Assigned to RAGE AS PASSED BY HOUSE ARIZONA STATE SENATE Fifty-Seventh Legislature, First Regular Session AMENDED FACT SHEET FOR S.B. 1071 SNAP; TANF; public welfare; verification Purpose Establishes evaluation requirements for the Department of Economic Security (DES) to confirm eligibility for Supplemental Nutrition Assistance Program (SNAP) benefits. Background SNAP is a federal program that provides food benefits to low-income families to supplement their grocery budget and help the family afford nutritious food. To be eligible for SNAP benefits, an applicant must meet specific age, household, employment and income requirements. Arizona's SNAP program is administered by DES and is known as the Arizona Nutrition Assistance Program (DES). To qualify for SNAP, the countable resources for a household may not exceed $3,000, such as cash or money in a bank account, or $4,500 if at least one member of the household is 60 years old or older, or is disabled. Certain resources like a home or social security income are not counted in determining resources. A one-person household must earn no more than $19,584 in annual gross income. This threshold increases by $6,996 for each additional person in the household (USDA). General work requirements to qualify for SNAP, for applicants between 16 and 59 years old, include: 1) registering for work; 2) participating in SNAP Employment and Training or workfare, if assigned by DES; 3) accepting a suitable job if offered; and 4) not voluntarily quitting a job or reducing work hours below 30 hours a week without a good reason. To be exempted from these requirements, an applicant must be: 1) already working at least 30 hours a week or earning wages at least equal to the federal minimum wage multiplied by 30 hours; 2) meeting work requirements for the Temporary Assistance for Needy Families or the unemployment compensation program; 3) taking care of a child under six years old or an incapacitated person; 4) unable to work due to a physical or mental limitation; 5) participating regularly in an alcohol or drug treatment program; or 6) studying in a school or training program at least part-time. An applicant between 18 and 52 years old that can work and has no dependents may need to meet the additional able-bodied adult without dependents work requirement in addition to the general work requirements (USDA). The Joint Legislative Budget Committee fiscal note estimates that S.B. 1071 would increase administrative costs by requiring DES to perform more frequent redeterminations of member eligibility and for agencies to share relevant information with DES. DES estimates a total impact of $66,600,000 ongoing and $1,400,000 in one-time costs. Of that, $34,000,000 would be from the state General Fund and $34,000,000 would be from SNAP federal dollars (JLBC fiscal note). FACT SHEET – Amended S.B. 1071 Page 2 Provisions SNAP Eligibility Evaluations 1. Requires DES, in order to determine or evaluate SNAP eligibility, to: a) enter into a data matching agreement with the Arizona Department of Revenue (ADOR) to identify households with lottery or gambling winnings of $3,000 or more; and b) treat the data obtained as verified on receipt, as permissible under federal law. 2. Requires DES, to the extent that the ADOR data is not verified on receipt, to refer those households with lottery or gambling winnings that are equal to or greater than the resource limit for elderly or disabled households as defined under federal law to DES for further investigation. 3. Requires DES, on at least a monthly basis, to review information that identifies individuals who have had a change in circumstances that may affect SNAP eligibility as provided by: a) the Department of Health Services (DHS); and b) the Arizona Department of Corrections, Rehabilitation and Reentry. 4. Requires DES, on at least a monthly basis, to review its own information that identifies individuals who have had a change in circumstances that may affect SNAP eligibility, including potential changes in residency as identified by out-of-state electronic benefit transfer (EBT) card transactions. 5. Requires DES, on at least a quarterly basis, to review DES's information that identifies changes in circumstances for individuals that may affect SNAP eligibility, including a change in unemployment benefits, employment status or wages. 6. Requires DES, on at least a quarterly basis, to review information that is provided by ADOR and that identifies households that have had a change in circumstances that may affected SNAP eligibility, including potential changes in income, wages or residency as identified by tax records. 7. Requires DES, on at least a quarterly basis and excluding confidential and personally identifiable information, to post on its public website the following aggregate amounts that were obtained from noncompliance and fraud investigations related to SNAP: a) the number of SNAP cases that were investigated for international program violations or fraud; b) the number of SNAP cases that were referred to the Attorney General’s Office for prosecution; c) the amount of improper payments and expenditures; d) the amount of monies recovered; e) the amount of monies spent for improper payments and ineligible recipients as a percentage of cases that were investigated and reviewed; and f) the amount of monies spent by the EBT card that occurred outside of Arizona, categorized by state. FACT SHEET – Amended S.B. 1071 Page 3 8. Requires DHS and DES to review the following information from federal sources to assess a recipient’s continued eligibility for SNAP: a) earned income information, death registration information, incarceration records, supplemental security income information, beneficiary records, earnings information and pension information that is maintained by the U.S. Social Security Administration; b) income and employment information that is maintained in the National Directory of New Hires database and child support enforcement data that is maintained by the U.S. Department of Health and Human Services; c) payment and earnings information that is maintained by the U.S. Department of Housing and Urban Development; and d) national fleeing felon information that is maintained by the Federal Bureau of Investigation. 9. Requires DES to review an individual's case if it receives information that identifies an individual who is enrolled in SNAP and indicates a change in circumstances that may affect that individual's SNAP eligibility. EBT Transactions 10. Requires DES to use the EBT card to identify any individual who has made a purchase exclusively out-of-state over a 90-day period. 11. Requires DES to contact the identified individual within 30 days to determine whether that individual resides in Arizona. 12. Requires DES to remove the individual within 30 days after contact if the individual does not reside in Arizona. 13. Requires DES to refer the individual to the U.S. Attorney’s Office for the district where the individual claims to reside within 15 days after the removal. Miscellaneous 14. Defines terms. 15. Becomes effective on the general effective date. Amendments Adopted by Committee of the Whole 1. Requires DES, for determining or evaluating SNAP eligibility, to enter into a data matching agreement with ADOR, rather than the Arizona Department of Gaming (ADG), to identify households with lottery or gambling winnings. 2. Requires DES, to the extent the data on lottery or gambling winnings is not verified on receipt, to further investigate the matter, rather than referring the matter to the ADG. 3. Requires DES, rather than the Arizona Department of Environmental Quality, to review on at least a monthly basis, information from outlined federal sources to assess a recipient's continued eligibility for SNAP. FACT SHEET – Amended S.B. 1071 Page 4 Amendments Adopted by the House of Representatives 1. Specifies that DES must, on at least a quarterly basis, review DES's information, rather than information provided by the Industrial Commission of Arizona, that identifies individuals who have had a change in circumstances that may affect SNAP eligibility, including a change in unemployment benefits, employment status or wages. 2. Makes a technical change. Senate Action House Action RAGE 2/20/25 DP 4-3-0 HHS 3/17/25 DP 7-5-0 3 rd Read 2/27/25 17-12-1 3 rd Read 3/31/25 31-25-4 Prepared by Senate Research March 31, 2025 JT/ci