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GOVERNMENT CODE

TITLE 10. GENERAL GOVERNMENT

SUBTITLE A. ADMINISTRATIVE PROCEDURE AND PRACTICE

CHAPTER 2001. ADMINISTRATIVE PROCEDURE

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2001.001. PURPOSE. It is the public policy of the state

through this chapter to:

(1) provide minimum standards of uniform practice and procedure

for state agencies;

(2) provide for public participation in the rulemaking process;

and

(3) restate the law of judicial review of state agency action.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.002. SHORT TITLE. This chapter may be cited as the

Administrative Procedure Act.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.003. DEFINITIONS. In this chapter:

(1) "Contested case" means a proceeding, including a ratemaking

or licensing proceeding, in which the legal rights, duties, or

privileges of a party are to be determined by a state agency

after an opportunity for adjudicative hearing.

(2) "License" includes the whole or a part of a state agency

permit, certificate, approval, registration, or similar form of

permission required by law.

(3) "Licensing" includes a state agency process relating to the

granting, denial, renewal, revocation, suspension, annulment,

withdrawal, or amendment of a license.

(4) "Party" means a person or state agency named or admitted as

a party.

(5) "Person" means an individual, partnership, corporation,

association, governmental subdivision, or public or private

organization that is not a state agency.

(6) "Rule":

(A) means a state agency statement of general applicability

that:

(i) implements, interprets, or prescribes law or policy; or

(ii) describes the procedure or practice requirements of a state

agency;

(B) includes the amendment or repeal of a prior rule; and

(C) does not include a statement regarding only the internal

management or organization of a state agency and not affecting

private rights or procedures.

(7) "State agency" means a state officer, board, commission, or

department with statewide jurisdiction that makes rules or

determines contested cases. The term includes the State Office

of Administrative Hearings for the purpose of determining

contested cases. The term does not include:

(A) a state agency wholly financed by federal money;

(B) the legislature;

(C) the courts;

(D) the Texas Department of Insurance, as regards proceedings

and activities under Title 5, Labor Code, of the department, the

commissioner of insurance, or the commissioner of workers'

compensation; or

(E) an institution of higher education.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Amended by:

Acts 2005, 79th Leg., Ch.

265, Sec. 6.007, eff. September 1, 2005.

Sec. 2001.004. REQUIREMENT TO ADOPT RULES OF PRACTICE AND INDEX

RULES, ORDERS, AND DECISIONS. In addition to other requirements

under law, a state agency shall:

(1) adopt rules of practice stating the nature and requirements

of all available formal and informal procedures;

(2) index, cross-index to statute, and make available for public

inspection all rules and other written statements of policy or

interpretations that are prepared, adopted, or used by the agency

in discharging its functions; and

(3) index, cross-index to statute, and make available for public

inspection all final orders, decisions, and opinions.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.005. RULE, ORDER, OR DECISION NOT EFFECTIVE UNTIL

INDEXED. (a) A state agency rule, order, or decision made or

issued on or after January 1, 1976, is not valid or effective

against a person or party, and may not be invoked by an agency,

until the agency has indexed the rule, order, or decision and

made it available for public inspection as required by this

chapter.

(b) This section does not apply in favor of a person or party

that has actual knowledge of the rule, order, or decision.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.006. ACTIONS PREPARATORY TO IMPLEMENTATION OF STATUTE

OR RULE. (a) In this section:

(1) "State agency" means a department, board, commission,

committee, council, agency, office, or other entity in the

executive, legislative, or judicial branch of state government.

The term includes an institution of higher education as defined

by Section 61.003, Education Code, and includes those entities

excluded from the general definition of "state agency" under

Section 2001.003(7).

(2) Legislation is considered to have "become law" if it has

been passed by the legislature and:

(A) the governor has approved it;

(B) the governor has filed it with the secretary of state,

having neither approved nor disapproved it;

(C) the time for gubernatorial action has expired under Section

14, Article IV, Texas Constitution, the governor having neither

approved nor disapproved it; or

(D) the governor has disapproved it and the legislature has

overridden the governor's disapproval in accordance with Section

14, Article IV, Texas Constitution.

(b) In preparation for the implementation of legislation that

has become law but has not taken effect, a state agency may adopt

a rule or take other administrative action that the agency

determines is necessary or appropriate and that the agency would

have been authorized to take had the legislation been in effect

at the time of the action.

(c) In preparation for the implementation of a rule that has

been finally adopted by a state agency but has not taken effect,

a state agency may take administrative action that the agency

determines is necessary or appropriate and that the agency would

have been authorized to take had the rule been in effect at the

time of the action.

(d) A rule adopted under Subsection (b) may not take effect

earlier than the legislation being implemented takes effect.

Administrative action taken under Subsection (b) or (c) may not

result in implementation or enforcement of the applicable

legislation or rule before the legislation or rule takes effect.

Added by Acts 1999, 76th Leg., ch. 558, Sec. 1, eff. Sept. 1,

1999.

Sec. 2001.007. CERTAIN EXPLANATORY INFORMATION MADE AVAILABLE

THROUGH INTERNET. (a) A state agency shall make available

through a generally accessible Internet site:

(1) the text of its rules; and

(2) any material, such as a letter, opinion, or compliance

manual, that explains or interprets one or more of its rules and

that the agency has issued for general distribution to persons

affected by one or more of its rules.

(b) A state agency shall design the generally accessible

Internet site so that a member of the public may send questions

about the agency's rules to the agency electronically and receive

responses to the questions from the agency electronically. If the

agency's rules and the agency's explanatory and interpretive

materials are made available at different Internet sites, both

sites shall be designed in compliance with this subsection.

(c) Repealed by Acts 2005, 79th Leg., Ch. 750, Sec. 2(a), eff.

September 1, 2006.

(d) A state agency may comply with this section through the

actions of another agency, such as the secretary of state, on the

agency's behalf.

Added by Acts 1999, 76th Leg., ch. 1233, Sec. 1, eff. June 18,

1999. Renumbered from Sec. 2001.006 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(63), eff. Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

750, Sec. 2(a), eff. September 1, 2006.

SUBCHAPTER B. RULEMAKING

Sec. 2001.021. PETITION FOR ADOPTION OF RULES. (a) An

interested person by petition to a state agency may request the

adoption of a rule.

(b) A state agency by rule shall prescribe the form for a

petition under this section and the procedure for its submission,

consideration, and disposition.

(c) Not later than the 60th day after the date of submission of

a petition under this section, a state agency shall:

(1) deny the petition in writing, stating its reasons for the

denial; or

(2) initiate a rulemaking proceeding under this subchapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.022. LOCAL EMPLOYMENT IMPACT STATEMENTS. (a) A state

agency shall determine whether a rule may affect a local economy

before proposing the rule for adoption. If a state agency

determines that a proposed rule may affect a local economy, the

agency shall prepare a local employment impact statement for the

proposed rule. The impact statement must describe in detail the

probable effect of the rule on employment in each geographic area

affected by the rule for each year of the first five years that

the rule will be in effect and may include other factors at the

agency's discretion.

(b) This section does not apply to the adoption of an emergency

rule.

(c) Failure to comply with this section does not impair the

legal effect of a rule adopted under this chapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 2001, 77th Leg., ch. 871, Sec. 1, eff.

Sept. 1, 2001.

