SB114 Alabama 2014 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Co-Sponsors

Bill HoltzclawPhillip W. WilliamsGreg J. ReedBryan TaylorPaul BussmanRusty GloverGerald O. DialTrip PittmanJimmy HolleyTom WhatleyCam WardJerry L. Fielding

Session

Regular Session 2014

Title

Public assistance, fraud in obtaining, crime established, penalties, theft of services, knowledge requirement deleted, Sec. 40-18-100 am'd.

Summary

SB114 tightens Alabama's rules on public assistance fraud, adds penalties, and adds tools to recover improper benefits, including intercepting tax refunds.

What This Bill Does

It defines what counts as public assistance and lists specific frauds, like lying to get benefits, failing to report changes, or misusing benefit cards. It creates penalties: a Class C felony for $200 or more obtained fraudulently, and a Class A misdemeanor for less than $200; three or more violations create a presumption of knowing wrongdoing. It lets authorities seize funds or property tied to fraud, with most exceptions for hospital Medicaid payments, and adds tax-refund interception from housing authorities to recover improper benefits. It adds enforcement tools such as fraud screening by state agencies and mandatory reporting duties for providers.

Who It Affects

• Public assistance recipients and their families: could face criminal charges for fraud, misrepresentation, or failing to disclose changes, and may have benefits, funds, or related debts intercepted or forfeited.
• Hospitals, healthcare providers, and public agencies (e.g., DHR, Medicaid, housing authorities): gain new enforcement powers, mandatory fraud screening and reporting duties, and potential forfeiture or intercept of funds and tax refunds.

Key Provisions

• Defines public assistance and lists prohibited fraudulent acts to obtain or misuse benefits (lying, misrepresentation, changes in circumstances not disclosed, misuse of benefit cards, false claims, improper billing, etc.).
• Adds an intent requirement for hospital or physician-related claims: must have specific intent to claim payment for an item or service not entitled.
• Penalties: aggregate fraud of $200 or more is a Class C felony; fraud under $200 is a Class A misdemeanor; three or more violations create a rebuttable presumption of knowledge.
• Forfeiture of funds or property obtained through fraud; in rem civil action; most hospitals' Medicaid payments are exempt from forfeiture.
• Interception of state income tax refunds for individuals fraudulently obtaining public assistance from housing authorities.
• Fraud screening and reporting: agencies must create fraud profiles, perform preeligibility fraud screening, and providers must notify the Department of Human Resources within 10 days of any payments or contributions; failure to notify is a Class A misdemeanor.
• Amends 40-18-100 to define claimant agencies, debt, debtor, department, and refunds to support debt collection and enforcement related to public assistance.

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