EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1402*
HOUSE BILL 1402
J1, O1, P1 5lr3309
By: Delegates Grammer, Arikan, Beauchamp, Chisholm, Fisher, M. Morgan,
Nawrocki, and Szeliga
Introduced and read first time: February 7, 2025
Assigned to: Appropriations and Health and Government Operations
A BILL ENTITLED
AN ACT concerning 1
Maryland Department of Health and Department of Human Services – Public 2
Benefits – Prevention of Waste, Fraud, and Abuse 3
FOR the purpose of requiring the Maryland Department of Health and the Department of 4
Human Services to enter into certain data–sharing agreements with certain agencies 5
to conduct certain reviews related to eligibility for and use of certain public benefits; 6
requiring the Maryland Department of Health to seek approval for a certain waiver 7
to impose a certain lockout period on certain individuals who fail to report a change 8
in eligibility for the Maryland Medical Assistance Program; requiring the 9
Department of Human Services, in consultation with law enforcement agencies, to 10
conduct annual inspections of certain retail facilities; and generally relating to the 11
review of public assistance programs. 12
BY repealing and reenacting, without amendments, 13
Article – Health – General 14
Section 15–101(a), (h), and (i) 15
Annotated Code of Maryland 16
(2023 Replacement Volume and 2024 Supplement) 17
BY adding to 18
Article – Health – General 19
Section 15–123.1 20
Annotated Code of Maryland 21
(2023 Replacement Volume and 2024 Supplement) 22
BY repealing and reenacting, with amendments, 23
Article – Human Services 24
Section 5–501 25
Annotated Code of Maryland 26
(2019 Replacement Volume and 2024 Supplement) 27 2 HOUSE BILL 1402
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Health – General 3
15–101. 4
(a) In this title the following words have the meanings indicated. 5
(h) “Program” means the Maryland Medical Assistance Program. 6
(i) “Program recipient” means an individual who receives benefits under the 7
Program. 8
15–123.1. 9
(A) THE DEPARTMENT SHALL ESTABLISH MEMORANDUM S OF 10
UNDERSTANDING WITH F EDERAL AND STATE AGENCIES TO FAC ILITATE 11
DATA–SHARING IN ORDER TO CONDUCT: 12
(1) MONTHLY DEATH RECORD REVIEWS, USING THE VITAL 13
STATISTICS ADMINISTRATION DATABA SE TO IDENTIFY DECEA SED INDIVIDUALS 14
WHO ARE PROGRAM RECIPIENTS; 15
(2) QUARTERLY REVIEWS , IN CONSULTATION WITH THE MARYLAND 16
DEPARTMENT OF LABOR, TO DETERMINE THE EFFECT OF EMPLOYMENT OR WAGE 17
CHANGES ON THE CONTINUING EL IGIBILITY OF PROGRAM RECIPIENTS ; 18
(3) QUARTERLY REVIEWS OF TAX FILINGS FROM THE COMPTROLLE R 19
TO VERIFY INCOME AND RESIDENCY CHANGES OF PROGRAM RECIPIENTS ; 20
(4) NOTWITHSTANDING § 15–113 OF THIS SUBTITLE, MONTHLY 21
REVIEWS OF INCARCERATED INDIVIDUALS, IN CONSULTATION WITH THE 22
DEPARTMENT OF PUBLIC SAFETY AND CORRECTIONAL SERVICES, TO ENSURE 23
THAT INCARCERATED INDIVID UALS ARE NOT RECEIVING BENEFITS U NDER THE 24
PROGRAM; AND 25
(5) TWICE MONTHLY REVIEWS OF UNEMPLOYMENT INSURAN CE 26
BENEFITS RECORDS, IN CONSULTATION WITH THE MARYLAND DEPARTMENT OF 27
LABOR, TO VERIFY CHANGES IN EMPLOYMENT OR INCOME THAT MIGHT AFFECT TH E 28
CONTINUING ELIGIBILITY OF PROGRAM RECIPIENTS USING: 29
(I) SOCIAL SECURITY ADMINISTRATION EARNIN GS AND DEATH 30
RECORDS; 31 HOUSE BILL 1402 3
