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
  
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*  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.                                                             *
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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