H.F. _____ Section 1. NEW SECTION . 239.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Applicant” means an individual who is applying for 4 public assistance benefits in the state. 5 2. “Department” means the department of human services. 6 3. “Public assistance” means SNAP (the supplemental 7 nutrition assistance program), the Medicaid program, FIP (the 8 family investment program), and CHIP (the children’s health 9 insurance program). 10 4. “Recipient” means an individual who is receiving public 11 assistance benefits in the state. 12 Sec. 2. NEW SECTION . 239.2 Case review of public assistance 13 applicant and recipient information. 14 1. If the information obtained from a review of an 15 applicant’s or a recipient’s information under this chapter 16 does not result in the department finding a discrepancy or 17 change in the individual’s circumstances affecting eligibility, 18 the department shall take no further action. 19 2. If the information obtained from a review of an 20 applicant’s or a recipient’s information under this chapter 21 results in the department finding a discrepancy or change in 22 the individual’s circumstances affecting eligibility, the 23 department shall respond in accordance with the provisions of 24 section 239.3. 25 Sec. 3. NEW SECTION . 239.3 Notice and right to be heard. 26 1. An applicant or a recipient shall be provided 27 written notice and the opportunity to explain any issues 28 identified in a review performed pursuant to section 239.2 29 for initial eligibility or redetermination of eligibility. 30 Unless otherwise prohibited by federal law or regulation, a 31 self-declaration by an applicant or a recipient shall not 32 be accepted as verification of categorical and financial 33 eligibility during such review. 34 2. The notice provided to the applicant or recipient shall 35 -1- LSB 5535YC (4) 89 pf/rh 1/ 5

H.F. _____ describe in sufficient detail the circumstances of the issue 1 identified, the manner in which the applicant or recipient 2 may respond, and the consequences of failing to respond to 3 the notice or resolve the issue identified. The applicant or 4 recipient shall be provided ten days to respond to the notice. 5 The department may request additional information as necessary 6 to reach a decision. 7 3. An applicant or a recipient may respond to the notice as 8 follows: 9 a. By disagreeing with the findings of the department. If 10 the applicant or recipient responds in a timely manner and 11 disagrees with the findings of the department, the department 12 shall reevaluate the circumstances to determine if the 13 applicant’s or recipient’s position is valid. If, through 14 reevaluation, the department finds that the department is in 15 error, the department shall take immediate action to correct 16 the error. If, through reevaluation, the department affirms 17 that the applicant’s or recipient’s position is invalid, the 18 department shall determine the effect on the applicant’s or 19 recipient’s eligibility and take appropriate action. Written 20 notice of the department’s determination and the actions taken 21 shall be provided to the applicant or recipient. 22 b. By agreeing with the findings of the department. If 23 the applicant or recipient responds in a timely manner and 24 agrees with the findings of the department, the department 25 shall determine the effect on the applicant’s or recipient’s 26 eligibility and take appropriate action. Written notice of the 27 department’s determination and actions taken shall be provided 28 to the applicant or recipient. 29 4. If the applicant or recipient fails to respond to the 30 notice in a timely manner, the department shall provide notice 31 to terminate the applicant’s application or to discontinue 32 the recipient’s enrollment for failure to cooperate, and 33 shall terminate the applicant’s application or discontinue 34 the recipient’s enrollment. The applicant’s or recipient’s 35 -2- LSB 5535YC (4) 89 pf/rh 2/ 5

H.F. _____ eligibility for such public assistance shall not be established 1 or reestablished until the issue has been resolved. 2 Sec. 4. NEW SECTION . 239.4 Administration —— rules —— 3 reporting. 4 1. The department of human services shall adopt rules 5 pursuant to chapter 17A to administer this chapter. 6 2. The department shall submit a report to the governor 7 and the general assembly by January 15, 2024, and by January 8 15 annually thereafter through January 15, 2029, detailing the 9 impact of the case review measures taken under this chapter. 10 Sec. 5. IMPLEMENTATION. 11 1. The department of human services shall request federal 12 approval including for any state plan amendment or waiver 13 necessary to administer this Act. 14 2. The provisions of this Act requiring federal approval 15 shall be implemented upon receipt of such federal approval. 16 3. The provisions of this Act not requiring federal approval 17 shall be implemented no later than July 1, 2023. 18 4. The department may contract with multiple third-party 19 vendors to administer this Act. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill provides that if information obtained from a 24 review by the department of human services (DHS) of a public 25 assistance applicant’s or recipient’s information under the 26 bill does not result in DHS finding a discrepancy or change in 27 the individual’s circumstances affecting eligibility, DHS shall 28 take no further action. 29 If the information obtained from a review of the applicant’s 30 or recipient’s information under the bill results in DHS 31 finding a discrepancy or a change in the individual’s 32 circumstances affecting eligibility, DHS shall provide written 33 notice to the individual and the opportunity to explain any 34 issues identified. Unless otherwise prohibited by federal 35 -3- LSB 5535YC (4) 89 pf/rh 3/ 5

H.F. _____ law or regulation, a self-declaration by an applicant or a 1 recipient shall not be accepted as verification of categorical 2 and financial eligibility during such review. 3 The notice provided to the applicant or recipient shall 4 describe in sufficient detail the circumstances of the issue 5 identified, the manner in which the applicant or recipient 6 may respond, and the consequences of failing to respond to 7 the notice or resolve the issue identified. The applicant or 8 recipient shall be provided 10 days to respond to the notice. 9 DHS may request additional information as necessary to reach 10 a decision. 11 The bill specifies the processes and results dependent upon 12 whether an applicant or a recipient responds by disagreeing 13 or agreeing with the findings of a review by DHS or fails 14 to respond. If the applicant or recipient fails to respond 15 to the notice in a timely manner, DHS shall provide notice 16 to terminate the applicant’s application or to discontinue 17 the recipient’s enrollment for failure to cooperate, and 18 shall terminate the applicant’s application or discontinue 19 the recipient’s enrollment. The applicant’s or recipient’s 20 eligibility for such public assistance shall not be established 21 or reestablished until the issue has been resolved. 22 Under the bill, DHS shall adopt administrative rules to 23 administer the Code chapter. DHS shall submit a report to the 24 governor and the general assembly by January 15, 2024, and 25 by January 15 annually thereafter through January 15, 2029, 26 detailing the impact of the case review measures taken under 27 the bill. 28 DHS shall request federal approval including for any state 29 plan amendment or waiver necessary to administer the bill, and 30 the provisions of the bill requiring federal approval shall 31 be implemented upon receipt of such federal approval. The 32 provisions of the bill that do not require federal approval 33 shall be implemented no later than July 1, 2023. DHS may 34 contract with multiple third-party vendors to administer the 35 -4- LSB 5535YC (4) 89 pf/rh 4/ 5