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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
VETOED
AMENDED
FACT SHEET FOR S.B. 1002/ H.B. 2797
SNAP; TANF; public welfare; verification
Purpose
Establishes evaluation and fraud detection requirements for the Department of Economic Security (DES) to confirm eligibility for Supplemental Nutrition Assistance Program (SNAP) benefits.
Background
SNAP is a federal program that provides food benefits to low-income families to supplement a family's grocery budget and help the family afford nutritious food. To be eligible for SNAP benefits, an applicant must meet specific age, household, employment and income requirements. Arizona's SNAP program is administered by DES and is knowns as the Arizona Nutrition Assistance Program (DES).
To qualify for SNAP, the countable resources for a household may not exceed $3,000, such as cash or money in a bank account, or $4,500 if at least one member of the household is 60 years of age or older or has a disability. Certain resources, including a home or social security income are not counted in determining resources. A one-person household must earn no more than $19,584 in annual gross income. The threshold increases by $6,996 for each additional person in the household (USDA).
General work requirements to qualify for SNAP, for applicants between 16 and 59 years old, include: 1) registering for work; 2) participating in SNAP employment and training or workfare, if assigned by DES; 3) accepting a suitable job if offered; and 4) not voluntarily quitting a job or reducing work hours below 30 hours a week without a good reason. To be exempt from the requirements, an applicant must be: 1) already working at least 30 hours a week; 2) meeting work requirements for the Temporary Assistance for Needy Families (TANF) or the unemployment compensation program; 3) taking care of a child under 14 years old or an incapacitated person; 4) unable to work due to a physical or mental limitation; 5) participating regularly in an alcohol or drug treatment program; or 6) studying in school or training program at least part-time. An applicant between 18 and 65 years old, that can work and has no dependents, may need to meet the additional able-bodied adult without dependents work requirements in addition to the general work requirements (USDA).
In 2025, the Joint Legislative Budget Committee (JLBC) published a fiscal note on S.B 1071, an identical measure to S.B. 1002, which estimated that the bill would increase administrative costs by requiring DES to perform more frequent redeterminations of member eligibility and for agencies to share relevant information with DES. DES estimates a total impact of $66,600,000 ongoing and $1,400,000 in one-time costs. Of that, $34,000,000 would be from the state General Fund and $34,000,000 would be from SNAP federal dollars (JLBC).
Provisions
SNAP Eligibility Evaluations
1. Requires DES, when determining or evaluating SNAP eligibility, to:
a) enter into a data matching agreement with the Arizona Department of Revenue (ADOR) to identify households with lottery or gambling winnings of $3,000 or more; and
b) treat the data obtained as verified on receipt, as permissible under federal law.
2. Requires DES, to the extent that the ADOR data is not verified on receipt, to refer households with lottery or gambling winnings that are equal to or greater than the resource limit for elderly or disabled households as defined under federal law to DES for further investigation.
3. Requires DES, on at least a monthly basis, to review information that identifies individuals who have had a change in circumstances that may affect SNAP eligibility as provided by:
a) the Department of Health Services (DHS); and
b) the Arizona Department of Corrections, Rehabilitation and Reentry.
4. Requires DES, on at least a monthly basis, to review DES information that identifies individuals who have had a change in circumstances that may affect SNAP eligibility, including potential changes in residency as identified by out-of-state electronic benefit transfer (EBT) card transactions.
5. Requires DES, on at least a quarterly basis, to review DES's information that identifies individuals who have had a change in circumstances that may affect SNAP eligibility, including potential changes in residency, unemployment benefits, employment status or wages.
6. Requires DES, on at least a quarterly basis, to review information that is provided by ADOR and that identifies households that have had a change in circumstances that may affected SNAP eligibility, including potential changes in income, wages or residency as identified by tax records.
7. Requires DES to post on the DES website on a quarterly basis the following aggregate amounts obtained from noncompliance and fraud investigations related to SNAP, excluding confidential and personally identifiable information:
a) the number of SNAP cases that were investigated for international program violations or fraud;
b) the number of SNAP cases that were referred to the Attorney General’s Office for prosecution;
c) the amount of improper payments and expenditures;
d) the amount of monies recovered;
e) the amount of monies spent for improper payments and ineligible recipients as a percentage of cases that were investigated and reviewed; and
f) the amount of monies spent by the EBT card that occurred outside of Arizona, categorized by state.
8. Requires DHS and DES, to assess a recipient’s continued eligibility for SNAP, to review:
a) earned income information, death registration information, incarceration records, supplemental security income information, beneficiary records, earnings information and pension information that is maintained by the U.S. Social Security Administration;
b) income and employment information that is maintained in the National Directory of New Hires database and child support enforcement data that is maintained by the U.S. Department of Health and Human Services;
c) payment and earnings information that is maintained by the U.S. Department of Housing and Urban Development; and
d) national fleeing felon information that is maintained by the Federal Bureau of Investigation.
9. Requires DES to review an individual's case if DES receives information that identifies an individual who is enrolled in SNAP and indicates a change in circumstances that may affect that individual's SNAP eligibility.
EBT Transactions
10. Requires DES to use the data from an EBT card to identify any individual who has made a purchase exclusively out-of-state over a 90-day period.
11. Requires DES to contact the identified individual within 30 days to determine whether that individual resides in Arizona.
12. Requires DES to remove the individual within 30 days after contact if the individual does not reside in Arizona.
13. Requires DES, within 15 days after the removal, to refer the individual to the U.S. Attorney’s Office for the district of Arizona.
Miscellaneous
14. Defines terms.
15. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
· Requires DES to refer an individual who exclusively uses an EBT card out-of-state to the U.S. Attorney’s District Office for the district of Arizona, rather than the district where the individual claims to reside.
Governor's Veto Message
The Governor indicates in her veto message that DES has already taken steps to improve the accuracy of SNAP benefit determinations and that S.B. 1002 would duplicate these efforts and disrupt agency operations. The Governor further states that S.B. 1002 imposes unfunded mandates without providing funding for implementation or system modernization.
Senate Action House Action
GOV 2/4/26 DP 4-3-0 HHS 2/2/26 DP 7-5-0-0
3rd Read 2/11/26 17-13-0 3rd Read 2/11/26 33-25-2
(S.B. 1002 was substituted for H.B. 2797 on 3rd Read)
Prepared by Senate Research
February 24, 2026
AN/KP/ci