LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 8, 1999
TO: Honorable Robert Junell, Chair, House Committee on
Appropriations
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2909 by Naishtat (relating to the nursing and
convalescent home trust fund), As Introduced
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* Estimated Two-Year Net Impact to General Revenue Related Fundsfor *
* HB2909, As Introduced: $0 through the biennium ending August 31, *
* 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 0 *
* 2002 (507,825) *
* 2003 (507,825) *
* 2004 (507,825) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable (Cost) to Probable (Cost) to *
* Year Gain to Nursing and General Revenue Fund Federal Funds *
* Convalescent Home (Medicaid Match) (Medicaid) *
* Trust Fund 0001 0555 *
* 0992 *
* 2000 $2,000,000 $0 $0 *
* 2001 2,000,000 0 0 *
* 2002 2,000,000 (507,825) (794,291) *
* 2003 2,000,000 (507,825) (794,291) *
* 2004 2,000,000 (507,825) (794,291) *
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Fiscal Analysis
The bill would amend Sections 242.096 and 242.097 of the Health and
Safety Code. The bill would require the Department of Human Services
(DHS) to charge and collect an annual fee in an amount necessary to
provide not more than $10,000,000 in the nursing and convalescent home
trust fund. Current law requires DHS to charge and collect an annual fee
necessary to provide $500,000 in the fund. All collections would be
deposited to the trust fund. At the end of each fiscal year, any
unencumbered amount in the trust fund in excess of $10,000,000 would be
transferred to the credit of the general revenue fund.
Chapter 242 of the Health and Safety Code governs only nursing and
convalescent facilities. However, Chapter 247 and Chapter 252 require
DHS to charge and collect similar fees from personal care facilities and
intermediate care facilities for the mentally retarded (respectively).
These fees must be deposited to the nursing and convalescent home trust
fund. Therefore, any increase in fees to build the trust fund balance
would affect nursing/convalescent facilities, personal care facilities,
and intermediate care facilities for the mentally retarded.
Methodology
1) DHS would increase the trust fund balance to $10,000,000 over a
five-year period by charging and collecting fees totaling $2,000,000 per
year. DHS would charge and collect an annual fee of $12 per licensed bed
(from nursing/convalescent facilities, personal care facilities, and
intermediate care facilities for the mentally retarded) each year. The
total number of licensed beds for fiscal year 2000 is estimated to be
approximately 166,667. This number is assumed for each subsequent year.
For purposes of this estimate, no expenditures from the trust fund are
assumed (beginning in fiscal year 2000). If trust funds are expended, it
is assumed DHS would increase the fee charged and collected in
subsequent years in order to produce a balance of $10,000,000 in the
trust fund at the end of fiscal year 2004. Any increase in the fee
amounts assumed would increase the cost to the state two years later.
2) Facilities that contract with the state to provide client services
would be reimbursed for costs related to nursing and convalescent home
trust fund fees. Reimbursement would occur two years after the expense
was incurred. Approximately 108,510 licensed beds would be eligible for
reimbursement, representing a cost to the state of $1,302,116 per year
(beginning in fiscal year 2002). Approximately 39 percent of costs
would be paid with general revenue, and 61 percent with matching federal
funds.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, BB, AZ, PP