Sec. 2001.0225. REGULATORY ANALYSIS OF MAJOR ENVIRONMENTAL

RULES. (a) This section applies only to a major environmental

rule adopted by a state agency, the result of which is to:

(1) exceed a standard set by federal law, unless the rule is

specifically required by state law;

(2) exceed an express requirement of state law, unless the rule

is specifically required by federal law;

(3) exceed a requirement of a delegation agreement or contract

between the state and an agency or representative of the federal

government to implement a state and federal program; or

(4) adopt a rule solely under the general powers of the agency

instead of under a specific state law.

(b) Before adopting a major environmental rule subject to this

section, a state agency shall conduct a regulatory analysis that:

(1) identifies the problem the rule is intended to address;

(2) determines whether a new rule is necessary to address the

problem; and

(3) considers the benefits and costs of the proposed rule in

relationship to state agencies, local governments, the public,

the regulated community, and the environment.

(c) When giving notice of a major environmental rule subject to

this section, a state agency shall incorporate into the fiscal

note required by Section 2001.024 a draft impact analysis

describing the anticipated effects of the proposed rule. The

draft impact analysis, at a minimum, must:

(1) identify the benefits that the agency anticipates from

adoption and implementation of the rule, including reduced risks

to human health, safety, or the environment;

(2) identify the costs that the agency anticipates state

agencies, local governments, the public, and the regulated

community will experience after implementation of the rule;

(3) describe the benefits and costs anticipated from

implementation of the rule in as quantitative a manner as

feasible, but including a qualitative description when a

quantitative description is not feasible or adequately

descriptive;

(4) describe reasonable alternative methods for achieving the

purpose of the rule that were considered by the agency and

provide the reasons for rejecting those alternatives in favor of

the proposed rule;

(5) identify the data and methodology used in performing the

analysis required by this section;

(6) provide an explanation of whether the proposed rule

specifies a single method of compliance, and, if so, explain why

the agency determines that a specified method of compliance is

preferable to adopting a flexible regulatory approach, such as a

performance-oriented, voluntary, or market-based approach;

(7) state that there is an opportunity for public comment on the

draft impact analysis under Section 2001.029 and that all

comments will be addressed in the publication of the final

regulatory analysis; and

(8) provide information in such a manner that a reasonable

person reading the analysis would be able to identify the impacts

of the proposed rule.

(d) After considering public comments submitted under Section

2001.029 and determining that a proposed rule should be adopted,

the agency shall prepare a final regulatory analysis that

complies with Section 2001.033. Additionally, the agency shall

find that, compared to the alternative proposals considered and

rejected, the rule will result in the best combination of

effectiveness in obtaining the desired results and of economic

costs not materially greater than the costs of any alternative

regulatory method considered.

(e) In preparing the draft impact analysis before publication

for comment and the final regulatory analysis for the agency

order adopting the rule, the state agency shall consider that the

purpose of this requirement is to identify for the public and the

regulated community the information that was considered by the

agency, the information that the agency determined to be relevant

and reliable, and the assumptions and facts on which the agency

made its regulatory decision. In making its final regulatory

decision, the agency shall assess:

(1) all information submitted to it, whether quantitative or

qualitative, consistent with generally accepted scientific

standards;

(2) actual data where possible; and

(3) assumptions that reflect actual impacts that the regulation

is likely to impose.

(f) A person who submitted public comment in accordance with

Section 2001.029 may challenge the validity of a major

environmental rule that is not proposed and adopted in accordance

with the procedural requirements of this section by filing an

action for declaratory judgment under Section 2001.038 not later

than the 30th day after the effective date of the rule. If a

court determines that a major environmental rule was not proposed

and adopted in accordance with the procedural requirements of

this section, the rule is invalid.

(g) In this section:

(1) "Benefit" means a reasonably identifiable, significant,

direct or indirect, favorable effect, including a quantifiable or

nonquantifiable environmental, health, or economic effect, that

is expected to result from implementation of a rule.

(2) "Cost" means a reasonably identifiable, significant, direct

or indirect, adverse effect, including a quantifiable or

nonquantifiable environmental, health, or economic effect, that

is expected to result from implementation of a rule.

(3) "Major environmental rule" means a rule the specific intent

of which is to protect the environment or reduce risks to human

health from environmental exposure and that may adversely affect

in a material way the economy, a sector of the economy,

productivity, competition, jobs, the environment, or the public

health and safety of the state or a sector of the state.

(h) The requirements of this section do not apply to state

agency rules that are proposed or adopted on an emergency basis

to protect the environment or to reduce risks to human health

from environmental exposure.

Added by Acts 1997, 75th Leg., ch. 1034, Sec. 1, eff. Sept. 1,

1997.

Sec. 2001.023. NOTICE OF PROPOSED RULE. (a) A state agency

shall give at least 30 days' notice of its intention to adopt a

rule before it adopts the rule.

(b) A state agency shall file notice of the proposed rule with

the secretary of state for publication in the Texas Register in

the manner prescribed by Chapter 2002.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.024. CONTENT OF NOTICE. (a) The notice of a proposed

rule must include:

(1) a brief explanation of the proposed rule;

(2) the text of the proposed rule, except any portion omitted

under Section 2002.014, prepared in a manner to indicate any

words to be added or deleted from the current text;

(3) a statement of the statutory or other authority under which

the rule is proposed to be adopted, including:

(A) a concise explanation of the particular statutory or other

provisions under which the rule is proposed;

(B) the section or article of the code affected; and

(C) a certification that the proposed rule has been reviewed by

legal counsel and found to be within the state agency's authority

to adopt;

(4) a fiscal note showing the name and title of the officer or

employee responsible for preparing or approving the note and

stating for each year of the first five years that the rule will

be in effect:

(A) the additional estimated cost to the state and to local

governments expected as a result of enforcing or administering

the rule;

(B) the estimated reductions in costs to the state and to local

governments as a result of enforcing or administering the rule;

(C) the estimated loss or increase in revenue to the state or to

local governments as a result of enforcing or administering the

rule; and

(D) if applicable, that enforcing or administering the rule does

not have foreseeable implications relating to cost or revenues of

the state or local governments;

(5) a note about public benefits and costs showing the name and

title of the officer or employee responsible for preparing or

approving the note and stating for each year of the first five

years that the rule will be in effect:

(A) the public benefits expected as a result of adoption of the

proposed rule; and

(B) the probable economic cost to persons required to comply

with the rule;

(6) the local employment impact statement prepared under Section

2001.022, if required;

(7) a request for comments on the proposed rule from any

interested person; and

(8) any other statement required by law.

(b) In the notice of a proposed rule that amends any part of an

existing rule:

(1) the text of the entire part of the rule being amended must

be set out;

(2) the language to be deleted must be bracketed and stricken

through; and

(3) the language to be added must be underlined.

(c) In the notice of a proposed rule that is new or that adds a

complete section to an existing rule, the new rule or section

must be set out and underlined.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1067, Sec. 1, eff.

Sept. 1, 1997.

