FISCAL NOTE



FUND(S):

0403 - Div of Human Services General Administrative Fund

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The purpose of this bill is to create a random drug testing program for applicants and recipients of temporary assistance for needy families cash benefits and for elected officials. Any applicant or recipient who fails an initial drug test will be required to pass a second drug test in the following thirty to sixty days to maintain eligibility for or recipients of such benefits. Failing the secondary drug test results in ineligibility for benefit for a period of two years, and requires a mandatory drug test as part of a reapplication for benefits. Legislators shall be required to submit to drug testing. Any legislator who fails two consecutive drug tests must forfeit all pay and allowances. As written, the Department of Health and Human Resources (Department) cannot determine the fiscal impact of the proposed legislation, however please note the memorandum included with this fiscal note.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2010
Increase/Decrease
(use"-")
2011
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):






Memorandum


The proposed legislation does not define the percentage of the recipient population that will be randomly drug tested or frequency to which the testing is to occur, below is a example of costs based on a scenario of testing 20% of caseloads. The Department's Bureau for Children and Families (BCF) would be involved with the drug testing related to the welfare (TANF) program. In January 2010 there were 8,628 TANF cases. The proposed legislation does not clarify if applicant only or all adults included in case would be tested. Assuming all adults would be tested, the total number affected by the proposed legislation is 8,028. Testing on 20% of those populations would be 1,606. The current contract BCF has with HRS, Inc is $57.50/drug test. The bill states if a person fails the initial test, a second test will be required. This is based on existing case loads and does not include any amount for new applicants. Utilizing a fail rate of 4.5%, an additional 73 test would be required. Therefore, the cost would be ((1,606 + 73) x 57.50) = $96,542.50. In Michigan, the US Supreme Court of Appeals upheld a lower court ruling that the drug testing of welfare recipients was unconstitutional (Marchwinski v. Howard). The fail rate of 4.5% of TANF recipients is based on illicit drug use data from the 1998 National Household Survey on Drug Abuse. The proposed legislation does not clarify the fiscal responsibility of the drug treatment program that applicant/recipient is eligible to enroll in as to not be denied benefits. The estimated costs for a Intensive Outpatient Program lasting 6 weeks (minimum of 30 days of treatment) is $4,500/person. Technical Flaw - proposed legislation refers to the "Commissioner of the Division of Human Service", the organizational structure of the Department is that of a department level Secretary and Commissioners of bureaus, including Bureau for Children and Families the administers of the TANF program.



    Person submitting Fiscal Note: Patsy A. Hardy
    Email Address: dhhrbudgetoffice@wv.gov