LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session May 4, 1995 TO: Honorable Harvey Hilderbran, Chair IN RE: Committee Substitute Committee on Human Services forHouse Bill House of Representatives No. 2391 Austin, Texas By: Black FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 2391 (relating to the impact of certain residential care facilities on school districts and communities, to the liability of certain residential care facilities for conduct of children residing in the facilities, and to the duties of certain state agencies concerning children placed in certain residential 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 Health and Human Services Commission, the Central Education Agency, the Texas Youth Commission, and each health and human services agency to develop, agree to, and by rule adopt a memorandum of understanding concerning children with disabilities living in residential care facilities. The Health and Human Services Commission must coordinate the development of the memorandum of understanding. The bill would require the operator of a residential care facility or a community home for persons with disabilities to assume some liability for property damage caused by residents under 18 who were placed in the facility by a state agency. This would increase the cost of residential care because the liability costs that accrue to the operators eventually will be passed on to the state and any unit of local government that funds, operates, or contracts for residential services. However, the additional costs cannot be estimated at this time. The bill would require anyone applying for a license to operate a residential care facility, or proposing to establish a community home for persons with disabilities, to publish a notice in the newspaper on two separate occasions. State agencies must consider what impact the facility or home will have or has on a school district before issuing or renewing a license. These provisions would not have any significant fiscal impact. No significant fiscal implication to the State is anticipated. The fiscal implication to units of local government cannot be determined. Source: Department of Human Services, Department of Protective and Regulatory Services, Texas Department of Mental Health and Mental Retardation, Youth Commission, Central Education Agency -Administration LBB Staff: JK, NM, DF