LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 27, 1997 TO: Honorable Bob Bullock Honorable James E. "Pete" Laney Lieutenant Governor Speaker of the House Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB190 ( Relating to the regulation of nursing homes and similar facilities; providing penalties.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB190-Conference Committee Report Implementing the provisions of the bill would result in a net positive impact of $472,000 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. The bill would amend Chapter 242 and Chapter 250 of the Health and Safety Code and Chapter 32 of the Human Resources Code to implement a number of changes relating to the regulation of convalescent and nursing homes in Texas. Fiscal Analysis Implementation of two provisions in the bill would result in a gain to the General Revenue fund. The first provision would authorize the Board of Human Services to raise license fees by $100 per facility and $5 per bed. The second provision would authorize the Board of Human Services to establish a background examination fee to defray the department's expenses in considering the background and qualifications of a wide range of individuals associated with license applications. The bill would specify that fees and penalties collected by or on behalf of the department which are deposited to the credit of the General Revenue fund may be appropriated only to the department to administer and enforce the state licensing law. The bill would also require the Legislative Budget Board and the State Auditor to jointly prescribe the form and content of annual performance reports that the Office of the Attorney General and the Department of Human Services must prepare. It would also establish a long-term care legislative oversight committee, staffed by existing resources of the Senate and House, to monitor the effectiveness and efficiency of the nursing facility regulatory system. The effective date for the bill is September 1, 1997, and the Board of Human Services must adopt rules to implement the changes in law on or before January 1, 1998. Methodolgy It is assumed that the Board of Human Services would increase licensing fees on September 1, 1997. The Comptroller of Public Accounts estimates that the annual gain to the General Revenue fund would be $236,000. This amount was estimated by applying the proportional fee increase to the average level of nursing home license fee collections in fiscal years 1995 and 1996. It is also assumed that the Board of Human Services would establish a background examination fee equaling the department's expenses. 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 Revenue Gain/(Loss) from General Revenue Fund 0001 1998 $236,000 1998 236,000 2000 236,000 2001 236,000 2002 236,000 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $236,000 1999 236,000 2000 236,000 2001 236,000 2002 236,000 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: 324 Department of Human Services 302 Office of the Attorney General 304 Comptroller of Public Accounts LBB Staff: JK ,BB ,NM