LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 29, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1083 by Harris (Relating to the regulation of certain
nursing institutions.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1083, As Introduced: negative impact of $(2,358,346) 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 $(1,229,173) *
* 2003 (1,129,173) *
* 2004 (1,129,173) *
* 2005 (1,129,173) *
* 2006 (1,129,173) *
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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 $(951,875) $(277,298) 15.0 *
* 2003 (851,875) (277,298) 15.0 *
* 2004 (851,875) (277,298) 15.0 *
* 2005 (851,875) (277,298) 15.0 *
* 2006 (851,875) (277,298) 15.0 *
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Fiscal Analysis
The bill would amend Chapter 242, Health and Safety Code, and require the
Department of Human Services (DHS) to identify in its rules each
violation of a rule for which a licensure or a Medicaid penalty may be
assessed and identify the specific reason, under 242.0665 (b), a
facility was denied a "right to correct." DHS would be required to
leave an "official notice" of violations with the facility at the time
of the exit conference. This notice would have to contain a list of
violations and recommendations for the facility's plan to correct the
violations. DHS would not be able to impose a penalty or remedy unless
the violation was included in the "official list." DHS could impose only
one administrative penalty per violation. The department could not
assess more than one monetary penalty under this chapter for a violation
arising out of the same act or failure to act, except as provided by
Section 242.0665 (c). The department could not assess a monetary penalty
under this chapter and a monetary penalty under Chapter 32, Human
Resources Code, for the same act or failure to act. The Act would take
effect September 1, 2001.
Methodology
The estimate assumes a workload increase of 2.5 percent pursuant to
provisions of the bill related to inspections, violation reporting, and
exit interviews. Additional staffing, totaling 15.0 full-time equivalent
positions per year, would be related to the licensing, inspecting,
surveying, and investigating of institutions. The estimate also includes
increases for travel and other operating costs associated with the
staffing adjustment. Annual costs associated with the additional
employees totaled $558,909.
Based upon the provisions of the bill which would limit administrative
penalties, DHS estimated the decrease in administrative penalties by
examining the FY 2000 data on penalties and removing the per day costs
beyond one day. Based on the FY 2000 data, the DHS estimated a decrease
of $277,298 per year in General Revenue.
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