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