LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7268 NOTE PREPARED: Jan 9, 2025 BILL NUMBER: HB 1505 BILL AMENDED: SUBJECT: Use of SNAP Benefits. FIRST AUTHOR: Rep. Patterson BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State DEDICATED XFEDERAL Summary of Legislation: The bill prohibits recipients of Supplemental Nutrition Assistance Program (SNAP) benefits from purchasing: (1) energy drinks; (2) sweetened beverages; (3) carbonated beverages; (4) candy; (5) snack chips; and (6) cookies; with SNAP benefits. It requires the Office of the Secretary of Family and Social Services (FSSA) to provide to an individual, at the time the FSSA approves the individual's application to receive SNAP benefits, specified educational materials regarding the effects of diet on an individual's health. It also requires the FSSA to apply for a waiver or authorization to implement the prohibition if a waiver or authorization from a federal agency is required, and allows a delay in implementation until the waiver or authorization is received. Effective Date: July 1, 2025. Explanation of State Expenditures: The bill’s requirements will add to the FSSA workload to seek waivers to the administration of the United State Department of Agriculture (USDA) SNAP and provide nutrition information to SNAP participants. The FSSA's current level of resources should be sufficient to implement these changes. Additional Information - The USDA partners with states for SNAP administration. The program allows states to create policy for the program through a group of state options. Also, a state may apply for a waiver, and waivers generally concern the state administration of SNAP and beneficiary eligibility requirements. Administrative costs are split between the state and federal governments, while the benefits are paid at the federal level only. Generally, eligible foods are most food items and food ingredients that are intended for human consumption and garden seeds and plants. Excluded items under federal law are alcohol, tobacco and nicotine delivery products, hot foods, food for on-premises consumption, firearms, medicines and dietary supplements, live animals, gift baskets, and non-food items. Explanation of State Revenues: HB 1505 1 Explanation of Local Expenditures: Explanation of Local Revenues: State Agencies Affected: Family and Social Services Administration. Local Agencies Affected: Information Sources: Fiscal Analyst: Karen Rossen, 317-234-2106. HB 1505 2