LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 7, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB691 by Moncrief (Relating to the creation of an
assisted living facility trust fund.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB691, As Introduced: an 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* New Assisted Living Facilities *
* Trust Fund *
* 2002 $500,000 *
* 2003 84,603 *
* 2004 84,773 *
* 2005 82,738 *
* 2006 82,738 *
*****************************************************
Fiscal Analysis
The bill would amend Subchapter D, Chapter 242, Health and Safety Code,
by adding Sections 242.0965 and 242.0975. Section 242.0965 would
establish the Assisted Living Facility Trust Fund with the Comptroller
of Public Accounts and make funds available to the Department of Human
Services (DHS) as directed by the Courts, for expenditures without
legislative appropriation, to make emergency assistance funds available
to an assisted living facility. Any unencumbered amount in the Assisted
Living Facility Trust Fund in excess of $500,000 at the end of each
fiscal year would be transferred to the credit of the General Revenue
Fund and may be appropriated only to the department for its use in
administering and enforcing Chapter 247, Assisted Living Facilities.
Section 242.0975 would require the department to adopt an annual fee to
be charged and collected if the amount of the Assisted Living Facility
Trust Fund is less than $500,000. The fee would be in addition to the
license fee provided by Section 247.024. The fee would be set on the
basis of the number of beds in assisted living facilities that are
required to pay the fee, in an amount necessary to provide not more than
$500,000 in the fund, and would be deposited to the credit of the
assisted living facility trust fund created by the subchapter.
Methodology
Based on previous years data related to per bed costs placed into the
Nursing Facility Trust Fund and the number of inspections per year as a
measure of growth, DHS assumed 53,780 licensed beds in FY 2002 and 56,989
beds in FY 2003. By dividing the $500,000 fund amount required by the
number of beds assumed in FY 2002, DHS estimated that a $9.30 per
licensed bed fee would be required for the new fund.
For FYs 2003-2006 DHS assumed that expenditures from the fund would occur
in the same proportion as expenditures from the Nursing Home Trust Fund
in FY 2000. Based on that assumption, DHS estimated a per bed fee of
$1.48 in FY 2003, $1.44 in FY 2004, $1.36 in FY 2005, and $1.31 in FY
2006.
The numbers above do not include any assumptions related to additional
deposits to General Revenue.
DHS stated that Nursing Facilities would be affected by the change.
Their per bed fees would increase in proportion to the decrease in total
beds associated with the new trust fund. DHS stated there are no costs
or staffing implications to this bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 324 Texas
Department of Human Services
LBB Staff: JK, HD, KF, ML