LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 28, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB527 by Moncrief (Relating to imposition of
administrative penalties against assisted living
facilities.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB527, As Introduced: negative impact of $(1,556,022) 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 $(268,622) *
* 2003 (1,287,400) *
* 2004 (1,029,608) *
* 2005 (886,696) *
* 2006 (886,696) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2001 *
* 0001 0001 *
* 2002 $(268,622) $0 4.0 *
* 2003 (1,430,312) 142,912 21.3 *
* 2004 (1,315,476) 285,868 21.3 *
* 2005 (1,315,476) 428,780 21.3 *
* 2006 (1,315,476) 428,780 21.3 *
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Fiscal Analysis
The bill would amend Section 247, Health and Safety Code, and would
convey to the Department of Human Services (DHS) the authority to impose
administrative penalties against assisted living facilities. Section 3
of the bill adds Sections 247.0451 - 247.0457 pertaining to the
administrative penalties. Section 247.0454 provides that a person
charged with a violation under Section 247.0451 may have a hearing
before an Administrative Law Judge (ALJ). The State Office of
Administrative Hearings (SOAH) conducts all contested case hearings for
DHS.
Methodology
Section 247.0451 would allow DHS to assess an administrative penalty
against a person who violates Chapter 247, or a rule adopted or term of a
license issued under this chapter. An administrative penalty may not
exceed $10,000 a day for each violation and a resident right violation
may not exceed $1,000 a day for each violation. DHS estimated the number
of administrative penalties for FY 2003 to be 1,040. The department
estimated that 17.3 staff would be needed pursuant to the provisions of
the bill. DHS assumed a one third ramp-up each year in collections due to
hearings and other normal delays and estimated collections would range
from $142,912 in FY 2003, to $428,780 in FY 2006. DHS estimated
approximately $55,000 per year would be the adjustment to the SOAH costs
via interagency contract pursuant to the bill.
SOAH estimated they would hear approximately three to four cases per
month out of an average of 18 per month that DHS would refer. SOAH based
this estimate on experience with a similar program on nursing home
enforcement cases.
SOAH stated the nursing home hearings had been lasting from one to eight
days, with an average length of about three days. SOAH indicated three
new ALJs would be needed to handle the new hearings and one
Administrative Technician to support the ALJs handling these cases.
A portion of the increased costs by SOAH associated with the referred
cases from DHS would be accounted for by an adjustment to the
interagency contract between DHS and the SOAH for services. The
remaining costs at SOAH and DHS, based on the SOAH and DHS estimates,
would be General Revenue.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 360 State Office of Administrative Hearings, 324
Texas Department of Human Services
LBB Staff: JK, HD, ML