LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 7, 2011 TO: Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB798 by Nelson (Relating to the amounts of administrative penalties assessed or imposed against certain health facilities.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB798, As Introduced: a positive impact of $288,000 through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 7, 2011 TO: Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB798 by Nelson (Relating to the amounts of administrative penalties assessed or imposed against certain health facilities.), As Introduced TO: Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services FROM: John S O'Brien, Director, Legislative Budget Board IN RE: SB798 by Nelson (Relating to the amounts of administrative penalties assessed or imposed against certain health facilities.), As Introduced Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services John S O'Brien, Director, Legislative Budget Board John S O'Brien, Director, Legislative Budget Board SB798 by Nelson (Relating to the amounts of administrative penalties assessed or imposed against certain health facilities.), As Introduced SB798 by Nelson (Relating to the amounts of administrative penalties assessed or imposed against certain health facilities.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB798, As Introduced: a positive impact of $288,000 through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Estimated Two-year Net Impact to General Revenue Related Funds for SB798, As Introduced: a positive impact of $288,000 through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 $144,000 2013 $144,000 2014 $144,000 2015 $144,000 2016 $144,000 2012 $144,000 2013 $144,000 2014 $144,000 2015 $144,000 2016 $144,000 All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2012 $144,000 2013 $144,000 2014 $144,000 2015 $144,000 2016 $144,000 Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 2012 $144,000 2013 $144,000 2014 $144,000 2015 $144,000 2016 $144,000 2012 $144,000 2013 $144,000 2014 $144,000 2015 $144,000 2016 $144,000 Fiscal Analysis The bill would increase the maximum administrative penalty from $1,000 to $25,000 per violation, per day, for certain health care facilities licensed by the Department of State Health Services (DSHS) under Health and Safety Code Chapters 241 (hospitals), 243 (ambulatory surgical centers), and 251 (end-stage renal disease facilities). The bill would take effect September 1, 2011. The bill would increase the maximum administrative penalty from $1,000 to $25,000 per violation, per day, for certain health care facilities licensed by the Department of State Health Services (DSHS) under Health and Safety Code Chapters 241 (hospitals), 243 (ambulatory surgical centers), and 251 (end-stage renal disease facilities). The bill would take effect September 1, 2011. Methodology DSHS estimates that there would be 18 enforcement cases per fiscal year, and that the provisions of the bill would result in an additional $8,000 in penalties per case. The increased revenue to the State would total $144,000 per fiscal year. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 537 State Health Services, Department of 537 State Health Services, Department of LBB Staff: JOB, CL, MB, VJC, NB JOB, CL, MB, VJC, NB