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.