BILL ANALYSIS C.S.H.B. 2263 By: Hilbert 5-4-95 Committee Report (Substituted) BACKGROUND Current case law in Texas requires persons or agencies seeking to participate in administrative contested-case proceedings to appear and demonstrate that they possess a sufficient interest to be granted "party status". Once admitted as parties to the administrative hearings process, persons or agencies may fully participate in all aspects of the process up to and including judicial appeals of any final orders or decisions issued by the administrative agency. PURPOSE CSHB 2263 amends the Administrative Procedure Act to reflect case law requirements and limits appeals of final administrative orders to parties who actually participated in the agency hearings and who, as a result of the agency decision, have been harmed. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 2001, Government Code, by adding Section 2001.0515 STANDING as follows: Sec. 2001.0515 Provides additional clarification to the existing definition of "party" to include the minimal requirements for agencies and persons to achieve party status. SECTION 2. Amends Section 2001.171, Government Code, as follows: Sec. 2001.171 Provides the minimal requirements for party status for purposes of appeal of a final administrative order or decision. SECTION 3. Effective Date: September 1, 1995. Provides that the Act applies only to review of contested cases that commence after the effective date. SECTION 4. Emergency Clause. COMPARISION OF ORIGINAL TO SUBSTITUTE The substitute adds Subsection (c) to SECTION 3, which provides that this act does not apply to a contested case which is held pursuant to federally approved statute or program if federal law or regulations specify the requirements for party status and prerequisites for appeals of agency decisions. The substitute also amends SECTION 1, Sec. 2001.0515 (b) to provide that a person has standing to participate in a contested case as a party if the person has alleged and demonstrated a justiciable interest relating to a legal right, duty, power, or privilege affected by the contested case. SUMMARY OF COMMITTEE ACTION Pursuant to posting of public notice the House Committee on State Affairs convened in a public hearing on April 11, 1995. The Chair laid out HB 2263. The following person testified for the bill: Alex Gonzales representing himself. The following person testified against the bill: Reggie James representing Consumers Union. The Chair recognized Rep. Hilbert to close. The Chair left HB 2263 pending. HB 2263 was considered by the committee in a public hearing on April 24, 1995. The Chair laid out HB 2263. The committee considered 2 amendments which were adopted without objection. The Chair ordered the staff to incorporate the amendments into a complete substitute. The substitute was adopted without objection. The bill was reported favorably as substituted with the recommendation that it do pass and be printed, by a record vote of 13 ayes, 0 nay, 0 pnv and 2 absent.