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Health and Welfare committee introduces RS 31795 to allow tax-data access in benefit-fraud probes
Summary
The Health and Welfare Committee introduced RS 31795, a proposed change to allow the Department of Health and Welfare to enter an MOU with the State Tax Commission to obtain tax information for suspected benefits-fraud investigations.
The Health and Welfare Committee introduced RS 31795 on a voice vote after a brief presentation from Department of Health and Welfare staff and short procedural remarks from committee members.
Jared Larson, Legislative and Regulatory Affairs Chief at the Department of Health and Welfare, told the committee RS 31795 “adds a subsection 6 to the end of the chapter that authorizes the department to enter into a memorandum of understanding with the State Tax Commission.” Larson said the change would let the department receive tax information, including adjusted gross income, when the department has suspicion of fraudulent receipt of benefits.
Larson described the current process as reliant on subpoenas for bank records to assemble income information. He said those subpoenas are "a pretty intrusive process" and that subpoenas may not be binding on out-of-state financial institutions, which can frustrate investigations. Larson said the proposed MOU authority would simplify investigations because "adjusted gross income would be found on the tax information found at the commission and it would significantly relieve the burden on investigating suspected fraud." He said the department has had preliminary discussions with the State Tax Commission and that the commission “does not have any objection to this.”
Committee members discussed only minor drafting issues. Representative Wheeler and another member pointed out grammatical and wording errors in the RS and fiscal note; Larson acknowledged the typographical corrections and said they would be made. Representative Redmond moved to introduce the RS; Representative Wheeler signaled support. The chair called for the voice vote; the motion passed. The chair announced, "Motion passes, RS 31,795 is introduced." The committee did not take any further formal action on the substance of the RS; Larson said a hearing would allow more detailed questions.
The committee noted the department has pursued this authority for about two years and that, if the RS is printed and scheduled for a hearing, Representative Fuhrman has agreed to sponsor the bill. The committee adjourned following the introduction of the RS.
Votes at a glance - Motion to introduce RS 31795 — Moved by: Representative Redmond; Second or support signaled by: Representative Wheeler; Outcome: approved by voice vote (chair declared the motion passed). Individual recorded tallies were not taken or not specified.
