SRC-AAA S.B. 1636 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1636
By: Duncan
State Affairs
4-14-97
As Filed


DIGEST 

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

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Repealer: Section 2001.030, Government Code (Statement of
reasons for or against adoption). 

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.