Creates the welfare inter-state fraud detection program; appropriation

BILL NUMBER:S2062

Title of bill

An act to amend the social services law, in relation to creation of the welfare inter-state fraud detection program and making an appropriation therefor

Purpose/summary of provisions

This bill directs the Social Services Commissioner to enter into negotiations with the states of New Jersey, Connecticut, Pennsylvania, Massachusetts and Vermont for the purposes of creating an interstate welfare data base to be utilized for the identification of individuals receiving public assistance benefits in more than one state. An annual report analyzing the effectiveness of the program is required. Social Services Law is amended by adding a new Section 18.

Justification

A recent investigation by New York City's Human Resources Administration and the Manhattan District Attorney revealed that 23 percent of 1800 randomly selected Newark, New Jersey welfare recipients were also enrolled in New York. This legislation would allow for the establishment of a computer link between New York and contiguous states to cross-reference data on welfare recipients to prevent fraud. Information on welfare recipients by state is already available to local governments through a federal data base. The existence of an interstate system would better coordinate a response to the problem. This program will save the taxpayers money and assist in restoring confidence in our welfare system.

Fiscal implications

The $250,000 from general fund monies will be more than offset by the savings in preventing abuse of "double-dipping" of welfare benefits.

Effective date

Immediately.