Sec. 2001.025. EFFECTIVE DATE OF NOTICE. Notice of a proposed

rule becomes effective as notice when published in the Texas

Register, except as provided by Section 2001.028.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.026. NOTICE TO PERSONS REQUESTING ADVANCE NOTICE OF

PROPOSED RULES. A state agency shall mail notice of a proposed

rule to each person who has made a timely written request of the

agency for advance notice of its rulemaking proceedings. Failure

to mail the notice does not invalidate an action taken or rule

adopted.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.027. WITHDRAWAL OF PROPOSED RULE. A proposed rule is

withdrawn six months after the date of publication of notice of

the proposed rule in the Texas Register if a state agency has

failed by that time to adopt, adopt as amended, or withdraw the

proposed rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.028. NOTICE OF PROPOSED LAW ENFORCEMENT RULES. Notice

of the adoption of a proposed rule by the Commission on Jail

Standards or the Commission on Law Enforcement Officer Standards

and Education that affects a law enforcement agency of the state

or of a political subdivision of the state is not effective until

the notice is:

(1) published as required by Section 2001.023; and

(2) mailed to each law enforcement agency that may be affected

by the proposed rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.029. PUBLIC COMMENT. (a) Before adopting a rule, a

state agency shall give all interested persons a reasonable

opportunity to submit data, views, or arguments, orally or in

writing.

(b) A state agency shall grant an opportunity for a public

hearing before it adopts a substantive rule if a public hearing

is requested by:

(1) at least 25 persons;

(2) a governmental subdivision or agency; or

(3) an association having at least 25 members.

(c) A state agency shall consider fully all written and oral

submissions about a proposed rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.030. STATEMENT OF REASONS FOR OR AGAINST ADOPTION. On

adoption of a rule, a state agency, if requested to do so by an

interested person either before adoption or not later than the

30th day after the date of adoption, shall issue a concise

statement of the principal reasons for and against its adoption.

The agency shall include in the statement its reasons for

overruling the considerations urged against adoption.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.031. INFORMAL CONFERENCES AND ADVISORY COMMITTEES.

(a) A state agency may use an informal conference or

consultation to obtain the opinions and advice of interested

persons about contemplated rulemaking.

(b) A state agency may appoint committees of experts or

interested persons or representatives of the public to advise the

agency about contemplated rulemaking.

(c) The power of a committee appointed under this section is

advisory only.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.032. LEGISLATIVE REVIEW. (a) Each house of the

legislature by rule shall establish a process under which the

presiding officer of each house refers each proposed state agency

rule to the appropriate standing committee for review before the

rule is adopted.

(b) A state agency shall deliver to the lieutenant governor and

the speaker of the house of representatives a copy of the notice

of a proposed rule when the agency files notice with the

secretary of state under Section 2001.023.

(c) On the vote of a majority of its members, a standing

committee may send to a state agency a statement supporting or

opposing adoption of a proposed rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.033. STATE AGENCY ORDER ADOPTING RULE. (a) A state

agency order finally adopting a rule must include:

(1) a reasoned justification for the rule as adopted consisting

solely of:

(A) a summary of comments received from parties interested in

the rule that shows the names of interested groups or

associations offering comment on the rule and whether they were

for or against its adoption;

(B) a summary of the factual basis for the rule as adopted which

demonstrates a rational connection between the factual basis for

the rule and the rule as adopted; and

(C) the reasons why the agency disagrees with party submissions

and proposals;

(2) a concise restatement of the particular statutory provisions

under which the rule is adopted and of how the agency interprets

the provisions as authorizing or requiring the rule; and

(3) a certification that the rule, as adopted, has been reviewed

by legal counsel and found to be a valid exercise of the agency's

legal authority.

(b) Nothing in this section shall be construed to require

additional analysis of alternatives not adopted by an agency

beyond that required by Subdivision (1)(C) or to require the

reasoned justification to be stated separately from the

statements required in Subdivision (1).

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1999, 76th Leg., ch. 558, Sec. 2, eff.

Sept. 1, 1999.

Sec. 2001.034. EMERGENCY RULEMAKING. (a) A state agency may

adopt an emergency rule without prior notice or hearing, or with

an abbreviated notice and a hearing that it finds practicable, if

the agency:

(1) finds that an imminent peril to the public health, safety,

or welfare, or a requirement of state or federal law, requires

adoption of a rule on fewer than 30 days' notice; and

(2) states in writing the reasons for its finding under

Subdivision (1).

(b) A state agency shall set forth in an emergency rule's

preamble the finding required by Subsection (a).

(c) A rule adopted under this section may be effective for not

longer than 120 days and may be renewed once for not longer than

60 days. An identical rule may be adopted under Sections 2001.023

and 2001.029.

(d) A state agency shall file an emergency rule adopted under

this section and the agency's written reasons for the adoption in

the office of the secretary of state for publication in the Texas

Register in the manner prescribed by Chapter 2002.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.035. SUBSTANTIAL COMPLIANCE REQUIREMENT; TIME LIMIT ON

PROCEDURAL CHALLENGE. (a) A rule is voidable unless a state

agency adopts it in substantial compliance with Sections

2001.0225 through 2001.034.

(b) A person must initiate a proceeding to contest a rule on the

ground of noncompliance with the procedural requirements of

Sections 2001.0225 through 2001.034 not later than the second

anniversary of the effective date of the rule.

(c) A state agency substantially complies with the requirements

of Section 2001.033 if the agency's reasoned justification

demonstrates in a relatively clear and logical fashion that the

rule is a reasonable means to a legitimate objective.

(d) A mere technical defect that does not result in prejudice to

a person's rights or privileges is not grounds for invalidation

of a rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1999, 76th Leg., ch. 558, Sec. 3, eff.

Sept. 1, 1999.

Sec. 2001.036. EFFECTIVE DATE OF RULES; EFFECT OF FILING WITH

SECRETARY OF STATE. (a) A rule takes effect 20 days after the

date on which it is filed in the office of the secretary of

state, except that:

(1) if a later date is required by statute or specified in the

rule, the later date is the effective date;

(2) if a state agency finds that an expedited effective date is

necessary because of imminent peril to the public health, safety,

or welfare, and subject to applicable constitutional or statutory

provisions, a rule is effective immediately on filing with the

secretary of state, or on a stated date less than 20 days after

the filing date; and

(3) if a federal statute or regulation requires that a state

agency implement a rule by a certain date, the rule is effective

on the prescribed date.

(b) A state agency shall file with its rule the finding

described by Subsection (a)(2), if applicable, and a brief

statement of the reasons for the finding. The agency shall take

appropriate measures to make emergency rules known to persons who

may be affected by them.

(c) A rule adopted as provided by Subsection (a)(3) shall be

filed in the office of the secretary of state and published in

the Texas Register.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.037. OFFICIAL TEXT OF RULE. If a conflict exists, the

official text of a rule is the text on file with the secretary of

state and not the text published in the Texas Register or on file

with the issuing state agency.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.038. DECLARATORY JUDGMENT. (a) The validity or

applicability of a rule, including an emergency rule adopted

under Section 2001.034, may be determined in an action for

declaratory judgment if it is alleged that the rule or its

threatened application interferes with or impairs, or threatens

to interfere with or impair, a legal right or privilege of the

plaintiff.

(b) The action may be brought only in a Travis County district

court.

(c) The state agency must be made a party to the action.

(d) A court may render a declaratory judgment without regard to

whether the plaintiff requested the state agency to rule on the

validity or applicability of the rule in question.

(e) An action brought under this section may not be used to

delay or stay a hearing in which a suspension, revocation, or

cancellation of a license by a state agency is at issue before

the agency after notice of the hearing has been given.

