LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 22, 1997
         
         
      TO: Honorable James E. "Pete" Laney            IN RE:  House Bill No. 155, As Passed 2nd House
          Speaker of the House                Greenberg
          House of Representatives
          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 Passed 2nd House
         
Implementing the provisions of the bill would result in a net 
positive impact of $242,132 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 (DPRS).  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 DPRS to conduct a background and criminal 
history check on certain individuals when a child-care facility 
or family home applies for licensure, listing, or registration. 
 It would also require DPRS to conduct a background and criminal 
history check when certain individuals become associated with 
a licensed child-care facility, listed family home, or registered 
family home.  The child-care facility or family home would be 
required to pay a fee that could not exceed the department's 
administrative costs.

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.

The effective date 
for the bill would be September 1, 1997.
 
Methodolgy
 
DPRS 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.

It is assumed that implementation of 
the bill's provisions relating to background and criminal history 
checks would require DPRS to search for information on more 
than 24,000 persons associated with child-care facilities and 
family homes each year.  Each person would be checked for a 
history of child abuse and neglect using the department's own 
records, and for a criminal history using records kept by the 
Texas Department of Public Safety.  A very small number would 
also require an FBI fingerprint check.  DPRS would need to increase 
its licensing staff by 5 FTE positions to accommodate the new 
workload.  It is assumed that the department would establish 
a fee to recover the full administrative cost of conducting 
the checks.

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        ($211,378)          $319,944               5.0                                    
       1998         (211,378)           344,944               5.0                                    
       2000         (187,187)           320,753               5.0                                    
       2001         (187,187)           320,753               5.0                                    
       2002         (187,187)           320,753               5.0                                    
 
 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998             $108,566
               1999              133,566
               2000              133,566
               2001              133,566
               2002              133,566
 
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:   
                                         
                      LBB Staff:   JK ,BB ,NM