LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
 
February 24, 2015

TO:
Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
SB553 by Schwertner (Relating to the informal dispute resolution process for certain disputes between the Department of Aging and Disability Services and certain long-term care facilities.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for SB553, As Introduced: an impact of $0 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 $0
2017 $0
2018 $0
2019 $0
2020 $0




Fiscal Year Probable Savings from
General Revenue Fund
1 		Probable (Cost) from
General Revenue Fund
1 		Probable Savings from
Federal Funds
555 		Probable (Cost) from
Federal Funds
555
2016 $181,419 ($181,419) $544,257 ($544,257)
2017 $181,419 ($181,419) $544,257 ($544,257)
2018 $181,419 ($181,419) $544,257 ($544,257)
2019 $181,419 ($181,419) $544,257 ($544,257)
2020 $181,419 ($181,419) $544,257 ($544,257)

Fiscal Year Change in Number of State Employees from FY 2015
2016 (10.0)
2017 (10.0)
2018 (10.0)
2019 (10.0)
2020 (10.0)

Fiscal Analysis

The bill would amend the Government Code as it relates to the informal dispute resolution process for certain disputes between the Department of Aging and Disability Services (DADS) and certain long-term care facilities.  Under the provisions of the bill, the Health and Human Services Commission (HHSC) would be required to contract with a private nonprofit organization to adjudicate disputes between facilities licensed under Chapter 242, Health and Safety Code, and DADS. The bill would direct state agencies to request any federal waiver or authorization necessary to implement the provisions of the bill and authorizes the agencies to delay implementation of any provision until such waiver or authorization is granted.

The bill would take effect immediately if a two-thirds majority vote in both houses of the Legislature is received.  Otherwise, the bill would take effect on September 1, 2015.

Methodology

Based on HHSC's analysis, the net cost to implement the provisions of the bill is $0. 

The agency estimates it would save $554,009 in All Funds in salaries, travel, and salary contribution costs annually and a reduction of 11 FTEs.  There would also be a savings of $171,667 in benefit costs. The total All Funds savings is estimated to be $725,676 annually.

The new contract is assumed to cost $650,503 in All Funds annually and the agency would require 1 FTE to monitor the vendor contract and provide reporting data into federal databases. The FTE is estimated to cost $75,173 in All Funds annually, including $18,181 for fringe benefits. The total All Funds cost is estimated to be $725,676 annually.


Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
529 Health and Human Services Commission, 539 Aging and Disability Services, Department of
LBB Staff:
UP, NB, WP, CH, SJ, KVe