|Date Requested:January 22, 2011
Time Requested:11:01 AM
| FUND(S) |
0403 - Div of Human Services General Administration Fund
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| The purpose of this bill is to require recipients of food stamps be issued a photo identification card that must be used when using the food stamps. The bill establishes penalties for misuse. The bill also grants rule-making authority.
The estimated cost of this legislation to the Department is $2,409,315 for the first year and $510,000 thereafter.
Based on current caseload information there are 376,023 Supplemental Nutrition Assistance Program (SNAP - formerly food stamps) cardholders. Benefit cases change daily (opened and closed), so there would be a need to have a daily process for issuing photo ID cards to new recipients. New cardholders and replacement cards average approximately 8,500 per month.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||2,409,315||510,000|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
The above costs are based on the Department providing a separate photo ID card for recipients. The Department of Motor Vehicles estimates the cost for programming of a new card to be $19,200 (6 weeks @ 40 hrs. per week x $80/hr). The cost per ID card is $5 for a total of $1,880,115 (376,023 x $5) for the initial issuance. Assuming the initial issuance would be the first of July 2011, an estimated $510,000 (8,500/mo. x 12 mo. x $5) for new cardholders and replacement cards throughout the year (based on historical data).
| The Department is uncertain at this time if the Federal USDA will participate in the cost of providing photo ID cards to SNAP recipients.
Some additional things to consider include the following:
The current electronic benefits (EBT) card has a PIN (like a debit card), therefore, the merchants do not check ID as the PIN verifies approval to use.
The EBT card is issued to the primary person in the household (with additional cardholders for two parent families and other guardianship arrangements). With multiple people in the family, the need arises for other household members to use the card. The ID would hender this option unless an ID card were issued to all members of the family.