LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 1, 1997
TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 1247
Committee on Health & Human Services By: Madla
Senate
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.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB1247-As Introduced
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:
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 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