SB 0475 - Fiscal Note

Fiscal Note - SB 0475 - Establishes voluntary registration of child care providers

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2365-02

BILL NO. Perfected SCS for SB 475

SUBJECT: Boards, Commissions, Committees, Councils; Children and Minors; Family Services Division; Health Department; Social Services Department

TYPE: Original

DATE: February 12, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	($385,315)	($404,363)	($415,250)
Criminal Records System	$1,266	$446	($172)
Total Estimated Net Effect on All State Funds	($384,049)	($403,917)	($415,422)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 7 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Mental Health, the State Public Defender, the Office of Prosecution Services, the Department of Social Services, and the Department of Corrections assume this proposal would not fiscally impact their agencies.

Department of Public Safety - Missouri State Highway Patrol (SHP) officials anticipate an increase of 5,000 criminal record checks, with the potential of a 200,000 record check increase, due to this proposal. SHP would charge a $5 fee for each non-federal criminal record check. SHP estimates revenue of $25,000 annually to the Criminal Records System Fund. SHP assumes one Data Entry Operator ($15,648) would be needed to classify, compare, and verify fingerprints. Equipment ($3,655) would include an Automated Fingerprint Identification System, computer, and office furniture for one FTE. Expense ($710) would include office supplies and telephone charges.

Officials from the Department of Health (DOH) state the Department of Social Services - Division of Family Services (DFS) provides funding to approximately 4,000 persons that are 18 years of age or over to provide child care services. These persons are not licensed, registered or have not had a criminal record review. Therefore, it is assumed that approximately 4,000 persons would voluntarily participate in the careline registry during FY99 with a 6% increase in the number in subsequent years. This is based on the current growth rate of child care facilities in Missouri. In addition to those volunteering, DOH estimates that registration would be required for any applicant for the position of child care worker or other employee at a child care agency if a person would have direct contact with minors and for all persons employed by a child care agency on June 1, 1999. There are currently 1,507 licensed child care centers and 2,633 family child care homes in Missouri. The 1,507 child care centers have an average of eight employees per facility (8 x 1,507 = 12,056 employees). Family child care homes have an average of 1.5 persons per facility (1.5 x 2,633 = 3,950 persons). DOH states that because the current annual growth rate of licensed child care facilities is approximately 6%, it would be necessary for an additional 6% of the total persons in licensed facilities to be registered annually. In addition, DOH states there is an approximate 30% turnover rate of staff in licensed child care facilities. DOH assumes this would require registration of an additional 30%. DOH estimated the following approximate number of persons that would be entered in the careline registry to be:

FY99 FY2000 FY2001

Volunteers 4,000 4,240 4,494

Licensed Centers 12,056 12,779 13,546

Licensed Family Child Care Homes 3,950 4,187 4,438

30% Turnover 3,617 3,834 4,064

Total Persons in Careline Registry 23,623 25,040 26,542

ASSUMPTION (continued)

The DOH will use a competitive process to select and contract with an independent consultant to evaluate the careline program. Base on consultants used for similar purposes, DOH estimate that consultant costs would be $4,900.

DOH states that a statewide promotion plan to publicize the careline registry would require two news releases for a total of $300 and approximately 75,000 brochures to be placed in hospitals, clinics and other appropriate agencies at a cost of $1,865. DOH states that as volunteers and staff in all child care facilities are required to be registered, approximately 110,795 children and their families would be affected. Therefore, DOH assumes it would be necessary to develop a more extensive media campaign to notify parents of the careline registry. Based on costs to advertise the Children's Trust Fund statewide on billboards, DOH estimates an additional $10,000 would need to be spent annually on billboard advertising for the careline hot-line.

DOH estimates that approximately 23,623 persons would complete an application in the first fiscal year; therefore DOH would have an initial order of 40,000 forms at $.05 per form, for a total $2,000.

DOH states that due to the large volume of persons to be included in the careline registry and based on the costs to the DOH to operate Tel-Link, telephone services will be approximately $60,000 per fiscal year to operate the careline hotline. The hotline telephone system will have one 800 number but may be responded to in Jefferson City, Kansas City, St. Louis and Springfield. DOH estimates that maintenance costs of $20,000 annually would be needed to support the careline system (500 person hours a year @ $40 per hour).

DOH assumes there would be a one-time expense of $1,000 for DOH to write the review program that would review the child abuse report status on a quarterly basis. In addition, DOH assumes there would be a one-time expense of $5,000 associated with modifying the day care system to capture data that provides verification of careline applicants with the Highway Patrol to determine criminal status and convictions. DOH estimates costs for CPU time, teleprocessing charges and to cover cost associated with establishing "Careline Providers" on the Tel-Link Directory will be $2,000 annually.

If the DOH would deny inclusion in the careline registry, applicants would have the right to appeal and a hearing would be conducted. DOH estimates that approximately 207 (5%) of the licensed child care facilities would not meet the requirements of Sections 201.301 - 210.319, RSMo. Therefore, DOH assumes an additional attorney would be necessary to facilitate hearings and legal actions against persons who appeal denial of inclusion in the careline registry.

