LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 9, 1997
         
         
      TO: Honorable Harvey Hilderbran, Chair            IN RE:  House Bill No. 1555
          Committee on Human Services                              By: Greenberg
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1555 ( Relating 
to inspection of child-care facilities.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB1555-As Introduced
         
Implementing the provisions of the bill would result in a net 
positive impact of $946,680 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 child-care 
facility inspections performed by state agencies.  The bill 
would prohibit one state agency from duplicating an inspection 
conducted by another state agency, and it would require the 
department to assign items that may be inspected by more than 
one agency to only one agency.

The bill would require the 
department by rule, and with the assistance of the Comptroller 
of Public Accounts, to adopt each child-care facility inspection 
form used by state agencies.  These forms would be designed 
to eliminate redundant inspections and must be adopted by January 
1, 1998.

The bill would require the department to establish 
a computerized database containing child-care facility inspection 
information.  State agencies would be required to submit their 
completed inspection forms to the department which would be 
required to add the inspection information to the database.

The 
bill would require the department to establish a pilot program 
allowing child-care facility inspectors to access and update 
the information in the computerized database using laptop computers 
during an inspection.  A report on the effectiveness of the 
pilot program would be due not later than January 15, 1999.
         
 
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 pilot program: 
 $41,000 for fiscal year 1998, and $8,320 for each subsequent 
year.

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.

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         ($54,000)          $511,000                $0               0.5                  
       1998          (21,320)           511,000                 0               0.5                  
       2000          (21,320)           511,000                 0               0.5                  
       2001          (21,320)           511,000                 0               0.5                  
       2002          (21,320)           511,000                 0               0.5                  
 
 
         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             $457,000
               1999              489,680
               2000              489,680
               2001              489,680
               2002              489,680
 
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 ,PP ,NM