SB 0701 - Fiscal Note

Fiscal Note - SB 0701 - Excludes funeral expenses from asset consideration in public assistance

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3249-01

BILL NO. Truly Agreed to and Finally Passed SB 701

SUBJECT: Public Assistance Eligibility: Burial Contracts

TYPE: Original

DATE: April 23, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	$0 to $100,000	$0 to $100,000	$0 to $100,000
Estimated Partial Net Effect on All State Funds	$0 to $100,000	$0 to $100,000	$0 to $100,000

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Federal	$0 to $100,000	$0 to $100,000	$0 to $100,000
Estimated Partial Net Effect on All Federal Funds	$0 to $100,000	$0 to $100,000	$0 to $100,000

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Social Services (DOS), Division of Family Services (DFS) indicated that any fiscal impact would be very minimal as this would affect very few cases.

Oversight assumes this proposal could result in minimal costs to both the general revenue fund and federal funds as a few more clients may be eligible for Temporary Assistance to Needy Families (TANF) benefits as the burial lots could no longer be considered assets for determining eligibility. Such costs are expected to range from $0 to less than $100,000 annually.

Oversight further assumes this proposal could result in minimal revenues to both the general revenue fund and federal funds as a few clients would have to refund the amount of benefits previously received if they amend or cancel their burial contract. Such revenues are expected to range from $0 to less than $100,000 annually, but are expected to be more than the costs of the new assistance cases.

FISCAL IMPACT - State Government	FY 1997	FY 1998	FY 1999
	(10 Mo.)
GENERAL REVENUE FUND
Savings-Department of Social Services-
Division of Family Services
Refunds of Assistance	Unknown	Unknown	Unknown
Costs-Department of Social Services-
Division of Family Services
New Assistance Cases	(Unknown)	(Unknown)	(Unknown)
ESTIMATED PARTIAL EFFECT ON
GENERAL REVENUE FUND*	Unknown	Unknown	Unknown
* Unknown savings expected to be less than $100,000 annually.
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
FEDERAL FUNDS
Savings-Department of Social Services-
Division of Family Services
Refunds of Assistance	Unknown	Unknown	Unknown
Costs-Department of Social Services-
Division of Family Services
New Assistance Cases	(Unknown)	(Unknown)	(Unknown)
ESTIMATED PARTIAL EFFECT ON
FEDERAL FUNDS*	Unknown	Unknown	Unknown
* Unknown savings expected to be less than $100,000 annually.
FISCAL IMPACT - Local Government	FY 1997	FY 1998	FY 1999
	(10 Mo.)
	$0	$0	$0

DESCRIPTION

This proposal will exclude the value of burial lots or amounts placed in irrevocable prearranged funeral or burial contracts from being considered as assets for the purpose of determining eligibility for and the amount of benefits under federally aided public assistance programs. The proposal would further require that, in instances where the beneficiary of such contracts receives public assistance, any refund due as a result of cancellation or modification of the contract by the contract purchaser, or purchaser's successors, must be paid to the state up to the amount of public assistance benefits provided.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Social Services

Jeanne Jarrett, CPA

Director

April 23, 1998