LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 20, 1997
TO: Honorable Rodney Ellis, Chair IN RE: Senate Bill No. 239
Committee on Jurisprudence By: West, Royce
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB239 ( Relating
to judicial review of certain decisions about public assistance
benefits administered by the Texas Department of Human Services.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB239-As Introduced
Implementing the provisions of the bill would result in a
net negative impact of $(983,869) to General Revenue Related
Funds through the biennium ending August 31, 1999.
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 amends the Administrative Procedure
Act, Chapter 2001, of the Government Code. The granting, payment,
denial, or withdrawal of financial or medical assistance benefits
would no longer be exempt from declaratory judgment, court enforcement,
and contested case provisions. The Texas Department of Human
Services (TDHS) and the Texas Department of Health (TDH) currently
provide informal hearings to resolve contested denials or withdrawals
of public assistance benefits (AFDC/TANF grants, Food Stamps
and Medicaid). The bill would require agencies to provide formal
hearings, which would demand more technical review and preparation,
including ensuring that judicial review standards are met.
The bill also amends Chapter 22 of the Human Resources
Code. Under current law, a hearing officer's decision on benefits
is final. The bill would allow applicants or recipients who
are denied public assistance benefits in the new formal hearing
process to appeal through the civil courts. The Office of the
Attorney General will require additional personnel to represent
TDHS and TDH on such appeals in civil court.
The bill states
that the cost of preparing the record and the transcript may
not be charged to the applicant for or recipient of the benefits.
This cost will likely be borne by TDHS and TDH.
Fiscal Analysis
The fiscal implications of the bill include the addition of
two (2) attorneys, eight (8) paralegals, and four (4) legal
secretaries. Additional costs accrue from TDHS and TDH providing
transcription services.
Methodolgy
Fiscal implications are based on the following assumptions:
1)
15,600 cases contested in formal hearings; 11,700 cases subject
to appeal through the civil courts.
2) Assistant attorneys
general (2) to represent agencies in 234 cases appealed in civil
court; cost of transcript preparation at approximately $500
per transcript.
3) Administrative costs will be equally
divided between the state and the federal government.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Revenue Probable Probable Revenue Change in Number
Savings/(Cost) Gain/(Loss) from Savings/(Cost) Gain/(Loss) from of State
from General General Revenue from Federal Funds Federal Funds Employees from
Revenue Fund Fund FY 1997
0001 0001 0555 0555
1998 ($502,653) $0 ($502,653) $0 14.0
1998 (481,216) 0 (481,216) 0 14.0
2000 (481,216) 0 (481,216) 0 14.0
2001 (481,216) 0 (481,216) 0 14.0
2002 (481,216) 0 (481,216) 0 14.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($502,653)
1999 (481,216)
2000 (481,216)
2001 (481,216)
2002 (481,216)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
Assuming an average cost of $100 per judicial review case (234
cases), costs to local government are expected to be insignificant.
Source: Agencies: 324 Department of Human Services
302 Office of the Attorney General
320 Texas Workforce Commission
501 Department of Health
LBB Staff: JK ,BB ,PP