Bill
HB 4147
The bill strengthens SNAP and TANF integrity and accountability by boosting data-sharing, monitoring, and reporting to reduce improper payments and terminate ineligible residents.
HB 4147 (57th Legislature, 2nd Regular Session) – Summary
Jurisdiction: Arizona | Topic: Human Services (SNAP, TANF, and related program integrity)
Purpose and high-level intent
- This bill establishes new funding, oversight, and eligibility rules for the state's administration of federal SNAP benefits (Arizona Nutrition Assistance Program) and TANF cash assistance, in the context of implementation for FY 2027 and beyond.
- It emphasizes strengthened program integrity, data-sharing and eligibility surveillance, annual/quarterly reporting, and penalties/funding consequences if performance targets are not met.
- It includes provisions to address public accountability (public posting of certain fraud/ineligibility metrics) and to align state administrative practices with anticipated federal changes.
Key provisions and changes
1) SNAP Fund and administration ( Secs. 46-232, 46-233, 46-234)
- Supplemental Nutrition Assistance Program Fund is created as an expenditure authority fund, consisting of monies collected by DES from federal deposits under 7 CFR Parts 271-285; DES administers the fund; funds are continuously appropriated.
- DES must deposit all federal SNAP monies (benefit share and administrative share) into the fund before expenditure.
- No gross income limit above 185% of the Federal Poverty Level may be established for categorically eligible SNAP recipients (maintains or sets a cap at 185% FPL for categorically eligible groups).
- Data-matching and eligibility oversight:
- DES must enter a data-matching agreement with the Department of Revenue to identify households with lottery/gambling winnings of $3,000 or more and treat such data as verified when possible; households with winnings at or above the resource limit for elderly/disabled must be referred for further investigation.
- Monthly/quarterly reviews of eligibility-relevant data from DHS, DES records, Corrections, and DOR (income, unemployment, residency, etc.).
- Quarterly posting on DES’s public website of aggregated SNAP-related noncompliance/fraud metrics (cases investigated, referred for prosecution, improper payments, recoveries, and out-of-state EBT spending by state).
- Monthly review of federal data to assess continued SNAP eligibility (SSA, NADAR/HOH, HUD, FBI National Felon List) and to trigger case reviews if changes in circumstances are identified.
- DES must review a SNAP enrolllee’s case upon receiving information indicating a change in circumstances.
2) Payment error rate; quarterly reporting (Sec. 46-235)
- DES must reduce SNAP payment error rate to not more than 3% by December 30, 2030.
- Beginning in FY 2026-2027, DES must file quarterly reports detailing monthly progress toward reducing the payment error rate, including strategies and barriers.
- If annual interim targets or final targets are not met:
- DES must submit a corrective action plan within 60 days.
- DES must pay 50% of any federal liabilities due to excess payment error rates; the remainder is paid from the General Fund.
- DES administrative funding may be reduced by 10% until the issue is resolved.
- By November 15, 2027, the Auditor General must complete a special audit identifying factors driving the payment error rate and provide recommendations; DES must implement recommendations within 12 months unless waived.
- The Legislature may allocate additional funding for SNAP improvements if DES corrects the payment error rate ahead of schedule.
- Delayed repeal date: Provisions repealed January 1, 2033 if not extended or renewed.
3) EBT card transactions and out-of-state purchases (Sec. 46-235, Sec. 3)
- Monthly data use to identify individuals who made exclusive out-of-state EBT purchases over a 90-day period.
- DES must contact identified individuals within 30 days to confirm Arizona residency.
- If the individual does not reside in Arizona, DES must terminate SNAP benefits within 30 days and refer the case to the U.S. Attorney’s Office (District of Arizona) within 15 days of termination.
4) TANF funding and drug testing (Sec. 4)
- For FY 2026-2027, DES must continue screening and testing adult TANF recipients with reasonable cause to believe illegal use of controlled substances; a positive test for non-prescribed substances results in TANF ineligibility for one year.
Effective dates and timing
- Provisions affecting SNAP eligibility evaluations, funding, reporting, and audit requirements apply beginning FY 2026-2027, with ongoing quarterly reporting and annual targets through 2030.
- Special audit due by November 15, 2027; implementation of audit recommendations due within 12 months of receipt.
- The statute includes a delayed repeal, set to expire January 1, 2033, unless extended or amended.
Who is affected
- Arizona Department of Economic Security (DES): new fund administration; enhanced eligibility reviews; data matching; reporting duties; potential adjustments to administrative funding.
- Department of Revenue (DOR), Department of Health Services (DHS), Department of Corrections and Reentry, Social Security Administration data interfaces: required data sharing and matching to determine eligibility and changes in circumstances.
- SNAP recipients (DES-administered as AZ Nutrition Assistance Program): eligibility determinations subject to expanded data checks; monthly/quarterly reviews; possible benefit terminations for residency changes or fraudulent activity.
- TANF recipients: continued drug-testing provisions for those with reasonable cause; possible one-year ineligibility for non-prescribed drug use.
- Public and oversight entities: ongoing public postings of aggregated SNAP compliance metrics; legislative and auditor general involvement.
Notes for readers
- The bill aligns state SNAP administration with federal changes anticipated in HR 1 (One Big Beautiful Bill), particularly around federal funding shares and state responsibility for administrative costs and error rates.
- It introduces stricter integrity measures, residency verifications, and out-of-state spend tracking, plus enhanced accountability through audits and reporting.
Compiled from official sources — confirm details with the bill’s official record.
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