or change in circumstances affects eligibility for a public welfare benefit, the department shall provide
a written decision
of the intent to deny
, reduce

the benefit
or close the benefit case
;

(v
)

If an applicant or recipient responds to a notice of a discrepancy or change in circumstances as provided in paragraph
(ii) of this subsection
, the department shall investigate and make a determination of whether or not the discrepancy or change in circumstances has been resolved and determine the
applicant's or recipient's eligibility for public welfare benefits.
The de
cision
of the department shall be provided to the applicant or recipient in writing;

(vi
)

A
written decision of the department under
this
s
ection
shall constitute a final decision of the department subject to judicial review as provided in W.S. 16
‑
3
‑
114.

42
‑
10
‑
10
5
.

Referral
of cases
for investigation.

(a)

After review of a discrepancy or change in c
ircumstances under W.S. 42
‑
10
‑
10
4
, if the d
epartment
finds that there is inadequate documentation or
upon reasonable suspicion
that there is
fraud, misrepresentation, identity theft or another violation of law the department shall
:

(
i
)

R
efer the case to the
fraud and recovery unit
for investigation, recovery of improper payments
and
collection of
civil penalties, if applicable
and, if appropriate, referral to prosecuting authorities for criminal prosecution
;

(ii)

R
efer the information to other agencies, divisions or departments
as appropriate
for review of eligibility in public programs.

42
‑
10
‑
10
6
.

Report.

Not later than November 30 of
2017, 2018 and 2020
the department shall report to the governor and the joint labor, health and social services interim committee on the effectiveness of the eligibility verification system and
the number of
cases
referred under W.S. 42
‑
10
‑
10
5
in
cluding information on the outcome of the cases, if available
, and on the cost to the department of the system
.

42
‑
10
‑
107
.

Rulemaking authority.

The department shall promulgate rules necessary to implement this chapter.

Section 2
.

W.S. 42
‑
2
‑
103(
b) by creating a new paragraph (xvi)
is
amended to read:

42
‑
2
‑
103
.

Provision of assistance and services; duties of department; burial assistance; state supplemental security income program.

(b)

In carrying out subsection (a) of this section and except as provided under the Wyoming Medical Assistance and Services Act, the department shall:

(xvi)

Conduct the eligibility and identity
verification proc
ess as provided in W.S. 42
‑
10
‑
101

through 42
‑
10
‑
10
7
.

Section

3
.

This
act is effective July 1,
201
6
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

1