Connecticut Seal

General Assembly

Amendment

 

January Session, 2013

LCO No. 8595

   
 

*HB0670408595HRO*

Offered by:

 

REP. CAFERO, 142nd Dist.

REP. CANDELORA, 86th Dist.

REP. KLARIDES, 114th Dist.

 

To: House Bill No. 6704

File No.

Cal. No. 678

"AN ACT CONCERNING EXPENDITURES AND REVENUE FOR THE BIENNIUM ENDING JUNE 30, 2015. "

In line T199, strike "1,421,372" and insert "1,861,372" in lieu thereof and strike "1,471,890" and insert "2,191,890" in lieu thereof

After the last section, add the following and renumber sections and internal references accordingly:

"Sec. 501. (NEW) (Effective July 1, 2013) Notwithstanding the provisions of sections 4-38d and 4-39 of the general statutes, the Commissioner of Social Services shall transfer all staff members of said agency's fraud prevention unit to the Medicaid Fraud Control Unit within the Office of the Chief State's Attorney.

Sec. 502. (Effective from passage) Up to $ 440,000 of the amount appropriated in section 1 of this act for the fiscal year ending June 30, 2014, and up to $ 720,000 of the amount appropriated in section 1 of this act for the fiscal year ending June 30, 2015, to the Medicaid Fraud Control Unit within the Division of Criminal Justice shall be made available for the purpose of hiring an additional eight employees within said unit.

Sec. 503. (NEW) (Effective July 1, 2013) (a) There is established an Anti-Fraud Council which shall be within the Division of Criminal Justice for administrative purposes only. Said council shall consist of: (1) The Chief State's Attorney, who shall serve as chairperson of said council; (2) the Commissioners of Revenue Services and Social Services and the Secretary of the Office of Policy and Management, or their designees; (3) one member appointed by the Commissioner of Revenue Services, who shall be from a company or vendor used by the Department of Revenue Services for its technology needs; (4) one member appointed by the Commissioner of Social Services, who shall be from a company or vendor used by the Department of Social Services for its technology needs; (5) one member appointed by the Secretary of the Office of Policy and Management, who shall be from a company or vendor used by said office for its technology needs; (6) one member appointed by the speaker of the House of Representatives; (7) one member appointed by the president pro tempore of the Senate; (8) one member appointed by the majority leader of the House of Representatives; (9) one member appointed by the majority leader of the Senate; (10) one member appointed by the minority leader of the House of Representatives; and (11) one member appointed by the minority leader of the Senate.

(b) Said council shall review fraud detection technology systems and software to be used by the Departments of Revenue Services and Social Services, recommend implementation methods of such systems and software that will maximize fraud prevention, detection and recovery and make recommendations to said departments for the implementation and operation of such systems and software.

(c) Said council shall report quarterly to the joint standing committees of the General Assembly having cognizance of matters relating to human services, appropriations and finance, revenue and bonding, on the implementation of anti-fraud initiatives, including, but not limited to, technology integration status updates, results of anti-fraud initiatives, and organizational changes at and employee hiring by said departments related to anti-fraud initiatives.

(d) There is created an Anti-Fraud Technology Fund. The fund shall be administered by the Secretary of the Office of Policy and Management. The fund shall be used for the purpose of acquiring and implementing fraud detection technology systems and software for the Departments of Revenue Services and Social Services, to prevent, detect and recover losses due to fraud.

Sec. 504. (NEW) (Effective July 1, 2013) (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate seventy-five million dollars.

(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be deposited in the Anti-Fraud Technology Fund created under subsection (d) of section 503 of this act. The Secretary of the Office of Policy and Management shall allocate any such proceeds to the Departments of Revenue Services and Social Services for purchase and implementation of fraud detection technology systems and software.

(c) All provisions of section 3-20, or the exercise of any right or power granted thereby which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20, and from time to time renewed. Such bonds shall mature at such time or times not exceeding five years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization, which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the Treasurer shall pay such principal and interest as the same become due.

