HF 1996

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 02:21pm

A bill for an act
relating to human services; reducing human services appropriations due to
payment errors from the Supplemental Nutrition Assistance Program; requiring
an evaluation; proposing coding for new law in Minnesota Statutes, chapter 256.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM
PAYMENT ERRORS; LEGISLATIVE FINDINGS.
new text end

new text begin The legislature finds that:
new text end

new text begin (1) Minnesota's Supplemental Nutrition Assistance Program payment error rate,
which measures how accurately the state issues benefits to program recipients, is
unacceptably high as compared with the national average payment error rate for the
program;
new text end

new text begin (2) Minnesota has a recent history of higher than average payment error rates, as
demonstrated by a 2012 state payment error rate of 5.07 percent, compared with the
national average payment error rate of 3.42 percent; a 2011 state payment error rate of 5.02
percent, compared with the national average of 3.80 percent; and a 2010 state payment
error rate of 4.76 percent, compared with the national average of 3.81 percent; and
new text end

new text begin (3) the Department of Human Services and counties have failed to identify and
implement specific corrective actions to reduce Minnesota's payment error rate.
new text end

Sec. 2.

new text begin [256.0195] SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM
PAYMENT ERRORS; ANNUAL APPROPRIATION REDUCTION.
new text end

new text begin (a) Notwithstanding any provision of law to the contrary, base level funding from
the general fund for the Department of Human Services central office shall be reduced
each fiscal year that Minnesota's Supplemental Nutrition Assistance Program payment
error rate exceeds the national average payment error rate. The department's base level
funding shall be reduced by the percentage difference between the state payment error rate
and the national average payment error rate. If the state payment error rate is equal to or
lower than the national average payment error rate, no reduction shall occur.
new text end

new text begin (b) In implementing this section each fiscal year, the payment error rates used must
be determined by the United States Department of Agriculture, Food and Nutrition Service
and must be the most recent rates available.
new text end

Sec. 3. new text begin EVALUATION; SUPPLEMENTAL NUTRITION ASSISTANCE
PROGRAM PAYMENT ERRORS.
new text end

new text begin (a) The commissioner of human services shall contract with an independent
evaluator to:
new text end

new text begin (1) determine the extent to which Minnesota counties comply with federal standards
and recommendations to reduce payment errors made to participants in the Supplemental
Nutrition Assistance Program; and
new text end

new text begin (2) recommend corrective actions for counties to implement in order to reduce
payment errors.
new text end

new text begin (b) The independent evaluator shall submit findings and recommendations to the
commissioner and the counties by December 1, 2014. The Department of Human Services
Quality Control section shall share with the evaluator any data held by the department that
is needed for the evaluation and shall cooperate with the evaluator. The commissioner
shall fund the evaluation out of existing appropriations.
new text end

Sec. 4. new text begin APPROPRIATION DECREASE; DEPARTMENT OF HUMAN
SERVICES.
new text end

new text begin As a penalty for Minnesota's Supplemental Nutrition Assistance Program 2012
payment error rate of 5.07 percent, which exceeds the national average payment error rate
of 3.42 percent, base level funding from the general fund for the Department of Human
Services central office shall be decreased by $2,402,000 for fiscal year 2015. This decrease
shall be subtracted from the general fund base for each year of the 2016-2017 biennium.
new text end