Honorable Richard Peña Raymond, Chair, House Committee on Human Services
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB4001 by Raymond (Relating to the provision of habilitation and certain health care services by a home and community support services agency; authorizing a fee, providing penalties, and requiring an occupational license.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4001, As Introduced: a negative impact of ($3,110,205) through the biennium ending August 31, 2017.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016
($468,932)
2017
($2,641,273)
2018
($2,583,461)
2019
($2,583,461)
2020
($2,583,461)
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Savings/(Cost) from Home Health Services Acct 5018
Probable Revenue Gain/(Loss) from Home Health Services Acct 5018
Change in Number of State Employees from FY 2015
2016
($468,932)
($2,625,000)
$2,625,000
34.0
2017
($2,641,273)
($1,312,500)
$1,312,500
44.0
2018
($2,583,461)
($1,345,313)
$1,345,313
44.0
2019
($2,583,461)
($1,345,313)
$1,345,313
44.0
2020
($2,583,461)
($1,345,313)
$1,345,313
44.0
Fiscal Analysis
The bill would amend Chapter 142 of the Health and Safety Code to add agencies that provide habilitation services to the home and community support services agencies that the Department of Aging and Disability Services (DADS) is required to license and regulate.
Methodology
DADS estimates that it would need to license 1,500 agencies and that the number of agencies licensed would remain constant. The bill would require that all agencies receive a license by January 1, 2016. It is assumed that DADS would, with authority provided in current statute, divide the issuance of the initial licenses between one-year and two-year licenses. Agencies would renew their license every two years, as required. DADS estimates that it would need 33.0 full-time equivalent positions (FTEs) for fiscal year 2016 and 44.0 FTEs for every year thereafter for activities related to licensing, investigating and enforcement. Salary costs would be $1.9 million for fiscal year 2016 and $2.5 million for every year thereafter. Benefit costs would be $618,898 for fiscal year 2016 and $816,594 for every year thereafter. Other operating expenses would be $563,676 for fiscal year 2016, $615,272 for fiscal year 2017, and $590,272 for every year thereafter. Total costs would be $3.1 million for fiscal year 2016, $4.0 million for fiscal year 2017, and $3.9 million for every year thereafter.
These costs would be partially offset by revenue from fees for an initial license and a renewal license, as well as late penalties. Total fee revenue would be $2.6 million for fiscal year 2016 and $1.3 million for each year thereafter. Implementing the provisions of the bill would result in a net cost to the agency of $468,932 in General Revenue Funds and All Funds for fiscal year 2016 and $2.6 million for each year thereafter.
DADS indicated that federal funds may be available to offset costs associated with licensing, however the amount cannot be estimated at this time.
HHSC indicates that costs associated with rulemaking activities could be absorbed within the agency's existing resources.
Technology
DADS indicates there would be a cost for system modifications associated with implementing the provisions of the bill. It is assumed these costs could be reasonably absorbed within available resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
529 Health and Human Services Commission, 539 Aging and Disability Services, Department of