LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 12, 2001
TO: Honorable Elliott Naishtat, Chair, House Committee on
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 Introduced
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* Estimated Two-year Net Impact to General Revenue Related Fundsfor *
* HB102, As Introduced: positive impact of $2,954,822 through the *
* biennium ending August 31, 2003 if the effective date is May 1, *
* 2001; and a positive impact of $2,666,278 through the biennium *
* ending August 31, 2003 if the effective date is September 1, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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All Funds, Six-Year Impact:
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*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) *
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The table above shows a May 1, 2001 effective date, should the Act take
immediate effect.
All Funds, Five-Year Impact:
The table below shows a September 1, 2001 effective date.
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*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) *
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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 the Act to take immediate effect, which is assumed to be May 1,
2001. Should the Act 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