BILL ANALYSIS



S.B. 434
By: West (Naishtat)
05-18-95
Committee Report (Unamended)


BACKGROUND

Final decisions by the Department of Human Services (DHS) are
appealable by the hospitals and nursing homes that provide
Medicaid, day care proprietors, and foster homes.  Public benefit
recipients are the only persons directly affected by DHS actions
that are not permitted judicial review.  Texas is the only state
that does not permit applicants and recipients of public benefits
to seek judicial review of DHS final administrative decisions.
Other agencies, however, do allow dissatisfied individuals to
appeal decisions.  For example, a utility company seeking a rate
increase may appeal the Public Utility Commission's decision to the
Travis County District Court, and an insurance agent can go to
court to appeal the Texas Department of Insurance's decision to
revoke the agent's license.

In addition, by keeping actions on the state, rather than the
federal, level, Texas may save money.  Judicial review involves a
paper review of a hearing transcript, as opposed to a federal court
action involving a full lawsuit.

PURPOSE

As proposed, C.S.S.B. 434 sets forth the procedure for appeals by
applicants and recipients of certain state-run assistance programs.


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 22, Human Resources Code, by adding
           Section 22.0181, as follows:

           Sec. 22.0181.  JUDICIAL REVIEW.  Provides that Sections
           31.034 and 31.0341 govern the right of appeal of an
           applicant for or recipient of assistance, including
           financial assistance, or assistance under Title IV-E,
           XIX, or XX, Social Security Act, and its subsequent
           amendments.

SECTION 2. Amends Chapter 31, Human Resources Code, by adding
           Section 31.0341, as follows:

           Sec. 31.0341.  APPEAL FROM DEPARTMENT DECISION.  (a)
           Provides that a decision from the Texas Department of
           Human Services' (department) is final on the date the
           decision or order is mailed to the applicant or
           recipient or that person's attorney of record.

           (b) Provides that a timely motion for rehearing (motion)
           is a prerequisite to an appeal of a department decision
           or order. Requires a motion to be filed within 20 days
           after the decision becomes final.  Requires a reply to
           a motion to be filed within 30 days after the decision
           becomes final.

           (c) Requires the department to act on a motion within
           45 days after the date the decision becomes final. 
           Provides that the motion is overruled by operation of
           law if the department does not act within that period.

           (d) Applies Chapters 2001G and H, Government Code, to
           an applicant's or recipient's appeal from the
           department's decision, except as provided by this
           section.

           (e) Authorizes an applicant or recipient to file an
           affidavit of inability to pay costs.  Provides that the
           cost of preparing the record and the transcript is a
           court cost and prohibits the charging of costs to the
           applicant.

           (f) Provides that an appeal under this section takes
           precedence over all other civil cases except workers'
           compensation and unemployment cases.

           (g) Provides that the appellee is the department.

SECTION 3. Amends Section 2001.223, Government Code, to delete the
           provision including the granting, payment, denial, or
           withdrawal of assistance under department service
           programs.

SECTION 4. Amends Chapter 2001I, Government Code, by adding Section
           2001.226, as follows:

           Sec. 2001.226.  EXCEPTION TO CONTESTED CASE PROVISIONS. 
           Provides that Subchapters C-F do not apply to the
           granting, payment, denial, or withdrawal of financial
           assistance under Chapter 31, Human Resources Code,
           nutritional assistance, or assistance under Titles IV-E,
           XIX, or XX, Social Security Act, and its subsequent
           amendments.

SECTION 5. Repealer:  Section 32.035, Human Resources Code
           (Appeals).

SECTION 6. Effective date: September 1, 1995.  Makes application
           of this Act prospective.

SECTION 7. Emergency clause.


SUMMARY OF COMMITTEE ACTION

The Human Services Committee convened in a formal meeting on May
18, 1995.  The Chairman laid out SB 434 by Rep. Naishtat and
recognized Rep. Naishtat to explain the bill.  SB 434 was reported
favorably without amendment with a recommendation that it do pass
and be printed, by a record vote of 6 AYES, 0 NAYS, 1 PNV, AND 2
ABSENT.