(f) A Travis County district court in which an action is brought

under this section, on its own motion or the motion of any party,

may request transfer of the action to the Court of Appeals for

the Third Court of Appeals District if the district court finds

that the public interest requires a prompt, authoritative

determination of the validity or applicability of the rule in

question and the case would ordinarily be appealed. After filing

of the district court's request with the court of appeals,

transfer of the action may be granted by the court of appeals if

it agrees with the findings of the district court concerning the

application of the statutory standards to the action. On entry of

an order by the court of appeals granting transfer, the action is

transferred to the court of appeals for decision, and the

validity or applicability of the rule in question is subject to

judicial review by the court of appeals. The administrative

record and the district court record shall be filed by the

district clerk with the clerk of the court of appeals. The court

of appeals may direct the district court to conduct any necessary

evidentiary hearings in connection with the action.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1999, 76th Leg., ch. 894, Sec. 1, eff.

Sept. 1, 1999.

Sec. 2001.039. AGENCY REVIEW OF EXISTING RULES. (a) A state

agency shall review and consider for readoption each of its rules

in accordance with this section.

(b) A state agency shall review a rule not later than the fourth

anniversary of the date on which the rule takes effect and every

four years after that date. The adoption of an amendment to an

existing rule does not affect the dates on which the rule must be

reviewed except that the effective date of an amendment is

considered to be the effective date of the rule if the agency

formally conducts a review of the rule in accordance with this

section as part of the process of adopting the amendment.

(c) The state agency shall readopt, readopt with amendments, or

repeal a rule as the result of reviewing the rule under this

section.

(d) The procedures of this subchapter relating to the original

adoption of a rule apply to the review of a rule and to the

resulting repeal, readoption, or readoption with amendments of

the rule, except as provided by this subsection. Publishing the

Texas Administrative Code citation to a rule under review

satisfies the requirements of this subchapter relating to

publishing the text of the rule unless the agency readopts the

rule with amendments as a result of the review.

(e) A state agency's review of a rule must include an assessment

of whether the reasons for initially adopting the rule continue

to exist.

Added by Acts 1999, 76th Leg., ch. 1499, Sec. 1.11(a), eff. Sept.

1, 1999.

Sec. 2001.040. SCOPE AND EFFECT OF ORDER INVALIDATING AGENCY

RULE. If a court finds that an agency has not substantially

complied with one or more procedural requirements of Sections

2001.0225 through 2001.034, the court may remand the rule, or a

portion of the rule, to the agency and, if it does so remand,

shall provide a reasonable time for the agency to either revise

or readopt the rule through established procedure. During the

remand period, the rule shall remain effective unless the court

finds good cause to invalidate the rule or a portion of the rule,

effective as of the date of the court's order.

Added by Acts 1999, 76th Leg., ch. 558, Sec. 4, eff. Sept. 1,

1999. Renumbered from Sec. 2001.039 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(64), eff. Sept. 1, 2001.

Sec. 2001.041. COMPLIANCE WITH LAW ON DECENTRALIZATION. A state

agency rule, order, or guide relating to decentralization of

agency services or programs must include a statement of the

manner in which the agency complied with Section 391.0091, Local

Government Code.

Added by Acts 2003, 78th Leg., ch. 718, Sec. 2, eff. Sept. 1,

2003.

SUBCHAPTER C. CONTESTED CASES: GENERAL RIGHTS AND PROCEDURES

Sec. 2001.051. OPPORTUNITY FOR HEARING AND PARTICIPATION; NOTICE

OF HEARING. In a contested case, each party is entitled to an

opportunity:

(1) for hearing after reasonable notice of not less than 10

days; and

(2) to respond and to present evidence and argument on each

issue involved in the case.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.052. CONTENTS OF NOTICE. (a) Notice of a hearing in

a contested case must include:

(1) a statement of the time, place, and nature of the hearing;

(2) a statement of the legal authority and jurisdiction under

which the hearing is to be held;

(3) a reference to the particular sections of the statutes and

rules involved; and

(4) a short, plain statement of the matters asserted.

(b) If a state agency or other party is unable to state matters

in detail at the time notice under this section is served, an

initial notice may be limited to a statement of the issues

involved. On timely written application, a more definite and

detailed statement shall be furnished not less than three days

before the date set for the hearing.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.053. RIGHT TO COUNSEL. (a) Each party to a contested

case is entitled to the assistance of counsel before a state

agency.

(b) A party may expressly waive the right to assistance of

counsel.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.054. LICENSES. (a) The provisions of this chapter

concerning contested cases apply to the grant, denial, or renewal

of a license that is required to be preceded by notice and

opportunity for hearing.

(b) If a license holder makes timely and sufficient application

for the renewal of a license or for a new license for an activity

of a continuing nature, the existing license does not expire

until the application has been finally determined by the state

agency. If the application is denied or the terms of the new

license are limited, the existing license does not expire until

the last day for seeking review of the agency order or a later

date fixed by order of the reviewing court.

(c) A revocation, suspension, annulment, or withdrawal of a

license is not effective unless, before institution of state

agency proceedings:

(1) the agency gives notice by personal service or by registered

or certified mail to the license holder of facts or conduct

alleged to warrant the intended action; and

(2) the license holder is given an opportunity to show

compliance with all requirements of law for the retention of the

license.

(d) A license described in Subsection (a) remains valid unless

it expires without timely application for renewal, is amended,

revoked, suspended, annulled, or withdrawn, or the denial of a

renewal application becomes final. The term or duration of a

license described in Subsection (a) is tolled during the period

the license is subjected to judicial review. However, the term or

duration of a license is not tolled if, during judicial review,

the licensee engages in the activity for which the license was

issued.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 589, Sec. 1, eff.

Sept. 1, 1995.

Sec. 2001.055. INTERPRETERS FOR DEAF OR HEARING IMPAIRED PARTIES

AND WITNESSES. (a) In a contested case, a state agency shall

provide an interpreter whose qualifications are approved by the

Texas Commission for the Deaf and Hard of Hearing to interpret

the proceedings for a party or subpoenaed witness who is deaf or

hearing impaired.

(b) In this section, "deaf or hearing impaired" means having a

hearing impairment, whether or not accompanied by a speech

impairment, that inhibits comprehension of the proceedings or

communication with others.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 835, Sec. 18, eff.

Sept. 1, 1995.

Sec. 2001.056. INFORMAL DISPOSITION OF CONTESTED CASE. Unless

precluded by law, an informal disposition may be made of a

contested case by:

(1) stipulation;

(2) agreed settlement;

(3) consent order; or

(4) default.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.057. CONTINUANCES. (a) A state agency may continue a

hearing in a contested case from time to time and from place to

place.

(b) The notice of the hearing must indicate the times and places

at which the hearing may be continued.

(c) If a hearing is not concluded on the day it begins, a state

agency shall, to the extent possible, proceed with the hearing on

each subsequent working day until the hearing is concluded.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.058. HEARING CONDUCTED BY STATE OFFICE OF

ADMINISTRATIVE HEARINGS. (a) This section applies only to an

administrative law judge employed by the State Office of

Administrative Hearings.

(b) An administrative law judge who conducts a contested case

hearing shall consider applicable agency rules or policies in

conducting the hearing, but the state agency deciding the case

may not supervise the administrative law judge.

(c) A state agency shall provide the administrative law judge

with a written statement of applicable rules or policies.

(d) A state agency may not attempt to influence the finding of

facts or the administrative law judge's application of the law in

a contested case except by proper evidence and legal argument.

