BILL ANALYSIS H.B. 2266 By: Hilbert 04-30-95 Committee Report (Unamended) BACKGROUND The intent of the statutes governing the administrative appeals process is to provide a fair and equitable manner in which licensed businesses and activities can correct a clerical or procedural defect discovered after the issuance of a license. Presently, if a state license is found to be defective in any area, including minor deficiencies which can be easily corrected, the licensee is doubly penalized. First the license is revoked and then the licensee is required to complete the entire licensing process again. Each of these penalties is burdensome and costly both to the state and the licensee. PURPOSE HB 2266 allows a licensee to remain in business while acting in good faith to correct minor defects. The bill does not apply to instances where the public health, safety or environment might be adversely impacted. 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. Subchapter G, Chapter 2001, Government Code, is amended by adding SECTION 2001.1745 REMAND OF CONTESTED CASE AFFECTING LICENSE HOLDER as follows: (a) Upon reversal of an agency decision and remand to a state agency or lower court because of a clerical or procedural error, a license holder affected by the final decision may continue to operate under the license under the following conditions: (1) The defect can be corrected by the agency or other authority; or, (2) The license holder does the following: (A) Not later than the 30th day after the date of the remand, the license holder gives timely notice of intent to correct the defect; and, (B) Not later than the 90th day following the filing of said notice, the license holder files the materials necessary to correct the defect. (b) Requires the agency to accept materials filed under Subsection (a)(2)(B) if they meet or exceed applicable requirements. (c) Limits the agency's considerations upon remand to those errors addressed in the reversing court's opinion or order. (d) Stipulates that the new Section 2001.1745 does not apply to the following: (1) A defect that creates a material risk to the public health, safety or environment; (2) Situations in which an agency is acting under its enforcement powers; and (3) Cases affecting a license issued before January 1, 1989. (e) Defines "material risk". SECTION 2. Makes application of this act prospective. SECTION 3. Emergency Clause. Effective date: upon passage 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 2266. 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 2266 pending. HB 2266 was considered by the committee in a public hearing on April 24, 1995. The Chair laid out HB 2266. The bill was reported favorably without amendment with the recommendation that it do pass and be printed, by a record vote of 13 ayes, 0 nay, 0 pnv and 2 absent.