Legislature(2023 - 2024)ADAMS 519
05/01/2024 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB307 | |
| SB67 | |
| HB196 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 187 | TELECONFERENCED | |
| += | HB 307 | TELECONFERENCED | |
| += | SB 67 | TELECONFERENCED | |
| + | HB 196 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 223 | TELECONFERENCED | |
| += | HB 119 | TELECONFERENCED | |
HOUSE BILL NO. 196
"An Act relating to the supplemental nutrition
assistance program; and providing for an effective
date."
6:32:33 PM
REPRESENTATIVE GENEVIEVE MINA, SPONSOR, thanked the
committee for hearing the bill pertaining to the
Supplemental Nutrition Assistance Program (SNAP). She
elucidated that HB 196 would enact Broad-Based Categorical
Eligibility (BBCE). She recognized the effort and
leadership by the Division of Public Assistance, the
Department of Health (DOH), and the administration in
addressing the backlog and providing policy recommendations
for ways that improved the SNAP program. She elaborated
that SNAP was Alaska's strongest food security program
funded at 100 percent by federal dollars. The program
included work requirements for able bodied adults and a
step-down approach that reduced benefits as a recipient
earned more income. States followed federal rules to
administer the program but had flexibility in how they
administer it. When the state failed to deliver SNAP during
the backlog, constituents went hungry and relied on food
pantries, straining the food bank system and costing the
state more on bulk food purchasing in General Funds (UGF).
She relayed that during hearings on the SNAP backlog, one
reform mentioned by DOH was BBCE. Currently, Alaska's SNAP
requirements were based off the federal guidelines of 130
percent of the Alaska Poverty Level (APL) based on gross
income and requiring an asset limit.
Representative Mina continued and identified two issues
with following the federal standards. She addressed the
income limit that currently created a steep benefits
cliff at 130 percent of the APL that discouraged working
families from earning more. She explained that low income
working families who have high expenses like childcare,
housing, and utilities had less disposable income; because
they have large deductible expenses, they receive higher
SNAP benefits. However, a single mother with two children
at an income level of 125 percent and she received a modest
raise reduced the SNAP benefit by more than the amount
gained in the pay raise. She reiterated that the scenario
discouraged households from earning more and worked against
the goal of increasing food security and encouraging self-
sufficiency. She highlighted the second issue that the
asset limit was too restrictive. She communicated that
currently, the asset limit was $2,750.00 or $4050.00 with
an elderly or disabled member of the family. The
restrictive limit applied to owning a second car,
snowmachine, four-wheeler, or a boat and prevents people
from having savings or another car. The limit forced low-
income seniors to spend down their assets and was more
bureaucratic for Division of Public Assistance (DPA) to
administer. She added that the BBCE was enacted in 42
states and 2 territories and made SNAP benefits automatic
for individuals eligible for Temporary Assistance for Needy
Families (TANF).
6:37:29 PM
Representative Mina continued with her remarks. She
elaborated that the proposals raised the income limit to
200 FPL and allowed DOH to waive the asset test. She listed
the impacts of the changes. She related that it reduced the
benefit cliff and encouraged more parents to be able to
take a raise to earn more to support their families;
allowed people to save; simplified SNAP administration,
saving time and money for the state; and supported local
economies because SNAP was an economic driver. She
emphasized that no Alaskan should go hungry, and the
legislation also helped the state be more efficient.
6:38:41 PM
Representative Stapp appreciated the bill but had many
concerns. He asked how many applications the department had
to process the past year aside from the backlog.
Representative Mina deferred the question.
DEB ETHERIDGE, DIRECTOR, DIVISION OF PUBLIC ASSISTANCE,
DEPARTMENT OF HEALTH, answered that there were
approximately 60,000 SNAP recipients currently with an
average number of 2.5 recipients per case. Representative
Stapp asked how many more people would be eligible under
the bill if the poverty threshold was increased from 130
percent to 200 percent. Ms. Etheridge replied that it was
difficult to estimate because it was unknown how many more
individuals would apply or were eligible to apply.
Representative Stapp remarked on the large SNAP backlog. He
thought the data needed to make the estimate was
obtainable. He asked if it was possible.
