PAK S.B. 1636 75(R) BILL ANALYSIS STATE AFFAIRS S.B. 1636 By: Duncan (Smithee) 5-22-97 Committee Report (Unamended) BACKGROUND Currently, the Texas Administrative Procedures Act requires state agencies to meet certain procedural requirements in adopting rules. A state agency order adopting a rule must state a "reasoned justification" and must be in "substantial compliance" with procedures. Texas courts have not been consistent with "reasoned justification" and "substantial compliance." This bill clarifies "reasoned justification" and "substantial compliance" and that mere technical defects which do not result in prejudice to a party's rights or privileges are not grounds for invalidation of a rule. PURPOSE As proposed, S.B. 1636 clarifies "reasoned justification" and "substantial compliance" and that mere technical defects which do not result in prejudice to a party's rights or privileges are not grounds for invalidation of a rule. 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. Repeals Section 2001.030 of the Government Code. SECTION 2. Amends Section 2001.033, Government Code, to require a state agency rule to include a reasoned justification for the rule as a whole comprised solely of a summary of factual basis for the rule as adopted. Authorizes administrative convenience to be an appropriate justification for a rule. SECTION 3. Amends Section 2001.035, Government Code, to provide that a rule, rather than a rule adopted after January 1, 1976, is voidable, rather than not valid, unless a state agency adopts it in substantial compliance with certain sections. Sets forth provisions of substantial compliance. Provides that mere technical defects which do not result in prejudice to a party's rights or privileges are not grounds for invalidation of a rule. SECTION 4. Effective date: September 1, 1997. Makes application of this Act retroactive to January 1, 1996. SECTION 5. Emergency clause.