LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 13, 1999 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: SB196 by Madla (Relating to administrative penalties for intermediate care facilities for the mentally retarded.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** The bill (Section 252.065 (b) of the Health and Safety Code) would lower the maximum allowable administrative penalty per violation for Intermediate Care Facilities for the Mentally Retarded (ICF-MRs) from $5,000 to $1,000. However, most administrative penalties assessed by the Department of Human Services (DHS) against ICF-MRs relate to late payment of application fees and average $500 per violation. Therefore, revenue generation would not be impacted. The bill (Section 252.065 (f) of the Health and Safety Code) would prohibit DHS from assessing an administrative penalty for "minor" violations. If minor violations are defined to include late payment of application fees, the bill would reduce revenue for the state by approximately $30,000 per year. The bill (Section 252.065 (e) of the Health and Safety Code) would require DHS to wait at least 45 days from the first day of a violation before assessing a penalty if a corrective action plan has been implemented. If corrective action plans are deemed to cover penalties assessed for late payment of application fees, the bill would reduce revenue for the state by up to $30,000 per year. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, TP, PP