LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 12, 1999 TO: Honorable Jane Nelson, Chair, Senate Committee on Health Services 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 Introduced ************************************************************************** * 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. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, TP, PP