SB 913
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 913 (Senator McCray, et al.)
Finance Appropriations
Human Services - Supplemental Nutrition Assistance Program - Heat and Eat
Program and Study on Maryland Energy Assistance Program Eligibility
This bill establishes a Heat and Eat Program within the Supplemental Nutrition Assistance
Program (SNAP) to expand food access to households that are receiving or eligible for
SNAP. A household is eligible to participate in the program if they are eligible for SNAP
under State and federal law. In determining program eligibility, the Department of Human
Services (DHS) must apply a “standard utility allowance” (SUA) to the shelter deduction
used to determine countable gross income for SNAP eligibility. DHS must adopt
regulations to verify eligibility for participation in the program and implement the bill.
Uncodified language requires DHS to study and make recommendations on the feasibility
of establishing automatic eligibility and approval for a household to participate in the
Maryland Energy Assistance Program (MEAP) if the household is receiving or eligible to
receive SNAP. DHS must conduct a cost-benefit analysis as part of the study. By
December 31, 2021, DHS must submit its findings and recommendations to the Governor
and the General Assembly. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: DHS can complete the required study and cost-benefit analysis with existing
budgeted resources. Potential increase in federal fund expenditures to update existing data
systems in FY 2022 only. Federal fund revenues and expenditures increase by an
indeterminate but potentially significant amount to provide additional MEAP and SNAP
benefits. Expenditures are not incurred until after the COVID-19 emergency ends, as
discussed below.
Local Effect: None.
Small Business Effect: None.
 Analysis
Current Law: “Standard utility allowance” means a MEAP payment to a household that
is at least $21 per year.
SNAP provides benefits for the purchase of food items to families and individuals who
meet income and resource requirements. Program rules and requirements are issued by the
federal government. Administrative costs are split equally between the State and federal
government.
A State supplemental benefit is provided to households with an individual older than age 62
for the difference between the monthly benefit and $30. Beginning in fiscal 2021, a State
and local supplemental benefit (Summer SNAP) is also provided to some households with
school-aged children in select jurisdictions, which provides an additional $30 per child, per
month during summer months, and $10 in December while children are not traditionally in
school.
Chapter 475 of 2019 established the SNAP Restaurant Meals Program to expand food
access to eligible individuals who do not have a place to store and cook food, may not be
able to prepare food, or do not have access to a grocery store.
Supplemental Nutrition Assistance Program Eligibility
Households receiving or authorized to receive Temporary Cash Assistance, Supplemental
Security Income, Temporary Disability Assistance Program, Public Assistance to Adults,
or Temporary Assistance for Needy Families-funded services or benefits (including certain
brochures) are categorically eligible for SNAP benefits.
Noncategorically eligible households are subject to eligibility requirements, including
resource and income limits. Households may have up to $2,250 in countable resources,
which include a bank account. If a member of a household is age 60 or older or is disabled,
allowable countable resources increase to $3,500. Certain resources are excluded,
including all vehicles. Most noncategorically eligible households must meet both a gross
income test (130% of federal poverty guidelines (FPG)) and a net income test 100% FPG).
If the noncategorically eligible household includes an elderly person or a person who is
disabled, only the net income test must be met.
Maryland Energy Assistance Program
The Office of Home Energy Programs (OHEP) within DHS administers MEAP to assist
low-income households pay their heating bills, minimize crises, and make heating costs
more affordable. MEAP is funded by the federal Low Income Home Energy Assistance
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Program (LIHEAP). In general, MEAP benefits are paid directly to the building operator,
property management company, or landlord if they agree to reduce the tenant’s utility
charge or rent by the amount of the benefit received on the resident’s behalf. However, it
is possible for a resident to receive the benefit directly if the heating bill is in the resident’s
name.
Rather than remaining as a stand-alone system, DHS plans to integrate OHEP into the new
Eligibility and Enrollment (E&E) System (part of the Maryland Total Human-Services
Information Network system) in July 2022. DHS also plans to introduce categorical
eligibility, under which a household’s eligibility for another program can be used to
determine eligibility for MEAP. Use of categorical eligibility would reduce the number of
verifications needed to be provided to process applications, and, therefore, reduce denial
rates.
