LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 28, 1999
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3302 by Coleman (Relating to certain private
facilities that provide behavioral or mental health care
services; imposing civil, criminal, and administrative
penalties.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3302, As Introduced: positive impact of $5,416 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. *
* *
* This bill would amend the Health and Safety Code by adding Chapter *
* 253, Behavioral Health Care Centers, to create a licensure *
* requirement for private behavioral or mental health care centers. *
* The bill's provisions would be administered by the Department of *
* Health. The Board of Health would be required to adopt necessary *
* rules to regulate the facilities and set fees for licensure to *
* defray the costs of administering the provisions of the bill. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $2,579 *
* 2001 2,837 *
* 2002 19,345 *
* 2003 37,198 *
* 2004 58,099 *
****************************************************
All Funds, Five-Year Impact:
**************************************************************************
*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 1999 *
* 0001 0001 *
* 2000 $(184,421) $187,000 2.7 *
* 2001 (164,363) 167,200 2.7 *
* 2002 (164,405) 183,750 2.7 *
* 2003 (164,452) 201,650 2.7 *
* 2004 (164,501) 222,600 2.7 *
**************************************************************************
Fiscal Analysis
The Department of Health estimates the costs of implementing this bill at
$184,421 for fiscal year 2000 and $164,363 for fiscal year 2001. The
department also estimates revenue from the collection of licensure fees
at $187,000 in fiscal year 2000 and $167,200 in fiscal year 2001. This
bill does not appropriate the licensing fee revenue to the department.
Methodology
The costs related to this bill assume that 110 centers would be licensed
in fiscal year 2000, with a 10% annual growth rate in each of the
following years. Additional costs are assumed related to conducting
initial, routine, and follow-up inspections of the centers, and
investigating complaints. The number of enforcement cases would also
increase. An additional 2.7 FTEs would be needed to manage the issuance
and renewal of licenses, conduct facility inspections and manage the
additional enforcement activity.
In order to cover the costs of the program, it is estimated that the
initial licensing fee would need to be set at approximately $1,700 per
center and $1,350 per annual license renewal.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 324 Department of Human Services, 501 Department
of Health, 212 Office of Court Administration, 655
Texas Department of Mental Health and Mental
Retardation, 304 Comptroller of Public Accounts
LBB Staff: JK, TP, MG