LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 3, 1999 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: SB1232 by Nelson (Relating to the regulation of birthing centers; providing an administrative penalty.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1232, As Engrossed: positive impact of $0 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $0 * * 2001 0 * * 2002 0 * * 2003 0 * * 2004 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain from New GR * * Dedicated Account - Birthing * * Center Penalty * * 2000 $2,625 * * 2001 20,625 * * 2002 22,687 * * 2003 24,956 * * 2004 27,452 * ***************************************************** Fiscal Analysis The bill would allow the Department of Health (TDH) to appoint a monitor for a birthing center, at the center's expense, to ensure compliance with the provisions of the bill; to deny, suspend, or revoke a license because of a history of noncompliance; to issue an emergency order to suspend a license; and to assess an administrative penalty. The provisions of the bill would provide a hearing process and require that civil and administrative penalties collected be deposited in the state treasury to the credit of a new General Revenue Dedicated Account - Birthing Center Penalty. The bill would allow the department to assess expenses and costs against a person found in violation for an amount based on considerations described in the bill. If the person does not pay expenses and costs assessed within the time specified in the bill, the department may refer the matter to the attorney general for collection. Methodology According to the Department of Health, approximately one-third of the cases recommended for enforcement go through the hearing process, with the remaining cases resolved through other means. TDH estimates that $25,000 would have been assessed in fiscal year 1999 if administrative penalties had been available. Using fiscal year 1999 as the baseline, it is assumed that a 10 percent annual increase in the amount of administrative penalties imposed would occur in fiscal years 2001-2004. It is assumed that there would be a 75 percent collection rate in fiscal years 2001-2004, with little collected in fiscal year 2000 due to time needed for the negotiated rule making process. The department expects the bill would not result in additional costs to TDH because it currently performs complaint investigations and enforcement actions. According to the Office of the Comptroller of Public Accounts, the bill creates a new dedicated revenue source in the State Treasury which could further restrict the Legislature's ability to appropriate revenues for general operating purposes. Local Government Impact According to the Office of Court Administration, the bill may increase the workload of the Travis County district courts because appeals from administrative orders of the Department of Health would be filed by a petition in Travis County District Court. Source Agencies: 304 Comptroller of Public Accounts, 501 Department of Health, 212 Office of Court Administration, 302 Office Of The Attorney General LBB Staff: JK, TP, RM