In March 2020, Eleventh House Solutions submitted to DHS a report (Process Evaluation
Research and Cost Benefit Analysis) completed under an OHEP contract. Eleventh House
Solutions reviewed states that implement categorical eligibility for LIHEAP-funded
benefits, reviewed the administrative operations of other states focusing on cost
effectiveness of various eligibility and enrollment models, and conducted a cost-benefit
valuation of changes to OHEP administrative operations. Eleventh House Solutions
recommended (1) simplifying the application process; (2) aligning the eligibility of benefits
with other benefit programs; and (3) fulling integrating OHEP into the E&E System. DHS
has not finalized the parameters for the implementation of categorical eligibility.
Heat and Eat Program
The “Heat and Eat” program uses an alternative method to calculate SNAP benefits for
individuals who receive minimum amounts of energy assistance under LIHEAP. Under the
program, instead of requiring an applicant’s utility bill, states use a SUA, which increases
the likelihood that individuals will qualify for relevant deductions and higher SNAP
benefits. These households receive higher SNAP benefits because they automatically
qualify for the SUA. The SUA is calculated as part of the shelter deduction when
determining countable gross income for SNAP eligibility.
Chapter 475 required DHS to evaluate and report on the feasibility and cost of
implementing a Heat and Eat program to determine SNAP (then known as the food
supplement program) benefit levels for eligible households.
COVID-19 State of Emergency
The federal Families First Coronavirus Response Act of 2020 authorized an increase in
SNAP benefits to the maximum allowable level for a household size (known as emergency
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allotments) through the end of the public health emergency (PHE) or State emergency if it
ends earlier. This action significantly increased average benefits per case in Maryland, and
all households in the State are receiving the maximum allotment.
State Fiscal Effect:
Administrative Expenses
Updates to the OHEP data management system, enrollment and eligibility system, and the
Electronic Benefit Transfer processing system are necessary to implement the bill. DHS
advises that system upgrades will cost approximately $200,000 in fiscal 2022 only.
However, the Department of Legislative Services (DLS) advises that such costs can likely
be absorbed within existing planned information technology updates. To the extent
upgrades are more complex, federal fund expenditures increase to provide necessary
system upgrades.
Maryland Energy Assistance Program Expenses
DHS advises that MEAP federal fund expenditures increase by as much as $8.6 million
annually to provide the $21 SUA to all 410,565 SNAP participants (based on fiscal 2019
enrollment) in the State. However, DLS notes that only a proportion of SNAP participants
will require the SUA. In a 2016 analysis of the impact of implementing a Heat and Eat
program, DHS determined that approximately 32,690 households could receive additional
SNAP benefits under such a program (primarily public housing and Housing Choice
Voucher Program households that currently do not pay a separate heating bill). For
illustrative purposes only, if these 32,690 households receive the $21 SUA, federal fund
expenditures increase by $686,490 annually. Therefore, federal fund expenditures increase
by an indeterminate but potentially significant amount.
Supplemental Nutrition Assistance Program Expenses
SNAP federal fund revenues and expenditures increase by an indeterminate but potentially
significant amount to account for a higher SNAP allotment per household. All SNAP
households in the State are currently receiving the maximum allotment, which will be
provided through the end of the PHE or State emergency, whichever ends first.
The 2016 DHS analysis estimated that the average increased SNAP benefit under a Heat
and Eat program would be $59 per household per month. For illustrative purposes only, if
the 32,690 households estimated to receive the $21 SUA also receive an addition $59 per
month SNAP benefit, federal fund expenditures increase by $1.9 million annually.
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Provision of additional benefits would not begin until after the end of the PHE or State
emergency as noted above.
Additional Information
Prior Introductions: None.
Designated Cross File: HB 101 (Delegate Charkoudian) - Appropriations.
Information Source(s): Department of Human Services; Department of Legislative
Services
Fiscal Note History: First Reader - February 11, 2021
rh/jc Third Reader - March 23, 2021
Revised - Amendment(s) - March 23, 2021
Analysis by: Amberly Holcomb Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 913/ Page 5


Statutes affected:
Text - First - Human Services - Supplemental Nutrition Assistance Program - Heat and Eat Program: 5-501 Human Services, 5-506 Human Services
Text - Third - Human Services - Supplemental Nutrition Assistance Program - Heat and Eat Program and Study on Maryland Energy Assistance Program Eligibility: 5-501 Human Services, 5-506 Human Services