HF 4519

as introduced - 90th Legislature (2017 - 2018) Posted on 05/20/2018 02:32am

A bill for an act
relating to human services; modifying temporary immediate license suspensions;
requiring eligibility verification; directing legislative auditor to conduct a special
investigation into child care assistance programs; requiring a report; amending
Minnesota Statutes 2016, sections 245A.07, subdivision 2; 256.98, by adding a
subdivision; Minnesota Statutes 2017 Supplement, section 256.98, subdivision 8;
proposing coding for new law in Minnesota Statutes, chapter 256.

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

Section 1.

Minnesota Statutes 2016, section 245A.07, subdivision 2, is amended to read:

Subd. 2.

Temporary immediate suspension.

(a) The commissioner shall act immediately
to temporarily suspend a license if:

(1) the license holder's actions or failure to comply with applicable law or rule, or the
actions of other individuals or conditions in the program, pose an imminent risk of harm to
the health, safety, or rights of persons served by the program; deleted text begin or
deleted text end

(2) while the program continues to operate pending an appeal of an order of revocation,
the commissioner identifies one or more subsequent violations of law or rule which may
adversely affect the health or safety of persons served by the program deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) a child care license holder fails to comply with the child care assistance fraud
investigation requirements under chapter 245E.
new text end

(b) No state funds shall be made available or be expended by any agency or department
of state, county, or municipal government for use by a license holder regulated under this
chapter while a license is under immediate suspension. A notice stating the reasons for the
immediate suspension and informing the license holder of the right to an expedited hearing
under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612, must be delivered
by personal service to the address shown on the application or the last known address of
the license holder. The license holder may appeal an order immediately suspending a license.
The appeal of an order immediately suspending a license must be made in writing by certified
mail or personal service. If mailed, the appeal must be postmarked and sent to the
commissioner within five calendar days after the license holder receives notice that the
license has been immediately suspended. If a request is made by personal service, it must
be received by the commissioner within five calendar days after the license holder received
the order. A license holder and any controlling individual shall discontinue operation of the
program upon receipt of the commissioner's order to immediately suspend the license.

Sec. 2.

new text begin [256.0113] ELIGIBILITY VERIFICATION.
new text end

new text begin Subdivision 1. new text end

new text begin Verification required; vendor contract. new text end

new text begin (a) The commissioner shall
ensure that medical assistance, MinnesotaCare, child care assistance programs under chapter
119B, and Supplemental Nutrition Assistance Program (SNAP) eligibility determinations
through the MNsure information technology system and through other agency eligibility
determination systems include the computerized verification of income, residency, identity,
and, when applicable, assets and compliance with SNAP work requirements.
new text end

new text begin (b) The commissioner shall contract with a vendor to verify the eligibility of all enrollees
of medical assistance, MinnesotaCare, child care assistance programs, and SNAP during a
specified audit period. This contract shall be exempt from sections 16C.08, subdivision 2,
clause (1); 16C.09, paragraph (a), clause (1); 43A.047, paragraph (a); and any other law to
the contrary.
new text end

new text begin (c) The contract must require the vendor to comply with enrollee data privacy
requirements and to use encryption to safeguard enrollee identity. The contract must also
provide penalties for vendor noncompliance.
new text end

new text begin (d) The contract must include a revenue-sharing agreement, under which vendor
compensation is limited to a portion of any savings to the state resulting from the vendor's
implementation of eligibility verification initiatives under this section.
new text end

new text begin (e) The commissioner shall use existing resources to fund any agency administrative
and technology-related costs incurred as a result of implementing this section.
new text end

new text begin (f) All state savings resulting from implementation of the vendor contract under this
section, minus any payments to the vendor made under the terms of the revenue sharing
agreement, shall be deposited into the health care access fund.
new text end

new text begin Subd. 2. new text end

new text begin Verification process; vendor duties. new text end

new text begin (a) The verification process implemented
by the vendor must include but is not limited to data matches of the name, date of birth,
address, and Social Security number of each medical assistance, MinnesotaCare, child care
assistance programs, and SNAP enrollee against relevant information in federal and state
data sources, including the federal data hub established under the Affordable Care Act. In
designing the verification process, the vendor, to the extent feasible, shall incorporate
procedures that are compatible and coordinated with, and build upon or improve, existing
procedures used by the MNsure information technology system and other agency eligibility
determination systems.
new text end

