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