LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 12, 2021 TO: Honorable James B. Frank, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1449 by Romero, Jr. (Relating to the exclusion of certain resources in determining eligibility for financial assistance and supplemental nutrition assistance program benefits.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1449, As Introduced : a negative impact of ($23,107,261) through the biennium ending August 31, 2023. 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 toGeneral Revenue Related Funds2022($32,014)2023($23,075,247)2024($38,262,625)2025($39,852,993)2026($41,498,380)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFederal Funds5552022($32,014)($57,586)2023($23,075,247)$02024($38,262,625)$02025($39,852,993)$02026($41,498,380)$0 Fiscal AnalysisThe bill would amend Chapters 31 and 33 of the Human Resources Code to direct the Health and Human Services Commission to (HHSC) to exclude certain resources in determining the eligibility for Temporary Assistance for Needy Families (TANF) cash assistance and the Supplemental Nutrition Assistance Program (SNAP). LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 12, 2021 TO: Honorable James B. Frank, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1449 by Romero, Jr. (Relating to the exclusion of certain resources in determining eligibility for financial assistance and supplemental nutrition assistance program benefits.), As Introduced TO: Honorable James B. Frank, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1449 by Romero, Jr. (Relating to the exclusion of certain resources in determining eligibility for financial assistance and supplemental nutrition assistance program benefits.), As Introduced Honorable James B. Frank, Chair, House Committee on Human Services Honorable James B. Frank, Chair, House Committee on Human Services Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB1449 by Romero, Jr. (Relating to the exclusion of certain resources in determining eligibility for financial assistance and supplemental nutrition assistance program benefits.), As Introduced HB1449 by Romero, Jr. (Relating to the exclusion of certain resources in determining eligibility for financial assistance and supplemental nutrition assistance program benefits.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1449, As Introduced : a negative impact of ($23,107,261) through the biennium ending August 31, 2023. 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 HB1449, As Introduced : a negative impact of ($23,107,261) through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. 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: 2022 ($32,014) 2023 ($23,075,247) 2024 ($38,262,625) 2025 ($39,852,993) 2026 ($41,498,380) All Funds, Five-Year Impact: 2022 ($32,014) ($57,586) 2023 ($23,075,247) $0 2024 ($38,262,625) $0 2025 ($39,852,993) $0 2026 ($41,498,380) $0 Fiscal Analysis The bill would amend Chapters 31 and 33 of the Human Resources Code to direct the Health and Human Services Commission to (HHSC) to exclude certain resources in determining the eligibility for Temporary Assistance for Needy Families (TANF) cash assistance and the Supplemental Nutrition Assistance Program (SNAP). Methodology According to HHSC, updates would need to be made to the Texas Integrated Eligibility Redesign System (TIERS) in order to implement the provisions of the bill. It is assumed that updates to TIERS would occur during fiscal year 2022 at an estimated cost of $89,600 in All Funds, including $32,014 in General Revenue, and the revised asset limitations will be implemented on September 1, 2023. The estimated impact to TANF client services is $23.1 million in fiscal year 2023, $38.3 million in fiscal year 2024, $39.9 million in fiscal year 2025, and $41.5 million in fiscal year 2026. It is projected that there would be an insufficient balance of TANF Federal Funds to support the increase to client services, therefore the additional benefits are assumed to be 100 percent funded by General Revenue. The estimated impact of SNAP client services is $13.6 million in fiscal year 2023, $31.2 million in fiscal year 2024, $37.0 million in fiscal year 2025, and $37.7 million in fiscal year 2026. All SNAP benefits are federally funded; therefore these would not be an additional cost to the state for an increased number of recipients receiving SNAP benefits. Technology Technology costs are estimated to be $89,600 in fiscal year 2022 for updates to TIERS. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: b > td > 529 Hlth & Human Svcs Comm 529 Hlth & Human Svcs Comm LBB Staff: b > td > JMc, AKI, JLI, RD JMc, AKI, JLI, RD