new text begin (b) The vendor, upon preliminary determination that an enrollee is eligible or ineligible,
shall notify the commissioner. Within 20 business days of notification, the commissioner
shall accept the preliminary determination or reject the preliminary determination with a
stated reason. The commissioner shall retain final authority over eligibility determinations.
The vendor shall keep a record of all preliminary determinations of ineligibility submitted
to the commissioner.
new text end

new text begin (c) The vendor shall recommend to the commissioner an eligibility verification process
that allows ongoing verification of enrollee eligibility under the MNsure information
technology system and other agency eligibility determination systems.
new text end

new text begin (d) An eligibility verification vendor contract shall be awarded for an initial one-year
period beginning January 1, 2019. The commissioner shall renew the contract for up to
three additional one-year periods and require additional eligibility verification audits if the
commissioner or the legislative auditor determines that the MNsure information technology
system and other agency eligibility determination systems cannot effectively verify the
eligibility of medical assistance, MinnesotaCare, child care assistance programs under
chapter 119B, and SNAP enrollees.
new text end

Sec. 3.

Minnesota Statutes 2016, section 256.98, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Unauthorized transfer. new text end

new text begin A person who violates subdivision 1 with the intent
to transfer any payments or other benefits to an individual or organization in a foreign
country whose residents are subject to travel restrictions under federal law or executive
order based on information sharing practices that have been determined to be inadequate is
guilty of a crime and may be sentenced as follows:
new text end

new text begin (1) to imprisonment for not more than 25 years or to payment of a fine of not more than
$125,000, or both if the value of the payments or benefits wrongfully obtained exceeds
$35,000;
new text end

new text begin (2) to imprisonment for not more than 15 years or to payment of a fine of not more than
$75,000, or both if the value of the payments or benefits wrongfully obtained is more than
$5,000 but not more than $35,000;
new text end

new text begin (3) to imprisonment for not more than ten years or to payment of a fine of not more than
$50,000, or both if the value of the payments or benefits wrongfully obtained is more than
$1,000 but not more than $5,000;
new text end

new text begin (4) to imprisonment for not more than five years or to payment of a fine of not more
than $15,000, or both if the value of the payments or benefits wrongfully obtained is more
than $500 but not more than $1,000; and
new text end

new text begin (5) to imprisonment for not more than two years or to payment of a fine of not more
than $5,000, or both if the value of the payments or benefits wrongfully obtained is $500
or less.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018, and applies to offenses
committed on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2017 Supplement, section 256.98, subdivision 8, is amended
to read:

Subd. 8.

Disqualification from program.

(a) Any person found to be guilty of
wrongfully obtaining assistance by a federal or state court or by an administrative hearing
determination, or waiver thereof, through a disqualification consent agreement, or as part
of any approved diversion plan under section 401.065, or any court-ordered stay which
carries with it any probationary or other conditions, in the Minnesota family investment
program and any affiliated program to include the diversionary work program and the work
participation cash benefit program, the food stamp or food support program, the general
assistance program, housing support under chapter 256I, or the Minnesota supplemental
aid program shall be disqualified from that program. In addition, any person disqualified
from the Minnesota family investment program shall also be disqualified from the food
stamp or food support program. The needs of that individual shall not be taken into
consideration in determining the grant level for that assistance unit:

(1) for one year after the first offense;

(2) for two years after the second offense; and

(3) permanently after the third or subsequent offense new text begin , or for a violation of subdivision
1a new text end .

The period of program disqualification shall begin on the date stipulated on the advance
notice of disqualification without possibility of postponement for administrative stay or
administrative hearing and shall continue through completion unless and until the findings
upon which the sanctions were imposed are reversed by a court of competent jurisdiction.
The period for which sanctions are imposed is not subject to review. The sanctions provided
under this subdivision are in addition to, and not in substitution for, any other sanctions that
may be provided for by law for the offense involved. A disqualification established through
hearing or waiver shall result in the disqualification period beginning immediately unless
the person has become otherwise ineligible for assistance. If the person is ineligible for
assistance, the disqualification period begins when the person again meets the eligibility
criteria of the program from which they were disqualified and makes application for that
program.

