SB 0560 - Fiscal Note

Fiscal Note - SB 0560 - Creates a drug offender treatment program and board

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2143-01

BILL NO. SB 560

SUBJECT: Prisons & Jails: Hospitals

TYPE: Original

DATE: January 26, 1998

---

FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	($16,191,292)	($16,969,252)	($17,446,643)
Estimated Partial Net Effect on All State Funds**	($16,191,292)	($16,969,252)	($17,446,643)

**Does not include unknown CTS costs which could exceed $100,000 in any given year.

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	(Unknown)	(Unknown)	(Unknown)

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 6 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Health, Department of Public Safety - Missouri State Highway Patrol, Department of Mental Health and Office of the Attorney General assume that this proposal would have no fiscal impact to their agencies.

Officials of the Office of Prosecution Services (OPS) assume that this proposal would have no impact to their office. OPS officials noted that it is unclear if this proposal would result in more defendants requesting jury trials rather than plea bargains. It is also unclear whether there would be a need for additional hearings due to this proposal to determine if a person were addicted to narcotics. OPS officials assume there would be impact to local prosecutors, but the amount of fiscal impact is unknown.

Officials from the prosecutor's office for the City of St. Louis assumed this proposal would result in first offenders seeking trials instead of pleading guilty and would therefore result in an unknown amount of additional costs for more trials.

Officials from the Greene County Prosecutor's office assume that this proposal could result in unknown costs. The level of impact would depend on the amount of increase in the number of cases and the number of experts needed to prosecute those cases.

Officials of the Department of Corrections (DOC) assume this proposal would establish the Drug Offender Treatment Board (Board) and would outline the Drug Offender Treatment Program which would be funded through DOC. First time offenders guilty of a drug crime and meeting the delineated criteria would be remanded to the custody of the Board.

In the DOC in FY97, of the 18,381 Probation and Parole (P&P) openings, 30% classified as drug offenses under chapter 195, RSMo, or 5,514. Of this number, 24%, or 1,323, were estimated to be first-time probationers.

DOC prison admissions in FY97 numbered 8,249 with 38% (3,135) being Institutional Treatment Center (ITC) placements and 32% (1,032) of that number having drug offenses. DOC estimated that 30% (310) of the drug offender number would be first time offenders.

DOC officials stated the estimated target base used in calculating this proposal was 1,633 offenders made up from the 1,323 in the field and 310 in the institutions. DOC estimated $46.23 for the cost of a single bed space, which is the FY97 cost of a Halfway House bed space (no program services provided). $20 per day was estimated as the daily treatment charge for the program outlined in this proposal.

ASSUMPTION (continued)

Assuming all of the base group of 1,633 offenders would participate in the program at an average of 84 days, the calculation would be as follows: 1,633 x 84 x ($46.23 + $20) = $9,080,786 annual cost. 3% inflation was added in calculating the estimated fiscal cost for subsequent years.

DOC officials note that this estimate does not take into account any community after-care placement which might be deemed necessary, estimated at $1,000 per offender, nor any intensive out-patient treatment at $2,000 per offender. The administrative costs for the Board and any staff they deem necessary to hire are not included in this fiscal note estimate. DOC's assumptions do not include the potential impact of requiring the programs and counsellors to be certified by the Division of ADA.

DOC officials stated that the proposal does not contain enough specifics or definition of the separate roles and responsibilities of the three agencies involved or the process of custody and treatment required to provide a more refined impact prediction.

DOC officials assume that there could be long-range fiscal impact from this proposal for capital improvements which are not reflected in this fiscal note estimate. Due to continued growth, the DOC cannot absorb any additional offenders in the system without additional resources. Currently, the DOC utilizes emergency housing due to a shortage of bed space. Population projections indicate that the DOC will experience shortage of bed space in the future. Since this proposal would impact DOC's current population projections, additional construction costs would be incurred by the department. DOC officials assume that for each new commitment received by their department, an additional bed would need to be constructed at the cost of $45,000 per bed. Using current construction timelines, DOC officials assume that a bed would take at least two years to construct. Utilizing this per diem bed cost provides for a conservative estimate by DOC, as entire facilities and/or housing units would have to be constructed to cover the cost of new commitments resulting from the cumulative effect of various new proposal, if adopted as statute.

