By:  Duncan                                           S.B. No. 1636

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the requirements for state agency orders adopting rules

 1-2     and substantial compliance with those requirements.

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

 1-4           SECTION 1.  Section 2001.030, Government Code, is repealed.

 1-5           SECTION 2.  Section 2001.033, Government Code, is amended to

 1-6     read as follows:

 1-7           Sec. 2001.033.  State Agency Order Adopting Rule.  A state

 1-8     agency order finally adopting a rule must include:

 1-9                 (1)  a reasoned justification for [of] the rule as a

1-10     whole comprised solely of[, including]:

1-11                       (A)  a summary of comments received from parties

1-12     interested in the rule that shows the names of interested groups or

1-13     associations offering comment on the rule and whether they were for

1-14     or against its adoption;

1-15                       (B)  a summary [restatement] of the [rule's]

1-16     factual basis for the rule as adopted; and

1-17                       (C)  the reasons why the agency disagrees with

1-18     party submissions and proposals;

1-19                 (2)  a concise restatement of the particular statutory

1-20     provisions under which the rule is adopted and of how the agency

1-21     interprets the provisions as authorizing or requiring the rule; and

1-22                 (3)  a certification that the rule, as adopted, has

1-23     been reviewed by legal counsel and found to be a valid exercise of

 2-1     the agency's legal authority.

 2-2           SECTION 3.  Section 2001.035, Government Code, is amended to

 2-3     read as follows:

 2-4           Sec. 2001.035.  Substantial Compliance Requirement; Time

 2-5     Limit on Procedural Challenge.  (a)  A rule [adopted after January

 2-6     1, 1976,] is voidable [not valid] unless a state agency adopts it

 2-7     in substantial compliance with Sections 2001.023 through 2001.034.

 2-8           (b)  A person must initiate a proceeding to contest a rule on

 2-9     the ground of noncompliance with the procedural requirements of

2-10     Sections 2001.023 through 2001.034 not later than the second

2-11     anniversary of the effective date of the rule.

2-12           (c)  An agency substantially complies with the requirements

2-13     of Section 2001.033 if its reasoned justification demonstrates in a

2-14     relatively clear and logical fashion that the rule is a reasonable

2-15     means to a legitimate objective.

2-16           (d)  Mere technical defects which do not result in prejudice

2-17     to a party's rights or privileges are not grounds for invalidation

2-18     of a rule.

2-19           SECTION 4.  This Act takes effect September 1, 1997, and

2-20     applies to all rules adopted on or after January 1, 1996.

2-21           SECTION 5.  The importance of this legislation and the

2-22     crowded condition of the calendars in both houses create an

2-23     emergency and an imperative public necessity that the

2-24     constitutional rule requiring bills to be read on three several

2-25     days in each house be suspended, and this rule is hereby suspended.