| TO: | Honorable Richard Pena Raymond, Chair, House Committee on Human Services |
| FROM: | John S O'Brien, Director, Legislative Budget Board |
| IN RE: | HB710 by Walle (Relating to verification of identity of applicants for benefits under and prevention of duplicate participation in the financial assistance and supplemental nutrition assistance programs.), Committee Report 1st House, Substituted |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2012 | $1,472,057 |
| 2013 | $1,656,793 |
| 2014 | $1,656,793 |
| 2015 | $1,656,793 |
| 2016 | $1,656,793 |
| Fiscal Year | Probable (Cost) from General Revenue Fund 1 |
Probable (Cost) from Federal Funds 555 |
Probable Savings from General Revenue Fund 1 |
Probable Savings from Federal Funds 555 |
|---|---|---|---|---|
| 2012 | ($64,732) | ($62,768) | $1,536,789 | $1,490,173 |
| 2013 | $0 | $0 | $1,656,793 | $1,606,538 |
| 2014 | $0 | $0 | $1,656,793 | $1,606,538 |
| 2015 | $0 | $0 | $1,656,793 | $1,606,538 |
| 2016 | $0 | $0 | $1,656,793 | $1,606,538 |
| Fiscal Year | Change in Number of State Employees from FY 2011 |
|---|---|
| 2012 | (37.0) |
| 2013 | (37.0) |
| 2014 | (37.0) |
| 2015 | (37.0) |
| 2016 | (37.0) |
The bill would require the Health and Human Services Commission (HHSC) to use appropriate technology to confirm the identity of applicants for benefits under Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP), previously called food stamps, and to prevent duplicate participation in those programs.
The bill would repeal Section 31.0325, Human Resources Code, which requires fingerprint-imaging or photo-imaging for adult and teen applicants and recipients of TANF and SNAP benefits.
The bill would direct the agency to seek federal approval or a waiver of federal requirements, if the agency determines that federal approval or a waiver of federal requirements were necessary to implement the provisions of the bill. In the event the agency is seeking federal approval, the bill would authorize the delay of implementation until approval is granted.
If the bill receives a vote of two-thirds of all the members elected to each house, the bill would take effect immediately; otherwise, the bill would take effect on September 1, 2011.
The Health and Human Services Commission (HHSC) assumes implementation of the provisions of the bill on September 1, 2011. Based on HHSC estimates, All Funds net savings are estimated to be $2,899,462 in fiscal year 2012 and $3,263,331 in each subsequent fiscal year. Savings in General Revenue Funds are estimated to be $1,472,057 in fiscal year 2012 and $1,656,793 in each subsequent fiscal year.
HHSC indicates the Texas Integrated Eligibility Redesign System (TIERS) provides an alternative means of identifying duplicate participation, including electronic verifications of identity and other personal information. It is therefore assumed that HHSC can meet the verification requirements of the bill without additional costs.
Based on HHSC estimates, elimination of the fingerprint-imaging requirement would reduce time spent by staff on processing eligibility for these programs, resulting in a reduction of training costs, salaries and benefits, operating and travel costs, miscellaneous overhead costs and full-time-equivalent technology-related costs totaling an estimated savings of $1,699,518 in All Funds each year for 37 full-time equivalents.
Savings associated with the Lone Star Imaging Services (fingerprint-imaging) contract are estimated at $1,102,444 in fiscal year 2012 and $1,338,813 in each subsequent fiscal year. Additional savings relating to data center services supporting the Lone Star Imaging Services contract are estimated at $225,000 each year. Modification of HHSC’s automated eligibility system, Texas Integrated Eligibility Redesign System (TIERS) is estimated to require a one-time cost of $127,500 in All Funds in fiscal year 2012.
| Source Agencies: | 529 Health and Human Services Commission
|
| LBB Staff: | JOB, CL, ES, SD, MB, VJC, LI
|