1.1                          A bill for an act
  1.2             relating to human services; establishing an automated 
  1.3             finger imaging project to prevent welfare fraud; 
  1.4             appropriating money; proposing coding for new law in 
  1.5             Minnesota Statutes, chapter 256. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [256.9851] [WELFARE FRAUD PREVENTION FINGER 
  1.8   IMAGING PROJECT.] 
  1.9      Subdivision 1.  [FINGER IMAGING PROJECT ESTABLISHED.] The 
  1.10  commissioner shall develop and implement a project that is 
  1.11  designed to use an automated finger imaging system to prevent, 
  1.12  by conducting fingerprint matches, multiple enrollments and 
  1.13  other similar fraudulent conduct by applicants, recipients, and 
  1.14  other participants in the Minnesota family investment 
  1.15  program-statewide (MFIP-S) and the general assistance program. 
  1.16     Subd. 2.  [STRUCTURE OF FINGER IMAGING PROJECT.] Beginning 
  1.17  July 1, 1998, counties must require every adult and minor parent 
  1.18  applicant for assistance under MFIP-S or general assistance to 
  1.19  provide an automated fingerprint image as directed by the 
  1.20  commissioner as a condition of receiving assistance.  
  1.21  Notwithstanding contrary provisions of chapter 256D, 256J, or 
  1.22  256K, if an applicant refuses to provide an automated 
  1.23  fingerprint image the applicant shall be denied assistance.  If 
  1.24  a fingerprint provided under this project matches another 
  1.25  fingerprint on file with the commissioner, the applicant must be 
  2.1   notified of the match, and an investigation for possible fraud 
  2.2   must be undertaken.  As part of the investigation, the automated 
  2.3   fingerprint match must be verified by means of a manual 
  2.4   fingerprint match conducted by a person who is qualified to 
  2.5   perform such identifications.  An applicant who is investigated 
  2.6   for fraud as a result of this project has the right to appeal 
  2.7   the action to the commissioner under section 256.045.  The 
  2.8   provisions of section 256.98 apply to a person who is identified 
  2.9   by this project as possibly having wrongfully obtained, or 
  2.10  having attempted to wrongfully obtain, public assistance. 
  2.11     Subd. 3.  [TREATMENT OF FINGERPRINT DATA.] The commissioner 
  2.12  shall ensure that any fingerprint data obtained under this 
  2.13  section are classified as private data under chapter 13, but the 
  2.14  data may be disclosed to welfare fraud investigators, fraud 
  2.15  prevention investigators and specialists, health care 
  2.16  investigators, and prosecutors for fraud investigation and 
  2.17  prevention purposes under this section and under section 256.98. 
  2.18  Fingerprint data obtained under this project are classified as 
  2.19  investigative data while an investigation is active, and as 
  2.20  private data at all other times.  Fingerprint data collected 
  2.21  under this project must be destroyed when a fraud investigation 
  2.22  case that was opened under subdivision 2 is closed. 
  2.23     Subd. 4.  [REPORT ON FINGER IMAGING PROJECT REQUIRED.] The 
  2.24  commissioner shall report to the legislature by January 10 of 
  2.25  each year on the finger imaging project.  At a minimum, the 
  2.26  reports must include information on the number of fraud 
  2.27  investigations that were initiated as a result of a fingerprint 
  2.28  match under this project, and the number of persons who were 
  2.29  found by this project to have wrongfully obtained or attempted 
  2.30  to wrongfully obtain public assistance.  
  2.31     Sec. 2.  [APPROPRIATION.] 
  2.32     $....... is appropriated from the general fund to the 
  2.33  commissioner of human services for fiscal year 1999 for the 
  2.34  purposes of section 1.  This appropriation is available until 
  2.35  expended.