LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 20, 2001
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB49 by Zaffirini (Relating to applying penalties to
recipients of financial and nutritional assistance for
certain drug-related and alcohol-related convictions.),
As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB49, As Engrossed: 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. *
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General Revenue-Related Funds, Five-Year 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:
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*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 (858,325) 15,900 *
* 2006 0 (1,068,137) 15,300 *
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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
funds.
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.
Methodology
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
law.
DHS indicated 1,310 cases had someone with a drug disqualification. The
department estimated 20% 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 an additional 10% of
the 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 $100 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