Welfare fraud investigations and recoveries, program established.
ENTITLED, An Act to
make certain provisions for a program of recoveries and fraud
investigations in the Department of Social Services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
be amended by adding thereto a NEW SECTION to read as
The department shall have a program of recoveries and fraud investigations to collect debts
owed the department and to investigate allegations of fraud in all department assistance programs.
Any fraud investigator for this program may:
(1) Initiate and conduct any investigation if the program has cause to believe that a
fraudulent act has been committed by a recipient of assistance from department
(2) Review any report or complaint of an alleged fraudulent act to determine whether such
report requires further investigation and conduct such investigation;
(3) Obtain access to any record related to residence, household composition, employment,
finances and resources, and medical records as authorized by the Health Insurance
Portability and Accountability Act of 1996 (HIPAA), PL 104-199, as amended through
January 1, 2005, to assist in investigation of an alleged fraudulent act and may require
by administrative subpoena the production of any book, record, or other information;
(4) Cooperate with federal, state, and local law enforcement, prosecuting attorneys, and the
attorney general in the investigation and prosecution of any fraudulent act where public
assistance has been granted or applied for under the welfare laws of this state.
The program may take any collection action provided for in state and federal law
and regulation to recover debts owed the department.
All investigative records and files of the program established pursuant to this Act
are confidential. No investigative record may be released except to department personnel, federal,
state, and local law enforcement, prosecuting attorneys, and the attorney general in the
investigation and prosecution of fraudulent acts. No investigative record or file may be released
to any other person except pursuant to a court order. All collection files are confidential. No
collection file may be released except in accordance with recipient confidentiality requirements
of the department.
The secretary of the Department of Social Services shall annually report to the
Governor and the Legislature concerning the activities of the program including the number and
type of cases investigated, the outcome of such investigations, and costs and expenditures incurred
during such investigations.
Signed February 11, 2005