LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 3, 1995



 TO:     Honorable Harvey Hilderbran, Chair     IN RE: Committee Substitute
         Committee on Human Services                           for House
         House of Representatives               Bill No. 3118
         Austin, Texas                                  By: Coleman et al








FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
3118 (relating to intermediate care facilities for the mentally
retarded; imposing civil and criminal penalties) 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 purpose of this bill is to remove the ICF/MR program from
Chapter 242 of the Health and Safety Code and create a new
chapter specifically to govern the licensing of ICF's/MR. 
Consistent with the current provisions of Chapter 242, this bill
would require all facilities to obtain a license; however, an
exemption is provided for facilities operating under the
jurisdiction of TXMHMR and certain other agencies. Also
consistent with the current provisions of Chapter 242, this bill
specifically restricts the issuance of licenses to not exceed the
expansion limits set in the Plan on Long-Term Care for Persons
with Mental Retardation or Related Conditions.  The bill provides
for the use of the nursing and convalescent home trust fund in
cases of emergency.  It provides a mechanism to replenish the
trust fund through license fees and penalties.  The bill reduces
the maximum penalty from $10,000 to $5,000.

The lessening of the maximum penalty could result in a reduction
of revenue related to penalties.    




No fiscal implication to the State or units of local government 
is anticipated.


Source:   Department of Human Services, Health and Human Services
Commission,
                         Texas Department of Mental Health and
Mental Retardation
          LBB Staff: JK, GT, DF