TITLE 1. ADMINISTRATION

DIVISION 6. RESOURCES

1 TAC §372.355

The executive commissioner of the Texas Health and Human Services Commission (HHSC) proposes an amendment to §372.355, concerning Treatment of Resources in SNAP.

BACKGROUND AND PURPOSE

The proposal is necessary to comply with Texas Human Resources Code §33.021, which requires HHSC to increase the excluded amounts of a vehicle's fair market value (FMV) when determining Supplemental Nutrition Assistance Program (SNAP) eligibility. Texas Human Resources Code §33.021 was amended by House Bill 1287, 88th Legislature, Regular Session, 2023. The proposed amendment updates the excluded amount of FMV from the first and additional vehicle when determining the value of countable resources.

Households qualify to receive SNAP benefits by meeting eligibility requirements when they apply, recertify, or report a change. One requirement limits the amount of certain financial resources SNAP recipients may have on hand (e.g., cash, vehicles). To meet the resource test, the household's countable liquid resources plus excess vehicle value must be $5,000 or less.

SECTION-BY-SECTION SUMMARY

The proposed amendment updates the exclusionary amount for vehicles from $15,000 to $22,500 for the highest valued vehicle and $4,650 to $8,700 for all other countable vehicles. This change will allow HHSC to implement the state law.

FISCAL NOTE

Trey Wood, Chief Financial Officer, has determined that for each year of the first five years that the rule will be in effect, enforcing or administering the rule does not have foreseeable implications relating to costs or revenues of state or local governments.

GOVERNMENT GROWTH IMPACT STATEMENT

HHSC has determined that during the first five years that the rule will be in effect:

(1) the proposed rule will not create or eliminate a government program;

(2) implementation of the proposed rule will not affect the number of HHSC employee positions;

(3) implementation of the proposed rule will result in no assumed change in future legislative appropriations;

(4) the proposed rule will not affect fees paid to HHSC;

(5) the proposed rule will not create a new regulation;

(6) the proposed rule will not expand, limit, or repeal an existing regulation;

(7) the proposed rule will not change the number of individuals subject to the rule; and

(8) the proposed rule will not affect the state's economy.

SMALL BUSINESS, MICRO-BUSINESS, AND RURAL COMMUNITY IMPACT ANALYSIS

Trey Wood has also determined that there will be no adverse economic effect on small businesses, micro-businesses, or rural communities because the rule expands the resource limit and increases the amount of people eligible for SNAP in Texas based on their resources and does not require additional costs for small businesses, micro-businesses, or rural communities.

LOCAL EMPLOYMENT IMPACT

The proposed rule will not affect a local economy.

COSTS TO REGULATED PERSONS

Texas Government Code §2001.0045 does not apply to this rule because the rule does not impose a cost on regulated persons and is necessary to implement legislation that does not specifically state that §2001.0045 applies to the rule.

PUBLIC BENEFIT AND COSTS

Molly Regan, Deputy Executive Commissioner for Access and Eligibility Services, has determined that for each year of the first five years the rule is in effect, the public benefit will be to allow people an increased excluded amount on their vehicles when their resources are tested for SNAP eligibility.

Trey Wood has also determined that for the first five years the rule is in effect, there are no anticipated economic costs to persons who are required to comply with the proposed rule because the amended rule is only updating resources and does not require any costs to the public.

TAKINGS IMPACT ASSESSMENT

HHSC has determined that the proposal does not restrict or limit an owner's right to the owner's property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under Texas Government Code §2007.043.

PUBLIC COMMENT

Written comments on the proposal, including information related to the cost, benefit, or effect of the proposed rule, as well as any applicable data, research, or analysis, may be submitted to Rules Coordination Office, P.O. Box 13247, Mail Code 4102, Austin, Texas 78711-3247, or street address 4601 West Guadalupe Street, Austin, Texas 78751; or emailed to HHSRulesCoordinationOffice@hhs.texas.gov.

To be considered, comments must be submitted no later than 31 days after the date of this issue of the Texas Register. Comments must be (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered before 5:00 p.m. on the last working day of the comment period; or (3) emailed before midnight on the last day of the comment period. If the last day to submit comments falls on a holiday, comments must be postmarked, shipped, or emailed before midnight on the following business day to be accepted. When emailing comments, please indicate "Comments on Proposed Rule 24R042" in the subject line.

STATUTORY AUTHORITY

The amendment is authorized by Texas Government Code §524.0151, which provides that the executive commissioner of HHSC shall adopt rules for the operation and provision of services by the health and human services system.

The amendment affects Texas Government Code §531.0055.

§372.355. Treatment of Resources in SNAP.

(a) In SNAP, the Texas Health and Human Services Commission (HHSC) follows 7 CFR §273.8(a) and (b) to determine the countable resources limit. Unless a household is considered categorically eligible for SNAP under 7 CFR §273.2(j) by receiving Supplemental Security Income, TANF cash, or TANF non-cash benefits, the countable resource limit for a household is the amount of liquid resources and excess vehicle values specified in 7 CFR §273.8(b).

(b) HHSC follows 7 CFR §273.8 to determine whose resources to count in SNAP.

(c) HHSC follows 7 CFR §273.8 to determine what resources are counted, and 7 CFR §273.8(e) and 7 U.S.C. §2014(g) to determine what resources are excluded.

(d) HHSC also excludes:

(1) up to $2,000 of gifts annually from tax-exempt organizations provided to children with life-threatening conditions;

(2) independent living payments to youths who are leaving foster care, as provided by the Social Security Act, Title IV-E (42 U.S.C. §670 et seq.);

(3) funds from adoption subsidy payments made under Title IV-A and Title IV-E of the Social Security Act;

(4) funds from insurance policy dividends;

(5) funds from veterans payments earmarked as a housebound allowance or as an aid and attendance allowance;

(6) $22,500 [$15,000] for the first vehicle and $8,700 [$4,650] for each additional vehicle;

(7) resources of categorically eligible households as described in 7 CFR §273.8(a); and

(8) funds held in a school-based account or bond as described by Texas Education Code §28.0024 [of the Texas Education Code] and authorized by Texas Human Resources Code §33.0291 [of the Texas Human Resources Code].

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on August 8, 2025.

TRD-202502806

Karen Ray

Chief Counsel

Texas Health and Human Services Commission

Earliest possible date of adoption: September 21, 2025

For further information, please call: (512) 915-0519

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