LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 6, 2001
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1245 by Moncrief (Relating to reporting certain acts
of misconduct by and background checks of certain
employees and applicants for employment of certain
health care agencies and facilities.), Committee Report
2nd House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1245, Committee Report 2nd House, Substituted: positive impact *
* of $426,602 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 $247,758 *
* 2003 178,844 *
* 2004 177,153 *
* 2005 176,018 *
* 2006 175,450 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) *
* from General from General from GR Match from GR Match *
* Revenue Fund Revenue Fund for Medicaid for Medicaid *
* 0001 0001 0758 0758 *
* 2002 $(224,015) $443,297 $(17,278) $45,754 *
* 2003 (273,356) 443,297 (36,989) 45,892 *
* 2004 (274,759) 443,297 (37,288) 45,903 *
* 2005 (275,697) 443,297 (37,485) 45,903 *
* 2006 (276,167) 443,297 (37,583) 45,903 *
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year Federal Funds - Federal Federal Funds - Federal *
* 0555 0555 *
* 2002 $(14,632) $69,206 *
* 2003 (23,560) 69,068 *
* 2004 (23,737) 69,056 *
* 2005 (23,854) 69,056 *
* 2006 (23,913) 69,056 *
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Fiscal Analysis
The bill would amend Chapter 48 of the Human Resources Code to require
the Department of Protective and Regulatory Services (PRS) to implement
procedures for reporting misconduct by certain unlicensed employees of
home and community support services agencies. The procedures would
encompass written notice of findings, informal proceedings, formal
administrative hearings, final orders and provisions for judicial appeal.
The bill would require PRS to forward findings of reportable conduct to
the Department of Human Services (DHS) for recording in the employee
misconduct registry. Home and community support services agencies could
not employ a person listed on the registry.
The bill would amend Chapter 250 of the Health and Safety Code to
authorize long-term care facilities, unlicensed attendant care agencies
that contract with DHS, adult foster care providers that contract with
DHS, local mental health and mental retardation authorities, and home and
community support services agencies to obtain criminal history record
information directly from the Texas Department of Public Safety (DPS).
These entities could not employ a person listed on the DHS employee
misconduct registry or the DHS nurse aide registry.
Section 1 of the bill which amends Chapter 48 of the Human Resources Code
would take effect January 1, 2002. The rest of the bill would take
effect immediately if it receives two-thirds vote in each chamber, or on
September 1, 2001.
Methodology
It is assumed the bill would take effect on September 1, 2001, and PRS
would implement the new reporting requirement under Chapter 48 of the
Human Resources Code on March 1, 2002. Estimates have been updated to
correctly reflect Medicaid match assumptions and information previously
provided by the agencies.
PRS estimates 177 persons would be affected by the new reporting
requirement in FY 2002, 184 in FY 2003, 190 in FY 2004, 194 in FY 2005,
and 196 in FY 2006. Ninety percent would request a formal or informal
administrative review and 20% would go on to file an appeal. It is
assumed the agency would require three FTEs to handle the new workload
(an attorney, a program specialist and an adult protective services
specialist).
DHS estimates an annual savings of $295,314 in background check fees,
$147,983 in postage costs for certified mail and four FTEs because the
bill would allow direct care providers to obtain criminal history
information directly from DPS. DHS also estimates the cost for handling
additional phone calls from employers seeking information from the
employee misconduct registry and the nurse aide registry would be $67,000
in FY 2002 and $50,000 each year thereafter. It is assumed the agency
would require one FTE to handle the new workload (an administrative
technician).
The Texas Department of Mental Health and Mental Retardation indicates
there would be a substantial (but not quantified) fiscal impact if the
Chapter 250 bar on employment is absolute and retroactive to include
persons who committed minor offenses in the past, corrected or not, due
to the requirement that such persons be terminated and new persons
attracted, hired and trained.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 324 Texas Department of Human Services, 530
Department of Protective and Regulatory Services
LBB Staff: JK, HD, NM