LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 29, 1997
         
         
      TO: Honorable Judith Zaffirini, Chair            IN RE:  House Bill No. 1555, 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 HB1555 ( Relating 
to inspection of certain child-care facilities.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1555-As Engrossed
         
Implementing the provisions of the bill would result in a net 
positive impact of $996,000 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.  The bill would partially implement the Texas Performance 
Review recommendation HHS 5 in Disturbing the Peace:  The Challenge 
of Change in Texas Government.

The bill would amend Chapter 
42 of the Human Resources Code to require the Department of 
Protective and Regulatory Services to coordinate monitoring 
inspections of licensed day-care centers, licensed group day-care 
homes, and registered family homes performed by state agencies 
to eliminate redundant inspections.  The bill would require 
the department to form an interagency task force with the Department 
of Health, the Department of Human Services, and the Workforce 
Commission to develop an inspection protocol to coordinate inspections.

The 
bill would require the department to establish, if feasible 
using available information systems,  a computerized database 
containing inspection information from other state agencies 
and political subdivisions of the state.  The department would 
be required to make this information available to state agencies 
and political subdivisions of the state and may also provide 
the information to the public.
         
 
Fiscal Analysis
 
According to estimates developed by the Comptroller, the bill 
would result in a net savings to the general revenue fund.  
The bill would require an additional one-half FTE.
 
Methodolgy
 
Costs:

The state would incur a cost for the database:  $13,000 
for each year.

Coordination of child-care facilities and 
consolidation of forms would be achieved within appropriated 
agency budgets.

Formation of the interagency task force and 
development of the inspection protocol would be achieved within 
appropriated agency budgets.

Savings:

Savings are based 
on each agency's percentage of inspection time to be saved multiplied 
by its total inspection budget.  Savings would be achieved through 
reductions to the following agency appropriations:

$247,023 
from the Department of Protective and Regulatory Services

$254,895 
from the Texas Workforce Commission

$9,082 from the Department 
of Human Services
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           Probable Revenue   Change in Number   
            Savings/(Cost)     Savings/(Cost)     Gain/(Loss) from   of State                             
            from General       from General       Federal Funds      Employees from                       
            Revenue Fund       Revenue Fund                          FY 1997                              
            0001               0001               0555                                                     
       1998         ($13,000)          $511,000                $0               0.5                  
       1998          (13,000)           511,000                 0               0.5                  
       2000          (13,000)           511,000                 0               0.5                  
       2001          (13,000)           511,000                 0               0.5                  
       2002          (13,000)           511,000                 0               0.5                  
 
 
         Net Impact on General Revenue Related Funds:
 

 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998             $498,000
               1999              498,000
               2000              498,000
               2001              498,000
               2002              498,000
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   530   Department of Protective and Regulatory Services
                                         304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,BB