LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 19, 1995



 TO:     Honorable Harvey Hilderbran, Chair     IN RE:  House Bill No. 648
          Committee on Public Health                    By: Cain
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
648 (Relating to the personal needs allowance for certain
Medicaid recipients who are residents of long-term 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 would require the Department of Human Services to set a
personal needs allowance of not less than $40.00 a month for a
resident of a convalescent or nursing home or related institution
under Chapter 242, Health and Safety Code, personal care
facility, ICF-MR facility, or other similar long-term care
facility who receives medical assistance.  The effective date of
the legislation is September 1, 1995 and applies only to a
personal needs allowance paid on or after that date.

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 Matching  Probable Cost Out
          Year      Cost Out of      of  Federal Funds
                   General Revenue          555       
                                                      
                                                      
                                                      

         1996                $3,542,222            $4,472,218

         1997                 3,614,614             4,488,026
         1998                 3,686,943             4,577,817

         1999                 3,760,730             4,669,390

         2000                 3,835,976             4,762,744



       Similar 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:   Department of Human Services
          LBB Staff: JK, MU, DF