THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY D. WHITE, VOGEL, ERICKSON, RAFFERTY, SOLOBAY, SCARNATI, YAW, ALLOWAY, ARGALL, ORIE, BAKER, WAUGH, VANCE, GORDNER AND FOLMER, APRIL 25, 2011

REFERRED TO PUBLIC HEALTH AND WELFARE, APRIL 25, 2011  

AN ACT

Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An

act to consolidate, editorially revise, and codify the public

welfare laws of the Commonwealth," providing for fraud

detection system and for income eligibility verification

system.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of June 13, 1967 (P.L.31, No.21), known

as the Public Welfare Code, is amended by adding sections to

read:

Section 422.1.  Fraud Detection System.--Within six months of

the effective date of this section, the department shall

establish uniform procedures for each county to use to identify,

investigate and resolve potential cases of fraud,

misrepresentation or inadequate documentation prior to

determining an applicant's eligibility for assistance. The

procedures shall ensure that every case is reviewed. Each review

shall include utilization of the income eligibility verification

system established in section 432.23.

Section 432.23.  Income Eligibility Verification System.--(a)

The department shall establish a computerized income eligibility

verification system in order to verify eligibility, eliminate

duplication of assistance and deter fraud. Prior to awarding

assistance under section 432.2(b) or continuing assistance under

section 432.2(c), the department shall match the social security

number of each applicant and recipient with the following:

(1)  Unearned income information maintained by the Internal

Revenue Service.

(2)  Employer quarterly reports of income and unemployment

insurance benefit payment information maintained by the State

Wage Information Collection Agency.

(3)  Earned income information maintained by the Social

Security Administration.

(4)  Immigration status information maintained by the

Citizenship and Immigration Services.

(5)  Death register information maintained by the Social

Security Administration.

(6)  Prisoner information maintained by the Social Security

Administration.

(7)  Public housing and section 8 payment information

maintained by the Department of Housing and Urban Development.

(8)  National fleeing felon information maintained by the

Federal Bureau of Investigation.

(9)  Wage reporting and similar information maintained by

states contiguous to this Commonwealth.

(10)  Beneficiary Data Exchange (BENDEX) Title H database

maintained by the Social Security Administration.

(11)  Beneficiary Earnings Exchange Report (BEER) database

maintained by the Social Security Administration.

(12)  State New Hire database maintained by the Commonwealth.

(13)  National New Hire database maintained by the Federal

Government.

(14)  State Data Exchange (SDX) database maintained by the

Social Security Administration.

(15)  Veterans Benefits and Veterans Medical (PARIS)

maintained by the Department of Veterans Affairs with

coordination through the Department of Health and Human

Services.

(16)  Day care subsidy payments maintained by the

Commonwealth.

(17)  Low-Income Energy Assistance Program Reporting Utility

Expenses maintained by the Commonwealth.

(18)  A database which is substantially similar to or a

successor of a database set forth in this subsection.

(19)  The database of all persons who currently hold a

license, permit or certificate from a Commonwealth agency the

cost of which exceeds one thousand dollars ($1,000).

(b)  If a discrepancy results between the applicant's or a

recipient's social security number and one or more of the

databases set forth in subsection (a), the department shall

review the applicant's or recipient's case using the following

procedure:

(1)  If the information discovered under subsection (a) does

not result in ineligibility or modification of the amount or

type of assistance, the department shall take no further action.

(2)  If the information discovered under subsection (a) would

result in ineligibility or modification of the amount or type of

assistance, the applicant or the 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 ten business days to respond

in an attempt to resolve the discrepancy. The explanation of 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.

(3)  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 significant discrepancy has

been resolved.

(4)  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 database, 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 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.

(5)  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 database, 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.

(c)  In no case shall the department discontinue or modify

the amount or type of assistance as a result of a match between

the applicant's or recipient's social security number and one or

more database until the applicant or recipient has been given

notice of the discrepancy and the opportunity to respond.

(d)  No later than one year after the effective date of this

section and every year thereafter, the department shall provide

a written report to the Governor, the General Assembly and the

Inspector General detailing the results achieved under this

section and the amount of case closures and savings that

resulted.

(e)  As used in this section, the following words and phrases

shall have the meanings given to them in this subsection:

"Discrepancy" means information regarding assets, income,

resources or status of an applicant or recipient of assistance,

derived from one or more of the database in subsection (a),

which gives the department grounds to suspect that either:

(i)  an applicant or recipient is ineligible to receive

assistance under Federal or State law; or

(ii)  the assets, income or resources of an applicant or

recipient are at least, in terms of a dollar amount, ten percent

greater than the dollar amount reflected in the information the

department possesses about the applicant or recipient with

respect to the applicant's or recipient's assets, income or

resources.

"Status" means the applicant or recipient is in the United

States illegally, is no longer living, is an inmate in a prison

or jail or is a fleeing felon.

Section 2.  This act shall take effect immediately.