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.