(II) U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 1
NATIONAL DIRECTORY OF NEW HIRES; 2
(III) U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 3
CHILD SUPPORT ENFORC EMENT RECORDS ; 4
(IV) U.S. DEPARTMENT OF HOUSING AND URBAN 5
DEVELOPMENT PAYMENT A ND EARNINGS DATA ; AND 6
(V) FEDERAL BUREAU OF INVESTIGATION NATIONAL INSTANT 7
CRIMINAL BACKGROUND CHECK SYSTEM RECORDS OF FUG ITIVES FROM JUSTICE . 8
(B) WHEN DETERMINING PROGRAM ELIGIBILITY , THE DEPARTMENT MAY 9
NOT ACCEPT SELF –ATTESTATION OF INCOM E, RESIDENCY, HOUSEHOLD 10
COMPOSITION , OR OTHER ELIGIBILITY FACTORS, UNLESS REQUIRED BY F EDERAL 11
LAW. 12
(C) THE DEPARTMENT SHALL SEEK APPROVAL FROM THE CENTERS FOR 13
MEDICARE AND MEDICAID SERVICES FOR A § 1115 WAIVER TO IMPOSE A 6–MONTH 14
LOCKOUT PERIOD FOR A PROGRAM RECIPIENT WHO: 15
(1) IS AT LEAST 19 YEARS OLD AND UNDER THE AGE OF 65 YEARS; 16
(2) FAILS TO REPORT A CHA NGE IN ELIGIBILITY; AND 17
(3) IS NOT: 18
(I) DESIGNATED AS DISABLED BY A GOVERN MENT ENTITY; OR 19
(II) PREGNANT. 20
(D) THE DEPARTMENT AND THE STATE LOTTERY AND GAMING CONTROL 21
AGENCY SHALL ENTER INTO AN AGREEMENT TO IDEN TIFY THE NAME S OF EACH 22
PROGRAM RECIPIENT WHO HAS WON A PRIZE O F $3,000 OR MORE. 23
(E) THE DEPARTMENT SHALL PUBL ISH ON ITS WEBSITE QUARTERLY 24
REPORTS ON INVESTIGA TIONS AND COMPLIANCE FINDINGS RELATING TO PROGRAM 25
FRAUD, INCLUDING: 26
(1) THE NUMBER OF CASES INVES TIGATED; 27
(2) THE NUMBER OF CASES REFERRED FO R PROSECUTION ; AND 28 4 HOUSE BILL 1402
(3) THE PERCENTAGE OF INELIGIBLE PROGRAM RECIPIENTS 1
IDENTIFIED. 2
(F) THE DEPARTMENT SHALL ADOPT REGULATIONS TO CARRY OUT THIS 3
SECTION. 4
Article – Human Services 5
5–501. 6
(a) (1) The Department may implement a Supplemental Nutrition Assistance 7
Program in accordance with the federal Supplemental Nutrition Assistance Program. 8
(2) The Supplemental Nutrition Assistance Program shall include: 9
(i) a Restaurant Meals Program in accordance with § 5–505 of this 10
subtitle; and 11
(ii) a Heat and Eat Program in accordance with § 5–506 of this 12
subtitle. 13
(b) The State shall bear the nonfederal portion of the administrative costs of the 14
Supplemental Nutrition Assistance Program for each county. 15
(c) Each local department shall administer the Supplemental Nutrition 16
Assistance Program: 17
(1) under the supervision and control of the Department; and 18
(2) in accordance with the regulations of the Department and federal law. 19
(d) If a household includes an individual who is at least 60 years old and receives 20
a federally funded benefit in an amount less than $50 per month under the Supplemental 21
Nutrition Assistance Program, the State shall provide a supplement to increase the total 22
benefit to $50 per month. 23
(E) (1) IN THIS SUBSECTION , “PUBLIC ASSISTANCE” MEANS BENEFITS 24
PROVIDED UNDER THE SUPPLEMEN TAL NUTRITION ASSISTANCE PROGRAM. 25
(2) THE DEPARTMENT SHALL ESTA BLISH MEMORANDUMS OF 26
UNDERSTANDING WITH F EDERAL AND STATE AGENCIES TO FAC ILITATE 27
DATA–SHARING IN ORDER TO CONDUCT: 28
HOUSE BILL 1402 5
(I) MONTHLY DEATH RECORD REVIEWS USING THE VITAL 1
STATISTICS ADMINISTRATION DATABA SE TO IDENTIFY DECEA SED INDIVIDUALS 2
RECEIVING PUBLIC ASSISTANCE ; 3
(II) QUARTERLY REVIEWS, IN CONSULTATION WITH THE 4
MARYLAND DEPARTMENT OF LABOR, TO DETERMINE THE EFF ECT OF EMPLOYMENT 5
