LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 7, 2011 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 electronic imaging used in the financial assistance and supplemental nutritional assistance programs.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB710, As Introduced: a positive impact of $3,128,850 through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 7, 2011
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 electronic imaging used in the financial assistance and supplemental nutritional assistance programs.), As Introduced
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 electronic imaging used in the financial assistance and supplemental nutritional assistance programs.), As Introduced
Honorable Richard Pena Raymond, Chair, House Committee on Human Services
Honorable Richard Pena Raymond, Chair, House Committee on Human Services
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB710 by Walle (Relating to electronic imaging used in the financial assistance and supplemental nutritional assistance programs.), As Introduced
HB710 by Walle (Relating to electronic imaging used in the financial assistance and supplemental nutritional assistance programs.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB710, As Introduced: a positive impact of $3,128,850 through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB710, As Introduced: a positive impact of $3,128,850 through the biennium ending August 31, 2013.
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 2012 $1,472,057 2013 $1,656,793 2014 $1,656,793 2015 $1,656,793 2016 $1,656,793
2012 $1,472,057
2013 $1,656,793
2014 $1,656,793
2015 $1,656,793
2016 $1,656,793
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds555 Change in Number of State Employees from FY 2011 2012 $1,472,057 $1,427,405 (37.0) 2013 $1,656,793 $1,606,538 (37.0) 2014 $1,656,793 $1,606,538 (37.0) 2015 $1,656,793 $1,606,538 (37.0) 2016 $1,656,793 $1,606,538 (37.0)
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds555 Change in Number of State Employees from FY 2011 2012 $1,472,057 $1,427,405 (37.0) 2013 $1,656,793 $1,606,538 (37.0) 2014 $1,656,793 $1,606,538 (37.0) 2015 $1,656,793 $1,606,538 (37.0) 2016 $1,656,793 $1,606,538 (37.0)
2012 $1,472,057 $1,427,405 (37.0)
2013 $1,656,793 $1,606,538 (37.0)
2014 $1,656,793 $1,606,538 (37.0)
2015 $1,656,793 $1,606,538 (37.0)
2016 $1,656,793 $1,606,538 (37.0)
Fiscal Analysis
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 Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance (SNAP) benefits, previously called food stamps. The bill would direct health and human services agencies, as defined by Section 531.001, Government Code, to discontinue using electronic fingerprint-imaging or photo-imaging for these clients. 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 bill would repeal Section 31.0325, Human Resources Code, which requires fingerprint-imaging or photo-imaging for adult and teen applicants and recipients of Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance (SNAP) benefits, previously called food stamps. The bill would direct health and human services agencies, as defined by Section 531.001, Government Code, to discontinue using electronic fingerprint-imaging or photo-imaging for these clients.
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.
Methodology
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. 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 cost, salary 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 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 HHSCs 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.
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.
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 cost, salary 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 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 HHSCs 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.
Technology
Net savings for technology are estimated to be $470,980 over the 2012-13 biennium. This includes a savings of $148,480 associated with decreased workload; a savings of $450,000 related to data center services supporting the Lone Star Imaging Services contract; and a one-time cost of $127,500 in fiscal year 2012 to modify HHSCs automated eligibility system, TIERS.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 529 Health and Human Services Commission
529 Health and Human Services Commission
LBB Staff: JOB, CL, MB, ES, LI
JOB, CL, MB, ES, LI