LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 3, 1997 TO: Honorable Rodney Ellis, Chair IN RE: Senate Bill No. 181 Committee on Jurisprudence By: Shapiro Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB181 ( Relating to expediting certain suits to terminate parental rights and 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 Introduced Implementing the provisions of the bill would result in a net positive impact of $15,910,060 to General Revenue Related Funds through the biennium ending August 31, 1999. The bill would amend various provisions of the Family Code relating to termination of the parent-child relationship due to child abuse or neglect. Fiscal Analysis The bill would amend Chapter 161 of the Family Code to require the court to expedite and give precedence to parental rights termination suits over all other civil suits when there is an allegation that a child's health or welfare has been affected by severe abuse, neglect, alcohol abuse, or drug abuse. The proposed amendment would apply to all termination cases pending in the courts on or after September 1, 1997. It is assumed that implementation of this provision would have no significant fiscal impact because current law already requires the court to give precedence to parental rights termination suits over other civil cases when termination would make a child eligible for adoption, and because the Department of Protective and Regulatory Services already considers severe abuse, neglect, and substance abuse when determining whether a child has been abused or neglected. The bill would also amend Section 263.303 of the Family Code to require the Department of Protective and Regulatory Services to recommend to the court one of two alternatives after a child has been in the department's managing conservatorship for one year. These include returning the child to the child's parents and dismissing the suit, or terminating parental rights and retaining conservatorship. This provision would apply to all cases in which the Department of Protective and Regulatory Services has been appointed conservator of a child before or after September 1, 1997. The bill would also require the court to select between the two alternatives when issuing an order on a parental rights termination case on or after September 1, 1998. It is assumed that implementation of these provisions would significantly increase the workload of the department's child protective services program and legal staff. The workload increase would be heaviest in fiscal year 1998, when the department would begin moving a backlog of foster children who have been in conservatorship for 12 or more months through the court system with a recommendation to return the child to the child's family and dismiss the suit, or to terminate parental rights and retain conservatorship It is also assumed that the cost of the additional workload would be more than offset by a savings in foster care payments because the bill would cause children to leave the system more quickly, due to reunification with their family or termination of parental rights and eventual adoption by another family. The foster care savings has been adjusted for an increase in the cost of adoption subsidy payments for children who are adopted. Methodolgy The department reports that a backlog of 3,553 foster children in the department's managing conservatorship at the end of fiscal year 1997 would be encompassed by the bill's provision that requires the department to recommend reunification or termination at the next status hearing. The department also projects that an average of 160 additional foster children would be covered by the provisions of the bill in each of the following fiscal years. About one-third of these children would become eligible for adoption due to termination of parental rights. The department estimates that implementation of the bill's provisions would require additional staff to handle the additional workload of the child protective services program and legal staff. This cost would be more than offset by a savings in foster care payments because children would leave the system more quickly. 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 ($6,211,718) $6,530,554 ($4,516,418) $3,401,701 239.0 1998 (2,387,597) 17,978,821 (1,775,716) 8,780,261 95.0 2000 (2,487,846) 19,980,030 (1,836,145) 9,751,589 97.0 2001 (2,695,629) 22,337,790 (1,994,441) 10,895,036 103.0 2002 (2,789,963) 24,825,998 (2,070,914) 12,101,915 105.0 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 $318,836 1999 15,591,224 2000 17,492,184 2001 19,642,161 2002 22,036,035 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Implementation of the bill's provisions would result in a significant additional cost for local government because many counties provide legal representation in parental rights termination cases. The department estimates that the additional workload would require local governments to hire 148 attorneys at a cost of $7 million statewide. This cost would occur in fiscal year 1998, when most of the work to reduce the backlog of foster children would be undertaken. Source: Agencies: 530 Department of Protective and Regulatory Services LBB Staff: JK ,BB ,NM