LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 26, 2001
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2717 by Maxey (Relating to permanency planning
procedures for children in state institutions.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2717, As Introduced: negative impact of $(1,994,200) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(1,001,060) *
* 2003 (993,140) *
* 2004 (993,140) *
* 2005 (993,140) *
* 2006 (993,140) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Change in *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Number of State *
* from General from GR Match from Federal Employees from *
* Revenue Fund for Medicaid Funds - Federal FY 2001 *
* 0001 0758 0555 *
* 2002 $(936,544) $(64,516) $(92,736) 3.0 *
* 2003 (936,119) (57,021) (84,816) 3.0 *
* 2004 (936,119) (57,021) (84,816) 3.0 *
* 2005 (936,119) (57,021) (84,816) 3.0 *
* 2006 (936,119) (57,021) (84,816) 3.0 *
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Fiscal Analysis
The bill would amend Chapter 531, Government Code, concerned with
permanency planning, by defining a child to be a person younger than 22
years of age. The bill would require uniform procedures for permanency
planning and provide for a delegation of duties with regards to
permanency planning by the Department of Human Resources (DHS), the
Department of Mental Health and Mental Retardation (MHMR) and the
Department of Protective and Regulatory Services (PRS), to the local
mental retardation authority (LMRA) or private entity.
Agencies that contract with private entities shall ensure that the entity
is provided training and available resources to assist a child residing
in an institution to make a successful transition to a community-based
residence.
Institutions receiving a placement shall notify: (1) DHS upon placement
of a child in a nursing home and the local mental retardation authority
where the child is located if the child is placed in an ICF/MR, (2) PRS
if a child is placed in an institution for the mentally retarded licensed
by that agency, (3) the community resource coordination group in the
county of residence of a parent or guardian of the child, (4) the school
district if the child is at least three years of age, (5) or the local
early intervention program for the area in which the institution is
located if the child is less than three years of age. DHS must notify
the LMRA of a child's placement in a nursing home if the child is known
or suspected to suffer from mental retardation or another disability for
which the child may receive services from MHMR.
Entities receiving notice from an institution may contact the person
making the placement to ensure that family members of the child are aware
of the entity's services and supports, available placement options and
opportunities for permanency planning. DHS must designate a person,
including a member of a community-based organization to serve as a
volunteer advocate for the child to assist in developing a permanency
plan as can MHMR. State agencies receiving notice of a placement shall
ensure the child is placed on a waiting list for waiver program services.
Parents or guardians shall determine whether to accept waiver services.
The fiscal impact of the bill would encompass the costs of staff support
to ensure that uniform standards are in place, monitor compliance, review
extended placements, and provide periodic reports. The Health and Human
Services Commission (HHSC), DHS, and MHMR all estimate the need for a
staff person to provide these services. DHS has provided costs of the
permanency plans for each child they oversee, while MHMR, PRS and HHSC
assume the costs can be absorbed within current resources.
The HHSC and appropriate agencies shall monitor permanency planning
efforts quarterly to ensure benefit to the child. Agency commissioners
or designees shall approve the placement of a child in an institution.
Initial placements are temporary, not to exceed three months, unless
approved by the chief executive or designee after review. Extensions may
continue with approval and review every six-months thereafter.
Inspections, surveys or investigations of an institution, including
nursing homes, must include an examination of compliance with permanency
planning requirements.
The bill would require the HHSC to submit a semiannual report to the
Governor and appropriate Legislative committees of each house.
The act would take effect September 1, 2001.
Methodology
It is assumed one Program Specialist IV at HHSC, one Program Specialist
IV at DHS, and one Program Administrator IV at MHMR would be needed. In
addition, costs would include training, start-up costs and costs of the
plans provided by DHS. The staff costs are estimated at 50/50 FMAP.
DHS has estimated a cost of $4,037 per child per year. DHS estimated
225 children per year will require permanency planning, for a total per
year of $908,325.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 530 Department of Protective and Regulatory
Services, 324 Texas Department of Human Services,
655 TX Dept. of Mental Health & Mental
Retardation, 529 Health and Human Services
Commission
LBB Staff: JK, HD, KF, MB