LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION March 30, 2023 TO: Honorable James B. Frank, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1517 by Frank (Relating to an independent assessment of the Health and Human Services Commission's rules, minimum standards, and contract requirements that apply to certain residential child-care providers.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB1517, Committee Report 1st House, Substituted : a negative impact of ($1,025,050) through the biennium ending August 31, 2025. 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 toGeneral Revenue Related Funds2024($1,025,050)2025$02026$02027$02028$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund12024($1,025,050)2025$0202620272028 Fiscal AnalysisThe bill would require the Health and Human Services Commission (HHSC) to engage with an independent entity to conduct an assessment of the rules, minimum standards, and contract requirements that apply to child-placing agencies, residential child-care facilities, relative caregivers, and adoptive homes. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION March 30, 2023 TO: Honorable James B. Frank, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1517 by Frank (Relating to an independent assessment of the Health and Human Services Commission's rules, minimum standards, and contract requirements that apply to certain residential child-care providers.), Committee Report 1st House, Substituted TO: Honorable James B. Frank, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1517 by Frank (Relating to an independent assessment of the Health and Human Services Commission's rules, minimum standards, and contract requirements that apply to certain residential child-care providers.), Committee Report 1st House, Substituted Honorable James B. Frank, Chair, House Committee on Human Services Honorable James B. Frank, Chair, House Committee on Human Services Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB1517 by Frank (Relating to an independent assessment of the Health and Human Services Commission's rules, minimum standards, and contract requirements that apply to certain residential child-care providers.), Committee Report 1st House, Substituted HB1517 by Frank (Relating to an independent assessment of the Health and Human Services Commission's rules, minimum standards, and contract requirements that apply to certain residential child-care providers.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB1517, Committee Report 1st House, Substituted : a negative impact of ($1,025,050) through the biennium ending August 31, 2025. 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 HB1517, Committee Report 1st House, Substituted : a negative impact of ($1,025,050) through the biennium ending August 31, 2025. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. 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: 2024 ($1,025,050) 2025 $0 2026 $0 2027 $0 2028 $0 All Funds, Five-Year Impact: 2024 ($1,025,050) 2025 $0 2026 2027 2028 Fiscal Analysis The bill would require the Health and Human Services Commission (HHSC) to engage with an independent entity to conduct an assessment of the rules, minimum standards, and contract requirements that apply to child-placing agencies, residential child-care facilities, relative caregivers, and adoptive homes. Methodology This analysis assumes that HHSC would need to contract with an independent third party in fiscal year 2024 to conduct the assessment. It is assumed that, to review the minimum standards and contract requirements within the timeframe required by the bill, the cost is estimated to be $950 per page of applicable publications for a total of $900,000. This analysis also assumes the review of statutes would cost $100,050, and that the independent contractor would require $25,000 for travel expenses. These costs align with other audits that have been conducted. It is assumed any costs to the Department of Family and Protective Services could be absorbed within existing resources. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 529 Health and Human Services Commission, 530 Family and Protective Services, Department of 529 Health and Human Services Commission, 530 Family and Protective Services, Department of LBB Staff: b > td > JMc, NPe, ER, SB, NV JMc, NPe, ER, SB, NV