(e) A state agency may change a finding of fact or conclusion of

law made by the administrative law judge, or may vacate or modify

an order issued by the administrative judge, only if the agency

determines:

(1) that the administrative law judge did not properly apply or

interpret applicable law, agency rules, written policies provided

under Subsection (c), or prior administrative decisions;

(2) that a prior administrative decision on which the

administrative law judge relied is incorrect or should be

changed; or

(3) that a technical error in a finding of fact should be

changed.

The agency shall state in writing the specific reason and legal

basis for a change made under this subsection.

(f) A state agency by rule may provide that, in a contested case

before the agency that concerns licensing in relation to an

occupational license and that is not disposed of by stipulation,

agreed settlement, or consent order, the administrative law judge

shall render the final decision in the contested case. If a state

agency adopts such a rule, the following provisions apply to

contested cases covered by the rule:

(1) the administrative law judge shall render the decision that

may become final under Section 2001.144 not later than the 60th

day after the latter of the date on which the hearing is finally

closed or the date by which the judge has ordered all briefs,

reply briefs, and other posthearing documents to be filed, and

the 60-day period may be extended only with the consent of all

parties, including the occupational licensing agency;

(2) the administrative law judge shall include in the findings

of fact and conclusions of law a determination whether the

license at issue is primarily a license to engage in an

occupation;

(3) the State Office of Administrative Hearings is the state

agency with which a motion for rehearing or a reply to a motion

for rehearing is filed under Section 2001.146 and is the state

agency that acts on the motion or extends a time period under

Section 2001.146;

(4) the State Office of Administrative Hearings is the state

agency responsible for sending a copy of the decision that may

become final under Section 2001.144 or an order ruling on a

motion for rehearing to the parties, including the occupational

licensing agency, in accordance with Section 2001.142; and

(5) the occupational licensing agency and any other party to the

contested case is entitled to obtain judicial review of the final

decision in accordance with this chapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1167, Sec. 1, eff.

Sept. 1, 1997.

Sec. 2001.059. TRANSCRIPT. (a) On the written request of a

party to a contested case, proceedings, or any part of the

proceedings, shall be transcribed.

(b) A state agency may pay the cost of a transcript or may

assess the cost to one or more parties.

(c) This chapter does not limit a state agency to a stenographic

record of proceedings.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.060. RECORD. The record in a contested case includes:

(1) each pleading, motion, and intermediate ruling;

(2) evidence received or considered;

(3) a statement of matters officially noticed;

(4) questions and offers of proof, objections, and rulings on

them;

(5) proposed findings and exceptions;

(6) each decision, opinion, or report by the officer presiding

at the hearing; and

(7) all staff memoranda or data submitted to or considered by

the hearing officer or members of the agency who are involved in

making the decision.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.061. EX PARTE CONSULTATIONS. (a) Unless required for

the disposition of an ex parte matter authorized by law, a member

or employee of a state agency assigned to render a decision or to

make findings of fact and conclusions of law in a contested case

may not directly or indirectly communicate in connection with an

issue of fact or law with a state agency, person, party, or a

representative of those entities, except on notice and

opportunity for each party to participate.

(b) A state agency member may communicate ex parte with another

member of the agency unless prohibited by other law.

(c) Under Section 2001.090, a member or employee of a state

agency assigned to render a decision or to make findings of fact

and conclusions of law in a contested case may communicate ex

parte with an agency employee who has not participated in a

hearing in the case for the purpose of using the special skills

or knowledge of the agency and its staff in evaluating the

evidence.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.062. EXAMINATION OF RECORD BY STATE AGENCY; PROPOSAL

FOR DECISION. (a) In a contested case, if a majority of the

state agency officials who are to render a final decision have

not heard the case or read the record, the decision, if adverse

to a party other than the agency itself, may not be made until:

(1) a proposal for decision is served on each party; and

(2) an opportunity is given to each adversely affected party to

file exceptions and present briefs to the officials who are to

render the decision.

(b) If a party files exceptions or presents briefs, an

opportunity shall be given to each other party to file replies to

the exceptions or briefs.

(c) A proposal for decision must contain a statement of the

reasons for the proposed decision and of each finding of fact and

conclusion of law necessary to the proposed decision. The

statement must be prepared by the individual who conducted the

hearing or by one who has read the record.

(d) A proposal for decision may be amended in response to

exceptions, replies, or briefs submitted by the parties without

again being served on the parties.

(e) The parties by written stipulation may waive compliance with

this section.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER D. CONTESTED CASES: EVIDENCE, WITNESSES, AND DISCOVERY

Sec. 2001.081. RULES OF EVIDENCE. The rules of evidence as

applied in a nonjury civil case in a district court of this state

shall apply to a contested case except that evidence inadmissible

under those rules may be admitted if the evidence is:

(1) necessary to ascertain facts not reasonably susceptible of

proof under those rules;

(2) not precluded by statute; and

(3) of a type on which a reasonably prudent person commonly

relies in the conduct of the person's affairs.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.082. EXCLUSION OF EVIDENCE. In a contested case,

evidence that is irrelevant, immaterial, or unduly repetitious

shall be excluded.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.083. PRIVILEGE. In a contested case, a state agency

shall give effect to the rules of privilege recognized by law.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.084. OBJECTIONS TO EVIDENCE. An objection to an

evidentiary offer in a contested case may be made and shall be

noted in the record.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.085. WRITTEN EVIDENCE. Subject to the requirements of

Sections 2001.081 through 2001.084, any part of the evidence in a

contested case may be received in writing if:

(1) a hearing will be expedited; and

(2) the interests of the parties will not be substantially

prejudiced.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.086. DOCUMENTARY EVIDENCE. A copy or excerpt of

documentary evidence may be received in a contested case if an

original document is not readily available. On request, a party

shall be given an opportunity to compare the copy or excerpt with

the original document.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.087. CROSS-EXAMINATION. In a contested case, a party

may conduct cross-examination required for a full and true

disclosure of the facts.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.088. WITNESSES. A state agency may swear witnesses

and take their testimony under oath in connection with a

contested case held under this chapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.089. ISSUANCE OF SUBPOENA. On its own motion or on

the written request of a party to a contested case pending before

it, a state agency shall issue a subpoena addressed to the

sheriff or to a constable to require the attendance of a witness

or the production of books, records, papers, or other objects

that may be necessary and proper for the purposes of a proceeding

if:

(1) good cause is shown; and

(2) an amount is deposited that will reasonably ensure payment

of the amounts estimated to accrue under Section 2001.103.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.090. OFFICIAL NOTICE; STATE AGENCY EVALUATION OF

EVIDENCE. (a) In connection with a hearing held under this

chapter, official notice may be taken of:

(1) all facts that are judicially cognizable; and

(2) generally recognized facts within the area of the state

agency's specialized knowledge.

(b) Each party shall be notified either before or during the

hearing, or by reference in a preliminary report or otherwise, of

the material officially noticed, including staff memoranda or

information.

(c) Each party is entitled to be given an opportunity to contest

material that is officially noticed.

(d) The special skills or knowledge of the state agency and its

staff may be used in evaluating the evidence.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.091. DISCOVERY FROM PARTIES: ORDERS FOR PRODUCTION OR

INSPECTION. (a) On the motion of a party, on notice to each

other party, and subject to limitations of the kind provided for

discovery under the Texas Rules of Civil Procedure, a state

agency in which a contested case is pending may order a party:

(1) to produce and to permit the party making the motion or a

person on behalf of that party to inspect and to copy or

photograph a designated document, paper, book, account, letter,

photograph, or tangible thing in the party's possession, custody,

or control that:

(A) is not privileged; and

(B) constitutes or contains, or is reasonably calculated to lead

to the discovery of, evidence that is material to a matter

involved in the contested case; and

(2) to permit entry to designated land or other property in the

party's possession or control to inspect, measure, survey, or

photograph the property or a designated object or operation on

the property that may be material to a matter involved in the

contested case.

