LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 4, 1997 TO: Honorable Hugo Berlanga, Chair IN RE: House Bill No. 3106, Committee Report 1st House, Substituted Committee on Public Health By: Craddick House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB3106 ( Relating to the regulation of the practice of physical therapy; providing administrative penalties.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB3106-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net positive impact of $5,078 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 amend Article 4512e to remove a restriction against reimbursing physical therapy board members for meals and lodging. The bill would amend Article 4512e by allowing the board to impose administrative penalties against persons licensed or regulated under the Act, and against facilities registered under the Act. The bill would require the board to adopt rules that establish procedures for assessing an administrative penalty and that provide for notice and a hearing for the license holder or facility made subject to a penalty. Methodolgy Currently the board is not allowed to reimburse for meals and lodging. The board currently only holds one day meetings. The agency assumes that with the authority to reimburse board members for meals and lodging, the board and its committees will hold 4 two day meetings and members would have to come to Austin less frequently, saving on travel costs. Estimated savings to general revenue is based on the difference between what the board is currently paying for travel ($4,319 per year), and what it would pay for travel, lodging and meals by meeting four times per year for two days ($3,780), for a net savings of $539. This assumes that all members will attend all meetings and would file all travel vouchers, so actual savings may be higher. Based on an average of ten violations per year and on an administrative penalty amount of $200 each, the agency estimates a gain to general revenue of $2,000 per year from administrative penalties. It is assumed that administrative penalties would be deposited to general revenue. Total fiscal impact of the bill is estimated at $2,539 per year in additional savings and/or revenue. 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 Savings/(Cost) Gain/(Loss) from from General General Revenue Revenue Fund Fund 0001 0001 1998 $539 $2,000 1998 539 2,000 2000 539 2,000 2001 539 2,000 2002 539 2,000 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $2,539 1999 2,539 2000 2,539 2001 2,539 2002 2,539 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: 533 Executive Council of Physical and Occupational Therapy Examiners LBB Staff: JK ,BB ,MM