Amendment #1577 to H.5500

Amendment #1577 to H5500

An Act relative to eliminating waste, fraud, and abuse in welfare programs

Mr. Lombardo of Billerica moves to amend the bill by inserting after section [XX] the following sections:-

SECTION XX.

Chapter 18 of the General Laws is hereby amended by inserting after section 1 the following section:-

Section 1A. As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Department”, the department of transitional assistance.

“EBT”, electronic benefit transfer system used for the delivery of public assistance benefits.

“Improper payment”, any payment that should not have been made or that was made in an incorrect amount, including overpayments, payments to ineligible recipients, or payments resulting from fraud or administrative error.

“Fraud”, an intentional act of deception made for the purpose of receiving unauthorized public assistance benefits.

SECTION XX.

Said chapter 18 is hereby further amended by inserting after section 33 the following section:-

Section 34. EBT Fraud Prevention and Modernization.

(a) The department shall implement enhanced fraud prevention measures within the electronic benefit transfer system, including but not limited to:

(i) issuance of EBT cards equipped with chip-enabled security technology;

(ii) inclusion of a photograph of the authorized recipient on the face of each EBT card issued by the department;

(iii) utilization of real-time transaction monitoring systems capable of identifying suspicious or anomalous activity patterns;

(iv) the ability to temporarily suspend transactions upon detection of suspected fraudulent activity, consistent with federal law;

(v) use of transaction-pattern analysis, including geolocation indicators where permissible under federal law, to identify unusual or high-risk usage.

(b) The department shall promulgate regulations to prevent bulk or high-frequency out-of-state transactions inconsistent with normal recipient use.

(i) the photograph requirement shall not restrict the ability of authorized household members or designated representatives to utilize benefits in accordance with federal law;

(ii) clear guidance is provided to retailers that benefits may be used by any authorized household member regardless of whether such individual’s photograph appears on the card;

(iii) procedures are established to accommodate individuals unable to be photographed due to disability, religious objection, or other good cause;

(iv) implementation complies with all applicable federal laws and regulations governing the supplemental nutrition assistance program.

(d) All measures implemented pursuant to this section shall comply with applicable federal law and protect recipient privacy.

SECTION XX.

Said chapter 18 is hereby further amended by inserting after section 34 the following section:-

Section 35. Interstate Eligibility Verification.

(a) The department shall participate in an interstate data matching system for the purpose of preventing duplicate enrollment in public assistance programs across multiple states.

(b) Such system shall:

(i) identify individuals receiving benefits in more than one state;

(ii) flag duplicate or conflicting eligibility records;

(iii) provide timely alerts to the department for further review.

(i) initiate a review within 30 days;

(ii) take appropriate action consistent with federal law, including suspension of benefits where fraud is reasonably suspected;

(iii) coordinate with other states to resolve eligibility conflicts.

(d) The department may enter into agreements or compacts with other states or federal agencies to carry out the purposes of this section.

SECTION XX.

Chapter 11 of the General Laws is hereby amended by inserting after section 12P the following section:-

Section 12Q. Public Assistance Program Audits.

(a) The state auditor shall conduct an annual audit of the following programs:

(i) supplemental nutrition assistance program (SNAP);

(ii) transitional aid to families with dependent children (TAFDC);

(iii) emergency housing assistance programs;

(iv) any other program administered by the department of transitional assistance as determined by the auditor.

(b) Each audit shall include:

(i) measurement of improper payment rates;

(ii) evaluation of eligibility verification procedures;

(iii) identification of fraud vulnerabilities;

(iv) recommendations for corrective action.

(c) The auditor shall submit a report of findings to the clerks of the house of representatives and the senate, the house and senate committees on ways and means, and shall make such report publicly available on the auditor’s website not later than December 31 of each year.

SECTION XX.

Said chapter 18 is hereby further amended by inserting after section 35 the following section:-

Section 36. Public Assistance Transparency Reporting.

(a) The department shall establish and maintain a publicly accessible online dashboard reporting program integrity metrics, updated not less than quarterly.

(b) The dashboard shall include, but not be limited to:

(i) improper payment rates;

(ii) number of fraud investigations initiated and completed;

(iii) amount of funds recovered from improper payments;

(iv) administrative error rates;

(v) program enrollment totals.

SECTION XX.

The department of transitional assistance shall promulgate regulations necessary to implement sections 34, 35 and 36 of chapter 18 not later than 6 months after the effective date of this act.