Sec. 505. Subsection (a) of section 32-235 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power, from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate [one billion fifteen million three hundred thousand] nine hundred forty million three hundred thousand dollars, provided one hundred forty million dollars of said authorization shall be effective July 1, 2011, and twenty million dollars of said authorization shall be made available for small business development. Two hundred eighty million dollars of said authorization shall be effective July 1, 2012, and forty million dollars of said authorization shall be made available for small business development and not more than twenty million dollars of said authorization may be made available for businesses that commit to relocating one hundred or more jobs that are outside of the United States to the state. Any amount of said authorizations that are made available for small business development or businesses that commit to relocating one hundred or more jobs that are outside of the United States to the state but are not exhausted for such purpose by the first day of the fiscal year subsequent to the fiscal year in which such amount was made available shall be used for the purposes described in subsection (b) of this section. For purposes of this subsection, a "small business" is one employing not more than one hundred employees.

Sec. 506. Section 1 of this act is amended by adding the following and adjusting the General Fund Total accordingly:

T1

 

2013-2014

2014-2015

T2

Anti-Fraud Initiatives Lapse

-$ 80,000,000

-$ 80,000,000

Sec. 507. Section 12-704e of the general statutes is amended by adding subsections (e) to (g), inclusive, as follows (Effective October 1, 2013):

(NEW) (e) No taxpayer found to have defrauded the state in claiming, or to have fraudulently enhanced the amount claimed of, the earned income tax credit under this section shall be permitted to claim such tax credit on and after such finding.

(NEW) (f) Any person who prepares tax returns or furnishes advice on tax matters for a fee and knowingly advises a taxpayer to file a tax return that fraudulently claims an earned income tax credit or who fraudulently enhances the amount claimed of such tax credit shall be fined three times the amount claimed of such fraudulent tax credit.

(NEW) (g) The Commissioner of Revenue Services shall report on a monthly basis any cases of fraud related to the earned income tax credit that involves an amount of five hundred dollars or more to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding.

Sec. 508. (NEW) (Effective from passage) The Commissioner of Social Services shall report on a monthly basis any cases of vendor or recipient fraud related to any assistance program administered by the Department of Social Services that involves an amount of one thousand dollars or more to the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and human services.

Sec. 509. (NEW) (Effective from passage) The Commissioners of Revenue Services and Social Services and the Secretary of the Office of Policy and Management shall each create public service announcements to inform members of the public of the state's enhanced efforts to fight fraud of any type in the programs administered or overseen by each said commissioner or secretary, as applicable.

Sec. 510. (NEW) (Effective from passage) The Department of Social Services shall issue a notice to each provider and to each recipient of any social service program administered by the department. Such notice shall advise such provider or recipient, as applicable, of enhanced fraud measures that said department has implemented and the consequences that engaging in any such fraudulent activity may have for said provider or recipient, as applicable.

Sec. 511. (NEW) (Effective from passage) The Department of Social Services shall include in any literature, web site posting or any other agency generated information that advertises any social service program administered by said agency a warning provision that advises readers of enhanced fraud prevention measures implemented by said agency and that describes the consequences of engaging in any such fraud.

Sec. 512. (NEW) (Effective July 1, 2013) (a) In addition to the requirements prescribed in sections 17b-99 and 17b-99a of the general statutes, the Commissioner of Social Services, in consultation with the office of the Chief State's Attorney, shall periodically conduct random, unannounced forensic audits of service providers and vendors that participate as providers of services in a program operated or administered by the Department of Social Services pursuant to chapters 319s, 319t, 319v, 319y, 319ff, 319oo, 319rr, 319tt, 319uu, 319ww and 319yy of the general statutes.

(b) In addition to the requirements prescribed in sections 17b-99 and 17b-99a of the general statutes, the Commissioner of Social Services, in consultation with the office of the Chief State's Attorney, shall periodically conduct random, unannounced forensic audits of the recipients of benefits or services of a program operated or administered by the Department of Social Services pursuant to chapters 319s, 319t, 319v, 319y, 319ff, 319oo, 319rr, 319tt, 319uu, 319ww and 319yy of the general statutes.

Sec. 513. (NEW) (Effective July 1, 2013) (a) The Commissioner of Children and Families, in consultation with the office of the Chief State's Attorney, shall periodically conduct random, unannounced forensic audits of service providers and vendors that participate as providers of services in a program operated or administered by the Department of Children and Families.

(b) The Commissioner of Children and Families, in consultation with the office of the Chief State's Attorney, shall periodically conduct random, unannounced forensic audits of the recipients of benefits or services of a program operated or administered by the Department of Children and Families.

(c) The auditing requirements prescribed in this section shall be in addition to any other auditing requirement prescribed by law.

