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.