LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 16, 1997 TO: Honorable Hugo Berlanga, Chair IN RE: House Bill No. 2481 Committee on Public Health By: Swinford House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2481 ( Relating to faith-based chemical dependency treatment programs and counselors.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2481-As Introduced Implementing the provisions of the bill would result in a net negative impact of $(48,000) to General Revenue Related Funds through the biennium ending August 31, 1999. Fiscal Analysis This bill would exempt faith-based chemical dependency treatment programs from licensure requirements. The bill would require the Texas Commission on Alcohol and Drug Abuse to establish a simple procedure for a faith-based chemical dependency program to register its exemption. According to the agency there would be a loss in fee revenue due to the exemption from licensing fees. Methodolgy The estimated loss in fee revenue collected is $48,000 per biennium. The loss in fee revenue would occur every other year due to the agency's two-year license renewal cycle. The agency estimates that out of approximately 800 licensed facilities, ten percent would qualify for the faith-based exemption. Based on an average licensure fee of $600 the loss in fee revenue is estimated to be $48,000 every two years. Any costs associated with registering a program as faith-based could be reasonably absorbed by the agency. 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 Revenue Gain/(Loss) from General Revenue Fund 0001 1998 ($48,000) 1998 2000 (48,000) 2001 2002 (48,000) 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 ($48,000) 1999 0 2000 (48,000) 2001 0 2002 (48,000) 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: 517 Commission on Alcohol and Drug Abuse 324 Department of Human Services LBB Staff: JK ,BB ,MG