LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 1, 1997
TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 84
Committee on Health & Human Services By: Moncrief
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB84 ( Relating
to the abolition of the Texas Board of Nursing Facility Administrators
and the transfer of the regulation of nursing facility administrators
to the Texas Department of Human Services;) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by SB84-As Introduced
No significant fiscal implication to the State is anticipated.
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 abolish the Texas Board of Nursing Facility Administrators
which is administered by the Texas Department of Health, and
transfer the regulation of nursing facility administrators to
the Texas Department of Human Services (DHS).
The bill would
repeal the Texas Nursing Facility Administrators Licensure Act
(Article 4512q, Revised Statutes), and add a new subchapter
on nursing facility administration to Chapter 242 of the Health
and Safety Code. The new subchapter would authorize the Board
of Human Services to adopt rules for the licensing of nursing
facility administrators, and authorize DHS to administer the
licensing program. It would continue most of the other provisions
in the current licensing law, including a provision that requires
the board to adopt rules setting reasonable and necessary fees
to cover the cost of administering the subchapter.
Implementation
of a number of provisions in the bill would have no significant
fiscal impact. These include provisions that would abolish
the regulatory board; eliminate a requirement for an annual
report on the use of funds; and add a requirement that the Board
of Human Services be informed on a quarterly basis about the
status of certain complaints.
Implementation of one provision
in the bill could result in a loss of revenue to the General
Revenue fund. This provision would create a new dedicated account
within the General Revenue fund to be used only for the administration
of the licensing statute.
The bill does not technically comply
with federal Medicaid regulations that require the State licensing
program to provide for the licensing of nursing home administrators
by: 1) the agency designated under the healing arts act of the
State, or 2) a State licensing board meeting certain membership
requirements. In the event that the federal government acted
on the non-compliance, the State could potentially lose federal
matching funds for the Medicaid program.
The bill would be
effective on September 1, 1997. It would continue the rules
adopted by the abolished board, and transfer all of the obligations,
rights, contracts, and records of the abolished board to DHS.
It would also transfer without change in status all licenses,
complaints, investigations, and other proceedings pending before
the abolished board.
Methodolgy
The bill would not significantly alter the provisions of the
current licensing statute. Therefore, it is assumed that the
bill would not create any significant new costs or savings for
the licensing program.
It is assumed that implementation
of the bill's provisions would not significantly alter the number
of licensed nursing home administrators in Texas. The health
department reports that nearly 1,200 licenses would be issued
or renewed each year. Each transaction would be accompanied
by a $250 fee that would be deposited in the new dedicated Licensed
Nursing Facility Administrators Account within the General Revenue
fund. Additional revenue would be collected each year from
other fees.
Estimates are based on the licensing program's
fiscal year 1997 operating budget as reported by the Office
of the State Auditor.
It is assumed that implementation of
the bill's provisions would not significantly alter the number
of complaints filed with the licensing program. The health
department reports that 305 complaints were filed in fiscal
year 1996 and 139 complaints were filed during the first six
months of fiscal year 1997.
The bill does not explicitly
authorize transfer of resources from the Texas Board of Nursing
Facility Administrators to DHS. The licensing program would
incur some additional costs to recruit, hire, train, and equip
new staff members if the resources are not transferred. These
additional costs would be offset by a delay in hiring the new
staff.
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 Probable Probable Revenue Change in Number
Savings/(Cost) Gain/(Loss) from Savings/(Cost) Gain/(Loss) from of State
from General General Revenue from New - GR New - GR Dedicated Employees from
Revenue Fund Fund Dedicated FY 1997
0001 0001 NEW-DED NEW-DED
1998 $357,095 ($357,095) ($357,095) $357,095 0.0
1998 357,095 (357,095) (357,095) 357,095 0.0
2000 357,095 (357,095) (357,095) 357,095 0.0
2001 357,095 (357,095) (357,095) 357,095 0.0
2002 357,095 (357,095) (357,095) 357,095 0.0
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: 501 Department of Health
302 Office of the Attorney General
304 Comptroller of Public Accounts
324 Department of Human Services
LBB Staff: JK ,BB ,NM