This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0137 - Removes Residential Care Facilities I & II From Certificate of Need Process

L.R. NO.  0690-01
BILL NO.  SB 137
SUBJECT:  Certificate of Need; Nursing and Boarding Homes
TYPE:     Original
DATE:     January 27, 1997



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
None

Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
Local Government                $0                  $0                $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Health, the Department of Labor and
Industrial Relations, the Department of Mental Health, the Office of Attorney
General, and the Office of Administration assume this proposal would not
fiscally impact their agencies.

Department of Social Services (DOS) officials state the only possible effect
would be an increase in the number of residential care facilities (RCF) in
operation.  DOS does not believe this will occur to any significant degree
due to the current occupancy rates being below 70% and steadily decreasing
over the past year (1996).  DOS believes that the market will not allow any
significant increase in the number of RCFs that can effectively operate.  DOS
would not assume any additional costs.

Officials from the Office of State Courts Administrator (CTS)and the Office
of Prosecution Services (OPS) did not respond to our fiscal impact request.
However, in responding to a similar proposal in the 1995 session CTS and OPS
assumed they would incur no fiscal impact.


FISCAL IMPACT - State Government   FY 1998   FY 1999   FY 2000
                                  (10 Mo.)

                                        $0        $0        $0


FISCAL IMPACT  - Local Government  FY 1998   FY 1999   FY 2000
                                  (10 Mo.)

                                        $0        $0        $0

FISCAL IMPACT - Small Business

Small businesses (residential care facilities) would be expected to be
fiscally impacted to the extent that administrative costs would decrease
because they no longer would be required to prepare and file a Certificate of
Need application.


DESCRIPTION

This proposal would remove Residential Care Facilities I and II from the
Certificate of Need process and the need for approval from the Missouri
Health Facilities Review Committee before additional residential care
facilities can be built.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Department of Health
Department of Social Services
Department of Labor and Industrial Relations
Department of Mental Health
Office of Attorney General
Office of Administration

NOT RESPONDING:  Office of State Courts Administrator and Office of
Prosecution Services