LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 26, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB772 by Harris (Relating to requiring the Texas
Department of Human Services to establish criteria for
designating nursing facility operators with excellent
operating records as eligible to acquire a license to
operate another existing nursing facility on an
expedited basis.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB772, As Introduced: negative impact of $(392,564) 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 $(290,553) *
* 2003 (102,011) *
* 2004 (102,011) *
* 2005 (102,011) *
* 2006 0 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Change in Number of *
* Year Savings/(Cost) from Savings/(Cost) from State Employees from *
* General Revenue Fund Federal Funds - FY 2001 *
* 0001 Federal *
* 0555 *
* 2002 $(290,553) $(174,406) 7.0 *
* 2003 (102,011) (61,233) 2.3 *
* 2004 (102,011) (61,233) 2.3 *
* 2005 (102,011) (61,233) 2.3 *
* 2006 0 0 0.0 *
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Fiscal Analysis
The bill would amend Subchapter B, Chapter 242, Health and Safety Code,
by adding Section 242.0335. The Department of Human Services (DHS) would
be required to maintain, and keep current, a list of license holders
that operate an institution in the state and have excellent operating
records according to the information available to the department. The
department by rule would be required to establish specific criteria for
designating a license holder as eligible for the list. DHS would be
required to establish a procedure under which a listed license holder
may be granted expedited approval in obtaining a change of ownership
license to operate another existing institution in the state.
Methodology
Pursuant to the provisions of the bill the DHS estimate indicated that
review and analysis of the listed license holder applications and any
affidavits for an expedited change of ownership license would require
six additional program specialists/analysts and one additional support
staff in FY 2002. The work effort would include the existing review of
the application including research of controlling party information,
verification of affidavit information, and review of the facility
operational history to determine if the license holder is eligible under
provisions of the bill. DHS indicated that using manual efforts to
review the five year history of the existing 1,152 nursing facilities
and their owners would only be necessary until five years of data have
been compiled in the new CARES (Compliance, Assistance, Regulation, and
Enforcement Services) system. The department estimate included 2.3
professional and clerical staff through FY 2005 to maintain the list
until an automation solution is available. The estimate also included
$44,000 in automation costs in FY 2002.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 324 Texas Department of Human Services
LBB Staff: JK, HD, ML