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No significant fiscal implication to the State is anticipated.
No fiscal implication to units of local government is anticipated.
According to the author's statement of intent:
"Currently, when an agency initiates a proceeding against a person subject to its regulation, it is required to give notice of the particular sections of the statutes and rules involved before the contested case is tried. Unfortunately, agencies often fail to give adequate notice of the grounds for contested cases, either by failing to comply with the statute or by justifying decisions based on statutes and rules that were never disclosed before trial. As a result, many businesses, professionals, and other people have been disciplined for violating statutes or rules that were never disclosed before trial and which they had no opportunity to defend against. This is contrary to due process of law."
This legislation would require a short statement of factual matters to be entered into the notification requirements regarding contested cases consistent with the Texas Rules of Civil Procedure and the Administrative Procedures Act (APA). It would also provide that an agency's failure to give notice of the particular sections of the statutes and rules involved in a contested case is reversible error, meaning that failure to do so would result in the decision being reversed unless the reviewing court finds that the failure did not unfairly surprise or prejudice the appellant. The bill would also specify certain appeal processes for license holders of certain businesses. Ultimately, the bill would strengthen the requirement that the burden of proof be on the state in many cease and desist proceedings.
A similar bill, SB 522, was filed during the 83rd Legislative Session. It passed out of the Senate but failed in the House.
The purpose of the legislation is to strengthen due process rights for private entities subject to a cease and desist order. We support SB 1267 because it promotes our limited government principle.