LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION April 9, 2017 TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3204 by Raymond (Relating to vendor requirements under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3204, As Introduced: a negative impact of ($3,171,075) through the biennium ending August 31, 2019. 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, 85TH LEGISLATIVE REGULAR SESSION
April 9, 2017
TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3204 by Raymond (Relating to vendor requirements under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).), As Introduced
TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB3204 by Raymond (Relating to vendor requirements under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).), As Introduced
Honorable Richard Peña Raymond, Chair, House Committee on Human Services
Honorable Richard Peña Raymond, Chair, House Committee on Human Services
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB3204 by Raymond (Relating to vendor requirements under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).), As Introduced
HB3204 by Raymond (Relating to vendor requirements under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3204, As Introduced: a negative impact of ($3,171,075) through the biennium ending August 31, 2019. 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 HB3204, As Introduced: a negative impact of ($3,171,075) through the biennium ending August 31, 2019.
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 2018 ($1,601,882) 2019 ($1,569,193) 2020 ($1,569,193) 2021 ($1,569,193) 2022 ($1,569,193)
2018 ($1,601,882)
2019 ($1,569,193)
2020 ($1,569,193)
2021 ($1,569,193)
2022 ($1,569,193)
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 2017 2018 ($1,601,882) ($6,152,285) 13.5 2019 ($1,569,193) ($6,152,285) 13.5 2020 ($1,569,193) ($6,152,285) 13.5 2021 ($1,569,193) ($6,152,285) 13.5 2022 ($1,569,193) ($6,152,285) 13.5
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds555 Change in Number of State Employees from FY 2017 2018 ($1,601,882) ($6,152,285) 13.5 2019 ($1,569,193) ($6,152,285) 13.5 2020 ($1,569,193) ($6,152,285) 13.5 2021 ($1,569,193) ($6,152,285) 13.5 2022 ($1,569,193) ($6,152,285) 13.5
2018 ($1,601,882) ($6,152,285) 13.5
2019 ($1,569,193) ($6,152,285) 13.5
2020 ($1,569,193) ($6,152,285) 13.5
2021 ($1,569,193) ($6,152,285) 13.5
2022 ($1,569,193) ($6,152,285) 13.5
Fiscal Analysis
The bill would require the state to include certain predominantly WIC program vendors as authorized vendors in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). The bill would prohibit certain requirements in a vendor agreement for the WIC program. The bill would authorize a state agency to request a waiver from a federal agency if necessary to implement the provisions of the bill.
Methodology
The Department of State Health Services (DSHS) indicates that implementing the provisions of the bill related to vendor requirements under the WIC program would cost $1.6 million in General Revenue and $7.8 million in All Funds for fiscal year 2018 and $1.6 million in General Revenue and $7.7 million in All Funds for every year thereafter. The agency would need 13.5 full-time equivalent positions (FTEs) each fiscal year to accept additional vendor applications and manage additional vendor contracts. Salary costs would be $667,863 for fiscal year 2018 and $889,690 for every year thereafter. Benefit costs would be $234,553 for fiscal year 2018 and $312,459 for ever year thereafter. DSHS anticipates 635 additional vendor inspections would be conducted in fiscal year 2018 and 150 in every year thereafter. The cost associated with a vendor inspection is approximately $350. Contracting costs to conduct the inspections would be $222,250 in fiscal year 2018 and $52,500 for every year thereafter. Other operating expenses would be $477,216 for fiscal year 2018 and $314,544 for every year thereafter. DSHS anticipates that the provisions of the bill would allow certain higher cost vendors to participate in the WIC program, increasing total food package costs to the state. The agency would use an estimated $6.2 million in unallocated federal funds received for the WIC program in each year to cover higher food costs. The WIC program transfers to the Health and Human Services Commission on September 1, 2017.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 537 State Health Services, Department of
537 State Health Services, Department of
LBB Staff: UP, KCA, ER, ADe
UP, KCA, ER, ADe