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.