Senate committee advances House Bill 62 to allow tax-commission data sharing for benefit-fraud reviews

A Senate committee voted to send House Bill 62 to the floor with a "do pass" recommendation after members heard the measure would authorize the Department of Health and Welfare to enter into a memorandum of understanding with the Tax Commission to obtain tax data for certain benefit‑fraud investigations.

Jared Larson, legislative and regulatory affairs chief at the Department of Health and Welfare, told the committee the bill is intended to speed investigations of fraud in programs such as Temporary Assistance for Needy Families (TANF). "This bill is, relatively simple in that it authorizes the department to enter into a memorandum of understanding with the tax commission," Larson said. He added that the measure targets non‑Medicaid programs and that Medicaid fraud is handled separately by the Medicaid fraud unit in another statutory section.

Larson told senators that adjusted gross income on state tax returns is often the decisive data point in determining whether an applicant lawfully receives benefits. He said investigators currently must rely on subpoenas or piecing together bank records, a process he described as "very difficult, time intensive," and that the Tax Commission already maintains about 60 memoranda of understanding with public entities for similar data sharing.

Senator Wintrow, who asked why the change was necessary, said the measure answers taxpayers' expectations of accountability. "If we're gonna be using taxpayer dollars, we better have a mechanism...to make sure no one is committing fraud," she said. Larson said the department expects no fiscal impact from the bill and that obtaining tax returns through an MOU will reduce the investigative burden on department staff.

Committee members also asked whether the Tax Commission had signaled any administrative burden from sharing the data. Larson said preliminary discussions with the Tax Commission produced "no concerns" and that the commission did not indicate additional resources would be needed.

The motion to send House Bill 62 to the floor with a due‑pass recommendation was moved by Senator Kaiser and seconded by Senator Ziderfeld. The committee voiced its support and the motion passed. The transcript does not record a roll‑call vote tally in full; committee members answered in the affirmative on voice vote.

Why it matters: Supporters said the bill would make civil recoupment and benefit‑eligibility investigations more efficient and less intrusive than assembling account‑level financial records. The department and sponsors framed the change as a narrowly tailored administrative tool limited to non‑Medicaid benefit programs.