Closing Loopholes On SafetyNet Exploitation Act or the CLOSE Act
This bill revises eligibility requirements for the Supplemental Nutrition Assistance Program (SNAP, formerly known as the food stamp program) to require each state to implement a financial asset verification program for purposes of determining or redetermining the eligibility of an individual to participate in SNAP. (The financial asset program requires each applicant for or recipient of SNAP benefits to provide authorization for the state to obtain from a financial institution any financial record held by the institution with respect to such applicant or recipient.)
The bill only applies to the 50 States and the District of Columbia.
The Department of Agriculture must provide states with technical assistance to aid in implementation of a financial asset verification program.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5719 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 5719
To amend the Food and Nutrition Act of 2008 to modify the standards to
determine eligibility to receive supplemental nutrition assistance
program benefits, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 30, 2020
Mr. Arrington (for himself, Mr. Johnson of South Dakota, Mr. Yoho, Mr.
Aderholt, and Mr. Smith of Nebraska) introduced the following bill;
which was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Food and Nutrition Act of 2008 to modify the standards to
determine eligibility to receive supplemental nutrition assistance
program benefits, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Closing Loopholes On SafetyNet
Exploitation Act'' or the ``CLOSE Act''.
SEC. 2. AMENDMENTS.
(a) Eligibility Requirements.--Section 5(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2014(a)) is amended by adding at the
end the following: ``However, no individual shall be eligible to
receive benefits pursuant to this section if they do not meet the same
income and resource criteria to which other applicants are subjected
under subsections (c) and (g).''.
(b) Financial Asset Verification.--The Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.) is amended by inserting after section 11
the following:
``SEC. 11A. FINANCIAL ASSET VERIFICATION THROUGH ACCESS TO INFORMATION
HELD BY FINANCIAL INSTITUTIONS.
``(a) Implementation.--
``(1) In general.--Subject to the provisions of this
section, each State shall implement a financial asset
verification program described in subsection (b), for purposes
of determining or redetermining the eligibility of an
individual to participate in the supplemental nutrition
assistance program.
``(2) Plan submittal.--In order to meet the requirement of
paragraph (1), each State shall--
``(A) submit not later than a deadline specified by
the Secretary consistent with paragraph (3), a State
plan amendment that describes how the State intends to
implement the asset verification program; and
``(B) provide for implementation of such program
for eligibility determinations and redeterminations
made on or after 6 months after the deadline
established for submittal of such plan amendment.
``(3) Phase-in.--
``(A) Implementation in states.--The Secretary
shall require States to submit and implement a
financial asset verification program under this
subsection in such manner as is designed to result in
the application of such programs, in the aggregate for
all such States, to households of approximately, but
not less than, the following percentage of households,
in the aggregate for all such States, by the end of the
fiscal year involved:
``(i) 12.5 percent by the end of fiscal
year 2021.
``(ii) 25 percent by the end of fiscal year
2022.
``(iii) 50 percent by the end of fiscal
year 2023.
``(iv) 75 percent by the end of fiscal year
2024.
``(v) 100 percent by the end of fiscal year
2025.
``(B) Consideration.--In selecting States under
subparagraph (A), the Secretary shall consult with the
States involved and take into account the feasibility
of implementing asset verification programs in each
such State.
``(C) Construction.--Nothing in subparagraph (A)
shall be construed as preventing a State from
requesting, and the Secretary from approving, the
implementation of a financial asset verification
program in advance of the deadline otherwise
established under such subparagraph.
``(4) Exemption of territories.--This section shall only
apply to the 50 States and the District of Columbia.