Officials of the State Public Defender (SPD) assume that as this proposal is written, no first time drug offender should plead guilty. Technically, the defendant would be agreeing to an indefinite sentence, therefore SPD officials stated there would no longer be any motivation to plea. As this proposal is written, the first time offender of Chapter 195, RSMo would be mandated to the Board of Drug Offender Treatment. There would be no suspended imposition of sentence or suspended execution of sentence for first time offenders as a result of this proposal.

ASSUMPTION (continued)

SPD officials stated that in FY97 their system provided defense in 11,292 drug cases. If just 50%

of those cases were first time offenders, then 5,646 cases would now require trials. If each trial takes a minimum of 40 additional attorney hours and each attorney can work 2,080 per fiscal year, SPD officials assume they would request 109 additional attorneys and their support staff to implement this proposal.

Officials of the State Courts Administrator (CTS) assume that this proposal would create the "Drug Offender Treatment Program" which would be funded through DOC. A "Drug Offender Treatment Board" would also be created to manage the program. No first-time chapter 195 offender who is addicted to drugs or in danger of becoming addicted would be given an SIS or SES without first being remanded to the custody of the board.

CTS officials assume that as written, no first-time offender would plead guilty. Consequently the number of judge and jury trials would increase significantly.

CTS staff stated that in FY97 there were 16,750 drug offense-related charges disposed by guilty plea. CTS has no way of determining how many of those were first offenses. In FY97, there were 344 drug offense-related charges disposed by trial. Even if only a small percentage of the 16,750 guilty pleas were to be disposed by trial, the cost to the judiciary could be significant, and could easily exceed $100,000 in any given year.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
GENERAL REVENUE FUND
Cost-Department of Corrections (DOC)
drug offender treatment program	($9,353,209)	($9,633,806)	($9,922,820)
Cost-State Public Defender (SPD)
Personal Service (167 FTE)	($4,022,775)	($4,949,995)	($5,073,745)
Fringe Benefits	(1,127,584)	(1,387,484)	(1,422,171)
Expense and Equipment	(1,687,724)	(997,967)	(1,027,907)
Total Cost - SPD	($6,838,083)	($7,335,446)	($7,523,823)
Cost-State Courts Administrator (CTS)
Increased jury trials	(Unknown)*	(Unknown)*	(Unknown)*
*Unknown cost to CTS could exceed $100,000 in any given year.
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
(continued)	(10 Mo.)
ESTIMATED PARTIAL NET EFFECT
TO GENERAL REVENUE FUND**	($16,191,292)	($16,969,252)	($17,446,643)
**Does not include unknown costs to CTS which could exceed $100,000 in any given year.
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
Cost to Cities and Counties
This proposal could result in unknown costs to prosecutors' offices. The level of impact would depend on the amount of increase in the number of cases and the number of experts needed to prosecute those cases.
FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

This proposal would create a "Drug Offender Treatment Program" to be headed by a board consisting of the Directors of the Department of Corrections, the Department of Mental Health,

and the Department of Health. This proposal would require all first-time offenders of the state's controlled substance laws who are addicted to narcotics to be remanded to the custody of this board before being given a suspended sentence or a suspended execution of sentence.

This legislation is not federally mandated, would not duplicate any other program and would not require rental space. This proposal could result in a future need for additional capital improvements to accommodate additional population with DOC.

SOURCES OF INFORMATION

Department of Corrections

Department of Mental Health

Department of Health

Office of Prosecution Services

State Courts Administrator

State Public Defender

Department of Public Safety - Missouri State Highway Patrol

Office of the Attorney General

Greene County Prosecutor

St. Louis City Prosecutor

NOT RESPONDING - Cole County Prosecutor, Boone County Prosecutor, Lawrence County Prosecutor, Jackson County Prosecutor, St. Louis County Prosecutor

Jeanne Jarrett, CPA

Director

January 26, 1998