Senate Study Bill 1167 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF HOMELAND SECURITY AND EMERGENCY MANAGEMENT BILL) A BILL FOR An Act relating to the recovery of benefits inappropriately 1 obtained from the department of homeland security and 2 emergency management. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1403DP (4) 91 sc/ns
S.F. _____ H.F. _____ Section 1. Section 10A.108, subsection 1, Code 2025, is 1 amended to read as follows: 2 1. a. If a person refuses or neglects to repay benefits or 3 provider payments inappropriately obtained from the department 4 of health and human services or the department of homeland 5 security and emergency management , the amount inappropriately 6 obtained, including any interest, penalty, or costs attached 7 to the amount, constitutes a debt and is a lien in favor of the 8 state upon all property and any rights or title to or interest 9 in property, whether real or personal, belonging to the person 10 for the period established in subsection 2 , with the exception 11 of property which is exempt from execution pursuant to chapter 12 627 . 13 b. A lien under this section shall not attach to any amount 14 of inappropriately obtained benefits or provider payments, or 15 portions of the benefits or provider payments, attributable 16 to errors by the department of health and human services or 17 the department of homeland security and emergency management, 18 as applicable . Liens shall only attach to the amounts of 19 inappropriately obtained benefits or provider payments or 20 portions of the benefits or provider payments which were 21 obtained due to false, misleading, incomplete, or inaccurate 22 information submitted by a person in connection with the 23 application for or receipt of benefits or provider payments. 24 Sec. 2. Section 10A.108, subsection 4, unnumbered paragraph 25 1, Code 2025, is amended to read as follows: 26 The county recorder of each county shall prepare and 27 maintain in the recorders office an index of liens of 28 debts established based upon benefits or provider payments 29 inappropriately obtained from and owed the department of 30 health and human services or the department of homeland 31 security and emergency management , containing the applicable 32 entries specified in sections 558.49 and 558.52 , and providing 33 appropriate columns for all of the following data, under the 34 names of debtors, arranged alphabetically: 35 -1- LSB 1403DP (4) 91 sc/ns 1/ 3
S.F. _____ H.F. _____ Sec. 3. Section 10A.108, subsection 4, paragraph b, Code 1 2025, is amended to read as follows: 2 b. State of Iowa, Department of Health and Human Services 3 or State of Iowa, Department of Homeland Security and 4 Emergency Management as claimant , as applicable . 5 Sec. 4. Section 10A.108, subsection 8, Code 2025, is amended 6 to read as follows: 7 8. The department of inspections, appeals, and licensing, 8 as provided in this chapter and chapter 626 , shall proceed 9 to collect all debts owed the department of health and human 10 services and the department of homeland security and emergency 11 management as soon as practicable after the debt becomes 12 delinquent. If service has not been made on a distress warrant 13 by the officer to whom addressed within five days from the 14 date the distress warrant was received by the officer, the 15 authorized investigators of the department of inspections, 16 appeals, and licensing may serve and make return of the warrant 17 to the clerk of the district court of the county named in the 18 distress warrant, and all subsequent procedures shall be in 19 compliance with chapter 626 . 20 Sec. 5. NEW SECTION . 29C.26 Referrals fraud benefits 21 inappropriately obtained. 22 1. Following a review of an applicants or recipients 23 eligibility to receive moneys under section 29C.20A or 29C.20B, 24 the department may refer cases of suspected fraud along with 25 any supportive information to the department of inspections, 26 appeals, and licensing for review. 27 2. In cases of substantiated fraud, upon conviction, the 28 state shall review all appropriate legal options including 29 but not limited to removal of a recipient from other public 30 assistance programs and garnishment of wages or state income 31 tax refunds until the department recovers an amount equal to 32 the benefits fraudulently claimed. 33 3. The department may refer suspected cases of fraud, 34 misrepresentation, or inadequate documentation relating 35 -2- LSB 1403DP (4) 91 sc/ns 2/ 3
S.F. _____ H.F. _____ to initial or continued eligibility, or suspected cases 1 of benefits being otherwise inappropriately obtained, to 2 appropriate state entities for review of such issues in other 3 programs providing public benefits. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanations substance by the members of the general assembly. 7 Under current law, the department of inspections, appeals, 8 and licensing (DIAL) has the authority to collect payments 9 inappropriately obtained from the department of health and 10 human services. This bill expands those provisions to allow 11 DIAL to collect payments inappropriately obtained from the 12 department of homeland security and emergency management 13 (HSEM). 14 The bill makes benefits obtained through false, misleading, 15 incomplete, or inaccurate information given to HSEM a lien in 16 favor of the state upon a persons property and requires county 17 recorders to prepare and maintain in the recorders office 18 an index of liens owed to HSEM. The bill requires DIAL to 19 collect delinquent debts owed HSEM as soon as practicable. By 20 operation of law, the associated provisions relating to lien 21 attachment, length, preservation, and satisfaction, payment 22 of recording fees by DIAL, distress warrants, and action by 23 the attorney general apply to the inappropriately obtained 24 HSEM benefits. HSEM may refer cases of suspected fraud from 25 the disaster aid individual assistance grant program and the 26 disaster case advocacy grant program to DIAL or other state 27 entities for review. If a person is convicted of fraud, the 28 state must review all legal options until HSEM recovers an 29 amount equal to the benefits fraudulently claimed. HSEM may 30 also refer suspected cases of impropriety in other programs to 31 the appropriate state entity. 32 -3- LSB 1403DP (4) 91 sc/ns 3/ 3