(b) A family receiving assistance through child care assistance programs under chapter
119B with a family member who is found to be guilty of wrongfully obtaining child care
assistance by a federal court, state court, or an administrative hearing determination or
waiver, through a disqualification consent agreement, as part of an approved diversion plan
under section 401.065, or a court-ordered stay with probationary or other conditions, is
disqualified from child care assistance programs. The disqualifications must be for periods
of one year and two years for the first and second offenses, respectively. Subsequent
violations must result in permanent disqualification. During the disqualification period,
disqualification from any child care program must extend to all child care programs and
must be immediately applied.

(c) A provider caring for children receiving assistance through child care assistance
programs under chapter 119B is disqualified from receiving payment for child care services
from the child care assistance program under chapter 119B when the provider is found to
have wrongfully obtained child care assistance by a federal court, state court, or an
administrative hearing determination or waiver under section 256.046, through a
disqualification consent agreement, as part of an approved diversion plan under section
401.065, or a court-ordered stay with probationary or other conditions. The disqualification
must be for a period of one year for the first offense and two years for the second offense.
Any subsequent violation must result in permanent disqualification. The disqualification
period must be imposed immediately after a determination is made under this paragraph.
During the disqualification period, the provider is disqualified from receiving payment from
any child care program under chapter 119B.

(d) Any person found to be guilty of wrongfully obtaining MinnesotaCare for adults
without children and upon federal approval, all categories of medical assistance and
remaining categories of MinnesotaCare, except for children through age 18, by a federal or
state court or by an administrative hearing determination, or waiver thereof, through a
disqualification consent agreement, or as part of any approved diversion plan under section
401.065, or any court-ordered stay which carries with it any probationary or other conditions,
is disqualified from that program. The period of disqualification is one year after the first
offense, two years after the second offense, and permanently after the third or subsequent
offense. The period of program disqualification shall begin on the date stipulated on the
advance notice of disqualification without possibility of postponement for administrative
stay or administrative hearing and shall continue through completion unless and until the
findings upon which the sanctions were imposed are reversed by a court of competent
jurisdiction. The period for which sanctions are imposed is not subject to review. The
sanctions provided under this subdivision are in addition to, and not in substitution for, any
other sanctions that may be provided for by law for the offense involved.

Sec. 5. new text begin DIRECTION TO LEGISLATIVE AUDITOR.
new text end

new text begin (a) The legislative auditor is requested to conduct a special investigation into the child
care assistance programs established under Minnesota Statutes, chapter 119B. The
investigation may review:
new text end

new text begin (1) county compliance with eligibility determination and redetermination requirements;
new text end

new text begin (2) child care provider compliance with documentation and other requirements;
new text end

new text begin (3) child care assistance fraud investigation provisions under Minnesota Statutes, chapter
245E; and
new text end

new text begin (4) any other compliance issues related to program operations and eligibility requirements,
as determined relevant by the legislative auditor.
new text end

new text begin (b) If conducted, a report detailing the investigation's findings, including any
recommendations for legislation to address issues raised by the findings, must be submitted
to the chairs and ranking minority members of the committees of the house of representatives
and the senate with jurisdiction over health and human services policy, health and human
services finance, and state government finance no later than February 15, 2019.
new text end

Sec. 6. new text begin DIRECTION TO COMMISSIONER; REQUIRING ELIGIBILITY
VERIFICATION AUDIT REPORT.
new text end

new text begin The commissioner and the vendor, following the conclusion of the initial contract period,
shall jointly submit an eligibility verification audit report to the chairs and ranking minority
members of the legislative committees with jurisdiction over health and human services
policy and finance. The report shall include but is not limited to information in the form of
unidentified summary data on preliminary determinations of eligibility or ineligibility
communicated by the vendor, the actions taken on those preliminary determinations by the
commissioner, and the commissioner's reasons for rejecting preliminary determinations by
the vendor. The report must also include the recommendations for ongoing verification of
enrollee eligibility required under Minnesota Statutes, section 256.0113, subdivision 2,
paragraph (c).
new text end