LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 20, 1995



 TO:     Honorable Hugo Berlanga, Chair         IN RE:  House Bill No. 299
         Committee on Public Health                     By: Hochberg
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
299 (Relating to assessment of administrative penalties for
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 chapter 247 of the Health and Safety Code by
establishing provisions for the assessment of administrative
penalties resulting from the violation of rules or statutes
applicable to personal care facilities. 

The department utilized the following assumptions in determining
the fiscal impact of this bill:
*  twenty percent (20%) of the licensed personal care facilities
will have a penalty assessed
*  of that twenty percent, fifty percent (50%) will appeal the
penalty
*  of the facilities that appeal, fifty percent (50%) will win
their appeal.

Calculations of estimated personal care facilities beyond FY 97
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 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 General Revenue  of - Federal Funds 
                     Revenue Fund 001   Match For Medicaid          555        
                                                                               
                                                                               
          1996                 $28,915             $59,329             $163,845
          1997                  28,053              57,560              158,960
                                                                               
          1998                  29,969              61,492              169,821
                                                                               
          1999                  31,886              65,425              180,680
          2000                  34,350              70,481              194,643
                                                                               
                                                                               
                                                                               
            Fiscal  Probable Savings       Change in   
             Year     from  General     Number of State
                    Revenue Fund 001    Employees from 
                                            FY 1995    
                                                       
          1996                 $50,000              2.0
          1997                  52,500              2.0
                                                       
          1998                  58,000              2.0
                                                       
          1999                  63,500              2.0
          2000                  70,000              2.0
                                                       
                                                       
                                                       






Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No fiscal implication to units of local government is
anticipated.


Source:   Legislative Budget Board
          LBB Staff: JK, MU, DF