6:40:57 PM
Ms. Etheridge answered that they could potentially come up
with an educated guess. She had tried in the past and it
was "complicated." Representative Stapp recalled that the
state went through a two-year SNAP benefits backlog
nightmare." He questioned the proposal to "dramatically"
increase the number of recipients even with the extended
effective date of 2025. He asked what the existing
application processing time was and how that would change
under the bill. Ms. Etheridge replied that the effective
date of the bill aligned with the division's "milestones"
changes. She expounded that currently the SNAP program was
operated out of the division's legacy Eligibility
Information System. The intention was to move to a modular
more agile system that allowed for automated robotic
processing. She expected the change would increase
efficiencies similar to the Alaska's Resource for
Integrated Eligibility Services (ARIES) program, used for
Medicaid. Representative Stapp asked if expanding the
eligibility would be more or less cumbersome and time
consuming for the division. Ms. Etheridge responded that
the department estimated it would take about the same
processing time or a bit less due to electronic automation
efficiencies. Representative Stapp asked whether the
efficiencies were due to the technology and not the change
in the application requirement. He wondered whether she
anticipated a dramatic decrease in processing time if the
bill was enacted. Ms. Etheridge answered that she expected
more ease in eligibility due to not having to verify
assets.
Representative Stapp asked what the current asset limits
were for recipients.
Representative Mina replied that the current asset limits
were $2750.00 for an individual and $4250.00 for a
household with and elderly or disabled individual.
6:43:51 PM
Representative Stapp asked for the meaning of asset.
Representative Mina replied that assets meant savings, more
than one vehicle, property, etc. She deferred further
answer to Ms. Etheridge.
Ms. Etheridge answered that other assets included other
property, a secondary vehicle, or savings account.
Co-Chair Foster OPENED Public Testimony.
JAMIE MORGAN, GOVERNMENT RELATIONS REGIONAL LEAD, AMERICAN
HEART ASSOCIATION, SACRAMENTO, CALIFORNIA (via
teleconference), supported the legislation. She read from
prepared remarks.
On behalf of the American Heart Association, thank you
for introducing HB196 and SB149 to implement Broad-
Based Categorical Eligibility (BBCE) within the
Supplemental Nutrition Assistance Program (SNAP).
These bills will allow states to eliminate the asset
test and raise the gross income eligibility limits for
certain households.
Options under BBCE will provide targeted assistance
for low income working families and seniors. Raising
the gross income limit primarily benefits working
families with children, as they are more likely to
have competing expenses like childcare, housing, and
utilities, leaving them unable to afford the necessary
foods for a healthy diet. Removing the asset test also
helps households often seniors with modest savings
or assets still qualify for the assistance they need,
while reducing the administrative burden on the State.
SNAP participation is estimated to reduce the
likelihood of a household being food insecure. States
that have adopted SNAP-supportive policies, like broad
based categorical eligibility, generally have more
SNAP-eligible participation than do states without
these policies. Policies that make SNAP easier to
access increase participation in the program, food
insecurity is reduced, and fewer children and families
go hungry.
This legislation comes at a time that food insecurity
levels are already elevated. SNAP is a crucial program
that helps Alaska's anti-hunger network to meet the
need. It is for the abovementioned reasons we support
HB196 and SB149 to reduce hunger in Alaska, eliminate
administrative burdens on the Division of Public
Assistance, and save the state money.
6:47:11 PM
DEAN HUMPHRIES, DIRECTOR OF OPERATIONS, LUTHERAN SOCIAL
SERVICES OF ALASKA, ANCHORAGE (via teleconference), spoke
in strong support of the legislation. He believed that the
bill would have a positive impact on the state's
communities by expanding benefits to more working low
income Alaskans while reducing administrative burdens. The
asset test served as a mechanism to keep struggling
individuals in a cycle of poverty. He elaborated that by
eliminating the asset test struggling Alaskans would not
face a benefits cliff. He indicated that with the
implementation of the food waste movement and the supply
chain organization, food banks had experienced a "historic
decline" in corporate donations. His organization served on
average 2,300 individuals per month. He believed HB 196
made the SNAP program more efficient and effective. He
noted that Alaska was one of 9 states that did not adopt
the Broad-Based Categorical Eligibility (BBCE). He urged
the committee to support the bill.
6:49:06 PM
HANNAH HILL, EXECUTIVE DIRECTOR, BREAD LINE, FAIRBANKS (via
teleconference), strongly supported the bill. She shared
that the Bread Line was an anti-hunger organization. She
voiced that when impoverished Alaskans did not receive food
stamps, they were forced to turn to food banks and soup
kitchens like the Bread Line. She emphasized that since the
SNAP backlog, every month the Bread Line had seen record
breaking numbers of individuals. She noted that the past
month was the busiest the organization had ever had. Food
relief organizations all over the state were experiencing
elevated community hunger that was exacerbated by the
decline in donations and the federal commodity programs.
