H.R. 10326: Preventing Rip-offs and Obtaining Oversight of Funds Act

This bill would make it easier for the U.S. Attorney General to request information from states when investigating or prosecuting fraud in certain government-funded programs. In simple terms, it creates a formal process for federal law enforcement to ask state agencies for records that may help uncover improper use of public funds.

What programs are covered

The bill applies to a set of programs that involve federal money administered by states, including:

• Medicaid
• SNAP food benefits
• TANF cash assistance
• State unemployment compensation programs
• Coronavirus aid funds, including emergency rental assistance and state/local recovery funds
• Elementary and secondary school emergency relief grants
• Broadband Equity, Access, and Deployment Program funds
• Community Development Block Grants
• FEMA public assistance and hazard mitigation grants
• State Small Business Credit Initiative funds
• Other state programs that the Attorney General identifies as vulnerable to fraud

What information states would have to provide

If the Attorney General sends a written request, the state would have to provide information needed for the fraud investigation or prosecution. The bill specifically mentions:

• Identity verification records
• Benefit payment or disbursement logs
• Provider billing statements
• Demographic information directly related to an active fraud investigation
• Other information the Attorney General determines is appropriate for the case

Privacy and security rules

The bill says the Justice Department must handle any information it receives under the law according to existing privacy protections, including the Privacy Act and, where relevant, HIPAA rules. It also requires the Attorney General to set security procedures so that transferred data is:

• Encrypted using standard methods
• Accessible only to authorized personnel
• Deleted after the related investigation or legal proceeding ends

The information could only be used for fraud-related law enforcement purposes, and not for unrelated administrative or commercial uses.

Reporting to Congress

Within one year after the law takes effect, and then once a year after that, the Attorney General would have to report to Congress on:

• How many information requests were sent to states
• Which programs those requests involved
• How many fraud investigations and convictions were based on the information obtained

When it would take effect

The bill would take effect 60 days after enactment.

Relevant Companies

None found