(b) An order under this section:

(1) must specify the time, place, and manner of making the

inspection, measurement, or survey or of making copies or

photographs; and

(2) may prescribe other terms and conditions that are just.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.092. DISCOVERY FROM PARTIES: IDENTITY OF WITNESS OR

POTENTIAL PARTY; EXPERT REPORTS. (a) The identity and location

of a potential party or witness in a contested case may be

obtained from a communication or other paper in a party's

possession, custody, or control.

(b) A party may be required to produce and permit the inspection

and copying of a report, including factual observations and

opinions, of an expert who will be called as a witness.

(c) This section does not extend to other communications:

(1) made after the occurrence or transaction on which the

contested case is based;

(2) made in connection with the prosecution, investigation, or

defense of the contested case or the circumstances from which the

case arose; and

(3) that are:

(A) written statements of witnesses;

(B) in writing and between agents, representatives, or employees

of a party; or

(C) between a party and the party's agent, representative, or

employee.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.093. DISCOVERY FROM PARTIES: COPY OF PREVIOUS

STATEMENT. (a) On request, a person, including a person who is

not a party, is entitled to obtain a copy of a statement in a

party's possession, custody, or control that the person has

previously made about the contested case or its subject matter.

(b) A person whose request under Subsection (a) is refused may

move for a state agency order under Section 2001.091.

(c) In this section, a statement is considered to be previously

made if it is:

(1) a written statement signed or otherwise adopted or approved

by the person making it; or

(2) a stenographic, mechanical, electrical, or other recording,

or a transcription of the recording, which is a substantially

verbatim recital of an oral statement by the person making it and

that was contemporaneously recorded.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.094. ISSUANCE OF COMMISSION REQUIRING DEPOSITION. (a)

On its own motion or on the written request of a party to a

contested case pending before it, and on deposit of an amount

that will reasonably ensure payment of the amount estimated to

accrue under Section 2001.103, a state agency shall issue a

commission, addressed to the officers authorized by statute to

take a deposition, requiring that the deposition of a witness be

taken.

(b) The commission shall authorize the issuance of any subpoena

necessary to require that the witness appear and produce, at the

time the deposition is taken, books, records, papers, or other

objects that may be necessary and proper for the purpose of the

proceeding.

(c) The commission shall require an officer to whom it is

addressed to:

(1) examine the witness before the officer on the date and at

the place named in the commission; and

(2) take answers under oath to questions asked the witness by a

party to the proceeding, the state agency, or an attorney for a

party or the agency.

(d) The commission shall require the witness to remain in

attendance from day to day until the deposition is begun and

completed.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.095. DEPOSITION OF STATE AGENCY BOARD MEMBER. The

deposition of a member of a state agency board may not be taken

after a date has been set for hearing in a contested case.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.096. PLACE OF DEPOSITION. A deposition in a contested

case shall be taken in the county where the witness:

(1) resides;

(2) is employed; or

(3) regularly transacts business in person.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.097. OBJECTIONS TO DEPOSITION TESTIMONY. (a) The

officer taking an oral deposition in a contested case may not:

(1) sustain an objection to the testimony taken; or

(2) exclude testimony.

(b) An objection to deposition testimony is reserved for the

action of the state agency before which the matter is pending.

(c) The administrator or other officer conducting the contested

case hearing may consider objections other than those made at the

taking of the testimony.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.098. PREPARATION OF DEPOSITION. (a) A deposition

witness in a contested case shall be carefully examined.

(b) The testimony shall be reduced to writing or typewriting by

the officer taking the deposition, a person under the officer's

personal supervision, or the deposition witness in the officer's

presence.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.099. SUBMISSION OF DEPOSITION TO WITNESS; SIGNATURE.

(a) A deposition in a contested case shall be submitted to the

witness for examination after the testimony is fully transcribed

and shall be read to or by the witness.

(b) The witness and the parties may waive in writing the

examination and reading of a deposition under Subsection (a).

(c) If the witness is a party to the contested case pending

before the agency with an attorney of record, the deposition

officer shall notify the attorney of record in writing by

registered or certified mail that the deposition is ready for

examination and reading at the office of the deposition officer

and that if the witness does not appear and examine, read, and

sign the deposition before the 21st day after the date on which

the notice is mailed, the deposition shall be returned as

provided by this subchapter for unsigned depositions.

(d) A witness must sign a deposition at least three days before

the date of the hearing or the deposition shall be returned as an

unsigned deposition as provided by this subchapter.

(e) The officer taking a deposition shall enter on the

deposition:

(1) a change in form or substance that the witness desires to

make; and

(2) a statement of the reasons given by the witness for making

the change.

(f) After the deposition officer has entered any change and a

statement of reasons for the change on the deposition under

Subsection (e), the witness shall sign the deposition unless:

(1) the parties present at the taking of the deposition by

stipulation waive the signing;

(2) the witness is ill;

(3) the witness cannot be found; or

(4) the witness refuses to sign.

(g) If a deposition is not signed by the witness, the officer

shall sign it and state on the record the fact of the witness's

waiver, illness, absence, or refusal to sign and the reason

given, if any, for failure to sign. The deposition may then be

used as though signed by the witness.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.100. RETURN OF DEPOSITION TO STATE AGENCY. (a) A

deposition may be returned to the state agency before which the

contested case is pending by mail or by a party interested in

taking the deposition or another person.

(b) For a deposition returned by mail, the state agency shall:

(1) endorse on the deposition the fact that it was received from

the post office; and

(2) have it signed by the agency employee receiving the

deposition.

(c) For a deposition returned by means other than mail, the

person delivering it to the state agency shall execute an

affidavit before the agency stating that:

(1) the person received it from the hands of the officer before

whom it was taken;

(2) it has not been out of the person's possession since the

person received it; and

(3) it has not been altered.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.101. OPENING OF DEPOSITION BY STATE AGENCY EMPLOYEE.

(a) At the request of a party or the party's counsel, a

deposition in a contested case that is filed with a state agency

may be opened by an employee of the agency.

(b) A state agency employee who opens a deposition shall:

(1) endorse on the deposition the day and at whose request it

was opened; and

(2) sign the deposition.

(c) The deposition shall remain on file with the state agency

for the inspection of any party.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.102. USE OF DEPOSITION. A party is entitled to use a

deposition taken under this subchapter in the contested case

pending before the state agency without regard to whether a

cross-interrogatory has been propounded.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.103. EXPENSES OF WITNESS OR DEPONENT. (a) A witness

or deponent in a contested case who is not a party and who is

subpoenaed or otherwise compelled to attend a hearing or

proceeding to give a deposition or to produce books, records,

papers, or other objects that may be necessary and proper for the

purposes of a proceeding under this chapter is entitled to

receive:

(1) 10 cents for each mile, or a greater amount prescribed by

state agency rule, for going to and returning from the place of

the hearing or deposition if the place is more than 25 miles from

the person's place of residence and the person uses the person's

personally owned or leased motor vehicle for the travel;

(2) reimbursement of the transportation expenses of the witness

or deponent for going to and returning from the place where the

hearing is held or the deposition is taken, if the place is more

than 25 miles from the person's place of residence and the person

does not use the person's personally owned or leased motor

vehicle for the travel;

(3) reimbursement of the meal and lodging expenses of the

witness or deponent while going to and returning from the place

where the hearing is held or deposition is taken, if the place is

more than 25 miles from the person's place of residence; and

(4) $10, or a greater amount prescribed by state agency rule,

for each day or part of a day that the person is necessarily

present.

