LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
February 8, 1999
TO: Honorable Judith Zaffirini, Chair, Senate Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB19 by Zaffirini (Relating to the renewal of certain
initial probationary licenses granted for a nursing or
convalescent home or related institution.), As
Introduced
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* Two-year Net Impact to General Revenue Related Funds for SB19, As *
* Introduced: positive impact of $21,760 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 21,760 *
* 2002 0 *
* 2003 21,760 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain to General *
* Revenue Fund *
* 0001 *
* 2000 $0 *
* 2001 21,760 *
* 2002 0 *
* 2003 21,760 *
* 2004 0 *
*****************************************************
Technology Impact
None.
Fiscal Analysis
The bill would amend Section 242.033, Subsection (d), of the Health and
Safety Code, and add Subsection (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 facility 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 require facilities receiving a probationary license in
Year 1 to pay renewal fees in Year 2, and again in Year 4. Under
current law newly licensed facilities pay renewal fees only once during
the first four years in Year 3. Thus, the bill would result in one
year's worth of additional revenue from every new facility entering the
licensure system. Generation of additional revenue would be staggered,
occurring in FY 2001, and again in FY 2003.
Assumptions:
1) The Board of Human Services will establish fees for probationary
licensure that are identical to existing licensure fees. Probationary
licensure rules and fees will be effective at the beginning of FY 2000.
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 new 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: 324 Dept Of Human Services
LBB Staff: JK, TP, PP