LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session May 3, 1995 TO: Honorable Judith Zaffirini, Chair IN RE: Senate BillNo. 1656 Committee on Health & Human Services By: Nixon, Drew Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 1656 (Relating to AFDC benefits for persons convicted of certain offenses.) 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 amends Subchapter A, Chapter 31, Human Resources Code, by adding Section 31.015. The bill requires the Department of Human Services to amend the eligibility criteria for AFDC benefits. Persons with two or more convictions under the Controlled Substance Act or a felony conviction within the past ten (10) years of application, or while receiving benefits, will not be eligible to receive or to continue receiving financial assistance. The department is also required to provide a hearing or other proceeding to ensure that the individual receives due process. In addition, the department is authorized to obtain from the Department of Public Safety criminal history information regarding convictions only. This bill would require an 1115 Waiver which requires an independent evaluation to determine cost neutrality. The cost of the evaluation is estimated to be $50,000 per year. The bill would also require automation changes to the SAVERR and Generic Worksheet system. The cost of the automation changes is estimated to be $60,000 for FY 1996. In addition, the bill requires that the application form be modified, however the department is absorbing this cost. 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 of Federal Funds Number of State Revenue Fund 001 555 Employees from FY 1995 1996 $55,000 $55,000 .0 1997 25,000 25,000 .0 1998 25,000 25,000 .0 1999 25,000 25,000 .0 2000 25,000 25,000 .0 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: Department of Human Services LBB Staff: JK, MU, DF