LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 5, 1995



 TO:     Honorable Judith Zaffirini, Chair      IN RE:  Senate Bill No.
         Committee on Health & Human Services   1656,
         Senate                                               as amended
         Austin, Texas                                  By: Nixon, Drew









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 five 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