LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION March 15, 2021 TO: Honorable James B. Frank, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB343 by Cain (Relating to prohibiting the purchase of certain food and drink items under the supplemental nutrition assistance program.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB343, As Introduced : a negative impact of ($2,375,151) through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2022($2,375,151)2023$02024$02025$02026$0All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund12022($2,375,151)2023$02024$02025$02026$0 Fiscal AnalysisThis bill would amend Chapter 33 of the Human Resources Code by adding a new section that prohibits the purchase of certain foods and beverages under the Supplemental Nutrition Assistance Program (SNAP). The section would prohibit the purchase of energy drinks, sweetened beverages, carbonated beverages, and candy, potato or corn chips, and cookies packaged and sold for consumption without further preparation necessary.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
March 15, 2021
TO: Honorable James B. Frank, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB343 by Cain (Relating to prohibiting the purchase of certain food and drink items under the supplemental nutrition assistance program.), As Introduced
TO: Honorable James B. Frank, Chair, House Committee on Human Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB343 by Cain (Relating to prohibiting the purchase of certain food and drink items under the supplemental nutrition assistance program.), As Introduced
Honorable James B. Frank, Chair, House Committee on Human Services
Honorable James B. Frank, Chair, House Committee on Human Services
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB343 by Cain (Relating to prohibiting the purchase of certain food and drink items under the supplemental nutrition assistance program.), As Introduced
HB343 by Cain (Relating to prohibiting the purchase of certain food and drink items under the supplemental nutrition assistance program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB343, As Introduced : a negative impact of ($2,375,151) through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB343, As Introduced : a negative impact of ($2,375,151) through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2022 ($2,375,151)
2023 $0
2024 $0
2025 $0
2026 $0
All Funds, Five-Year Impact:
2022 ($2,375,151)
2023 $0
2024 $0
2025 $0
2026 $0
Fiscal Analysis
This bill would amend Chapter 33 of the Human Resources Code by adding a new section that prohibits the purchase of certain foods and beverages under the Supplemental Nutrition Assistance Program (SNAP). The section would prohibit the purchase of energy drinks, sweetened beverages, carbonated beverages, and candy, potato or corn chips, and cookies packaged and sold for consumption without further preparation necessary.
Methodology
According to the Health and Human Services Commission (HHSC), implementing the provisions of the bill would result in a cost of $2,375,151 in General Revenue and $2,375,151 in All Funds in fiscal year 2022. SNAP benefits are regulated by the U.S. Department of Agriculture Food and Nutrition Services (FNS). FNS is responsible for enforcing the definition of eligible foods and approving any restrictions that change what items can be purchased with SNAP benefits. In order to implement the provisions of the bill, HHSC would be required to apply for, and receive approval of a waiver that would allow the state to limit the items that can be purchased with SNAP benefits. This analysis assumes that HHSC would apply for and receive approval of the waiver.According to HHSC, the agency would incur a one-time cost of $2,207,151 for sending notifications to provide communication and education about the changes proposed by the bill. The estimated cost assumes mailing 1,566,768 notices to SNAP households, at an approximate cost of $1.41 per household.
According to the Health and Human Services Commission (HHSC), implementing the provisions of the bill would result in a cost of $2,375,151 in General Revenue and $2,375,151 in All Funds in fiscal year 2022. SNAP benefits are regulated by the U.S. Department of Agriculture Food and Nutrition Services (FNS). FNS is responsible for enforcing the definition of eligible foods and approving any restrictions that change what items can be purchased with SNAP benefits. In order to implement the provisions of the bill, HHSC would be required to apply for, and receive approval of a waiver that would allow the state to limit the items that can be purchased with SNAP benefits. This analysis assumes that HHSC would apply for and receive approval of the waiver.
According to HHSC, the agency would incur a one-time cost of $2,207,151 for sending notifications to provide communication and education about the changes proposed by the bill. The estimated cost assumes mailing 1,566,768 notices to SNAP households, at an approximate cost of $1.41 per household.
Technology
According to HHSC, implementing the provisions of the bill would result in a one-time technology cost of $168,000 due to application and system modifications to the Texas Integrated Eligibility Redesign System (TIERS).
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 529 Hlth & Human Svcs Comm
529 Hlth & Human Svcs Comm
LBB Staff: b > td > JMc, AKi, ER, EOc
JMc, AKi, ER, EOc