OR WAGE CHANGES OF HOUSEHOLDS RECEIVING PUBLIC ASSISTANCE ; 6
(III) MONTHLY REVIEWS OF OUT –OF–STATE ELECTRONIC 7
BENEFITS TRANSFER CARD TRANSACTIONS TO VERIFY THAT INDIVIDUALS 8
RECEIVING PUBLIC ASSISTANCE RESIDE IN THE STATE; 9
(IV) QUARTERLY REVIEWS OF TAX FILIN GS FROM THE 10
COMPTROLLER TO IDENTIFY INCOME CHANGES OF HOUSEHOLDS RECEIVING 11
PUBLIC ASSISTANCE ; 12
(V) MONTHLY REVIEWS OF INCARCERA TED INDIVIDUALS , IN 13
CONSULTATION WITH TH E DEPARTMENT OF PUBLIC SAFETY AND CORRECTIONAL 14
SERVICES, TO ENSURE THAT INCAR CERATED INDIVIDUALS ARE NOT RECEIVING 15
PUBLIC ASSISTANCE ; AND 16
(VI) TWICE MONTHLY REVIEWS OF UNEMPLOYMENT INSU RANCE 17
BENEFITS, IN CONSULTATION WITH THE MARYLAND DEPARTMENT OF LABOR, TO 18
VERIFY CHANGES IN EM PLOYMENT OR INCOME E LIGIBILITY OF A HOUSEHOLD 19
RECEIVING PUBLIC ASS ISTANCE USING THE FOLLOWING : 20
1. SOCIAL SECURITY ADMINISTRATION EARNIN GS AND 21
DEATH RECORDS ; 22
2. U.S. DEPARTMENT OF HEALTH AND HUMAN 23
SERVICES NATIONAL DIRECTORY OF NEW HIRES; 24
3. U.S. DEPARTMENT OF HEALTH AND HUMAN 25
SERVICES CHILD SUPPOR T ENFORCEMENT RECORD S; 26
4. U.S. DEPARTMENT OF HOUSING AND URBAN 27
DEVELOPMENT PAYMENT A ND EARNINGS DATA ; AND 28
5. FEDERAL BUREAU OF INVESTIGATION NATIONAL 29
INSTANT CRIMINAL BACKGROUND CHECK SYSTEM RECORDS OF FUG ITIVES FROM 30
JUSTICE. 31
6 HOUSE BILL 1402
(3) (I) WHEN DETERMINING ELIG IBILITY FOR PUBLIC 1
ASSISTANCE, THE DEPARTMENT MAY NOT APPLY CATEGORICAL EL IGIBILITY UNDER 2
7 U.S.C. § 2014(A), UNLESS REQUIRED BY F EDERAL LAW. 3
(II) WHEN DETERMINING ELIGIBIL ITY FOR PUBLIC 4
ASSISTANCE, THE DEPARTMENT MAY NOT APPLY A HIGHER GROSS INCOME 5
ELIGIBILITY STANDARD THAN THE GR OSS INCOME ELIGIBILI TY UNDER 7 U.S.C. § 6
2014(C), UNLESS REQUIRED BY F EDERAL LAW. 7
(4) A HOUSEHOLD ELIGIBLE T O RECEIVE PUBLIC ASSISTANCE UNDER 8
FEDERAL AND STATE LAW SHALL REPOR T A CHANGE IN CIRCUM STANCES 9
AFFECTING ELIGIBILIT Y WITHIN 10 DAYS AFTER THE CHANGE OCC URRED, IN 10
ACCORDANCE WITH 7 C.F.R. § 273.12(A)(1). 11
(5) THE DEPARTMENT , IN CONSULTATION WITH LAW ENFORCEMENT 12
AGENCIES, SHALL CONDUCT ANNUAL ON–SITE INSPECTIONS OF RETAIL FACILITIES 13
ACCEPTING ELECTRONIC BENEFITS TRANSFER CARD TRANSACTIONS TO IDEN TIFY 14
POTENTIAL FRAUD . 15
(6) (I) THE DEPARTMENT AND THE STATE LOTTERY AND GAMING 16
CONTROL AGENCY SHALL ENTER INTO AN AGREEMENT TO IDENTIFY THE NAMES O F 17
EACH PUBLIC ASSISTANCE RECIPIENT WHO HAS WO N A PRIZE OF $3,000 OR MORE. 18
(II) THE DEPARTMENT SHALL INVE STIGATE WHETHER A 19
HOUSEHOLD EXCEEDS RE SOURCE ELIGIBILITY U NDER 7 C.F.R. § 273.8(B). 20
(7) THE DEPARTMENT SHALL PUBL ISH ON ITS WEBSITE QUARTERLY 21
REPORTS ON INVESTIGA TIONS AND COMPLIANCE FINDINGS RELATING TO 22
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM FRAUD , INCLUDING: 23
(I) THE NUMBER OF HOUSEH OLDS INVESTIGATED ; 24
(II) THE NUMBER OF INDIVI DUALS REFERRED FOR 25
PROSECUTION ; 26
(III) THE TOTAL NUMBER AND AMOUNT OF IMPROPER P AYMENTS 27
RECOVERED ; 28
(IV) THE PERCENTAGE OF IN ELIGIBLE RECIPIENTS IDENTIFIED; 29
AND 30
(V) THE TOTAL EXPENDITUR E OF FUNDS ON OUT –OF–STATE 31
ELECTRONIC BENEFITS TRANSFER CARD TRANSAC TIONS. 32 HOUSE BILL 1402 7
(8) THE DEPARTMENT SHAL L ADOPT REGULATIONS TO CARRY OUT 1
THIS SECTION. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
1, 2025. 4