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: Feb 10, 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 (CSB) 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: (Revised) The bill will potentially increase the administrative workload
for the DFR to take action on applications and delinquent cases, and its Indiana Manpower Placement and
Comprehensive Training (IMPACT) contractor to provide employment and training programs. The bill’s
requirements represent an additional workload [and/or expenditure] on the agency outside of the agency’s
routine administrative functions, and existing staffing and resource levels, if currently being used to capacity,
may be insufficient for full implementation. The additional funds and resources required could be supplied
through existing staff and resources currently being used in another program or with new appropriations.
Ultimately, the source of funds and resources required to satisfy the requirements of this bill will depend on
legislative and administrative actions.
HB 1354 1 (Revised) The CSB will need to modify computer systems to communicate to DFR about individuals who
become delinquent in child support payments, and for the DFR to determine an applicant’s eligibility based
on cooperation with the CSB for child support payments. The cost of modifications are estimated to be at
least $2.1 M. The CSB through its cooperative agreements with county prosecutors may have an increase
in cases if noncustodial parents without child support orders pursue SNAP assistance.
Additional Information -
(Revised) CSB Computer Systems: The Department of Child Services (DCS) is upgrading its current case
system, ISETS, to a new system, INVEST. The DCS indicates that both systems will have to be modified
to meet the requirements of the bill. The ISETS system modification is estimated to cost $2.1 M, and the
INVEST system will need a work change order of unknown cost to modify the current design.
(Revised) Caseload Estimates: LSA estimates that there could be between 66,725 and 80,515 cases where
a noncustodial parent who pursues SNAP benefits could be added to the Title IV-D caseload. Any increase
in caseload would result from a noncustodial parent pursuing SNAP assistance either as part of another
household or on their own behalf. An additional 57,168 cases would be disqualified from SNAP assistance
as a consequence of child support payment delinquency.
[Using caseload data from FFY 2016 to FFY 2020 and federal reporting that 38% of custodial parents do not
use Title IV-D child support services, LSA estimates that 66,725 custodial parents in Indiana received
benefits such as SNAP and did not participate in Title IV-D child support services. Adding to this number
for the upper range, on average 13,521 cases do not have final court orders and 268 cases on average are open
and considered noncooperative. For delinquent accounts, the difference between an average 221,326 cases
in arrears and an average 164,158 that are paying toward the arrearage was used.]
(Revised) 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. Any reduction in SNAP benefits due to exclusions will not impact state expenditures.
(Revised) In December 2019, Indiana SNAP recorded 561,830 participants from 253,126 households. New
federal rules allow connections to Workforce Innovation and Opportunity Act agencies to provide services
for SNAP participants which may reduce some of the workload on the IMPACT contractor.
Explanation of State Revenues: The bill would likely have a very minimal fiscal impact concerning federal
incentive payments for child support collections. The DCS may receive additional incentive funds if
disqualification from SNAP participation would reduce cases that are delinquent, or noncustodial parents
would cooperate with the CSB.
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.
HB 1354 2 Explanation of Local Expenditures: (Revised) The CSB has cooperative agreements with county
prosecutors who work on behalf of the state to establish court orders and collect funds that reimburse state
assistance programs and payments to dependent children. If additional cases occur as a result of noncustodial
parents seeking SNAP assistance, the number of staff needed could increase. [The state budget for child
support services in each of FY 2022 and FY 2023 is $13.7 M from federal Title IV-D funds.]
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;
https://www.acf.hhs.gov/sites/default/files/documents/ocse/characteristics_cps_and_their_children.pdf.
Fiscal Analyst: Karen Rossen, 317-234-2106.
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