LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 26, 1997 TO: Honorable Bob Bullock IN RE: Senate Bill No. 34, As Passed 2nd House Lieutenant Governor Zaffirini Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB34 ( Relating to the parent-child relationship, suits affecting the parent-child relationship, and the protection of children.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB34-As Passed 2nd House Implementing the provisions of the bill would result in a net positive impact of $4,468,614 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 numerous provisions in the Family Code and the Government Code relating to the parent-child relationship, suits affecting the parent-child relationship, and the protection of children. Implementation of several provisions in the bill would have no significant fiscal impact. These include requiring the Department of Protective and Regulatory Services (PRS) to maintain in its central database specific information concerning adoption and substitute care, and requiring the Office of Court Administration to prepare an annual report on judicial efficiency. The bill's provisions relating to permanency planning for children in the managing conservatorship of PRS would have a significant fiscal impact. The bill would require the court to dismiss a suit affecting the parent-child relationship on the first Monday after the first anniversary of the date the court rendered an order appointing PRS as temporary managing conservator, unless the court had already rendered a final order or granted an extension of up to 180 days. The bill would also allow the court to retain jurisdiction over the child, and not dismiss the suit or render a final order, under certain circumstances. The effective date for these provisions would be January 1, 1998, and the provisions would apply to all suits commenced before, on, or after this date. The court could establish a later dismissal date for suits involving children in PRS temporary managing conservatorship before September 1, 1997. The bill would require county attorneys, district attorneys, or criminal district attorneys to provide legal representation for PRS in court actions brought under the Family Code. It would require an attorney employed by or contracting with PRS to provide the legal representation in cases where there is a conflict of interest or special circumstances exist. It would also allow PRS to reimburse county attorneys, district attorneys, criminal district attorneys, the attorney general, or private attorneys from any available state or federal funds for the costs of representing PRS in these court actions. The effective date for these provisions would be September 1, 1997. Methodolgy It is assumed that the provisions relating to permanency planning for children in PRS temporary managing conservatorship would significantly increase the workload of the department's child protective services program. The workload increase would be heaviest in the first two fiscal years, when the department would implement new permanency planning procedures and begin moving about 3,500 foster children who have been in conservatorship for 12 or more months through the court system. Additional child protective services staff would be needed to handle the new permanency planning requirements. The cost estimate assumes a ratio of six child protective service workers per clerk. It is also assumed that the provisions relating to legal representation would increase the workload of the department's legal staff. The department estimates that the new workload could be accommodated without cost to local prosecutors by adding six attorneys, three legal secretaries, and one legal assistant. These individuals would provide litigation support, training, and legal case management statewide. The legal secretary would also maintain a statewide legal tracking system for all PRS legal cases. The cost of the additional workload would be more than offset by a savings in foster care and other purchased service payments, because the provisions of the bill would cause some children to leave the system more quickly. The cost estimate uses federal revenue from the Temporary Assistance for Needy Families (TANF) program. In the event that TANF funds are unavailable for allocation, General Revenue may need to be substituted. The net additional cost to the General Revenue Fund under this scenario would be about $900,000 in fiscal years 1998 and 1999. Estimated savings have been revised slightly to reflect updated information received from PRS on April 25, 1997. This information corrected a data-entry error on the agency's previous cost estimate. A potential exists for increased costs due to implementation of the provision allowing PRS to reimburse attorneys for the cost of legal representation in court actions under the Family Code, but this would be dependent on board rules and agency implementation policies. 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 Probable Probable Change in Number Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) of State from General from General from Federal Funds from Federal Funds Employees from Revenue Fund Revenue Fund FY 1997 0001 0001 0555 0555 1998 ($2,828,922) $360,918 ($2,066,809) $562,862 103.4 1998 (5,579,392) 12,516,010 (4,067,016) 6,144,442 217.0 2000 (2,757,152) 18,168,770 (2,031,160) 8,821,369 101.8 2001 (1,980,999) 12,390,049 (1,476,951) 6,027,335 67.4 2002 (2,050,479) 12,389,345 (1,535,426) 6,028,686 67.7 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 ($2,468,004) 1999 6,936,618 2000 15,411,618 2001 10,409,050 2002 10,338,866 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Implementation of the provision allowing PRS to reimburse county attorneys, district attorneys, and criminal district attorneys from any available state or federal funds for the costs of representing PRS in court actions brought under the Family Code could increase local government revenues. However, this potential would be dependent on board rules and agency implementation policies. Implementation of another provision authorizing presiding judges to appoint a court master to handle child protection cases would have fiscal implications for local government. The salary paid to a court master would be dependent on the decisions of local county officials. Source: Agencies: 302 Office of the Attorney General 530 Department of Protective and Regulatory Services 501 Department of Health LBB Staff: JK ,CB ,NM