LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 15, 1997 TO: Honorable Judith Zaffirini, Chair IN RE: House Bill No. 155, As Engrossed Committee on Health & Human Services By: Greenberg Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB155 ( Relating to the listing and registration of family homes; providing penalties.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB155-As Engrossed Implementing the provisions of the bill would result in a net negative impact of $(253,996) to General Revenue Related Funds through the biennium ending August 31, 1999. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Fiscal Analysis The bill would amend Chapter 42 of the Human Resources Code relating to the regulation of child-care facilities. Current law requires family homes that care for 4 or more children, excluding the caretaker's own children, to register with the Department of Protective and Regulatory Services (PRS). The bill would require family homes to list or register with the department if they provide compensated care for 3 or fewer children who are unrelated to the caretaker. This new requirement would only apply to family homes that provide child care on a regularly scheduled basis for more than nine consecutive weeks. The bill would require all family homes to undergo a background and criminal history check when the operator applies for listing or registration, and at least once every two years thereafter. It would not authorize PRS to charge family homes a fee to recover the administrative costs of conducting the background and criminal history check. The bill would require the department to investigate a listed family home when an abuse or neglect complaint, as defined by Chapter 261 of the Family Code, is received. The bill would specifically authorize the department to enforce the family home regulation statute by taking a variety of actions, such as denying or revoking a listing or registration. It would establish a $50 to $100 per day civil penalty for unlisted or unregistered activity, and for threatening serious harm to a child. It would also allow the department to sue in district court for injunctive relief or to recover the civil penalty. The bill would require the department to charge each listed family home a $20 annual fee to cover a portion of the department's regulatory costs. Methodolgy PRS reports that there were 12,192 registered family homes in 1996. It is assumed that the proposed listing or registration requirement for small family homes would cause the total number of regulated family homes to increase by 1,250 in 1998 and 1,250 in 1999. It is assumed that every small family home would choose listing over registration, and that the number of listed family homes would remain constant in the year 2000 and beyond. There would be a 21% turnover rate among listed family homes in the year 2000 and beyond. PRS routinely conducts background and criminal history checks when a family home applies for registration. However, the department does not routinely conduct background and criminal history checks after a family home is registered. It is assumed that implementation of the bill's provisions requiring biennial background and criminal history checks for registered family homes, and background and criminal history checks for listed family homes, would result in additional costs. These costs would only be partially offset by new revenue from the $20 annual listing fee. The provision requiring the department to investigate a listed family home when an abuse or neglect complaint is received would have no fiscal impact because the department already investigates these complaints under Chapter 261 of the Family Code. The new enforcement provisions would have no significant fiscal impact for the department, the Office of the Attorney General, or local governments. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Probable Revenue Change in Number Savings/(Cost) Gain/(Loss) from of State from General General Revenue Employees from Revenue Fund Fund FY 1997 0001 0001 1998 ($136,060) $25,000 3.5 1998 (192,936) 50,000 4.7 2000 (192,936) 50,000 4.7 2001 (192,936) 50,000 4.7 2002 (192,936) 50,000 4.7 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 ($111,060) 1999 (142,936) 2000 (142,936) 2001 (142,936) 2002 (142,936) Similar annual 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: Agencies: 530 Department of Protective and Regulatory Services LBB Staff: JK ,BB ,NM