(b) Amounts required to be reimbursed or paid under this section

shall be reimbursed or paid by the party or agency at whose

request the witness appears or the deposition is taken. An agency

required to make a payment or reimbursement shall present to the

comptroller vouchers:

(1) sworn by the witness or deponent; and

(2) appr

State Codes and Statutes

Statutes > Texas > Government-code > Title-10-general-government > Chapter-2001-administrative-procedure

GOVERNMENT CODE

TITLE 10. GENERAL GOVERNMENT

SUBTITLE A. ADMINISTRATIVE PROCEDURE AND PRACTICE

CHAPTER 2001. ADMINISTRATIVE PROCEDURE

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2001.001. PURPOSE. It is the public policy of the state

through this chapter to:

(1) provide minimum standards of uniform practice and procedure

for state agencies;

(2) provide for public participation in the rulemaking process;

and

(3) restate the law of judicial review of state agency action.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.002. SHORT TITLE. This chapter may be cited as the

Administrative Procedure Act.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.003. DEFINITIONS. In this chapter:

(1) "Contested case" means a proceeding, including a ratemaking

or licensing proceeding, in which the legal rights, duties, or

privileges of a party are to be determined by a state agency

after an opportunity for adjudicative hearing.

(2) "License" includes the whole or a part of a state agency

permit, certificate, approval, registration, or similar form of

permission required by law.

(3) "Licensing" includes a state agency process relating to the

granting, denial, renewal, revocation, suspension, annulment,

withdrawal, or amendment of a license.

(4) "Party" means a person or state agency named or admitted as

a party.

(5) "Person" means an individual, partnership, corporation,

association, governmental subdivision, or public or private

organization that is not a state agency.

(6) "Rule":

(A) means a state agency statement of general applicability

that:

(i) implements, interprets, or prescribes law or policy; or

(ii) describes the procedure or practice requirements of a state

agency;

(B) includes the amendment or repeal of a prior rule; and

(C) does not include a statement regarding only the internal

management or organization of a state agency and not affecting

private rights or procedures.

(7) "State agency" means a state officer, board, commission, or

department with statewide jurisdiction that makes rules or

determines contested cases. The term includes the State Office

of Administrative Hearings for the purpose of determining

contested cases. The term does not include:

(A) a state agency wholly financed by federal money;

(B) the legislature;

(C) the courts;

(D) the Texas Department of Insurance, as regards proceedings

and activities under Title 5, Labor Code, of the department, the

commissioner of insurance, or the commissioner of workers'

compensation; or

(E) an institution of higher education.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Amended by:

Acts 2005, 79th Leg., Ch.

265, Sec. 6.007, eff. September 1, 2005.

Sec. 2001.004. REQUIREMENT TO ADOPT RULES OF PRACTICE AND INDEX

RULES, ORDERS, AND DECISIONS. In addition to other requirements

under law, a state agency shall:

(1) adopt rules of practice stating the nature and requirements

of all available formal and informal procedures;

(2) index, cross-index to statute, and make available for public

inspection all rules and other written statements of policy or

interpretations that are prepared, adopted, or used by the agency

in discharging its functions; and

(3) index, cross-index to statute, and make available for public

inspection all final orders, decisions, and opinions.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.005. RULE, ORDER, OR DECISION NOT EFFECTIVE UNTIL

INDEXED. (a) A state agency rule, order, or decision made or

issued on or after January 1, 1976, is not valid or effective

against a person or party, and may not be invoked by an agency,

until the agency has indexed the rule, order, or decision and

made it available for public inspection as required by this

chapter.

(b) This section does not apply in favor of a person or party

that has actual knowledge of the rule, order, or decision.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.006. ACTIONS PREPARATORY TO IMPLEMENTATION OF STATUTE

OR RULE. (a) In this section:

(1) "State agency" means a department, board, commission,

committee, council, agency, office, or other entity in the

executive, legislative, or judicial branch of state government.

The term includes an institution of higher education as defined

by Section 61.003, Education Code, and includes those entities

excluded from the general definition of "state agency" under

Section 2001.003(7).

(2) Legislation is considered to have "become law" if it has

been passed by the legislature and:

(A) the governor has approved it;

(B) the governor has filed it with the secretary of state,

having neither approved nor disapproved it;

(C) the time for gubernatorial action has expired under Section

14, Article IV, Texas Constitution, the governor having neither

approved nor disapproved it; or

(D) the governor has disapproved it and the legislature has

overridden the governor's disapproval in accordance with Section

14, Article IV, Texas Constitution.

(b) In preparation for the implementation of legislation that

has become law but has not taken effect, a state agency may adopt

a rule or take other administrative action that the agency

determines is necessary or appropriate and that the agency would

have been authorized to take had the legislation been in effect

at the time of the action.

(c) In preparation for the implementation of a rule that has

been finally adopted by a state agency but has not taken effect,

a state agency may take administrative action that the agency

determines is necessary or appropriate and that the agency would

have been authorized to take had the rule been in effect at the

time of the action.

(d) A rule adopted under Subsection (b) may not take effect

earlier than the legislation being implemented takes effect.

Administrative action taken under Subsection (b) or (c) may not

result in implementation or enforcement of the applicable

legislation or rule before the legislation or rule takes effect.

Added by Acts 1999, 76th Leg., ch. 558, Sec. 1, eff. Sept. 1,

1999.

Sec. 2001.007. CERTAIN EXPLANATORY INFORMATION MADE AVAILABLE

THROUGH INTERNET. (a) A state agency shall make available

through a generally accessible Internet site:

(1) the text of its rules; and

(2) any material, such as a letter, opinion, or compliance

manual, that explains or interprets one or more of its rules and

that the agency has issued for general distribution to persons

affected by one or more of its rules.

(b) A state agency shall design the generally accessible

Internet site so that a member of the public may send questions

about the agency's rules to the agency electronically and receive

responses to the questions from the agency electronically. If the

agency's rules and the agency's explanatory and interpretive

materials are made available at different Internet sites, both

sites shall be designed in compliance with this subsection.

(c) Repealed by Acts 2005, 79th Leg., Ch. 750, Sec. 2(a), eff.

September 1, 2006.

(d) A state agency may comply with this section through the

actions of another agency, such as the secretary of state, on the

agency's behalf.

Added by Acts 1999, 76th Leg., ch. 1233, Sec. 1, eff. June 18,

1999. Renumbered from Sec. 2001.006 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(63), eff. Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

750, Sec. 2(a), eff. September 1, 2006.

SUBCHAPTER B. RULEMAKING

Sec. 2001.021. PETITION FOR ADOPTION OF RULES. (a) An

interested person by petition to a state agency may request the

adoption of a rule.

(b) A state agency by rule shall prescribe the form for a

petition under this section and the procedure for its submission,

consideration, and disposition.

