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