DOH assumes that due to the large volume of applicants and renewals for the careline registry, additional administrative and clerical staff would be required. One (1) FTE Health Program Rep ASSUMPTION (continued)

III ($32,964) would be located in Jefferson City and would be responsible for supervising the Careline Registry Program and all staff, respond to hotline calls, supervise the development of rules and regulations, and develop a schedule and submit periodic evaluation reports to the General Assembly. One (1) Clerk Typist II ($16,512) would be located in Jefferson City to provide clerical support. Three (3) FTE Health Program Rep II ($28,608) would be located in St. Louis, Kansas City and Springfield to respond to hotline calls, facilitate the application process, and coordinate a criminal record review for applicants with the State Highway Patrol. Three (3) Clerk Typist II ($16,512) would be located in St. Louis, Kansas City and Springfield to provide clerical support. One (1) Attorney ($32,532) would be needed to represent DOH at administrative hearings for applicants that have been denied inclusion in the careline registry. Expenses ($70,585) would include office supplies, travel, rent, and office and communication expenses for nine FTE. Equipment ($45,970) would include office equipment and systems furniture for nine FTE.

Oversight has not included any rental expense as the employees would be located in current facilities. In addition, Oversight has not included one Attorney and related expense and equipment due to these duties being handled by current staff. However, if an increase in hearings and legal actions would justify an additional Attorney in the future, DOH may request the additional position in future budget requests.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
GENERAL REVENUE FUND
Cost - Department of Health
Personal services (8 FTE)	($157,817)	($194,194)	($199,049)
Fringe benefits	($44,236)	($54,433)	($55,793)
Expense and equipment	($183,262)	($155,736)	($160,408)
Total Costs - Department of Health	($385,315)	($404,363)	($415,250)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND	($385,315)	($404,363)	($415,250)
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
(continued)	(10 Mo.)
CRIMINAL RECORDS SYSTEM FUND
Income - Department of Public Safety -
Missouri State Highway Patrol
Criminal background check fees	$25,000	$25,000	$25,000
Costs - Department of Public Safety -
Missouri State Highway Patrol (SHP)
Personal service (1 FTE)	($13,366)	($16,440)	($16,851)
Fringe benefits	($6,003)	($7,383)	($7,568)
Equipment and expense	($4,365)	($731)	($753)
Total Costs - SHP	($23,734)	($24,554)	($25,172)
ESTIMATED NET EFFECT ON
CRIMINAL RECORDS SYSTEM FUND	$1,266	$446	($172)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Small Business

Small businesses would be expected to be fiscally impacted to the extent they would incur additional administrative costs due to the requirements of this proposal.

DESCRIPTION

This proposal would establish a careline registry and hotline in the Department of Health (DOH) for the purpose of the protection of children. It would allow for voluntary registration of child care providers. A person over eighteen, who provides or intends to provide child care, who is not required to be licensed or to consent to a criminal record review in order to provide child care or supervision, and who has voluntarily submitted information and fees required for determination of eligibility for entry into the careline registry, is a careline applicant. Such information would include a completed careline application which would be used for a criminal record review. DOH, in coordination with the Department of Social Services, would conduct a search of the central registry to determine if the applicant has been reported for child abuse or neglect that has been substantiated. Upon complete review, the DOH would determine whether the applicant DESCRIPTION (continued)

should be granted or denied inclusion in the careline registry. If there is no disqualifying information, then DOH would enter the applicant's name in the careline registry and the person would be known as a registered careline provider. The careline applicant or registered careline provider would be disqualified if; the person has been convicted of a crime relevant to the person's occupation as a child care provider, or which raises questions about the person's qualifications; if the person has made any misleading or false statement or report of a material fact; or if there has been any attempt at fraud or deception, or if information discloses conduct which demonstrates that registration of that person would be adverse to the health and safety of children in Missouri. An applicant, upon notification of disqualification, would be advised of the right to appeal. Upon receipt of an appeal filed in writing at the Office of the Director of the DOH within thirty days of notification, an administrative hearing would be set. If the appeal is in favor of the disqualified person, the records would be restored in the careline registry along with a copy of the hearing decision. Registered careline providers would be required to renew their registration periodically. DOH would update reports of substantiated child abuse or neglect and would review the information to determine whether a registered careline provider should be disqualified.

The Department of Health and the Department of Social Services may enter into an interagency

agreement to determine procedures and financing of the provision and updating of information for comparison of the careline registry with the central registry, and for searches of the central registry performed under subsection 2 of Section 210.301. Likewise, the Patrol and the Department may enter into an interagency agreement for updating information regarding criminal

convictions. State employees would be liable only for intentional acts or gross negligence which result in damages from a criminal record review. DOH would meet certain minimum guidelines, including the establishment and maintenance of careline hotline services, maintenance of criminal record review and central registry, and ensuring the confidentiality of records. DOH would use a competitive process to select and contract with an independent consultant for the purpose of evaluating the careline. DOH would develop a schedule for transmitting periodic evaluation reports to the General Assembly, beginning on or before September thirtieth of the second calendar in which the program is established, with the final report submitted by January 1 of the fifth year. An employment agency referring a child day care provider to parents or guardians would disclose information about the careline program and registry to both the parents or guardians and the provider, and would disclose to the parents whether the provider is a careline applicant or registered careline provider. It would be a Class B misdemeanor to falsely represent oneself as a careline applicant or a registered careline provider, or to fail to disclose, in a careline application, a conviction for a criminal offense or substantiated evidence of child abuse or neglect.

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 Social Services

Department of Mental Health

Department of Health

Department of Elementary and Secondary Education

Department of Public Safety

Missouri State Highway Patrol

Department of Corrections

Office of Attorney General

Office of Prosecution Services

State Public Defender

Jeanne Jarrett, CPA

Director

February 12, 1998