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