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