TITLE: CONCERNING THE CREATION OF INCENTIVES TO PREVENT RECEIPT BY INMATES OF ILLEGAL PAYMENTS UNDER PUBLIC PROGRAMS.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund Cash Fund Federal Fund	$ 7,200 5,780 7,200
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: 90 Days Upon Adjournment
Appropriation Summary for FY 1999-2000: Department of Human Services$ 14,400 General Fund 7,200 Federal Funds7,200 Department of Labor and Employment — CF$ 5,780
Local Government Impact: Potential increase in revenue and expenditures to county sheriffs.

The bill, as amended by the Senate State, Veterans, and Military Affairs Committee, April 12, 1999, deletes all reference to the Department of Corrections. The bill includes the following provisions:

• requires the Department of Human Services (DHS), the Department of Labor and Employment (DOLE), and county sheriffs to develop a system for reporting identifying information about persons confined in local jails to identify persons who should be disqualified from receiving workers' compensation or public assistance payments while incarcerated;

• requires the system to be implemented on or before July 1, 2000, within existing appropriations;

• no later than July 1, 2000, requires each sheriff in the state to periodically transmit identifying information about each adult person confined in a jail to DHS (including county departments of social services) and DOLE;

• requires that a portion of the moneys saved by identifying such disqualified persons be paid as a reward to the sheriff;

• allows the executive director of DHS to apply for federal waivers necessary to maximize the amount of the incentive payments to sheriffs;

• stipulates that DHS shall not pay a reward to a sheriff for providing identifying information in connection with a participant in the Colorado Works Program unless the federal government permits any amount paid as a reward to qualify as an expenditure for the purposes of meeting the state's maintenance of effort;

• stipulates that DHS shall not pay a reward if the state costs of implementing the bill's provisions exceed the overall savings of state moneys;

• requires a disqualified individual receiving workers' compensation to repay to the employer or the insurance carrier, any amount received while not qualified plus a penalty of 50 percent; and

Although the bill contains a "no appropriation" clause, costs will be incurred in the Department of Human Services and the Department of Labor and Employment. The fiscal note assumes funding will be required in FY 1999-00 to implement the system and have it fully operational July 1, 2000, as required in the bill.

Department of Human Services — DHS will require a one-time appropriation of $14,400 in FY 1999-00 to develop a computer program to match the social security numbers of local jail inmates against the Client Oriented Information Network (COIN) data base, Food Stamp System, and the Low Income Energy Assistance Program System. If a match is located, information will be forwarded to the appropriate agency in the department, which will then contact the appropriate county sheriffs' office. These programming changes will require an estimated 200 hours of contract computer programming services at $72 per hour (200 hrs. x $72 = $14,400). Total cost includes $7,200 General Fund and $7,200 federal funds. The fiscal note assumes that the following public assistance programs may be affected:

• Aid to the Needy Disabled, Supplemental Security Income, Colorado Supplement (AND/SSI/CS)

TANF — The ability of DHS to pay reward moneys is conditional upon the approval of federal waivers to use these moneys for this purpose. Currently, there are no waiver provisions in the TANF program. The bill stipulates that DHS shall not pay a reward to a sheriff for providing identifying information in connection with a participant in the Colorado Works Program unless the federal government permits any amount paid as a reward to qualify as an expenditure for the purposes of meeting the state's maintenance of effort. Cash or other assistance provided to individuals are part of a county's block grant under SB 97-120 — Concerning Welfare Reform, and consist of federal, state and county funds. Although the overall level of funding is determined annually by appropriation, the aggregate state and county share must be at least 80 percent of a base year to prevent a loss of federal funds and the federal requirement to increase state funding to make up for that loss. Once funding is made available to counties in their block grant, any potential benefits that are not paid to incarcerated individuals will remain in the county block for use in other areas in the Colorado Works Program. Therefore, any reductions/savings in program expenses resulting from HB 99-1164 must be from state and county funding appropriated for TANF in excess of the 80 percent minimum maintenance of effort.

It is unknown how many individuals will have their benefits reduced or discontinued, thus estimates of program reductions are not identified at this time. Food Stamps benefits are 100 percent federally funded so any reduction in this program will not impact state or county expenditures.

Department of Labor and Employment — DOLE will require a one-time appropriation of $5,780 cash funds from the Workers' Compensation Cash Fund for FY 1999-00. The Division of Workers' Compensation will design a computer program to run a match of social security numbers against its claimant data base. If there is a match on any social security number, the program will pull identifying claimant information (name, date of birth, insurance carrier or employer information) and transmit the information to a temporary data file. The program will then generate a form letter to the insurance carrier or employer and provide them with the claimant/incarceration information. Copies will be forwarded to the appropriate correctional facility as well as the claimant's files. The division will make no follow-up on payments of the reward (it is assumed that will be the responsibility of the insurance carrier or employer). DOLE will require 85 hours of computer programming at a cost of $68 per hour (85 hrs. x $68 = $5,780) to perform these tasks.

The bill will result in increased expenditures by county sheriffs since it requires county sheriffs to develop and implement by July 1, 2000, a system to report identifying information about persons confined in local jails to DHS and DOLE. Given varying resource levels between the state's 63 county sheriffs' offices, the cost for each of the sheriffs' offices has not been estimated at this time. The ability of DHS to pay reward moneys is conditional upon the approval of federal waivers to use these moneys for this purpose. If such waivers are approved, reward moneys could offset a part or all of the costs incurred by the county sheriffs. Reward moneys received from any private workers' compensation insurance carrier or self-insured employer cannot be quantified at this time.

The fiscal note indicates that the Department of Human Services should receive an appropriation of $14,400 in FY 1999-00. Of this amount, $7,200 should be General Fund and $7,200 should be federal funds. The Department of Labor and Employment should receive a cash funds appropriation of $5,780 cash funds from the Workers' Compensation Cash Fund.