LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 18, 2001
  
  
          TO:  Honorable Elliott Naishtat, Chair, House Committee on
               Human Services
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1242  by Moncrief (Relating to criminal history checks
               of employees and applicants for employment in certain
               long-term care facilities.), As Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1242, As Engrossed:  positive impact of $767,200 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                             $377,680  *
          *       2003                              389,520  *
          *       2004                              389,520  *
          *       2005                              389,520  *
          *       2006                              389,520  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***********************************************************************
*Fiscal    Probable    Probable    Probable    Probable   Change in    *
* Year     Savings/    Savings/    Savings/    Savings/   Number of    *
*        (Cost) from (Cost) from (Cost) from (Cost) from    State      *
*          General     General     Federal     Federal    Employees    *
*          Revenue     Revenue     Funds -     Funds -   from FY 2001  *
*            Fund        Fund      Federal     Federal                 *
*            0001        0001        0555        0555                  *
*  2002      $444,955   $(67,275)    $112,683   $(32,812)       (3.0)  *
*  2003       444,955    (55,435)     112,683    (27,652)       (3.0)  *
*  2004       444,955    (55,435)     112,683    (27,652)       (3.0)  *
*  2005       444,955    (55,435)     112,683    (27,652)       (3.0)  *
*  2006       444,955    (55,435)     112,683    (27,652)       (3.0)  *
***********************************************************************
  
Fiscal Analysis
  
The bill would amend Chapter 242 of the Health and Safety Code and
require long-term care facilities and home health care agencies to
request criminal history checks directly from the Texas Department of
Public Safety (DPS) and require that those facilities and agencies
inquire with the Department of Human Services (DHS) Employee Misconduct
Registry (EMR) and Nurse Aide Registry (NAR) prior to hiring staff.
  
  
Methodology
  
Pursuant to provisions of the bill the DHS assumed the processing of
criminal history background checks by DHS would be eliminated and
therefore provide a savings to the department by eliminating the costs
DPS charges per background check.  DHS estimated it would have processed
147,943 requests for long-term care facilities and 147,371 requests for
home health agencies in FY 2002.  By eliminating DHS from the process DHS
estimated a cost savings of $296,972 on processing background checks,
$147,983 by elimination of the postage costs both General Revenue,
$112,683 in federal funds and a reduction of four positions. The savings
would be realized in FY 2002 through FY 2006.

The DHS estimate assumed phone calls to the NAR and EMR would double
based on the proposed language that requires all employees of facilities
be checked. The estimate included one new position to handle the manual
entry of information into the Registries, provide notification, and
handle direct caller inquiries. In addition, the estimate included a
$17,000 cost to upgrade the phone system (VIPS automated voice) in FY
2002, an additional $2,000 per year for maintenance and a $4,000 per
month for FY 2002 through FY 2006 cost incurred for accommodating the
increased volume of calls to the 1-800 line.

The Texas Department of Mental Health and Mental Retardation (MHMR)
indicated if the bar on employment was absolute and retroactive to
include persons who had committed minor offenses in the past, corrected
or not, there could be a substantial fiscal impact upon MHMR due to the
requirement that such persons be terminated and new persons attracted,
hired and trained.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   405   Texas Department of Public Safety, 655   TX
                   Dept. of Mental Health & Mental Retardation, 324
                   Texas Department of Human Services
LBB Staff:         JK, SD, HD, ML