LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 27, 1995



 TO:     Honorable Judith Zaffirini, Chair      IN RE: Committee Substitute
         Committee on Health & Human Services                  for Senate
         Senate                                 Bill No. 434
         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 and Chapter 31 of the Human
Resources Code by adding Section 22.0181 which would provide
judicial review to an applicant for or recipient of assistance.

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
and rehearing with DHS would be able to go into Travis County    




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  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 costs to district
courts for transcribing 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                $306,974             $13,618               5.0
          1997                 289,502              13,618               5.0
                                                                            
          1998                 289,502              13,618               5.0
                                                                            
          1999                 289,502              13,618               5.0
          2000                 289,502              13,618               5.0
                                                                            
                                                                            
                                                                            
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.    




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