LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 11, 1999
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB19 by Zaffirini (Relating to the issuance and renewal
of certain initial probationary licenses granted for a
nursing or convalescent home or related institution),
Committee Report 2nd House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB19, Committee Report 2nd House, Substituted: positive impact of *
* $800 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 $(10,480) *
* 2001 11,280 *
* 2002 (10,480) *
* 2003 11,280 *
* 2004 (10,480) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2000 $(10,480) *
* 2001 11,280 *
* 2002 (10,480) *
* 2003 11,280 *
* 2004 (10,480) *
*****************************************************
Fiscal Analysis
The bill would amend Chapter 242 of the Health and Safety Code, amending
Subsection 242.033 (d), and adding Subsection 242.033 (f). The bill
would establish a probationary license for nursing facilities,
convalescent homes, and related institutions that have not previously
held a license. The probationary license would be valid for one year.
Under current law, an initial license is valid for two years.
Methodology
In 1998, the Department of Human Services (DHS) issued licenses to 16
nursing facilities--which had not been previously licensed. On average,
a newly licensed facility had 106 beds. DHS charged each facility
seeking a license $300 ($250 for the license fee and $50 for the criminal
background check) and $10 per facility bed. This licensure activity
generated $21,760 of revenue, which was deposited into the General
Revenue Fund.
The bill would reduce fees for facilities receiving an initial license to
$175 ($125 for the license fee and $50 for the criminal background
check) and $5 per facility bed. This would result in a loss of revenue
of $10,480 each year for Years 1, 3, and 5.
Current law requires facilities receiving an initial license to pay
renewal fees only once during the first four years--in Year 3. The bill
would require facilities receiving an initial, probationary license to
pay renewal fees in Year 2 and again in Year 4, resulting in increased
revenue of $11,280 in each of the same years.
Assumptions:
1) The Board of Human Services will establish licensure rules and fees
that will be effective September 1, 1999.
2) The number of new facilities entering the licensure system each year
will total 16, as in 1998.
3) The average number of beds per new facility entering the licensure
system each year will total 106, as in 1998.
4) All facilities entering the system will seek and receive and continue
to seek and receive license renewals.
5) Additional workload will be minimal and absorbed by current DHS FTEs.
Additional costs will be minimal and absorbed within the current level
of funding.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, TP, PP