HB 2298 Summary

• Establishes a computerized eligibility verification system within the Department of Economic Security to verify income, assets, and identity information for applicants and recipients of public assistance programs.

• Requires the department to contract with a third-party vendor to develop the verification system, with contract payments based on per-applicant rates and performance bonuses, contingent on documented savings exceeding yearly implementation costs.

• Mandates verification of applicant and recipient information against 23 federal and state databases including IRS records, Social Security Administration data, immigration status, employment records, and asset ownership information on a quarterly basis.

• Requires applicants to complete a computerized identity authentication process using knowledge-based questions before benefits are awarded and establishes procedures for reviewing discrepancies, providing written notice, and allowing applicants 10 business days to respond.

• Directs the department to refer suspected fraud cases to the Arizona Attorney General for criminal prosecution and civil penalties, with authority to garnish wages or tax refunds to recover fraudulently obtained benefits; requires annual reporting on system effectiveness beginning July 1, 2019.