The Bread Line was struggling to maintain the increasing
level of service. The BBCE was targeted assistance that
focused on low income families and seniors. Raising the
gross income limit to 200 percent of the federal poverty
guidelines primarily benefited working families with
children and removing the asset test helped seniors retain
modest savings while receiving needed benefits. She
declared that Alaskans could better care for Alaskans by
joining the majority of other states in adopting HB 196.
She shared that there were many benefits of adopting the
bill; reducing hunger in Alaska, eliminating the
administrative burden on the DPA, and saving the state
money.
6:51:40 PM
RON MEEHAN, DIRECTOR OF GOVERNMENT AFFAIRS, FOOD BANK OF
ALASKA, ANCHORAGE (via teleconference), related that he was
also the manager of the Alaska Food Coalition. He spoke in
favor of the legislation. He offered that the Alaska Food
Coalition represented more than 180 food banks and other
food relief organizations. He believed that the
implementation of BBCE would provide economic security to
hard working Alaskans. He indicated that SNAP was the most
effective food assistance program in the country and helped
over 92,000 Alaskans or 1 in 8 families. He reminded that
committee that SNAP was a federal program administered by
the state where the benefits were 100 percent federally
funded and the administrative costs were a 50 percent/50
percent (50/50) state and federal split. The bill also
allowed the state to eliminate the asset test and raise the
income limit. He reiterated the current asset limits and
indicated that current asset limits did not allow for
emergencies or savings for things like rent deposits. He
believed not adopting BBCE would punish hardworking
Alaskans for becoming more economically independent. The
current system harmed senior asset security as well.
Ultimately, self-sufficiency was the goal, but currently,
recipients could not save, receive a small raise, or take
on a second job and stay on SNAP. He voiced that adopting
BBCE incentivized work and also allowed the state to
eliminate the asset test, which would cut down on the
administrative time and expense in verifying applications.
He reiterated that food relief organizations had continued
to see incredibly high record levels of usage. The bill
eliminated the backlog and would make the program work
better. He offered that the states that had adopted BBCE
had experienced more efficiencies in workload and reduced
costs. He relayed more data from other states. He strongly
encouraged the committee to move the bill forward.
Co-Chair Foster CLOSED public testimony.
6:57:32 PM
Representative Galvin stated that many of her questions
were answered by the public testimony. She appreciated the
upcoming efficiencies and thanked the department for taking
on the challenge of improving the SNAP program. She
reported that when families can choose the food, they
purchase it is more beneficial and healthful for them.
Representative Hannan stated that her question had been
addressed by Mr. Meehan. She reiterated that SNAP benefits
were paid at 100 percent and the federal government paid
half of the administrative costs. She voiced that for the
$138,000.00 in fiscal note costs the state could feed more
Alaskans, reduce case evaluation time, and hopefully help
get people out of poverty.
Representative Coulombe asked about the income limit. She
was not sure what the poverty standard was and what income
level 130 percent of the poverty level was. Representative
Mina answered that the Alaska SNAP standards as of October
1, 2023, the gross limit was $1,973.00 and the limits
changed depending on the household size. Representative
Coulombe asked if it was the 130 percent or 200 percent
level. Representative Mina answered the limit was at 130
percent of the Alaska Poverty Standard and not the Federal
Poverty Standard. Representative Coulombe asked about the
number for 200 percent for an individual under the bill.
7:00:52 PM
AT EASE
7:01:34 PM
RECONVENED
Co-Chair Foster requested a copy of a chart [provided by
the Department of Health].
Co-Chair Foster asked Ms. Etheridge to reply.
Ms. Etheridge replied that the chart she provided the co-
chair was related to pregnant women and she did not have
information regarding a household of one. She could follow
up with the committee to provide additional information.
She provided information for a household of 2 that was
based on 200 percent of the federal poverty level (FPL).
She relayed that the amount was $4107.00 She furthered that
a household of one at the 177 percent FPL was $2,686.00.
7:03:04 PM
Representative Coulombe asked if the number was $4,107 per
month. Ms. Etheridge responded in the affirmative.
Representative Coulombe asked about the asset aspect of the
bill. She wondered how it affected eligibility. Ms.
Etheridge responded that someone over the asset limit would
be ineligible for the benefit.
Representative Mina elaborated on what constituted an
asset. She relayed that assets were cash on hand, money in
bank accounts, certificates of deposit, U.S. Savings Bonds,
stocks, bonds, property not for sale, crowd funding
accounts, and lump sum payments. Representative Coulombe
asked for the existing asset limit. Representative Mina
replied that the asset limit was $2,750.00 or $4,250 for a
household with an elderly or disabled person.
