LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                               May 13, 1999
  
  
          TO:  Honorable Rodney Ellis, Chair, Senate Committee on
               Jurisprudence
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3517  by Goodman (Relating to the detention,
               adjudication, and disposition of certain persons within
               the juvenile justice system.), As Engrossed
  
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*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB3517, As Engrossed:  negative impact of $(1,243,673) 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.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                           $(621,671)  *
          *       2001                            (622,002)  *
          *       2002                            (622,002)  *
          *       2003                            (622,002)  *
          *       2004                            (622,002)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal      Probable        Probable        Probable        Probable     *
* Year    Savings/(Cost)     Revenue      Savings/(Cost)  Savings/(Cost)  *
*          from General    Gain/(Loss)     from General    from Federal   *
*          Revenue Fund     from Other     Revenue Fund       Funds       *
*              0001       -Appropriated   (GR-match for        0555       *
*                            Receipts       Medicaid)                     *
*                                              0001                       *
*  2000        $(479,555)        $368,653      $(142,116)      $(226,537) *
*  2001         (479,555)         368,653       (142,447)       (226,205) *
*  2002         (479,555)         368,653       (142,447)       (226,205) *
*  2003         (479,555)         368,653       (142,447)       (226,205) *
*  2004         (479,555)         368,653       (142,447)       (226,205) *
***************************************************************************
  
Fiscal Analysis
  
The bill would amend sections of the Family Code to provide that a
juvenile court may refer a child to a local MHMR authority for evaluation
and services if there was probable cause to believe that a child
suffered from a mental illness or mental retardation.  If that
determination was made, the juvenile proceedings would be stayed until a
finding was made by the court.  If the court found that evidence
supported a finding of mental illness and the child met the Health and
Safety Code commitment criteria, the court would initiate commitment or
refer the matter to the appropriate court.  If the child was found unfit
to proceed by reason of mental retardation, the court would initiate
civil commitment or refer the case to an appropriate court.

The amendment requires the juvenile court to order the placement of a
child who has been found unfit to
proceed or lacks responsibility for his conduct in a facility designated
by TDMHMR, in a private psychiatric inpatient facility at private
expense, unless the court orders the state or a political subdivision of
the state to pay the costs of placement in such a facility, or in an
adequate outpatient setting for a period of no more than 90 days.
  
  
Methodology
  
It is assumed that the Texas Department of Mental Health and Mental
Retardation (MHMR) would receive 38 additional referrals - 9 referrals
for determination of fitness resulting from mental illness and 29
referrals for mental retardation.  Medicaid eligible costs for Medicaid
eligible clients will be assumed by the Department of Health.
Non-medicaid eligible costs are assumed at MHMR.

The cost methodology assumes the number of referrals X (times) cost per
day X (times) 90 days as required in the bill.  Cost assumptions are
$260.90 per day for a mental health client in an MHMR facility, $950 per
day for a mental health client in a private mental hospital, and $131.53
per day for a mental retardation client in an MHMR facility.  It is
assumed that half of the mental health client referrals will request
placement in a private mental health facility.

According to MHMR, approximately 24% of the total referrals for mental
illness and 100% of mental retardation referrals are Medicaid eligible.
Medicaid eligible costs are federally reimbursed at a rate of 61.45%.
The General Revenue match for these Medicaid eligible clients is provided
by the Department of Health.  MHMR will receive the federal
reimbursement.

In addition, non-Medicaid medical costs of $500 per year per MR (Mental
Retardation) referral are included which are not federally reimbursed.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   655   Texas Department of Mental Health and Mental
                   Retardation, 694   Youth Commission
LBB Staff:         JK, PE, MG