AN ACT

 1-1     relating to the finality of contested case orders rendered by state

 1-2     agencies.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subsection (a), Section 2001.144, Government

 1-5     Code, is amended to read as follows:

 1-6           (a)  A decision in a contested case is final:

 1-7                 (1)  if a motion for rehearing is not filed on time, on

 1-8     the expiration of the period for filing a motion for rehearing;

 1-9                 (2)  if a motion for rehearing is filed on time, on the

1-10     date:

1-11                       (A)  the order overruling the motion for

1-12     rehearing is rendered; or

1-13                       (B)  the motion is overruled by operation of law;

1-14     [or]

1-15                 (3)  if a state agency finds that an imminent peril to

1-16     the public health, safety, or welfare requires immediate effect of

1-17     a decision or order, on the date the decision is rendered; or

1-18                 (4)  on the date specified in the order for a case in

1-19     which all parties agree to the specified date in writing or on the

1-20     record, if the specified date is not before the date the order is

1-21     signed or later than the 20th day after the date the order was

1-22     rendered.

1-23           SECTION 2.  Section 2001.145, Government Code, is amended to

1-24     read as follows:

 2-1           Sec. 2001.145.  MOTIONS FOR REHEARING:  PREREQUISITES TO

 2-2     APPEAL.  (a)  A timely motion for rehearing is a prerequisite to an

 2-3     appeal in a contested case except that a motion for rehearing of a

 2-4     decision or order that is final under Section 2001.144(a)(3) or (4)

 2-5     is not a prerequisite for appeal.

 2-6           (b)  A decision that is final under Section 2001.144(a)(2),

 2-7     [or] (3), or (4) is appealable.

 2-8           SECTION 3.  This Act takes effect September 1, 1997.

 2-9           SECTION 4.  The importance of this legislation and the

2-10     crowded condition of the calendars in both houses create an

2-11     emergency and an imperative public necessity that the

2-12     constitutional rule requiring bills to be read on three several

2-13     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 637 passed the Senate on

         April 3, 1997, by the following vote:  Yeas 31, Nays 0; and that

         the Senate concurred in House amendments on May 18, 1997, by a

         viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 637 passed the House, with

         amendments, on May 13, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor