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