LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 1, 1997
         
         
      TO: Honorable Hugo Berlanga, Chair            IN RE:  Senate Bill No. 1247, As Engrossed
          Committee on Public Health                              By: Madla
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1247 ( Relating 
to regulation of a home and community support services agency; 
providing an administrative penalty.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB1247-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.
         
 
Fiscal Analysis
 
Section 2 would require applicants for a Home and Community 
Support Services agency license to provide identifying information 
on the owner, administrator, and chief financial officer to 
enable the Department of Health to conduct criminal background 
checks on those persons.  Section 2 would also require the Department 
of Health to evaluate and consider all information collected 
under the application process, which would include financial 
solvency information which is currently collected but not evaluated 
by the Department of Health.

Section 5 adds administrative 
penalty provisions. 
 
Methodolgy
 
It is estimated that the costs associated with conducting background 
checks on owners, administrators, and chief financial officers 
is $50,470 for the first year and $41,494 in subsequent years. 
 One full-time equivalent would be added.

It is estimated 
that the costs associated with evaluating financial solvency 
information would be $286,516 for the first year and $254,002 
in subsequent years.  Four full-time equivalent positions would 
be added for this function.

It is estimated that costs associated 
with enforcement actions through administrative penalties would 
be $362,835 for the first year and $308,979 for subsequent years. 
 Six full-time equivalent positions would be added.  Administrative 
penalties assessed are deposited to the credit of the general 
revenue fund.  Some new revenue is likely to result from administrative 
penalties.  

The Department of Health anticipates increasing 
licensing fees to the statutory maximum of $1,000 for all Home 
and Community Support Services Agencies (initial licenses, renewals, 
and for parents as well as branches and alternative delivery 
sites).

First year costs are reduced by 30 percent to reflect 
a phase-in period.
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 Home Health   Home Health        Employees from                                          
            Services           Services           FY 1997                                                 
            Account/           Account/                                                                   
            GR-Dedicated       GR-Dedicated                                                               
            5018               5018                                                                        
       1998        ($489,875)          $489,875               8.0                                    
       1998         (595,475)           595,475              11.0                                    
       2000         (595,475)           595,475              11.0                                    
       2001         (595,475)           595,475              11.0                                    
       2002         (595,475)           595,475              11.0                                    
 
 
         Net Impact on General Revenue Related Funds:
 

 
              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 fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   302   Office of the Attorney General
                                         501   Department of Health
                                         
                      LBB Staff:   JK ,BB ,KF