Amendment ASA1-AB110

LRBs0031/2

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2013 - 2014 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 110

April 29, 2013 - Offered by Representative Kaufert.

AB110-ASA1,1,6 An Act to create 20.435 (4) (cm), 49.79 (7m), 227.01 (13) (tm) and 253.06 (9) of the statutes; relating to: limiting the foods that may be purchased under FoodShare; requiring a report on the cost to implement and comply with the food limitations; requiring review, updating, and publication of the list of authorized foods; providing an exemption from rule-making procedures; and making an appropriation.

Analysis by the Legislative Reference Bureau

Under current law, the federal food stamp program, now known as the Supplemental Nutrition Assistance Program (SNAP) and called FoodShare in this state, assists eligible low-income individuals (recipients) to purchase food. SNAP benefits are paid entirely with federal moneys. The cost of administration is split between the federal and state governments; the program is administered in this state by the Department of Health Services (DHS).

Under this substitute amendment, DHS must require that not less than 67 percent of the SNAP benefits used by a recipient in a month be used to purchase foods that are on the list of foods authorized for the federal special supplemental nutrition program for women, infants, and children (WIC foods), beef, pork, chicken, fish, or fresh produce, including white potatoes. To facilitate compliance with the requirements, DHS may authorize grocers and other retailers that sell food to recipients (retailers) to swipe a recipient's benefit card before scanning any items that the recipient is purchasing. In addition, under the substitute amendment DHS is required to reimburse retailers and warehouse suppliers for their initial implementation costs associated with the new requirements.

Before implementing the new requirements, DHS must determine what the implementation and compliance costs associated with the new requirements will be to retailers and warehouse suppliers and must submit a report with that cost determination to the Joint Committee on Finance.

If DHS determines that a federal waiver is needed to implement the food limitation requirements or the authorization to pre-swipe benefit cards under the substitute amendment, it must request the waiver and may not implement the requirements or the pre-swipe authorization unless the waiver is granted. DHS must implement the requirements within three years after the substitute amendment is enacted or, if a waiver is necessary, within two years after the waiver is granted.

The substitute amendment requires DHS annually to review, and to update as appropriate, its list of WIC foods and to publish a current list of WIC foods on its Internet site. DHS also must publish on its Internet site a list of the foods for which 67 percent of a recipient's benefits must be used and a list of the foods for which 33 percent of a recipient's benefits may be used.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB110-ASA1,1 Section 1. 20.435 (4) (cm) of the statutes is created to read:

AB110-ASA1,2,5 20.435 (4) (cm) Reimbursement for FoodShare initial implementation costs. A sum sufficient to reimburse retail and warehouse suppliers for their initial implementation costs associated with the requirements under s. 49.79 (7m) that limit foods that may be purchased with food stamp benefits.

AB110-ASA1,2 Section 2. 49.79 (7m) of the statutes is created to read:

AB110-ASA1,2,7 49.79 (7m) Foods that may be purchased with benefits. (a) In this subsection:

AB110-ASA1,2,8 1. "Authorized food" has the meaning given in s. 253.06 (1) (a).

AB110-ASA1,2,9 2. "Benefits" means benefits under the food stamp program.

AB110-ASA1,3,1 3. "Recipient" means an individual who is eligible for the food stamp program.

AB110-ASA1,3,4 (b) 1. The department shall require that, of the benefits amount used by a recipient in a month to purchase food, not less than 67 percent is used to purchase only any of the following foods:

AB110-ASA1,3,5 a. Authorized foods on the list published by the department under s. 253.06 (9).

AB110-ASA1,3,7 b. Beef, pork, chicken, or fish, whether an authorized food on the list published under s. 253.06 (9) or not.

AB110-ASA1,3,9 c. Fresh produce, including white potatoes, whether an authorized food on the list published under s. 253.06 (9) or not.

AB110-ASA1,3,11 2. The department shall publish on the department's Internet site the following lists:

AB110-ASA1,3,13 a. A current list of the foods for which 67 percent of a recipient's monthly benefits amount must be used.

AB110-ASA1,3,15 b. A current list of the foods for which 33 percent of a recipient's monthly benefits amount may be used.

AB110-ASA1,3,18 (c) To facilitate compliance with the requirements under par. (b), the department may authorize retail suppliers to swipe food stamp benefit cards before items that are being purchased are scanned or checked out.

AB110-ASA1,3,21 (d) From the appropriation under s. 20.435 (4) (cm), the department shall reimburse retail and warehouse suppliers for their initial implementation costs related to compliance with the food limitation requirements under par. (b).

AB110-ASA1,3,25 (e) 1. Except as provided in subd. 2., the department shall implement the requirements under par. (b) and the authorization under par. (c) no later than the first day of the 37th month beginning after the effective date of this subdivision .... [LRB inserts date].

AB110-ASA1,4,9 2. If the department determines that it may not implement the requirements under par. (b) or the authorization under par. (c) without a federal waiver, the department shall, no later than one year after the effective date of this subdivision .... [LRB inserts date], request a waiver from the secretary of the federal department of agriculture and may not implement the requirements under par. (b) or the authorization under par. (c) unless the waiver is granted and in effect. If a waiver is requested and granted under this subdivision, the department shall implement the requirements under par. (b) and the authorization under par. (c) no later than the first day of the 25th month beginning after the date on which the waiver is granted.

AB110-ASA1,3 Section 3. 227.01 (13) (tm) of the statutes is created to read:

AB110-ASA1,4,12 227.01 (13) (tm) Relates to the requirements under ss. 49.79 (7m) and 253.06 (9).

AB110-ASA1,4 Section 4. 253.06 (9) of the statutes is created to read:

AB110-ASA1,4,15 253.06 (9) Review, updating, and publication of list of authorized foods. The department shall do all of the following:

AB110-ASA1,4,16 (a) Annually review, and update as appropriate, the list of authorized foods.

AB110-ASA1,4,17 (b) Publish a current list of authorized foods on the department's Internet site.

AB110-ASA1,5 Section 5. Nonstatutory provisions.

AB110-ASA1,5,5 (1) Report on implementation costs. The department of health services shall consult and work with stakeholders, investigate, and determine what the cost will be for retail and warehouse suppliers to implement and comply with the requirements under section 49.79 (7m) of the statutes, as created by this act, related to limiting the foods that individuals may purchase with food stamp benefits. The department of health services shall prepare a report of its findings and cost determination and submit the report to the joint committee on finance. The report shall be submitted before the requirements under section 49.79 (7m) (b) of the statutes, as created by this act, and the authorization under section 49.79 (7m) (c) of the statutes, as created by this act, are implemented, but after a waiver is granted if the department determines that a waiver is needed under section 49.79 (7m) (e) 2. of the statutes, as created by this act.

AB110-ASA1,5,6 (End)