Representative Coulombe asked for verification that the
bill proposed eliminating the asset limit. Representative
Mina answered in the affirmative.
7:05:07 PM
Representative Cronk asked what a person received with a
SNAP benefit. Ms. Etheridge responded that an individual
received an electronic benefit card (EBT) that would only
allow for the purchase of food. The card could be used at
grocery stores, farmer's markets, and in rural areas it can
be used to purchase items for subsistence fishing or
hunting. Representative Cronk considered the 130 percent
limit and asked how much an individual would be eligible
for. Ms. Etheridge replied that there were different
standards based on where a person lived including in rural
and urban areas. She indicated that for an urban household
of one the amount was $374.00 and a minimum of $30.00. In
the Rural 1 area the amount was $477.00, and the minimum
was $38.00 and in Rural 2 areas the amount was $588.00 with
the minimum level of $46.00. The standards were set by the
Federal Nutrition Services through the Thrifty Food Plan.
Representative Cronk asked if food pantries were separate
from SNAP. Ms. Etheridge responded affirmatively.
Representative Cronk appreciated the asset relief. He
shared that if he was not a legislator, his income made him
eligible for the benefits, however his assets would
disqualify him.
7:07:52 PM
Representative Stapp had five people in his family. He
asked what his income limit was at 200 percent of the
poverty level. Ms. Etheridge replied that the amount was
$7,322.00. Representative Stapp asked for an annual amount.
Representative Mina interjected that it amounted to $87,
864.00. She highlighted that SNAP calculated expenses into
the eligibility. Therefore, if a recipient lived in a
household with high costs for things like childcare, etc.
the expense was also calculated to derive the amount of
SNAP benefits received. Representative Stapp asked if the
FPL amount was based on adjusted gross income or gross
income. Representative Mina would follow up with the
answer.
Co-Chair Foster asked for any closing comments.
Representative Mina commented in reference to the
administrative tradeoff between raising the income limit
and waiving the asset test. She pointed out that there was
a 2019 Congressional Budget Office (CBO) report stating
that 5 percent of the national costs of SNAP was BBCE the
expectation was for a nominal increase in applications to
the state. She added that the error rates were a big part
of SNAP administration and Alaska had the worst error rates
in the prior year. She declared that BBCE helped reduce
error rates.
HB 169 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster set an amendment deadline for HB 115 on
Tuesday, May 7 at 5:00 p.m.
Co-Chair Foster spoke to the next day's schedule.
7:12:14 PM
Representative Josephson asked about amendment deadlines
for HB 307 and HB 115.
Co-Chair Foster replied that the deadline for HB 307 was
May 2 at 5:00 p.m. and the deadline for HB 115 was May 7 at
5:00 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 196 Presentation HFIN 03.06.24.pdf |
HFIN 5/1/2024 1:30:00 PM |
HB 196 |
| HB 196 Combined Bill File 03.06.24.pdf |
HFIN 5/1/2024 1:30:00 PM |
HB 196 |
| HB 196 Letters of Support 03.06.24.pdf |
HFIN 5/1/2024 1:30:00 PM |
HB 196 |
| HB 196 Public Testimony Rec'd by 040424.pdf |
HFIN 5/1/2024 1:30:00 PM |
HB 196 |
| HB 196 Sectional Analysis Version A 03.06.24.pdf |
HFIN 5/1/2024 1:30:00 PM |
HB 196 |
| HB 196 Sponsor Statement Version A 03.06.24.pdf |
HFIN 5/1/2024 1:30:00 PM |
HB 196 |
| HB 196 Supporting Document - CBPP Report BBCE Supports Working Families 03.06.24.pdf |
HFIN 5/1/2024 1:30:00 PM |
HB 196 |
| HB 196 Supporting Document - Fact Sheets 03.06.24.pdf |
HFIN 5/1/2024 1:30:00 PM |
HB 196 |
| HB307 HFIN Presentation 5.1.24.pdf |
HFIN 5/1/2024 1:30:00 PM |
HB 307 |
| HB 223 Amendment 1 to Amendment 13 ( D.12) 050124.pdf |
HFIN 5/1/2024 1:30:00 PM |
HB 223 |
| SB 67 Amendment 1 Stapp 050124.pdf |
HFIN 5/1/2024 1:30:00 PM |
SB 67 |
| SB 67-NEW FN DEC-SPAR-05-01-24.pdf |
HFIN 5/1/2024 1:30:00 PM |
SB 67 |