LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6805 NOTE PREPARED: Jan 31, 2022
BILL NUMBER: HB 1354 BILL AMENDED: Jan 25, 2022
SUBJECT: Requirements for SNAP Participants.
FIRST AUTHOR: Rep. DeVon BILL STATUS: As Passed House
FIRST SPONSOR: Sen. Niemeyer
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
XFEDERAL
Summary of Legislation: The bill provides that the Division of Family Resources (DFR) of the Family and
Social Services Administration (FSSA) shall require noncustodial parents to cooperate with the child support
bureau as a condition of eligibility for assistance under the Supplemental Nutrition Assistance Program
(SNAP).
It also requires the DFR to disqualify an individual from receiving assistance under SNAP during any 45-day
period in which the individual is delinquent in any payment due under a child support order.
This bill requires the DFR to assign individuals who are subject to federal work requirements for SNAP
eligibility to an employment and training program.
Effective Date: July 1, 2022.
Explanation of State Expenditures: The bill will add to the workload of the DFR and its Indiana Manpower
Placement and Comprehensive Training (IMPACT) contractor to provide employment and training programs.
Additional Information - SNAP is administered by the state on behalf of the U.S. Department of Agriculture.
The administrative costs are shared between the state and the federal government, while the federal
government pays for all benefits. In December 2019, Indiana SNAP recorded 561,830 participants from
253,126 households. In FFY 2019, about 9.4% of the SNAP households were comprised of able-bodied
adults without dependents that are subject to work requirements. Mitigating the workload increase is that new
federal rules allow connections to Workforce Innovation and Opportunities Act agencies to provide services.
HB 1354 1 Explanation of State Revenues: The bill would likely have a very minimal fiscal impact concerning federal
incentive payments for child support collections. The Department of Child Services may receive additional
incentive funds if disqualification from SNAP participation would reduce cases paying in arrears, or
noncustodial parents would cooperate with the Child Support Bureau.
Additional Information - Federal incentive payments for child support collections allow the state to receive
up to 4.5% of its collections base. Between FFY 2016 and FFY 2019, Indiana received $12 M per year in
incentive payments.
States may adapt their SNAP program with 24 optional changes. In October 2017, eight states report child
support disqualifications; six disqualify for noncooperation, and two disqualify for arrearage. Information
on child support collections from those states is inconclusive. For Indiana between FFY 2016 and FFY 2020,
child support cases with noncooperation increased by 30% from 301 to 391 and child support cases in arrears
decreased 10.7% from 233,432 to 208,385.
Explanation of Local Expenditures: Child support services are provided by DCS through contracts with
county prosecutors.
Explanation of Local Revenues:
State Agencies Affected: Department of Child Services; Department of Family Resources; IMPACT.
Local Agencies Affected: County prosecutors.
Information Sources:
https://fns-prod.azureedge.net/sites/default/files/resource-files/FY19-state-activity-report.pdf;
https://fns-prod.azureedge.net/sites/default/files/snap/14-State-Options.pdf;
https://www.in.gov/fssa/dfr/files/MMR-STATEWIDE-en-us-December-2019.pdf;
https://www.acf.hhs.gov/sites/default/files/documents/ocse/fy_2020_preliminary_data_report.pdf;
https://fns-prod.azureedge.net/sites/default/files/resource-files/Characteristics2019.pdf.
Fiscal Analyst: Karen Rossen, 317-234-2106.
HB 1354 2