``(b) Financial Asset Verification Program.--
``(1) In general.--For purposes of this section, a
financial asset verification program means a program described
in paragraph (2) under which a State--
``(A) requires each applicant for, or recipient of,
supplemental nutrition assistance program benefits to
provide authorization by such applicant or recipient
(and any other person whose resources are required by
law to be disclosed to determine the eligibility of the
applicant or recipient for such benefits) for the State
to obtain (subject to the cost reimbursement
requirements of section 1115(a) of the Right to
Financial Privacy Act but at no cost to the applicant
or recipient) from any financial institution (within
the meaning of section 1101(1) of such Act) any
financial record (within the meaning of section 1101(2)
of such Act) held by the institution with respect to
the applicant or recipient (and such other person, as
applicable), whenever the State determines the record
is needed in connection with a determination with
respect to such eligibility for (or the amount or
extent of) such benefits; and
``(B) uses the authorization provided under
subparagraph (A) to verify the financial resources of
such applicant or recipient (and such other person, as
applicable), in order to determine or redetermine the
eligibility of such applicant or recipient to receive
supplemental nutrition assistance program benefits.
``(2) Program described.--A program described in this
paragraph is a program for verifying individual assets in a
manner consistent with the approach used by the Commissioner of
Social Security under section 1631(e)(1)(B)(ii) of the Social
Security Act.
``(c) Duration of Authorization.--Notwithstanding section
1104(a)(1) of the Right to Financial Privacy Act, an authorization
provided to a State under subsection (b)(1) shall remain effective
until the earliest of--
``(1) the rendering of a final adverse decision on the
applicant's application to participate in the supplemental
nutrition assistance program;
``(2) the cessation of the recipient's eligibility to
participate in the supplemental nutrition assistance program;
or
``(3) the express revocation by the applicant or recipient
(or such other person described in subsection (b)(1), as
applicable) of the authorization, in a written notification to
the State.
``(d) Treatment of Right to Financial Privacy Act Requirements.--
``(1) An authorization obtained by the State under
subsection (b)(1) shall be considered to meet the requirements
of the Right to Financial Privacy Act for purposes of section
1103(a) of such Act, and need not be furnished to the financial
institution, notwithstanding section 1104(a) of such Act.
``(2) The certification requirements of section 1103(b) of
the Right to Financial Privacy Act shall not apply to requests
by the State pursuant to an authorization provided under
subsection (b)(1).
``(3) A request by the State pursuant to an authorization
provided under subsection (b)(1) is deemed to meet the
requirements of section 1104(a)(3) of the Right to Financial
Privacy Act and of section 1102 of such Act, relating to a
reasonable description of financial records.
``(e) Required Disclosure.--The State shall inform any person who
provides authorization pursuant to subsection (b)(1)(A) of the duration
and scope of the authorization.
``(f) Refusal or Revocation of Authorization.--If an applicant for,
or recipient of, supplemental nutrition assistance program benefits (or
such other person described in subsection (b)(1), as applicable)
refuses to provide, or revokes, any authorization made by the applicant
or recipient (or such other person, as applicable) under subsection
(b)(1)(A) for the State to obtain from any financial institution any
financial record, the State may, on that basis, determine that the
applicant or recipient is ineligible to participate in the supplemental
nutrition assistance program.
``(g) Use of Contractor.--For purposes of implementing a financial
asset verification program under this section, a State may select and
enter into a contract with a public or private entity meeting such
criteria and qualifications as the State determines appropriate,
consistent with requirements in regulations relating to general
contracting provisions and with section 1903(i)(2) of the Social
Security Act. In carrying out activities under such contract, such an
entity shall be subject to the same requirements and limitations on use
and disclosure of information as would apply if the State were to carry
out such activities directly.
``(h) Technical Assistance.--The Secretary shall provide States
with technical assistance to aid in implementation of a financial asset
verification program under this section.
``(i) Reports.--A State implementing a financial asset verification
program under this section shall furnish to the Secretary such reports
concerning the program, at such times, in such format, and containing
such information as the Secretary determines appropriate.''.
SEC. 3. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on
October 1, 2020.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
Referred to the Subcommittee on Nutrition, Oversight, and Department Operations.
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