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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Sanchez

 

DATE TYPED:

2/7/02

 

HB

 

 

SHORT TITLE:

 

Prohibit Private Entity Use by HSD

 

SB

194

 

 

ANALYST:

Dunbar

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

 

 

$.01 See Narrative

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

Responses Received From

   

Human Services Department (HSD)

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 194 amends the Human Services Department Act to prohibit HSD from retaining a private entity to answer information requests.

 

     Significant Issues

 

The sponsor of the bill may wish to narrow the definition of private entity.  For example, does private entity include volunteer workers in the county offices?  Does private entity include Welfare to Work contractors working in various regions in the state or contractors working on child support services?

 

According to HSD, the department provides services to a large number of families and individuals.  The department states that the use of contractors and call centers to answer clients' questions are efficient and effective ways of allowing HSD to focus its limited staff on the direct delivery of services.

 

HSD questions whether SB 194 imposes limitations on program administration that might violate the separation of powers principles.

 

FISCAL IMPLICATIONS

 

Prohibiting the use of contracted entities to answer information requests, HSD notes, would require HSD to hire additional staff at a significantly greater cost.

 

ADMINISTRATIVE IMPLICATIONS

 

SB 194 would diminish HSD's ability to carry out its administrative responsibilities, because according to the department, it would require the transfer of existing staff to handle inquiry responsibilities.  In addition, the department states that SB 194 would create additional delays in Child Support case handling and preparation because the Child Support Enforcement Division (CSED) does not have sufficient staff to respond to service recipient inquires.

 

TECHNICAL ISSUES

 

The sponsor may wish to amend the bill to narrow the definition of “ private entity”.

 

BD/njw

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