Title: CLOSE Act
Policy area: Agriculture and Food

Summary:
Closing Loopholes On SafetyNet Exploitation Act or the CLOSE Act
This bill revises eligibility requirements for the Supplemental Nutrition Assistance Program (SNAP, formerly known as the food stamp program) to require each state to implement a financial asset verification program for purposes of determining or redetermining the eligibility of an individual to participate in SNAP. (The financial asset program requires each applicant for or recipient of SNAP benefits to provide authorization for the state to obtain from a financial institution any financial record held by the institution with respect to such applicant or recipient.)
The bill only applies to the 50 States and the District of Columbia.
The Department of Agriculture must provide states with technical assistance to aid in implementation of a financial asset verification program.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5719 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 5719

To amend the Food and Nutrition Act of 2008 to modify the standards to 
  determine eligibility to receive supplemental nutrition assistance 
               program benefits, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 30, 2020

Mr. Arrington (for himself, Mr. Johnson of South Dakota, Mr. Yoho, Mr. 
  Aderholt, and Mr. Smith of Nebraska) introduced the following bill; 
           which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
To amend the Food and Nutrition Act of 2008 to modify the standards to 
  determine eligibility to receive supplemental nutrition assistance 
               program benefits, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Closing Loopholes On SafetyNet 
Exploitation Act'' or the ``CLOSE Act''.

SEC. 2. AMENDMENTS.

    (a) Eligibility Requirements.--Section 5(a) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2014(a)) is amended by adding at the 
end the following: ``However, no individual shall be eligible to 
receive benefits pursuant to this section if they do not meet the same 
income and resource criteria to which other applicants are subjected 
under subsections (c) and (g).''.
    (b) Financial Asset Verification.--The Food and Nutrition Act of 
2008 (7 U.S.C. 2011 et seq.) is amended by inserting after section 11 
the following:

``SEC. 11A. FINANCIAL ASSET VERIFICATION THROUGH ACCESS TO INFORMATION 
              HELD BY FINANCIAL INSTITUTIONS.

