Committee considers HF 4566 to define kickbacks after LA report on alleged autism‑services fraud

Representative Franson introduced House File 4566, citing a Legislative Auditor report that identified alleged kickback schemes in early intensive developmental and behavioral intervention (EIDBI/autism) services and estimated taxpayer loss. The bill would instruct the commissioner to use expedited rulemaking to include kickbacks in the statutory definition of fraud, allow DHS to withhold or reduce payments when there is a verified, credible allegation of fraud including kickbacks, and generally provide DHS clearer authority to act.

A policy fellow and former representative (identified in testimony as Mr. Dean) and others supported the bill, saying the LA report confirmed longstanding concerns about kickbacks and urging the Legislature to provide statutory clarity so DHS can recover funds and pursue enforcement. Members asked detailed questions about whether the statutory language would import federal anti‑kickback provisions and whether that would create unintended consequences; authors and staff said they would work with the agency and the LA to refine drafting.

Representative Jacob, a member of the Legislative Audit Commission, noted the LA report’s finding that DHS could use existing authorities in some cases and said the hearing highlighted the need to reconcile agency practice, LA recommendations and statute. The author renewed the motion to lay HF 4566 over for possible inclusion, and committee staff said additional technical assistance from DHS and legal counsel would be sought.