LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 30, 2001
  
  
          TO:  Honorable Elliott Naishtat, Chair, House Committee on
               Human Services
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1238  by Moncrief (Relating to the creation of a
               voluntary child-care registry for certain child-care
               providers.), Committee Report 2nd House, Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1238, Committee Report 2nd House, Substituted:  positive impact     *
*  of $1,448 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.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                               $6,389  *
          *       2003                              (4,941)  *
          *       2004                              (4,941)  *
          *       2005                              (4,941)  *
          *       2006                              (4,941)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***********************************************************************
*Fiscal    Probable    Probable    Probable    Probable   Change in    *
* Year     Revenue     Savings/    Savings/    Savings/   Number of    *
*        Gain/(Loss) (Cost) from (Cost) from (Cost) from    State      *
*            from      General     GR Match    Federal    Employees    *
*          General     Revenue       for       Funds -   from FY 2001  *
*          Revenue       Fund      Medicaid    Federal                 *
*            Fund        0001        0758        0555                  *
*            0001                                                      *
*  2002      $293,865  $(286,005)    $(1,471)    $(5,744)         2.0  *
*  2003       299,145   (302,375)     (1,711)     (6,713)         2.0  *
*  2004       299,145   (302,375)     (1,711)     (6,713)         2.0  *
*  2005       299,145   (302,375)     (1,711)     (6,713)         2.0  *
*  2006       299,145   (302,375)     (1,711)     (6,713)         2.0  *
***********************************************************************
  
Fiscal Analysis
  
The bill would require the Department of Protective and Regulatory
Services (PRS) to establish and maintain a voluntary registry of
child-care providers that includes baby-sitters, nannies and au pairs.
It would require PRS to complete a background and criminal history check
on each applicant using information gathered from department records of
reported abuse and neglect, the central registry of reported cases of
child abuse or neglect established under Section 261.002 of the Family
Code, the Department of Public Safety (DPS) under Section 411.114 of the
Government Code and the Federal Bureau of Investigation (FBI) or other
criminal justice agency under Section 411.087 of the Government Code.  It
would also require PRS by rule to require each applicant to pay a fee in
an amount not to exceed the administrative costs the department incurs
in conducting the background and criminal history check.  This fee would
be retained by PRS for the purpose of administering the child-care
registry.

The bill would require PRS to accept or deny the registration of a
child-care provider no later than 60 days after the application is
received except where delayed by the response time of the FBI or in the
case of a pending investigation.  It would require PRS to deny an
application under certain circumstances and authorize the department to
make provisions governing the right of appeal by an applicant from the
denial of the application.  It would require PRS to revoke the
registration of a child-care provider under certain circumstances and to
continually update the registry to reflect criminal convictions and
substantiated child abuse information.  Each registration would remain
valid until revoked or surrendered.
  
  
Methodology
  
PRS estimates 5,343 persons would apply for registration in FY 2002, and
it is estimated that an average of 5,439 persons would apply for
registration each year thereafter.  It is assumed each applicant would
pay a fee of $55 to cover the administrative costs the department incurs
in conducting the background and criminal history check.  The revenue
generated from this fee would be deposited into General Revenue Fund 001
utilized by the department for the purpose of administering the
child-care registry.  It is assumed PRS would obtain state and federal
criminal history records information from DPS via interagency contract.

It is estimated two additional FTEs would be required to implement the
provisions of the bill including but not limited to conducting the
required background and criminal history checks, approving or denying
applications, revoking registrations, providing for the appeals process
and continually updating information in the registry.  The
method-of-finance for the staff-related costs would be General Revenue
funds and federal Medicaid funds.  It is assumed PRS would charge an
administrative fee of $16 to cover these costs which would be in
addition to $39 in fees that would be sent to DPS via interagency
contract.  If TANF federal funds were available, they could be used in
place of $64,436 in General Revenue funds for FY 2002 and $75,916 in
General Revenue funds for each subsequent year.  It is assumed DPS could
handle the increased volume of fingerprint cards with no significant
fiscal impact.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   530   Department of Protective and Regulatory Services
LBB Staff:         JK, HD, KF, NM