FISCAL NOTE

Date Requested: February 24, 2017
Time Requested: 01:23 PM
Agency: Health and Human Resources, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2432 Introduced HB2701
CBD Subject: Human Services


FUND(S):

0403 - DIV OF HUMAN SERVICES GENERAL ADMINISTRATION FUND, 8816 - TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)

Sources of Revenue:

General Fund,Other Fund Federal

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The purpose of this bill is to prohibit recipients of public assistance to return items for cash that were purchased with electronic benefit transfer cards. The bill establishes a penalty. Currently, TANF, Food Stamps and WIC benefits are delivered through EBT cards. According to federal regulations, this is already a requirement for WIC and Food Stamps. As related to TANF benefits, the current system is not configured to mandate that cash assistance benefits be returned to the card. In order for this to occur, programming costs would be required which could result in significant costs. Additionally, the system could be configured to allow for this to occur, however, it cannot be configured to require it to occur. Therefore, the programming costs would be incurred by the state as well as retailers, or their point of sale (POS) terminal drivers, without the ability to require the action. Larger providers, e.g. Walmart, Kroger, etc. would be able to implement easier than mid size chains and small retailers. Additionally, cash assistance benefits can be accessed through ATM or cash back at purchase, therefore placing restrictions on returning goods for cash would not limit the use of the funds. Therefore, there would be a cost to accomplish this which is not yet quantified and no real benefit received. As currently written there are no ramifications for retailers failing to comply with law.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):






Memorandum






    Person submitting Fiscal Note: Bill J. Crouch
    Email Address: dhhrbudgetoffice@wv.gov