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