LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 4, 2001 TO: Honorable Mike Moncrief, Chair, Senate Committee on Health & Human Services FROM: John Keel, Director, Legislative Budget Board IN RE: HB102 by Maxey (Relating to abolishing the electronic imaging program of the Texas Department of Human Services.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Fundsfor * * HB102, As Engrossed: positive impact of $2,954,822 for an * * immediate effective date, and a positive impact of $2,666,278 for * * a September 1, 2001, effective date through the biennium ending * * August 31, 2003. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** All Funds, Six-Year Impact: ************************************************************************** *Fiscal Probable Probable Change in Number of * * Year Savings/(Cost) from Savings/(Cost) from State Employees from * * General Revenue Fund Federal Funds - FY 2001 * * 0001 Federal * * 0555 * * 2001 $378,026 $457,390 (0.3) * * 2002 1,422,621 1,721,292 (1.0) * * 2003 1,154,175 1,396,488 (1.0) * * 2004 1,154,175 1,396,488 (1.0) * * 2005 1,154,175 1,396,488 (1.0) * * 2006 1,154,175 1,396,488 (1.0) * ************************************************************************** The table above shows an immediate effective date. All Funds, Five-Year Impact: The table below shows a September 1, 2001, effective date. ************************************************************************** *Fiscal Probable Probable Change in Number of * * Year Savings/(Cost) from Savings/(Cost) from State Employees from * * General Revenue Fund Federal Funds - FY 2000 * * 0001 Federal * * 0555 * * 2002 $1,512,103 $1,829,560 (1.0) * * 2003 1,154,175 1,396,488 (1.0) * * 2004 1,154,175 1,396,488 (1.0) * * 2005 1,154,175 1,396,488 (1.0) * * 2006 1,154,175 1,396,488 (1.0) * ************************************************************************** Fiscal Analysis The bill would repeal Section 31.0325, Human Resources Code which authorized the Department of Human Services (DHS) to implement a finger imaging program for applicants and for recipients in conjunction with the electronic benefits program. The bill includes a provision allowing for immediate effect. Should the bill not have immediate effect the effective date would become September 1, 2001. Methodology DHS currently contracts for finger imaging services at the time of a client's application for services. This contract expires at the end of April 2001. The agency indicated that the contract contains a provision that the contract must be terminated if a required appropriation is not made. The abolishment of a particular program may not automatically cancel the State's financial obligations under existing contracts, despite the "funding-out" clause. DHS indicated that additional direction or specific prohibition in the General Appropriations Act to expend any funds for an electronic imaging program previously authorized by Sec. 31.0325, Texas Human Resources Code, other than for normal shut down costs would provide additional authority. Savings are assumed to come primarily from elimination of payments to the contractor. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 324 Texas Department of Human Services LBB Staff: JK, HD, KF, ML