LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 5, 2001
  
  
          TO:  Honorable Elliott Naishtat, Chair, House Committee on
               Human Services
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1418  by Jones, Jesse (Relating to certain employees of
               nursing homes and related institutions.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1418, As Introduced:  positive impact of $0 through the biennium    *
*  ending August 31, 2003.                                               *
*                                                                        *
*  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                *
          *       2002                                   $0  *
          *       2003                                    0  *
          *       2004                            (164,711)  *
          *       2005                            (164,711)  *
          *       2006                            (164,711)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal  Probable Savings/(Cost) from GR   Probable Savings/(Cost) from   *
* Year          Match for Medicaid           Federal Funds - Federal      *
*                      0758                            0555               *
*  2002                                $0                              $0 *
*  2003                                 0                               0 *
*  2004                         (164,711)                       (247,789) *
*  2005                         (164,711)                       (247,789) *
*  2006                         (164,711)                       (247,789) *
***************************************************************************
  
Fiscal Analysis
  
The bill would allow institutions licensed under Chapter 242, Health and
Safety Code, to develop a drug testing policy and to test employees with
direct contact with residents for drug use.
  
  
Methodology
  
If institutions licensed under Chapter 242, Health and Safety Code,
develop a drug testing policy for its employees, there is a potential
under the reimbursement methodology that the Department of Human Services
(DHS) would be required to reimburse the institutions for the drug
tests, although the impact would most likely not be identified in the
cost report reimbursement rate development process during the 2002-03
biennium.

The estimated cost of a drug test is $25 per test.  DHS states that there
are approximately 33,000 nurse aides in nursing facilities.  If fifty
percent of the nurse aides worked in nursing facilities that elected to
require one drug test per year, the total annual All Funds cost would be
$412,500.  The cost to General Revenue would be approximately $164,711
per year.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   324   Texas Department of Human Services, 501   Texas
                   Department of Health
LBB Staff:         JK, HD, KF, ML