Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
SB706 by Watson (Relating to an investigation unit within the Health and Human Services Commission for certain unlicensed child-care facilities.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB706, As Introduced: a negative impact of ($4,548,389) through the biennium ending August 31, 2021.
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
2020
($2,428,169)
2021
($2,120,220)
2022
($2,120,220)
2023
($2,120,220)
2024
($2,120,220)
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Savings/(Cost) from Federal Funds 555
Change in Number of State Employees from FY 2019
2020
($2,428,169)
($21,213)
35.8
2021
($2,120,220)
($19,602)
35.8
2022
($2,120,220)
($19,602)
35.8
2023
($2,120,220)
($19,602)
35.8
2024
($2,120,220)
($19,602)
35.8
Fiscal Analysis
The bill would require the Health and Human Services Commission (HHSC) to maintain a unit of at least 35.0 full-time equivalent positions within the child-care licensing division to identify unlicensed child-care facilities and to initiate appropriate enforcement actions against those facilities.
The bill would require HHSC to establish the investigatory unit as soon as possible after the effective date of the bill.
The bill would take effect on September 1, 2019.
Methodology
HHSC estimates that maintaining a new investigation unit of 35 positions within the child-care licensing division would cost $2,449,383 in fiscal year 2020 and $2,139,823 in future fiscal years. These costs would include 35.8 FTEs in each year for 35.0 inspectors and 0.8 program specialists to support the unit.
The Department of Family and Protective Services (DFPS) assumes there may be a potential for increased abuse and neglect investigations by the agency, and therefore an increase in intakes for DFPS' statewide intake division. DFPS estimates that these activities would have no significant fiscal impact.
Technology
HHSC estimates technology costs of $267,624 in fiscal year 2020, and $186,647 in future fiscal years for FTE-related seat management services and basic data storage costs.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
529 Health and Human Services Commission, 530 Family and Protective Services, Department of