A bill for an act relating to the recovery of benefits inappropriately obtained from the department of homeland security and emergency management.

2025-2026 Regular Session

Expands DIAL's power to recover misused HSEM disaster benefits, by placing liens on fraudsters' property and pursuing delinquent debts, boosting accountability and recovery.

Committee report approving bill, renumbered as HF 249.

#emergencymanagement #fraud #homelandsecurityandemergencymanagementdepartment

Overview

HSB 23 is a proposed bill introduced January 15, 2025, relating to recovering benefits inappropriately obtained from the Department of Homeland Security and Emergency Management (HSEM). The bill expands the authority of the Department of Inspections, Appeals, and Licensing (DIAL) to pursue repayment of fraudulently obtained HSEM benefits, creates liens on property, and broadens referral options for suspected fraud. It progressed through committee activity and was renumbered to HF 249.

Purpose and intent

Strengthen the state’s ability to identify, recover, and deter benefits obtained through false, misleading, incomplete, or inaccurate information to HSEM.

Expand existing enforcement tools to cover HSEM programs in addition to the health and human services framework previously under DIAL’s purview.

Improve coordination among state agencies by directing suspected fraud to appropriate state entities for review and action.

Key provisions

Expansion of DIAL authority

DIAL may collect payments inappropriately obtained from HSEM, mirroring its existing authority with the Department of Health and Human Services.

Creation and use of liens

Benefits obtained through fraud become a lien in favor of the state on the recipient’s property.
County recorders must prepare and maintain an index of these liens in their offices.

Delinquent debt collection

DIAL must collect delinquent debts owed to HSEM as soon as practicable.
Provisions on lien attachment, duration, preservation, satisfaction, and recording fees (and related distress warrants and Attorney General actions) apply to these HSEM liens.

Referrals and review

HSEM may refer cases of suspected fraud from the disaster aid individual assistance grant program and the disaster case advocacy grant program to DIAL or other state entities for review.
If a person is convicted of fraud, the state must pursue all legal options to recover an amount equal to the benefits fraudulently claimed.
HSEM may refer suspected improper activity in other programs to the appropriate state entity.

Affected parties

Beneficiaries and recipients of HSEM benefits (potentially subject to liens and repayment)

Department of Inspections, Appeals, and Licensing (DIAL)

County recorders (liens indexing)

The Attorney General’s office (enforcement actions and distress warrants)

HSEM and related disaster aid/grant programs

Other state entities involved in fraud review and recovery

Procedural and timeline notes

Introduced: January 15, 2025; referred to Public Safety

Subcommittee: January 15 meeting (Henderson, Gearhart, Gosa) with subsequent meeting scheduled for January 27, 2025

Subcommittee recommendation: January 27, 2025 (passage)

Committee actions: January 27 subcommittee report; February 5, 2025 committee vote (yeas 23–nays 0) and February 6, 2025 committee report approving the bill with renumbering

Status: Committee report approving; renumbered as HF 249 on February 6, 2025

Potential impact

Enhanced recovery of fraudulently obtained benefits to reimburse public programs

Administrative processes for liens and debt collection across HSEM-related programs

Greater accountability and deterrence for fraud in disaster-related assistance

Increased coordination among state agencies to review and address fraud in various public-benefit programs

Note: This summary reflects the bill text and the reported legislative actions up to its renumbering to HF 249.

Bill