LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 7, 1997
TO: Honorable Harvey Hilderbran, Chair IN RE: House Bill No. 2409
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;
providing criminal penalties.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by HB2409-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(232,561) 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) receives Medicaid reimbursement,
and 3) is not otherwise required to be licensed.
The bill
would require the Board of Human Services to adopt rules prescribing
minimum standards for the health and safety of adult foster
care home residents. The rules must include requirements for
criminal history checks; the reporting of abuse, neglect, mistreatment,
or exploitation of residents; employee training; and employee
continuing education.
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 Board of Human Services
could establish a non-refundable license fee, and DHS could
also set fees sufficient to cover the costs of administering
the licensing statute.
The bill would authorize DHS, with
assistance from the Texas Department on Aging, to: 1) inspect
adult foster care homes as necessary to assure compliance, 2)
provide adult foster care home operators with training materials
and a handbook explaining the rules, and 3) coordinate training
conferences and workshops with other state agencies.
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 bill
would require persons to report abuse or neglect of adult foster
care home residents who are at least 65 years old. The report
could be filed with DHS or a local or state law enforcement
agency. Law enforcement agencies would be required to refer
their reports to DHS or another designated agency. It would
be a Class A misdemeanor to fail to report abuse and neglect,
or to make a report that is malicious or reckless.
The bill
would require DHS or another designated agency to promptly investigate
reports of abuse or neglect. The investigation could include
a visit to the home and an interview with the resident. DHS
would be required to file a petition for temporary care and
protection when immediate removal is necessary to protect a
resident from further abuse or neglect.
The bill would require
DHS to maintain a central registry of abuse and neglect reports.
It would require licensed adult foster care homes to report
resident deaths to DHS. It would also require DHS to correlate
the reports with death certificate information and to develop
statistical information about the official causes of death.
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 increase from
about 250 in 1998 to more than 350 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 in
1998, and a second FTE position in 1999, to accommodate the
additional workload.
DHS would need to update existing automation
systems to maintain the central registry of abuse and neglect
reports and to develop the statistical information about official
causes of death. It is assumed that this could be accomplished
for less than $30,000. The department would also need one FTE
position to handle the workload associated with maintaining
the central registry and developing the statistical information.
DHS
does not believe it would be possible to set fees high enough
to cover the costs of administering the licensing program.
Each licensed adult foster care home would have to pay an average
annual fee of nearly $400 to cover the administrative costs,
and the bill does not require the Board of Human Services or
the department to set such a fee.
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 Change in Number
Savings/(Cost) of State
from General Employees from
Revenue Fund FY 1997
0001
1998 ($111,605) 2.0
1998 (120,956) 3.0
2000 (115,266) 3.0
2001 (115,266) 3.0
2002 (115,266) 3.0
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 ($111,605)
1999 (120,956)
2000 (115,266)
2001 (115,266)
2002 (115,266)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The bill would require local law enforcement agencies to accept
reports of abuse or neglect and to refer these reports to DHS
or another designated agency. It would require probate and
county courts to order caretakers or operators to provide DHS
with access to residents under certain circumstances. It would
also require DHS to file written investigation reports with
district attorneys and law enforcement agencies. It is assumed
that there would be no significant fiscal implications for local
government from passage of the bill.
Source: Agencies: 340 Department on Aging
530 Department of Protective and Regulatory Services
324 Department of Human Services
320 Texas Workforce Commission
LBB Staff: JK ,BB ,NM