SB1668.DOC

THE SENATE	S.B. NO.	1668
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO HUMAN SERVICES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that Hawaii loses millions of dollars in federal funding each year due to its seventy-two per cent participation rate among eligible households in the supplemental nutrition assistance program, formerly known as the food stamp program, under title 7 United States Code sections 2011 to 2027. A higher rate of participation would draw millions of additional federal dollars to the State.

The State's stringent eligibility standards are more restrictive than those required by federal law. The continued use of the asset test, which considers a household's savings and other non-liquid capital, denies access to the food stamp program by needy individuals. Additionally, the State's lengthy application process deters otherwise eligible households from applying.

Hawaii's food stamp eligibility standards also affect the local economy by failing to maximize the amount of federal funding available for the program. If the participation rate, currently seventy-two per cent, increased to ninety per cent, approximately $45,000,000 additional federal dollars would be spent by Hawaii consumers at local retail outlets. This lost revenue is magnified by what the United States Department of Agriculture has identified as the ripple effect; for every $5 spent through the supplemental nutrition assistance program, there is a $9.20 economic benefit to the community.

SECTION 2. Chapter 346, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§346‑ Administration of the supplemental nutrition assistance program. (a) The department shall establish a program of expanded categorical eligibility for benefits, in accordance with subdivision (a) of the federal supplemental nutrition assistance program, title 7 United States Code section 2014, and title 7 Code of Federal Regulations section 273.2(j)(2). The department shall not consider the level or types of assets of a household in determining the eligibility of the household for, or the amount or types of assistance to provide to the household under the supplemental nutrition assistance program.

(b) The department shall allow any household to apply for benefits under this section by facsimile transmission, and shall accept the signature provided on the application as original. Upon request of the applicant, the department shall allow telephone interviews in lieu of a face-to-face interview.

(d) The department shall set the gross monthly income limit for households eligible to receive benefits under the supplemental nutrition assistance program at one hundred eighty-five per cent of the federal poverty guidelines or less.

(e) For purposes of this section, "household" means an individual or group of individuals as provided under title 7 Code of Federal Regulations section 273.1."

SECTION 3. The department of human services shall prepare a food stamp outreach plan as provided under title 7 Code of Federal Regulations section 272.5. The plan shall meet the requirements provided under title 7 Code of Federal Regulations section 272.2, and shall be submitted to the United States Department of Agriculture, through the governor, prior to the 2009-2010 fiscal year.

SECTION 4. It is the intent of this Act not to jeopardize the receipt of any federal aid. If any provision of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State, that provision of the Act shall be deemed null and void, and to this end the provisions of this Act shall be severable.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________