LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 1, 1997
TO: Honorable Harvey Hilderbran, Chair IN RE: House Bill No. 2409, Committee Report 1st House, Substituted
Committee on Human Services By: Coleman
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2409 ( Relating
to creating a licensing program for adult foster care homes.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB2409-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
impact of $0 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 create a new state licensing program for adult
foster care homes. It would require licensure for any establishment
that: 1) provides room and board for a person age 65 or older
who is unrelated to the proprietor, 2) received Medicaid reimbursement,
and 3) is not otherwise required to be licensed.
The bill
would require the Department of Human Services (DHS) to issue
an adult foster care home license when it finds, after an inspection
and investigation, that the minimum standards have been met.
The license would be valid for two years and could be renewed.
The bill would authorize the Board of Human Services to establish
a non-refundable license application fee, and require DHS to
set fees sufficient to cover the costs of administering the
licensing statute.
The bill would authorize DHS to deny,
suspend, or revoke an adult foster care home's license after
providing notice and the opportunity for a hearing and appeals
under Chapter 2001 of the Government Code. It would require
DHS to suspend an adult foster care home's license, or order
immediate closure, when there is an immediate threat to resident
health and safety. It would also require DHS by rule to provide
for the relocation of residents when a license is suspended
or a home is closed.
The effective date for these provisions
would be January 1, 1998.
Methodolgy
DHS estimates that the number of establishments covered by the
adult foster care home licensing program would rise from 143
in 1998 to 254 in the year 2002. It is assumed that DHS would
inspect each home once a year and that each inspection would
require 8 hours of staff time. It is also assumed that the
number of complaint investigations would be negligible. The
department would need one FTE position to accommodate the additional
workload. The department would also need about $14,000 to develop
an automated system for the licensing program. It is assumed
that DHS would establish a fee to recover the full costs of
administering the licensing program. The fee would cost each
licensed adult foster care home provider between $200 and $300
annually. First-year costs have been reduced to accommodate
the January 1, 1998 effective date for the licensing requirement.
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 ($48,663) $48,663 1.0
1998 (43,280) 43,280 1.0
2000 (43,280) 43,280 1.0
2001 (43,280) 43,280 1.0
2002 (43,280) 43,280 1.0
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 $0
1999 0
2000 0
2001 0
2002 0
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: 324 Department of Human Services
LBB Staff: JK ,BB ,NM