Sec. 514. (NEW) (Effective July 1, 2013) (a) The Commissioner of Developmental Services, in consultation with the office of the Chief State's Attorney, shall periodically conduct random, unannounced forensic audits of service providers and vendors that participate as providers of services in a program operated or administered by the Department of Developmental Services.

(b) The Commissioner of Developmental Services, in consultation with the office of the Chief State's Attorney, shall periodically conduct random, unannounced forensic audits of the recipients of benefits or services of a program operated or administered by the Department of Developmental Services.

(c) The auditing requirements prescribed in this section shall be in addition to any other auditing requirement prescribed by law.

Sec. 515. (NEW) (Effective July 1, 2013) (a) The Commissioner of Mental Health and Addiction Services, in consultation with the office of the Chief State's Attorney, shall periodically conduct random, unannounced forensic audits of service providers and vendors that participate as providers of services in a program operated or administered by the Department of Mental Health and Addiction Services.

(b) The Commissioner of Mental Health and Addiction Services, in consultation with the office of the Chief State's Attorney, shall periodically conduct random, unannounced forensic audits of the recipients of benefits or services of a program operated or administered by the Department of Mental Health and Addiction Services.

(c) The auditing requirements prescribed in this section shall be in addition to any other auditing requirement prescribed by law.

Sec. 516. (NEW) (Effective July 1, 2013) (a) The Commissioner of Rehabilitation Services, in consultation with the office of the Chief State's Attorney, shall periodically conduct random, unannounced forensic audits of service providers and vendors that participate as providers of services in a program operated or administered by the Department of Rehabilitation Services.

(b) The Commissioner of Rehabilitation Services, in consultation with the office of the Chief State's Attorney, shall periodically conduct random, unannounced forensic audits of the recipients of benefits or services of a program operated or administered by the Department of Rehabilitation Services.

(c) The auditing requirements prescribed in this section shall be in addition to any other auditing requirement prescribed by law.

Sec. 517. (NEW) (Effective July 1, 2013) (a) The Commissioner on Aging, in consultation with the office of the Chief State's Attorney, shall periodically conduct random, unannounced forensic audits of service providers and vendors that participate as providers of services in a program operated or administered by the Department on Aging.

(b) The Commissioner on Aging, in consultation with the office of the Chief State's Attorney, shall periodically conduct random, unannounced forensic audits of the recipients of benefits or services of a program operated or administered by the Department on Aging.

(c) The auditing requirements prescribed in this section shall be in addition to any other auditing requirement prescribed by law.

Sec. 518. (Effective from passage) On or before January 1, 2014, the Commissioner of Social Services shall develop a plan for ensuring that all recipients of benefits under the temporary family assistance program are in full compliance with state and federal work or vocational training requirements. The commissioner's plan shall include, but not be limited to, requirements that program beneficiaries and entities providing vocational training submit to the department enhanced and more frequent verification of compliance with the program's work and vocational training requirements. On or before February 1, 2014, the commissioner shall report, in accordance with section 11-4a of the general statutes, on the development of such plan to the joint standing committees of the General Assembly having cognizance of matter relating to human services and appropriations and the budgets of state agencies.

Sec. 519. (NEW) (Effective July 1, 2013) Any person seeking to receive unemployment compensation for a continuous period of time that exceeds thirty days shall be required to appear at an office of the Labor Department on a monthly basis to verify (1) the person's need for the receipt of continued unemployment compensation, and (2) that such person is actively engaged in seeking work as required by chapter 567 of the general statutes. The Labor Commissioner may adopt regulations in accordance with the provisions of chapter 54 of the general statutes to carry out the provisions of this section. "

This act shall take effect as follows and shall amend the following sections:

Sec. 501

July 1, 2013

New section

Sec. 502

from passage

New section

Sec. 503

July 1, 2013

New section

Sec. 504

July 1, 2013

New section

Sec. 505

July 1, 2013

32-235(a)

Sec. 507

October 1, 2013

12-704e

Sec. 508

from passage

New section

Sec. 509

from passage

New section

Sec. 510

from passage

New section

Sec. 511

from passage

New section

Sec. 512

July 1, 2013

New section

Sec. 513

July 1, 2013

New section

Sec. 514

July 1, 2013

New section

Sec. 515

July 1, 2013

New section

Sec. 516

July 1, 2013

New section

Sec. 517

July 1, 2013

New section

Sec. 518

from passage

New section

Sec. 519

July 1, 2013

New section