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