LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 14, 1997
         
         
      TO: Honorable Harvey Hilderbran, Chair            IN RE:  House Bill No. 2663
          Committee on Human Services                              By: Wise
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2663 ( Relating 
to background and criminal history checks conducted on certain 
employees, potential employees, and volunteers who directly 
interact with or have the opportunity to associate with children.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2663-As Introduced
         
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 require the Texas Department of Protective and 
Regulatory Services (PRS) to obtain criminal history record 
information from the Texas Department of Public Safety (DPS) 
relating to a wide range of individuals who are associated with 
the direct delivery of child and adult protective services, 
or the delivery of child-care services.  Current law merely 
authorizes PRS to obtain this information.

The bill would 
require PRS to obtain criminal history record information from 
DPS relating to family home owners, employees, and applicant 
employees.  Current law does not include this provision.

The 
bill would require PRS to obtain criminal history record information 
from the Federal Bureau of Investigation (FBI), or any other 
criminal justice agency in the state, when it requests criminal 
history record information from DPS relating to the individuals 
mentioned above.  Current law does not require PRS to obtain 
this information.

The bill would not allow PRS to charge 
a fee to recover the administrative costs of obtaining the criminal 
history record information relating to the individuals mentioned 
above.  Current law allows PRS to charge such a fee.

The 
bill would authorize PRS to obtain criminal history record information 
from DPS relating to persons who provide in-home child care, 
when the information is requested by the child's parent with 
the written consent of the provider.  Current law does not include 
this provision, but it does allow PRS to charge a fee to recover 
the administrative costs of obtaining the criminal history record 
information relating to these individuals.

The bill would 
require PRS to conduct background and criminal history checks 
when a person applies for family home registration and at least 
once every 24 months thereafter.  This provision would cover 
the family home's owner, employees, residents, and anyone else 
who regularly or frequently stays or works at the home when 
child care is provided.  The bill would require PRS, by rule, 
to require that family homes pay a fee in an amount not to exceed 
the administrative costs of conducting the background and criminal 
history checks.

The effective date for the bill would be 
September 1, 1997.
 
Methodolgy
 
PRS reports that criminal history record information is already 
obtained from DPS relating to individuals who are associated 
with the direct delivery of child and adult protective services, 
or the delivery of child-care services.  FBI fingerprint checks 
are only required for a very small number of these individuals. 
 No fee is charged to cover the administrative costs of obtaining 
the information.  It is assumed that implementation of the provision 
requiring PRS to obtain criminal history record information 
from the FBI, when it requests criminal history record information 
from DPS, would increase the agency's administrative costs because 
each FBI fingerprint check would cost $24.  It is also assumed 
that the additional costs could be absorbed within the agency's 
current resources.

PRS reports that background and criminal 
history checks are already conducted when a family home seeks 
registration.  Therefore, it is assumed that implementation 
of the bill's provisions relating to these checks would primarily 
affect registered family homes that have been in the system 
for two years.  The agency reports that there were 12,192 registered 
family homes in 1996 and this number should remain constant 
through the year 2002.

PRS estimates that the background 
and criminal history check requirement would encompass an average 
of 2.5 persons per family home.  It is assumed that each person 
would be checked for a history of child abuse or neglect using 
the department's own records, and for a criminal history using 
records kept by DPS and the FBI.  It is also assumed that one-half 
of the registered family home caseload, or 6,096 homes, would 
be checked each year.  This would result in more than 15,000 
background and criminal history checks annually.

PRS would 
have to increase its licensing staff to accommodate the additional 
workload.  It is assumed that the department would establish 
a fee to recover the full administrative costs of conducting 
the background and criminal history checks.  These administrative 
costs would encompass 3.3 new FTEs, a $1 fee for each DPS check, 
and a $24 fee for each FBI check.  Therefore, it is assumed 
that the background and criminal history check fee would be 
slightly less than $33 per person.
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        ($499,182)          $499,182               3.3                                    
       1998         (499,182)           499,182               3.3                                    
       2000         (499,182)           499,182               3.3                                    
       2001         (499,182)           499,182               3.3                                    
       2002         (499,182)           499,182               3.3                                    
 
 
         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:   405   Department of Public Safety
                                         530   Department of Protective and Regulatory Services
                                         
                      LBB Staff:   JK ,BB ,NM