State Sen. Joe Zarelli, R-Ridgefield, and a Republican colleague have unveiled new legislation to combat fraud and abuse in Washington state’s public assistance system.
The measures would tighten rules for eligibility and use of electronic debit cards in response to complaints posted by state workers on a GOP Party website that solicited cost-saving ideas, the legislators said.
Zarelli said Department of Social and Health Services employees have shared stories about recipients who successfully hide assets, and of organized rings that use tricks such as “ghost children” to defraud taxpayers.
One measure introduced by Zarelli would tighten eligibility screening for the state’s Temporary Assistance for Needy Families, or TANF, grant funds.
Senate Bill 5328 would require TANF applicants to supply a valid Social Security number and electronic access to their federal income tax returns, to be verified every six months by the DSHS. Current law requires a 12-month follow-up.
Zarelli’s SB 5330 would restrict all TANF assistance via electronic benefit transfer cards to ensure all payments are for purposes expressly defined as “having a clear benefit to the children” of recipients.
The amount of monthly aid that could be withdrawn as cash could not exceed $50, while direct payments could be set up to any landlord, utility company or approved entity, with the agency’s administrative cost deducted, the measure states.
Zarelli said the GOP received more than 7,500 suggestions from state employees and the public on the party’s “Reset Washington” Web page created in September.
Troubling abuse of TANF benefits was a consistent theme, said Zarelli and Sen. Mike Carrell, R-Lakewood, who paired up on five bills to address the problems.
Fraud and waste damage is unquantified, but state workers told them social service programs “are leaking substantial amounts of money,” Zarelli said.
Before legislators decide whether to reduce or eliminate funding for TANF and the state’s Basic Health Plan to plug a nearly $5 billion budget gap, “let’s adopt reforms that stop the leaks and make sure those services are focused where they ought to be,” Zarelli said.
Both senators conferred with DSHS Secretary Susan Dreyfus, who said she welcomes the measures as “a place to start” in tackling abuse.
“We must continue to ask what more can we do to prevent fraud” and to penalize violations, said Dreyfus, who declared a “zero tolerance” stance. “This is a good topic for a robust public conversation” she said, vowing to work with legislators and the governor on suggested reforms.
Dreyfus cautioned the DSHS hopes not to “punish or make it harder for (recipients) to access benefits and services they deserve” simply because of others’ illegal acts.
More limits, audits
The proposed TANF rules would be similar to those for the Women, Infants and Children program focusing on grocery needs, Zarelli said.
Carrell has introduced SB 5327, which would ban electronic benefit card operation for “adult uses” such as sales of alcohol, tobacco, firearms, tattoos or piercings, et al., plus out-of-state ATM withdrawals. Vendors must disable sales authorization for cards, and violators would face civil or criminal penalty. There also would be a new fee for any replacement card request.
Carrell’s SB 5329 would establish an investigation unit within the state auditor’s office, to pursue alleged fraud now handled by the oft-overmatched DSHS. His SB 5331 would require more frequent state audits of licensed and in-home child care providers that receive state payment through Working Connections support.
Also, Sen. Don Benton, R-Vancouver, has offered SB 5379, which would offer incentives (a portion of funds recovered) for actionable information on fraud within state programs that is later successfully proven, plus whistle-blower protections for public employees.
None of the measures has yet received a committee hearing.
Only Zarelli’s SB 5330, which would restrict use of TANF card payments, has earned Democratic co-sponsors to date, one indicator of likely support.
