LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  February 25, 1997
         
         
      TO: Honorable Steven Wolens, Chair            IN RE:  Senate Bill No. 407, As Engrossed
          Committee on State Affairs                              By: Harris
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB407 ( Relating 
to minimum standards, records, suspension or revocation of a 
license, and administrative penalties for abortion facilities.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB407-As Engrossed
         
Implementing the provisions of the bill would result in a net 
impact of $0 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 relates to minimum standards, suspension 
and revocation of a license, and administrative penalties for 
abortion facilities.  The bill would allow the Health Department 
to immediately suspend or revoke a license when the health and 
safety of persons are threatened, and to assess an administrative 
penalty against persons who violate Chapter 245 of the Health 
and Safety Code.
         
   Appropriations:
   
     The bill would appropriate the following amounts:
   
 
Fiscal Analysis
 
The bill requires the Department of Health to investigate violations 
and notify persons alleged to have committed violations.  It 
requires the department to give written notification to the 
person alleged to have committed violations of penalties assessed 
and rights to subsequent hearings and judicial review.  Persons 
notified have the right to a hearing on the occurrence of the 
violation and on the amount of the penalty.  Penalties are to 
be deposited to the general revenue fund.  If a hearing is requested, 
the commissioner of public health shall designate a hearings 
examiner to conduct the hearing.  If the person files an affidavit 
stating that the person is financially unable to pay the penalty, 
the department may contest the person's affidavit.  If the person 
does not pay the penalty, the department may refer the matter 
to the attorney general for collection.

The department may 
assess reasonable costs against a person in an administrative 
hearing if, as a result of the hearing, the person's license 
is denied, suspended, or revoked or if the administrative penalties 
against the person are assessed.  If the attorney general brings 
action against a person or action to enforce an administrative 
penalty, the attorney general may recover reasonable costs and 
expenses. 
 
Methodolgy
 
According to the Department of Health, the potential fiscal 
impact of hearing expenses is unknown; and the potential revenue 
for recovery of costs relating to hearing expenses is unknown. 
These potential costs and revenues are not included in the estimates 
in the table below. 

The Department of Health has identified 
department costs incurred in the investigation of violations, 
clinical review, licensure action and administrative penalty 
recommendations.  These activities would be performed by an 
additional one-half time Nurse V and an additional full time 
Administrative Technician I.

The Department of Health anticipates 
using its authority to increase licensing fees to cover the 
costs of these 1.5 FTEs.  The Department of Health assumes that 
the Board of Health would increase license fees by $2,334, from 
the current level of $1,000 to $3,334 in the first year.  Based 
on a five-year average number of facilities (34 facilities), 
this increase is assumed to generate $79,356 in the first year 
to cover the cost of the additional FTEs.  The Department expects 
to adjust downward the fees in subsequent years to equal the 
costs of the 1.5 FTEs in those years.

The Office of the Attorney 
General estimates 120-200 hours on an administrative appeal 
of an administrative penalty case, and no more than three cases 
per fiscal year as a result of the bill.  The Office of the 
Attorney General anticipates that any additional legal work 
or resources required subsequent to passage of this bill could 
be reasonably absorbed with current staff.

The Comptroller 
of Public Accounts estimates that there will be no significant 
fiscal impact related to administrative penalties.
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 Revenue   
            Savings/(Cost)     Gain/(Loss) from                                                           
            from General       General Revenue                                                            
            Revenue Fund       Fund                                                                       
            0001               0001                                                                        
       1998         ($79,352)           $79,352                                                      
       1998          (61,400)            61,400                                                      
       2000          (61,400)            61,400                                                      
       2001          (61,400)            61,400                                                      
       2002          (61,400)            61,400                                                      
 
 
         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                   $0
               1999                    0
               2000                    0
               2001                    0
               2002                    0
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   501   Department of Health
                                         302   Office of the Attorney General
                                         304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,JD ,BB ,MM