LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 17, 1997
TO: Honorable Harvey Hilderbran, Chair IN RE: Senate Bill No. 190, Committee Report 2nd House, Substituted
Committee on Human Services By: Naishtat
House
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-Committee Report 2nd House, Substituted
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 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.
Implementation of several
provisions relating to the enforcement program would have no
significant fiscal impact. These include provisions that would
allow the Office of the Attorney General to investigate unlawful
acts when certain conditions are met, use civil investigative
demand powers, and file suit in district court to enforce civil
investigative demands. The attorney general's office reports
that any additional legal work as a result of passage of the
bill could be reasonably absorbed with current staff.
Other
provisions that would have no significant fiscal impact include:
requiring the Board of Human Services to adopt a system for
prioritizing complaint investigations and actions; expanding
the scope of liability to include violations of participation
requirements for the state Medicaid program; increasing civil
and administrative monetary penalties; and allowing the Department
of Human Services to petition for a temporary restraining order
when a threatened violation of a state licensing standard poses
an immediate threat to resident health and safety.
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. It would also specify
that revenues collected by the Office of the Attorney General
to pay for costs associated with successful enforcement actions
must be deposited to the credit of the General Revenue fund
and may be appropriated only to the Department of Human Services
and the Office of the Attorney General.
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.
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,
but no data is currently available to calculate these 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: 302 Office of the Attorney General
304 Comptroller of Public Accounts
324 Department of Human Services
LBB Staff: JK ,BB ,NM