Austin, Texas
                    FISCAL NOTE, 77th Regular Session
                              April 17, 2001
          TO:  Honorable Elliott Naishtat, Chair, House Committee on
               Human Services
        FROM:  John Keel, Director, Legislative Budget Board
       IN RE:  HB1008  by Naishtat (Relating to applying penalties to
               recipients of financial and nutritional assistance for
               certain drug- and alcohol-related convictions.),
               Committee Report 1st House, Substituted
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1008, Committee Report 1st House, Substituted:  negative impact     *
*  of $(177,488) 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.                                                             *
Given the limited availability of TANF federal funds, for the purposes of
this fiscal note, General Revenue is assumed as the method of financing.
Should additional TANF federal funds become available $31,875 in
General Revenue costs assumed above could be financed with TANF federal
General Revenue-Related Funds, Five-Year Net Impact:
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                           $(177,488)  *
          *       2003                                    0  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
All Funds, Five-Year Impact:
*Fiscal        Probable             Probable             Probable        *
* Year    Savings/(Cost) from  Savings/(Cost) from  Savings/(Cost) from  *
*        General Revenue Fund    Federal Funds -      Federal Funds -    *
*                0001                Federal              Federal        *
*                                     0555                 0555          *
*  2002             $(177,488)           $(439,895)                   $0 *
*  2003                      0            (711,183)               16,500 *
*  2004                      0            (711,183)               16,800 *
*  2005                      0            (711,183)               15,900 *
*  2006                      0            (711,183)               15,300 *
Fiscal Analysis
The bill would require the Department of Human Services (DHS) to reduce
the amount of financial assistance provided to a person by $25 per month
for six months for a drug or alcohol-related misdemeanor conviction for
Temporary Assistance for Needy Families (TANF) recipients. The bill
allows TANF and Food Stamp (FS) clients with non-trafficking drug
felonies to receive assistance three years after their conviction. If a
client has completed any sentencing, are in compliance with
parole/probation, and are participating in or have completed a substance
abuse treatment program, they would be eligible immediately. The bill
would only apply to offenses committed on or after April 1, 2002.
DHS assumed the same proportion of children 14 and older would have a
drug or alcohol penalty as the proportion of adults with this type of
penalty.  DHS estimates assume a $25 reduction in financial assistance
for each of these children.  The department estimated a TANF savings
because of the reduction of financial assistance for drug or
alcohol-related penalties to children.  DHS indicated no impact to TANF
adult recipients because the proposed legislation is the same as current

DHS indicated 1,310 cases had someone with a drug disqualification. The
department estimated 20 percent of the FS clients would have a
possession/use conviction rather than a trafficking conviction, and
would be in compliance with the requirements regarding parole,
probation, and participation in a treatment program. DHS estimated that
additional FS clients would have a possession/use conviction and not be
in compliance and need to wait three years to become eligible for
assistance. The DHS estimate stated the FS allotment would increase by
about $76 per person per month for those complying. DHS could not
estimate the number of people refused FS who are not currently
associated with an active case who would be approved under provisions of
the bill.  DHS assumed $330,000 in costs for automation the first year.
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, ML