LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 16, 1997
         
         
      TO: Honorable Toby Goodman, Chair            IN RE:  Senate Bill No. 181, As Engrossed
          Committee on Juvenile Justice and Family Issues                              By: Shapiro
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB181 ( Relating 
to the conservatorship of a child by the Department of Protective 
and Regulatory Services.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB181-As Engrossed
         
Implementing the provisions of the bill would result in a net 
positive impact of $4,670,558 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 two chapters in the Family Code relating 
to the conservatorship of children by the Department of Protective 
and Regulatory Services (PRS).

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 for an additional 180 
days, under certain circumstances.  The effective date of the 
act 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.  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 effective 
date for these provisions would be January 1, 1998.
 
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.

Estimated costs 
and savings have been revised slightly to reflect new information 
received from PRS on March 31, 1997, after the previous fiscal 
note was issued.  The most significant change is that 11.5 fewer 
FTE positions would be added in fiscal year 1999.
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)          $562,862      ($2,066,809)          $360,918             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:
 
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         ($2,266,060)
               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.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,CB ,NM