HB269 Alabama 2012 Session

Summary

Primary Sponsor

Mike Millican

Republican

Co-Sponsors

Mary Sue McClurkinKerry RichTerri CollinsLynn GreerDan WilliamsPaul W. LeeApril WeaverEd HenryWes LongBecky NordgrenKen JohnsonJim PattersonWayne JohnsonMike JonesAlan BootheRichard J. LairdCharles O. NewtonMike HillMac McCutcheonJay LoveVictor GastonMike BallJack WilliamsChad FincherSteve McMillanJamie IsonJim BartonSteve ClouseBarry MaskHoward SanderfordBlaine GalliherMark Tuggle

Session

Regular Session 2012

Title

Public assistance, fraud in obtaining, crime established, penalties, theft of services, knowledge requirement deleted, Sec. 13A-8-10 am'd.

Summary

HB269 would broaden criminal penalties for fraud in obtaining public assistance, remove the knowledge requirement for theft of services, and add administrative safeguards to detect and deter abuse of public aid programs.

What This Bill Does

It makes a wide range of fraudulent acts to obtain public assistance illegal under state or federally funded programs and assigns penalties. It removes the requirement that a person knew the services were for compensation, making theft of services easier to prosecutep. Penalties depend on fraud value: $200 or more in 12 consecutive months is a Class C felony; less than $200 is a Class A misdemeanor. It adds definitions, evidentiary rules, reporting duties for providers, and requirements for agencies to screen and flag potential fraud before benefits are issued.

Who It Affects

• Public assistance applicants/recipients who could commit fraud and face criminal penalties based on the amount of fraud
• Public assistance program administrators and service providers who administer benefits, who must screen for fraud, report improper payments, and could be charged with misappropriation if they misuse funds or property

Key Provisions

• Prohibits a broad set of fraudulent acts to obtain public assistance under state or federally funded programs (misrepresentation, failure to disclose changes, helping others commit fraud, misuse of benefit cards, submitting false claims, overbilling, and receiving unauthorized payments).
• Removes the knowledge requirement in theft of services, so someone can be charged if they obtain services by deception even if they did not know the services were for compensation, and expands theft to include diversion of services by someone who controls them.
• Defines 'services' to include labor, transportation, lodging, food service, and other listed items, broadening what can be considered theft of services.
• Sets penalties based on fraud value: aggregate fraud of $200 or more in 12 consecutive months is a Class C felony; less than $200 is a Class A misdemeanor.
• Adds strong evidentiary rules for public assistance fraud (evidence from paid warrants and PIN-based transaction histories) and allows repayment to be disregarded as a defense.
• Requires agencies to create error-prone or fraud-prone case profiles and to perform preeligibility fraud screening for various programs (food assistance, Medicaid, etc.).
• Requires providers who receive compensation for services under public assistance to report any payments or contributions from recipients or their families within 10 days; failure to report is a Class A misdemeanor.
• Expands administrators' liability to include misappropriation of public assistance resources and funds, and broadens definitions of misuse of payments or identification documents.
• No changes in local funding requirements: the bill is treated as creating or redefining a crime, so Amendment 621’s local-funds voting requirement does not apply.
• Effective date: the act becomes law on the first day of the third month after signing.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Crimes and Offenses