LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 4, 2001
  
  
          TO:  Honorable Mike Moncrief, Chair, Senate Committee on
               Health & Human Services
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1238  by Moncrief (Relating to creation of a child-care
               registry for certain child-care providers.), Committee
               Report 1st House, Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1238, Committee Report 1st House, Substituted:  positive impact     *
*  of $28,325 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                              $20,249  *
          *       2003                                8,076  *
          *       2004                                8,076  *
          *       2005                                8,076  *
          *       2006                                8,076  *
          ****************************************************
  
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    $1,469,380                $(7,436)   $(29,182)        11.0  *
*                    $(1,441,695)                                      *
*  2003     1,495,670 (1,479,796)     (7,798)    (30,602)        11.0  *
*  2004     1,495,670 (1,479,796)     (7,798)    (30,602)        11.0  *
*  2005     1,495,670 (1,479,796)     (7,798)    (30,602)        11.0  *
*  2006     1,495,670 (1,479,796)     (7,798)    (30,602)        11.0  *
***********************************************************************
  
Fiscal Analysis
  
The bill would require the Department of Protective and Regulatory
Services (PRS) to establish and maintain a registry of child-care
providers that includes baby-sitters, nannies and au pairs who are at
least 18 years old and provide child care or supervision to a minor.  It
would require PRS to complete a background and criminal history check on
each applicant using information gathered from a standard application
form, 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 two months after the date on which the
application was 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.

The bill would require PRS to provide a toll-free telephone number for
the public to use in obtaining registry information.  It would also
require PRS to develop a plan for publicizing the registry and
distributing applications and to maintain a written plan for providing
registry information to persons who do not speak English.
  
  
Methodology
  
PRS estimates 26,716 individuals would apply for registration in FY 2002,
and an average of 27,194 individuals 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 and retained 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.

PRS estimates eight additional employees 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,
operating the new toll-free telephone line 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 $325,661 in General Revenue funds for 2002, and
$341,513 in General Revenue funds for each subsequent year.

DPS estimates three additional employees would be required to handle the
increased volume of fingerprint cards.  It is assumed these
staff-related costs would be covered by interagency contract receipts
from PRS.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, HD, NM