LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 3, 1999
  
  
          TO:  Honorable Toby Goodman, Chair, House Committee on
               Juvenile Justice & Family Issues
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2355  by Goodman (Relating to the adoption, protection,
               and placement of children.), Committee Report 1st House,
               Substituted
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would authorize the state to provide adoption subsidy payments
for a child who is eligible for an adoption subsidy under federal law
regardless of whether the state is the managing conservator for the
child.  The Texas Family Code currently authorizes the state to provide
adoption subsidy payments for a child who is not in the state's managing
conservatorship only if the child is receiving Supplemental Security
Income (SSI) benefits from the federal government.  The bill would expand
eligibility to include children with special needs who meet federal
requirements for the Aid To Families With Dependent Children (now
Temporary Assistance for Needy Families) program that were in effect on
July 16, 1996, or who would have met these requirements but for removal
from the home of a relative.

The Department of Protective and Regulatory Services (PRS) estimates that
the number of private agency adoptions will remain constant at 1,540 per
year through fiscal year 2004.  The department also estimates that the
number of new children under 18 years old who will begin receiving
adoption subsidy payments due to the bill's expanded eligibility will
rise from 30 for fiscal year 2000 to 50 for fiscal year 2001 and beyond.
All of these children are entitled to receive Medicaid coverage under
current federal law.

For the 2000-01 biennium, it is assumed that PRS (which is responsible
for making adoption subsidy payments) and the Texas Department of Health
(which is responsible for making payments associated with the Medicaid
program) can absorb the General Revenue costs of the bill within
existing resources.  These General Revenue costs are estimated to be
$148,760 for PRS and $31,252 for the health department.  By fiscal year
2004, the General Revenue costs will be much more substantial because
children entering the system in prior years will continue to receive
adoption subsidy payments and Medicaid coverage.  The General Revenue
costs for fiscal year 2004 are estimated to be $435,839 for PRS and
$94,273 for the health department.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, MD, NM