LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                        February 20, 1995



 TO:     Honorable Harvey Hilderbran, Chair     IN RE:  House Bill No. 1062
         Committee on Human Services                    By: Raymond et al.
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1062 (Relating to the establishment of a pilot program to develop
electronic benefits transfer systems that permit the use of food
stamps in farmers markets.; Relating to the establishment of a
pilot program to develop electronic benefits transfer systems
that permit the use of food stamps in farmers markets.) this
office has determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would require the Department of Human Services (DHS) to
establish an electronic benefits transfer (EBT) pilot program for
farmers markets.  DHS would need to ensure that EBT technology
can be used at each farmers market that currently accepts or is
interested in accepting food stamps in each county included in
the program.  Each farmer who currently accepts food stamps at a
farmers market in a county included in the program would be
guaranteed access to EBT technology.  DHS would be required to
select two or more counties in which to establish the pilot
program.

In addition, the bill would create an interagency task force to
advise and assist DHS in developing the EBT program for farmers
markets and in selecting two or more counties in which to
establish the program. 

The bill also requires DHS to submit a report to the Governor and    




the 75th Legislature concerning the effectiveness of the pilot 
program,  requires that task force members be appointed no later
than September 1, 1995, and requires DHS to establish the pilot
programs no later than January 1, 1996.  The requirements of this
bill would expire September 1, 1997.

















The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:
     



            Fiscal  Probable Cost Out   Probable Cost Out      Change in    
             Year      of  General      Federal Funds 555   Number of State 
                     Revenue Fund 001                        Employees from 
                                                                FY 1995     
                                                                            
          1996                 $51,600             $50,000                .0
          1997                  51,600              50,000                .0
                                                                            
          1998                                                              
                                                                            
          1999                                                              
          2000                                                              
                                                                            
                                                                            
                                                                            

       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No fiscal implication to units of local government is
anticipated.    




Source:   Comptroller of Public Accounts, Department of Human
Services, Department of Agriculture
          LBB Staff: JK, MU, DF