LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                            February 19, 2001
  
  
          TO:  Honorable Elliott Naishtat, Chair, House Committee on
               Human Services
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1218  by Chavez (Relating to nutritional assistance for
               certain legal immigrants.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1218, As Introduced:  negative impact of $(1,030,127) 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.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                           $(488,418)  *
          *       2003                            (541,709)  *
          *       2004                            (607,548)  *
          *       2005                            (720,655)  *
          *       2006                            (780,693)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Savings/(Cost) from     Change in Number of State     *
* Year         General Revenue Fund           Employees from FY 2001      *
*                      0001                                               *
*  2002                        $(488,418)                             2.0 *
*  2003                         (541,709)                             2.0 *
*  2004                         (607,548)                             2.0 *
*  2005                         (720,655)                             2.0 *
*  2006                         (780,693)                             2.0 *
***************************************************************************
  
Fiscal Analysis
  
The bill would amend Chapter 33, Human Resources Code by adding Section
33.0024 requiring the Department of Human Services (DHS) to develop and
implement a State Immigrant Food Assistance Program (SIFAP) to provide
nutritional assistance to an immigrant who: is a qualified alien as
defined by federal law; is a resident of Texas; is not eligible for
assistance under the Food Stamp Program; was receiving food stamp
benefits in Texas for any part of the period beginning September 1, 1996
and ending August 31,1997; is not institutionalized; has income that is
less than 200 percent of the federal poverty income limit; is 65 years
of age or older or was a recipient of federal benefits under
Supplemental Security Income (SSI) for any part of the last month the
person received food stamp benefits.
  
  
Methodology
  
The department identified the maximum number of potential additional
SIFAP recipients from original SIFAP analyses and assumed a 50 percent
reduction in potential additional SIFAP recipients since 31 August 1997.
DHS estimated there would be 945 persons potentially eligible for SIFAP
benefits for FY 2002 through 2006.  DHS estimate assumed a monthly
attrition of 0.62 percent. The attrition rate is that of current SIFAP
recipients from November 1998 through February 2001. In addition, DHS
assumed that the persons becoming eligible for SIFAP by turning 65 years
old were equally distributed over the months of the year and that there
would be 8 to 9 new persons potentially eligible for SIFAP each month.
The estimate assumed a SIFAP benefit equal to the benefit the person
received as a Food Stamp recipient, adjusted by $3 per person per year
for the normal Food Stamp cost of living adjustment each year.

Given those assumptions the department projected that approximately 505
to 714 SIFAP recipients would  receive benefits each month for FY 2002
through FY 2006.
  
  
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