LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 7, 1997
TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 1159, Committee Report 1st House, Substituted
Committee on Health & Human Services By: Carona
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1159 ( Relating
to regulating personal care facilities; providing for a civil
penalty) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB1159-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
positive impact of $6,428 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.
Fiscal Analysis
The bill would authorize the Department of Human Services (DHS)
to seek a temporary restraining order when a personal care facility
is operating without a license and there is no immediate threat
to the health or safety of residents. Current law only authorizes
DHS to seek a temporary restraining order for unlicensed activity
when there is an immediate threat.
The bill would increase
the minimum civil penalty for unlicensed activity by a personal
care home from $100 to $1,000 per day. It would allow the higher
minimum civil penalty to be imposed for violations that accompany
the unlicensed activity violation. It would also specify that
penalties deposited in the General Revenue fund may only be
appropriated to DHS to administer and enforce the licensing
statute.
The bill would require DHS to refer civil penalty
cases to the local district attorney, county attorney, or civil
attorney if the Attorney General fails to take action within
30 days of referral. It would also require the local attorneys
to file suit in a district court to collect and retain the penalty.
The bill would require the Department of Protective and Regulatory
Services by rule to adopt a memorandum of understanding with
DHS and the Attorney General that: 1) defines responsibilities
and coordinates activities concerning personal care home facilities,
2) delineates coordinated procedures for responding to complaints
about resident abuse or neglect, substandard conditions, and
unlicensed activity, 3) identifies each agency's need for access
to information on facilities that are under investigation or
a plan of correction, and 4) provides a plan for correcting
violations when appropriate.
The effective date of the bill
would be September 1, 1997.
Methodolgy
It is assumed that implementation of the bill's provisions would
require DHS to investigate 300 additional complaints against
unlicensed personal care facilities in 1998, and 200 additional
complaints in each subsequent year. It is also assumed that
each investigation would require 12 hours of staff time. The
department would need 2.3 FTE positions in 1998 and 1.5 FTE
positions in subsequent years to accommodate the additional
workload.
It is assumed that: 1) the minimum civil penalty
of $1,000 would be assessed against 95% of the facilities investigated
each year, 2) 50% of the assessed penalties would be collected,
3) 100% of the collected penalties would be deposited in the
General Revenue fund, and 4) there would be a six-month lag
between the imposition and assessment of penalties.
It is
assumed that implementation of the bill's provision requiring
the Department of Protective and Regulatory Services to participate
in the memorandum of understanding between DHS and the Attorney
General would have no significant fiscal impact.
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 Change in Number
Savings/(Cost) Gain/(Loss) from of State
from General General Revenue Employees from
Revenue Fund Fund FY 1997
0001 0001
1998 ($116,971) $71,250 2.3
1998 (66,601) 118,750 1.5
2000 (72,291) 95,000 1.5
2001 (72,291) 95,000 1.5
2002 (72,291) 95,000 1.5
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 ($45,721)
1999 52,149
2000 22,709
2001 22,709
2002 22,709
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. The provision requiring DHS to refer civil
penalty cases to the local district attorney, county attorney,
or city attorney when the Attorney General fails to take action
within 30 days could slightly increase local government revenues
since the local attorneys would be required to file suit in
a district court to collect and retain the penalties.
Source: Agencies: 304 Comptroller of Public Accounts
302 Office of the Attorney General
LBB Staff: JK ,BB ,NM