LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 7, 1999 TO: Honorable Steven Wolens, Chair, House Committee on State Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: HB5 by Gray (relating to parental notification before an abortion may be performed on certain minors), Committee Report 1st House, as amended ************************************************************************** * No significant fiscal implication to the State is anticipated. * * * * 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 would allow a court to issue an order to the State that would require the State to pay the court costs associated with a minor's application to seek judicial consent for an abortion without parental (conservator or guardian) notification. Specifically, the bill would require the court-ordered amount to be paid from funds appropriated to the Department of Health (TDH) for family planning. House Bill 1 (General Appropriations bill) would appropriate $129 million in All Funds and $6 million in General Revenue Match for Medicaid to the family planning services strategy for the 2000-01 biennium. It is the opinion of TDH that federal family planning funds and the General Revenue Funds appropriated to match them cannot be used to cover abortion-related court costs. TDH estimates that 5,523 pregnant minors in Texas chose abortion in 1997. According to TDH, research shows that 39 percent of pregnant minors do not involve parent(s) or other legally responsible adults in making decisions on abortion. It is assumed that 10 percent of the minors who do not involve a parent would use the courts to avoid notifying a parent. According to the agency, TDH would incur court expenditures for 216 minors. The estimated cost of fees for an attorney ad litem or a guardian ad litem is $1,200 per case, based on estimated average attorney fees of $150 per hour for 8 hours per case. Total court costs incurred by TDH for minors who would file applications are estimated to be $259,200 per fiscal year. TDH assumes that 50 percent of applications filed by minors are denied and appealed. It is assumed that the department would incur the cost of appeals totaling $207,360 per year. The estimate includes attorney fees and court reporter costs for transcripts. Total costs incurred by TDH for minors' applications and appeals are estimated to be $466,560 per year. It is assumed that these costs can be absorbed by the department with existing resources. The bill also requires physicians to certify in writing to the Board of Medical Examiners when they conclude that a medical emergency exists and the required notification could not be provided. It is assumed that the agency would absorb any costs associated with this additional responsibility using its existing resources. Local Government Impact Under the bill, filing fees are not required of and court costs may not be assessed against a minor. Assuming that a court would issue an order to the State to pay any significant court-related costs associated with the provisions of the bill, court-related costs would be recovered by local governments. According to Harris County, the average filing fee for the affected courts is $150. Harris County estimates that it would incur annual filing fee costs of approximately $90,000. The estimate is based on the assumption that 50 percent of the 1,200 minors who receive abortions annually in the county, or 600 minors, would file for court authorization. Source Agencies: 503 Board of Medical Examiners, 501 Department of Health LBB Staff: JK, BB, RM