By Duncan                                              S.B. No. 382
         76R4584 JRD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the requirements for state agency orders adopting rules
 1-3     and substantial compliance with rulemaking requirements.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  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 consisting 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
1-24     the agency's legal authority.
 2-1           SECTION 2.  Section 2001.035, Government Code, is amended to
 2-2     read as follows:
 2-3           Sec. 2001.035.  Substantial Compliance Requirement; Time
 2-4     Limit on Procedural Challenge.  (a)  A rule [adopted after January
 2-5     1, 1976,] is voidable [not valid] unless a state agency adopts it
 2-6     in substantial compliance with Sections 2001.023 through 2001.034.
 2-7           (b)  A person must initiate a proceeding to contest a rule on
 2-8     the ground of noncompliance with the procedural requirements of
 2-9     Sections 2001.023 through 2001.034 not later than the second
2-10     anniversary of the effective date of the rule.
2-11           (c)  A state agency substantially complies with the
2-12     requirements of Section 2001.033 if the agency's reasoned
2-13     justification demonstrates in a relatively clear and logical
2-14     fashion that the rule is a reasonable means to a legitimate
2-15     objective.
2-16           (d)  A mere technical defect that does not result in
2-17     prejudice to a person's rights or privileges is not grounds for
2-18     invalidation of a rule.
2-19           SECTION 3.  (a)  Section 2001.030, Government Code, is
2-20     repealed.
2-21           (b)  Sections 2 and 3, Chapter 1067, Acts of the 75th
2-22     Legislature, Regular Session, 1997, are repealed.
2-23           SECTION 4.  This Act takes effect September 1, 1999.  The
2-24     change in law made by this Act applies to all rules adopted by a
2-25     state agency on or after January 1, 1998, except that the change in
2-26     law made by this Act does not apply to a challenge to a rule in a
2-27     court action that is brought before September 1, 1999.
 3-1           SECTION 5.  The importance of this legislation and the
 3-2     crowded condition of the calendars in both houses create an
 3-3     emergency and an imperative public necessity that the
 3-4     constitutional rule requiring bills to be read on three several
 3-5     days in each house be suspended, and this rule is hereby suspended.