SENATE BILL REPORT

                  SHB 1784

              As Reported By Senate Committee On:

          Health & Long-Term Care, February 24, 1998

Title:  An act relating to public assistance fraud.

Brief Description:  Regulating public assistance fraud.

Sponsors:  House Committee on Children & Family Services (originally sponsored by Representatives Boldt, Bush, Cooke, Lambert, L. Thomas, Backlund and Sullivan).

Brief History:

Committee Activity:  Health & Long‑Term Care:  3/25/97, 4/1/97 [DP-WM, DNP]; 2/24/98 [DPA-WM].

SENATE COMMITTEE ON HEALTH & LONG-TERM CARE

Majority Report:  Do pass as amended and be referred to Committee on Ways & Means.

  Signed by Senators Deccio, Chair; Wood, Vice Chair; Benton and Strannigan.

Staff:  Joanne Conrad (786-7472)

Background:  The Office of Fraud Investigation currently investigates allegations of fraud in the Department of Social and Health Services (DSHS).  Allegations of employee fraud are handled by the Washington State Patrol (WSP).  Concerns exist regarding the delineation of fraud investigation, and the provision of effective fraud prevention.

Summary of Amended Bill:  The Division of Fraud Investigations is established in DSHS, to investigate and refer fraud cases for local prosecution.  The director of the division is responsible for providing leadership, recommending policy for fraud prevention, and reporting to the Legislature and the Secretary of DSHS.  The division is designated a criminal justice agency, and has the power to execute warrants and serve subpoenas.  The division may, upon request, investigate fraud in other state agencies.

Amended Bill Compared to Original Bill:  Reference in the intent section to Ainstability@ regarding fraud investigation is deleted.  The Office of the Chief Investigator is now called the Division of Fraud Investigation.  Requirements regarding transfer of functions and equipment are eliminated.  Referral of some fraud investigation to the Washington State Patrol is removed.  Exemption of specified DSHS administrative personnel, including DSHS Secretary, from investigation is dropped.

The emergency clause is deleted.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  None.

Testimony Against:  None.

Testified:  No one.