LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 28, 2009 TO: Honorable Patrick M. Rose, Chair, House Committee on Human Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2971 by Coleman (Relating to licensing of assisted living facilities.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would amend the Health and Safety Code as it relates to licensing of assisted living facilities. Section 1 of the bill would make the effective date of a provisional license, under Chapter 247, the date on which the license was requested by the applicant. The Department of Aging and Disability Services (DADS) would also be required to conduct a life safety code inspection of the facility as soon as reasonably possible after the department issues a provisional license. If the facility passes the inspections and the applicant meets all the requirements for a license, DADS would be required to issue a license under Chapter 247 to the provisional license holder. Also, upon submission of a written request by the applicant, DADS would be required to automatically issue a provisional license to newly constructed facilities, if certain requirements are met. Under current law, DADS is authorized, but not required, to automatically issue a provisional license to newly constructed facilities if these requirements are met. Section 2 of the bill requires the executive commissioner of the Health and Human Services Commission (commissioner) to adopt rules, not later than January 1, 2010, to implement an expedited inspection process that allows an applicant for an initial assisted living facility license or renewal license to obtain a life safety code and physical plant inspection within 15 days of the request; DADS is authorized to charge a fee to recover the cost of the expedited inspection. Section 3 of the bill allows DADS to collect an additional fee, in addition to the fee for an expedited life safe code inspection, if DADS conducts at least three life safety code inspections at the applicants facility. Section 4 of the bill would expand the definition of accreditation commission to include other organizations approved by the commissioner. Section 5 of the bill repeals Sections 247.021 (e) and (f), Health and Safety Code, which are prohibition on: 1) issuing a license to a facility at the end of the six-month provisional license, if the facility does not meet life safety code and physical plant standards; and 2) issuing a provisional license after December 31, 1999. It is assumed that the provisions of the bill could be implemented within existing resources. Section 2 of the bill allows DADS to charge a fee for expedited surveys. It is assumed that any increase in expenditures for implementation of this provision would be offset by a gain in revenue that the agency would accomplish through fee collections; however, the increased revenue would need to be specifically appropriated to DADS in the General Appropriations Act. The bill would take effect September 1, 2009. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:539 Aging and Disability Services, Department of LBB Staff: JOB, CL, PP, SJ LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 28, 2009 TO: Honorable Patrick M. Rose, Chair, House Committee on Human Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2971 by Coleman (Relating to licensing of assisted living facilities.), Committee Report 1st House, Substituted TO: Honorable Patrick M. Rose, Chair, House Committee on Human Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB2971 by Coleman (Relating to licensing of assisted living facilities.), Committee Report 1st House, Substituted Honorable Patrick M. Rose, Chair, House Committee on Human Services Honorable Patrick M. Rose, Chair, House Committee on Human Services John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB2971 by Coleman (Relating to licensing of assisted living facilities.), Committee Report 1st House, Substituted HB2971 by Coleman (Relating to licensing of assisted living facilities.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend the Health and Safety Code as it relates to licensing of assisted living facilities. Section 1 of the bill would make the effective date of a provisional license, under Chapter 247, the date on which the license was requested by the applicant. The Department of Aging and Disability Services (DADS) would also be required to conduct a life safety code inspection of the facility as soon as reasonably possible after the department issues a provisional license. If the facility passes the inspections and the applicant meets all the requirements for a license, DADS would be required to issue a license under Chapter 247 to the provisional license holder. Also, upon submission of a written request by the applicant, DADS would be required to automatically issue a provisional license to newly constructed facilities, if certain requirements are met. Under current law, DADS is authorized, but not required, to automatically issue a provisional license to newly constructed facilities if these requirements are met. Section 2 of the bill requires the executive commissioner of the Health and Human Services Commission (commissioner) to adopt rules, not later than January 1, 2010, to implement an expedited inspection process that allows an applicant for an initial assisted living facility license or renewal license to obtain a life safety code and physical plant inspection within 15 days of the request; DADS is authorized to charge a fee to recover the cost of the expedited inspection. Section 3 of the bill allows DADS to collect an additional fee, in addition to the fee for an expedited life safe code inspection, if DADS conducts at least three life safety code inspections at the applicants facility. Section 4 of the bill would expand the definition of accreditation commission to include other organizations approved by the commissioner. Section 5 of the bill repeals Sections 247.021 (e) and (f), Health and Safety Code, which are prohibition on: 1) issuing a license to a facility at the end of the six-month provisional license, if the facility does not meet life safety code and physical plant standards; and 2) issuing a provisional license after December 31, 1999. It is assumed that the provisions of the bill could be implemented within existing resources. Section 2 of the bill allows DADS to charge a fee for expedited surveys. It is assumed that any increase in expenditures for implementation of this provision would be offset by a gain in revenue that the agency would accomplish through fee collections; however, the increased revenue would need to be specifically appropriated to DADS in the General Appropriations Act. The bill would take effect September 1, 2009. The bill would amend the Health and Safety Code as it relates to licensing of assisted living facilities. Section 1 of the bill would make the effective date of a provisional license, under Chapter 247, the date on which the license was requested by the applicant. The Department of Aging and Disability Services (DADS) would also be required to conduct a life safety code inspection of the facility as soon as reasonably possible after the department issues a provisional license. If the facility passes the inspections and the applicant meets all the requirements for a license, DADS would be required to issue a license under Chapter 247 to the provisional license holder. Also, upon submission of a written request by the applicant, DADS would be required to automatically issue a provisional license to newly constructed facilities, if certain requirements are met. Under current law, DADS is authorized, but not required, to automatically issue a provisional license to newly constructed facilities if these requirements are met. Section 2 of the bill requires the executive commissioner of the Health and Human Services Commission (commissioner) to adopt rules, not later than January 1, 2010, to implement an expedited inspection process that allows an applicant for an initial assisted living facility license or renewal license to obtain a life safety code and physical plant inspection within 15 days of the request; DADS is authorized to charge a fee to recover the cost of the expedited inspection. Section 3 of the bill allows DADS to collect an additional fee, in addition to the fee for an expedited life safe code inspection, if DADS conducts at least three life safety code inspections at the applicants facility. Section 4 of the bill would expand the definition of accreditation commission to include other organizations approved by the commissioner. Section 5 of the bill repeals Sections 247.021 (e) and (f), Health and Safety Code, which are prohibition on: 1) issuing a license to a facility at the end of the six-month provisional license, if the facility does not meet life safety code and physical plant standards; and 2) issuing a provisional license after December 31, 1999. It is assumed that the provisions of the bill could be implemented within existing resources. Section 2 of the bill allows DADS to charge a fee for expedited surveys. It is assumed that any increase in expenditures for implementation of this provision would be offset by a gain in revenue that the agency would accomplish through fee collections; however, the increased revenue would need to be specifically appropriated to DADS in the General Appropriations Act. The bill would take effect September 1, 2009. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 539 Aging and Disability Services, Department of 539 Aging and Disability Services, Department of LBB Staff: JOB, CL, PP, SJ JOB, CL, PP, SJ