    ``(a) Implementation.--
            ``(1) In general.--Subject to the provisions of this 
        section, each State shall implement a financial asset 
        verification program described in subsection (b), for purposes 
        of determining or redetermining the eligibility of an 
        individual to participate in the supplemental nutrition 
        assistance program.
            ``(2) Plan submittal.--In order to meet the requirement of 
        paragraph (1), each State shall--
                    ``(A) submit not later than a deadline specified by 
                the Secretary consistent with paragraph (3), a State 
                plan amendment that describes how the State intends to 
                implement the asset verification program; and
                    ``(B) provide for implementation of such program 
                for eligibility determinations and redeterminations 
                made on or after 6 months after the deadline 
                established for submittal of such plan amendment.
            ``(3) Phase-in.--
                    ``(A) Implementation in states.--The Secretary 
                shall require States to submit and implement a 
                financial asset verification program under this 
                subsection in such manner as is designed to result in 
                the application of such programs, in the aggregate for 
                all such States, to households of approximately, but 
                not less than, the following percentage of households, 
                in the aggregate for all such States, by the end of the 
                fiscal year involved:
                            ``(i) 12.5 percent by the end of fiscal 
                        year 2021.
                            ``(ii) 25 percent by the end of fiscal year 
                        2022.
                            ``(iii) 50 percent by the end of fiscal 
                        year 2023.
                            ``(iv) 75 percent by the end of fiscal year 
                        2024.
                            ``(v) 100 percent by the end of fiscal year 
                        2025.
                    ``(B) Consideration.--In selecting States under 
                subparagraph (A), the Secretary shall consult with the 
                States involved and take into account the feasibility 
                of implementing asset verification programs in each 
                such State.
                    ``(C) Construction.--Nothing in subparagraph (A) 
                shall be construed as preventing a State from 
                requesting, and the Secretary from approving, the 
                implementation of a financial asset verification 
                program in advance of the deadline otherwise 
                established under such subparagraph.
            ``(4) Exemption of territories.--This section shall only 
        apply to the 50 States and the District of Columbia.
    ``(b) Financial Asset Verification Program.--
            ``(1) In general.--For purposes of this section, a 
        financial asset verification program means a program described 
        in paragraph (2) under which a State--
                    ``(A) requires each applicant for, or recipient of, 
                supplemental nutrition assistance program benefits to 
                provide authorization by such applicant or recipient 
                (and any other person whose resources are required by 
                law to be disclosed to determine the eligibility of the 
                applicant or recipient for such benefits) for the State 
                to obtain (subject to the cost reimbursement 
                requirements of section 1115(a) of the Right to 
                Financial Privacy Act but at no cost to the applicant 
                or recipient) from any financial institution (within 
                the meaning of section 1101(1) of such Act) any 
                financial record (within the meaning of section 1101(2) 
                of such Act) held by the institution with respect to 
                the applicant or recipient (and such other person, as 
                applicable), whenever the State determines the record 
                is needed in connection with a determination with 
                respect to such eligibility for (or the amount or 
                extent of) such benefits; and
                    ``(B) uses the authorization provided under 
                subparagraph (A) to verify the financial resources of 
                such applicant or recipient (and such other person, as 
                applicable), in order to determine or redetermine the 
                eligibility of such applicant or recipient to receive 
                supplemental nutrition assistance program benefits.
            ``(2) Program described.--A program described in this 
        paragraph is a program for verifying individual assets in a 
        manner consistent with the approach used by the Commissioner of 
        Social Security under section 1631(e)(1)(B)(ii) of the Social 
        Security Act.
    ``(c) Duration of Authorization.--Notwithstanding section 
1104(a)(1) of the Right to Financial Privacy Act, an authorization 
provided to a State under subsection (b)(1) shall remain effective 
until the earliest of--
            ``(1) the rendering of a final adverse decision on the 
        applicant's application to participate in the supplemental 
        nutrition assistance program;
            ``(2) the cessation of the recipient's eligibility to 
        participate in the supplemental nutrition assistance program; 
        or
            ``(3) the express revocation by the applicant or recipient 
        (or such other person described in subsection (b)(1), as 
        applicable) of the authorization, in a written notification to 
        the State.
    ``(d) Treatment of Right to Financial Privacy Act Requirements.--
            ``(1) An authorization obtained by the State under 
        subsection (b)(1) shall be considered to meet the requirements 
        of the Right to Financial Privacy Act for purposes of section 
        1103(a) of such Act, and need not be furnished to the financial 
        institution, notwithstanding section 1104(a) of such Act.
            ``(2) The certification requirements of section 1103(b) of 
        the Right to Financial Privacy Act shall not apply to requests 
        by the State pursuant to an authorization provided under 
        subsection (b)(1).
            ``(3) A request by the State pursuant to an authorization 
        provided under subsection (b)(1) is deemed to meet the 
        requirements of section 1104(a)(3) of the Right to Financial 
        Privacy Act and of section 1102 of such Act, relating to a 
        reasonable description of financial records.
    ``(e) Required Disclosure.--The State shall inform any person who 
provides authorization pursuant to subsection (b)(1)(A) of the duration 
and scope of the authorization.
    ``(f) Refusal or Revocation of Authorization.--If an applicant for, 
or recipient of, supplemental nutrition assistance program benefits (or 
such other person described in subsection (b)(1), as applicable) 
refuses to provide, or revokes, any authorization made by the applicant 
or recipient (or such other person, as applicable) under subsection 
(b)(1)(A) for the State to obtain from any financial institution any 
financial record, the State may, on that basis, determine that the 
applicant or recipient is ineligible to participate in the supplemental 
nutrition assistance program.
    ``(g) Use of Contractor.--For purposes of implementing a financial 
asset verification program under this section, a State may select and 
enter into a contract with a public or private entity meeting such 
criteria and qualifications as the State determines appropriate, 
consistent with requirements in regulations relating to general 
contracting provisions and with section 1903(i)(2) of the Social 
Security Act. In carrying out activities under such contract, such an 
entity shall be subject to the same requirements and limitations on use 
and disclosure of information as would apply if the State were to carry 
out such activities directly.
    ``(h) Technical Assistance.--The Secretary shall provide States 
with technical assistance to aid in implementation of a financial asset 
verification program under this section.
    ``(i) Reports.--A State implementing a financial asset verification 
program under this section shall furnish to the Secretary such reports 
concerning the program, at such times, in such format, and containing 
such information as the Secretary determines appropriate.''.

SEC. 3. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
October 1, 2020.
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