BILL ANALYSIS C.S.S.B. 434 By: West Health and Human Services 4-20-95 Committee Report (Substituted) 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 grant any additional rulemaking authority to a state officer, institution, or agency. 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.