FISCAL NOTE

Date Requested: January 19, 2015
Time Requested: 11:19 AM
Agency: Health and Human Resources, Department of
CBD Number: Version: Bill Number: Resolution Number:
1543 Introduced SB99
CBD Subject: Human Services


FUND(S):

0403; 8722; 8816

Sources of Revenue:

General Fund,Other Fund Federal

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 drug testing program for applicants and recipients of Temporary Assistance for Needy Families (TANF) cash benefits and unemployment benefits. 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 be recipients of these benefits. Failing the secondary drug test results in ineligibility for benefits for a period of one year, and requires a mandatory drug test as part of a reapplication for benefits. The bill provides for a substance abuse treatment program. The bill provides for protective vendor or vendor payments to a third-party payee for the benefit of the members of the household. The bill also ensures confidentiality of records. Finally, the bill provides for mandatory drug testing for members of the Legislature based on the drug testing program prescribed by the Commissioner of the Division of Human Services. In addition to the requirements of participation in a substance abuse treatment program for a member of the Legislature, the bill provides for the withholding of compensation until drug treatment is undertaken. Total estimated cost for the Department the first year of this program would be $2,620,515 ($1,483,286 state funds and $1,137,229 federal funds) and subsequent years would be $1,979,670 ($989,835 state funds and $989,835 federal funds) . The Department's fiscal note does not include any costs associated with the testing or treatment of the members of the Legislature or recipients of unemployment benefits. The legislation states that the cost of any drug testing and drug treatment is the responsibility of the individual being tested and receiving treatment, therefore these costs are not included in the estimated costs.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 2,620,515 1,979,670
Personal Services 0 1,979,670 1,979,670
Current Expenses 0 640,845 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):


Estimated cost for 2016 related to required system changes to the Department's RAPIDS system (eligibility system) to accommodate requirements of the proposed legislation total is $640,845. This estimate is based on data from the Department's contractor for the RAPIDS system indicating an approximate 4,747 hours of programming time @ $135 = $640,845. It is estimated to take approximately six months to implement. The Department estimates that fifty-five Economic Service Workers would be needed to implement this testing program. One in each county for an estimated cost of $1,979,670 (average salary and benefits of $35,994. X 55).



Memorandum


The term probable cause is vague and needs to be defined. There is not a statement regarding due process in the event of a false positive result. Twelve states have passed legislation regarding drug testing or screen for public assistance applicants or recipients (Alabama, Arizona, Florida, Georgia, Kansas, Michigan, Mississippi, Missouri, North Carolina, Oklahoma, Tennessee and Utah.) During the four months of Florida's mandatory drug testing program, only 2.6 percent of applicants (106 out of 4,086), failed the drug test, with an additional 40 people canceling their applications. December 2013, Florida's law was permanently stopped by a District Court judge ruling it violated constitutional protections against unreasonable searches. On December 2, 2014 the 11th US Circuit Court of Appeals upheld the ruling (LeBron v. Wilkins). In 2003, Michigan's drug testing program was struck down as a violation of the Fourth Amendment's protection against searches without reasonable cause (Marchwinski v. Howard).



    Person submitting Fiscal Note: Karen L. Bowling
    Email Address: karen.l.bowling@wv.gov