LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 21, 1995



 TO:     Honorable Judith Zaffirini, Chair      IN RE:  Senate Bill No. 434
         Committee on Health & Human Services           By: West, Royce
         Senate
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
434 (Relating to the appellate process for applicants and
recipients of certain state-administered assistance programs.)
this office has determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would amend Chapter 22 of the Human Resources Code by
adding Section 22.0181 which would provide judicial review to an
applicant for or recipient of assistance.  In addition, the bill
would amend Chapter 31 of the Human Resources Code to allow an
applicant for or recipient of assistance who has exhausted all of
the Texas Department of Human Services available administrative
remedies to have recourse to judicial review without being
required to file a motion for rehearing with DHS.

The bill would also provide that the granting, payment, denial,
or withdrawal of financial or medical assistance under service
programs of the Department of Human Services would no longer be
excepted from declaratory judgment, court enforcement or the
judicial review provisions of Chapter 2001, Government Code
(Administrative Procedures Act).  The bill would repeal Section
32.035 of the Human Resources Code which presently has provisions
that govern the right of appeal of applicants to financial and
medical assistance.

Presently, when financial assistance is denied in a DHS hearing    




no further recourse is available for applicants.  Under the 
provisions of the bill, an applicant, after denial in a hearing
with DHS would be able to go into district court for judicial
review of the denial.  At that point, the Office of the Attorney
General would be required to represent the Department of Human
Services at every hearing.  This would require an increased level
of review by the original hearing officer decisions at DHS  of an
estimated 12,500 cases per year and a coordinated effort for
approximately 180 judicial review cases per year with the
Attorney General's Office.

The fiscal implications of the bill include the addition of three
Assistant Attorneys General, one legal assistant and one legal
secretary.  These projections are based on data compiled from
assumptions premised on information provided by the Texas Legal
Services Judicial Review and the Texas Department of Human
Services. 

The fiscal implications for DHS relate to increased time spent
with service delivery staff in the hearing process.  In addition,
it is estimated that six additional hearing reviewers and six
additional support staff would be required to implement the
provisions of this bill.  Costs also include transcription of
tape recorded hearings for cases appealed.





The fiscal implications for local governments relate to an
increased workload of an estimated 180 judicial review cases each
year and for clerical processing of each case that is filed.  The
average cost per case for all cases filed annually in Travis
County is $330. 

The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:
     



            Fiscal  Probable Cost Out   Probable Cost Out      Change in    
             Year      of  General       of Federal Funds   Number of State 
                     Revenue Fund 001          555           Employees from 
                                                                FY 1995     
                                                                            
          1996                $598,564            $305,208              17.0
          1997                 529,450             245,016              17.0
                                                                            
          1998                 529,450             245,016              17.0
                                                                            
          1999                 529,450             245,016              17.0
                                                                            
                                                                            
                                                                            

        2000                   529,450              245,016               17.0



       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.




Source:   Department of Health, Department of Human Services,
Office of the Attorney General,
          LBB Staff: JK, AZ, KVO, DF