LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 10, 1995
TO: Honorable Harvey Hilderbran, Chair IN RE: House Bill No. 2391
Committee on Human Services By: Black
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
2391 (Relating to the impact of residential care facilities on
school districts.) 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.
This bill would require residential care facilities, receiving
money from the state in connection with a child who attends
public school, to pay tuition at a weekly rate based on the
number of hours the child actually attends school in the local
school district. A facility would not have to pay tuition if the
child's parent or legal guardian resides in the school district,
if the child is entitled to a free appropriate public education
under federal law, or if the payment would violate federal law.
These provisions would generate additional revenue for some local
school districts; however, the increase in revenue cannot be
determined at this time. Current state regulations do not
include public school tuition as an allowable cost in the rates
paid to residential care providers. In the event that this
should change, costs to the state would increase significantly.
The bill would require a person proposing to establish a
community home for individuals with disabilities, or applying for
a license to operate a residential care facility, to publish a
notice of the proposal or application in the newspaper on two
separate occasions. State agencies must consider the impact a
residential care facility will have or has on a school district
before issuing or renewing a license. These provisions would
cover the following types of residential care facility: home and
community support services agencies that provide care for more
than five persons; convalescent and nursing homes or related
institutions that provide care for more than five persons; and
24-hour child care facilities. They would not have a significant
fiscal impact.
The bill would place a two-year limit on the validity of every
child care facility license issued by the Department of
Protective and Regulatory Services, and establish an expiration
date of September 1, 1996 for child care facility licenses issued
on or before September 1, 1994. It would require the department
to consider the impact a child care facility will have on a
school district before issuing a new license. The department
estimates that these provisions would create additional workload
requiring the equivalent of two licensing worker positions.
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 Change in
Year of General Number of State
Revenue Fund 001 Employees from
FY 1995
1996 $86,599 2.0
1997 75,275 2.0
1998 75,275 2.0
1999 75,275 2.0
2000 75,275 2.0
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
The fiscal implication to units of local government cannot be
determined.
Source: Department of Protective and Regulatory Services,
Department of Mental Health and Mental
Retardation, Texas Education Agency,
Texas Youth Commission, Department of
Human Services
LBB Staff: JK, NM, DF