LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 27, 1995
TO: Honorable Hugo Berlanga, Chair IN RE: Committee Substitute
Committee on Public Health for House
House of Representatives Bill No. 299
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
299 (relating to violations of rules or statutes applicable to
personal care facilities) this office has determined the
following:
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
The bill amends Section 247, Health and Safety Code by
establishing administrative penalties for personal care
facilities and allows for inspections of personal care
facilities. The Department of Human Services may conduct an exit
conference with the facility to advise the facility of any
findings resulting from the inspection. The bill also allows
time and subsequent exit conferences to discuss any changes. If
the facility is not satisfied with the findings, an informal
review may be conducted. The bill also authorized the imposition
of administrative penalties, after notice an opportunity for a
hearing against a person who violates the applicable law. After
the administrative penalty has been imposed, judicial review,
under the substantial evidence standard, is authorized. If the
party fails to pay the administrative penalty, the matter is
referred to the Office of Attorney General for collection of the
penalty.
The department utilized the following assumptions in determining
fiscal impact of this bill:
* 10% of all licensed personal care facilities will have a
penalty assessed (69)
* of the 10%, 50% will appeal the penalty (35)
* of the facilities that appeal, 50% will win their appeal (17).
Calculations of estimated personal care facilities beyond FY 1997
are based on a 10% increase per year. The average penalty
assessed is estimated to be $500 and the gain to general revenue
is based on the number of facilities assessed penalties.
The Office of Attorney General estimates that the provisions of
this bill will generate a cost savings of $11,000 per fiscal
year.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Cost Out Probable Cost Out Probable Cost Out
Year of General of GR Match For of Federal Funds
Revenue Fund 001 Medicaid 555
1996 $20,041 $41,121 $113,562
1997 18,330 37,610 103,866
1998 19,314 39,631 109,445
1999 20,299 41,651 115,024
2000 21,284 43,671 120,603
Fiscal Probable Savings Change in
Year to General Number of State
Revenue Fund 001 Employees from
FY 1995
1996 $36,000 2.0
1997 37,000 2.0
1998 39,500 2.0
1999 42,500 2.0
2000 46,000 2.0
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
Source: Office of the Attorney General
LBB Staff: JK, MU, DF