(c) Not later than the 60th day after the date of submission of

a petition under this section, a state agency shall:

(1) deny the petition in writing, stating its reasons for the

denial; or

(2) initiate a rulemaking proceeding under this subchapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.022. LOCAL EMPLOYMENT IMPACT STATEMENTS. (a) A state

agency shall determine whether a rule may affect a local economy

before proposing the rule for adoption. If a state agency

determines that a proposed rule may affect a local economy, the

agency shall prepare a local employment impact statement for the

proposed rule. The impact statement must describe in detail the

probable effect of the rule on employment in each geographic area

affected by the rule for each year of the first five years that

the rule will be in effect and may include other factors at the

agency's discretion.

(b) This section does not apply to the adoption of an emergency

rule.

(c) Failure to comply with this section does not impair the

legal effect of a rule adopted under this chapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 2001, 77th Leg., ch. 871, Sec. 1, eff.

Sept. 1, 2001.

Sec. 2001.0225. REGULATORY ANALYSIS OF MAJOR ENVIRONMENTAL

RULES. (a) This section applies only to a major environmental

rule adopted by a state agency, the result of which is to:

(1) exceed a standard set by federal law, unless the rule is

specifically required by state law;

(2) exceed an express requirement of state law, unless the rule

is specifically required by federal law;

(3) exceed a requirement of a delegation agreement or contract

between the state and an agency or representative of the federal

government to implement a state and federal program; or

(4) adopt a rule solely under the general powers of the agency

instead of under a specific state law.

(b) Before adopting a major environmental rule subject to this

section, a state agency shall conduct a regulatory analysis that:

(1) identifies the problem the rule is intended to address;

(2) determines whether a new rule is necessary to address the

problem; and

(3) considers the benefits and costs of the proposed rule in

relationship to state agencies, local governments, the public,

the regulated community, and the environment.

(c) When giving notice of a major environmental rule subject to

this section, a state agency shall incorporate into the fiscal

note required by Section 2001.024 a draft impact analysis

describing the anticipated effects of the proposed rule. The

draft impact analysis, at a minimum, must:

(1) identify the benefits that the agency anticipates from

adoption and implementation of the rule, including reduced risks

to human health, safety, or the environment;

(2) identify the costs that the agency anticipates state

agencies, local governments, the public, and the regulated

community will experience after implementation of the rule;

(3) describe the benefits and costs anticipated from

implementation of the rule in as quantitative a manner as

feasible, but including a qualitative description when a

quantitative description is not feasible or adequately

descriptive;

(4) describe reasonable alternative methods for achieving the

purpose of the rule that were considered by the agency and

provide the reasons for rejecting those alternatives in favor of

the proposed rule;

(5) identify the data and methodology used in performing the

analysis required by this section;

(6) provide an explanation of whether the proposed rule

specifies a single method of compliance, and, if so, explain why

the agency determines that a specified method of compliance is

preferable to adopting a flexible regulatory approach, such as a

performance-oriented, voluntary, or market-based approach;

(7) state that there is an opportunity for public comment on the

draft impact analysis under Section 2001.029 and that all

comments will be addressed in the publication of the final

regulatory analysis; and

(8) provide information in such a manner that a reasonable

person reading the analysis would be able to identify the impacts

of the proposed rule.

(d) After considering public comments submitted under Section

2001.029 and determining that a proposed rule should be adopted,

the agency shall prepare a final regulatory analysis that

complies with Section 2001.033. Additionally, the agency shall

find that, compared to the alternative proposals considered and

rejected, the rule will result in the best combination of

effectiveness in obtaining the desired results and of economic

costs not materially greater than the costs of any alternative

regulatory method considered.

(e) In preparing the draft impact analysis before publication

for comment and the final regulatory analysis for the agency

order adopting the rule, the state agency shall consider that the

purpose of this requirement is to identify for the public and the

regulated community the information that was considered by the

agency, the information that the agency determined to be relevant

and reliable, and the assumptions and facts on which the agency

made its regulatory decision. In making its final regulatory

decision, the agency shall assess:

(1) all information submitted to it, whether quantitative or

qualitative, consistent with generally accepted scientific

standards;

(2) actual data where possible; and

(3) assumptions that reflect actual impacts that the regulation

is likely to impose.

(f) A person who submitted public comment in accordance with

Section 2001.029 may challenge the validity of a major

environmental rule that is not proposed and adopted in accordance

with the procedural requirements of this section by filing an

action for declaratory judgment under Section 2001.038 not later

than the 30th day after the effective date of the rule. If a

court determines that a major environmental rule was not proposed

and adopted in accordance with the procedural requirements of

this section, the rule is invalid.

(g) In this section:

(1) "Benefit" means a reasonably identifiable, significant,

direct or indirect, favorable effect, including a quantifiable or

nonquantifiable environmental, health, or economic effect, that

is expected to result from implementation of a rule.

(2) "Cost" means a reasonably identifiable, significant, direct

or indirect, adverse effect, including a quantifiable or

nonquantifiable environmental, health, or economic effect, that

is expected to result from implementation of a rule.

(3) "Major environmental rule" means a rule the specific intent

of which is to protect the environment or reduce risks to human

health from environmental exposure and that may adversely affect

in a material way the economy, a sector of the economy,

productivity, competition, jobs, the environment, or the public

health and safety of the state or a sector of the state.

(h) The requirements of this section do not apply to state

agency rules that are proposed or adopted on an emergency basis

to protect the environment or to reduce risks to human health

from environmental exposure.

Added by Acts 1997, 75th Leg., ch. 1034, Sec. 1, eff. Sept. 1,

1997.

Sec. 2001.023. NOTICE OF PROPOSED RULE. (a) A state agency

shall give at least 30 days' notice of its intention to adopt a

rule before it adopts the rule.

(b) A state agency shall file notice of the proposed rule with

the secretary of state for publication in the Texas Register in

the manner prescribed by Chapter 2002.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.024. CONTENT OF NOTICE. (a) The notice of a proposed

rule must include:

(1) a brief explanation of the proposed rule;

(2) the text of the proposed rule, except any portion omitted

under Section 2002.014, prepared in a manner to indicate any

words to be added or deleted from the current text;

(3) a statement of the statutory or other authority under which

the rule is proposed to be adopted, including:

(A) a concise explanation of the particular statutory or other

provisions under which the rule is proposed;

(B) the section or article of the code affected; and

(C) a certification that the proposed rule has been reviewed by

legal counsel and found to be within the state agency's authority

to adopt;

(4) a fiscal note showing the name and title of the officer or

employee responsible for preparing or approving the note and

stating for each year of the first five years that the rule will

be in effect:

(A) the additional estimated cost to the state and to local

governments expected as a result of enforcing or administering

the rule;

(B) the estimated reductions in costs to the state and to local

governments as a result of enforcing or administering the rule;

(C) the estimated loss or increase in revenue to the state or to

local governments as a result of enforcing or administering the

rule; and

(D) if applicable, that enforcing or administering the rule does

not have foreseeable implications relating to cost or revenues of

the state or local governments;

(5) a note about public benefits and costs showing the name and

title of the officer or employee responsible for preparing or

approving the note and stating for each year of the first five

years that the rule will be in effect:

(A) the public benefits expected as a result of adoption of the

proposed rule; and

(B) the probable economic cost to persons required to comply

with the rule;

(6) the local employment impact statement prepared under Section

2001.022, if required;

(7) a request for comments on the proposed rule from any

interested person; and

(8) any other statement required by law.

(b) In the notice of a proposed rule that amends any part of an

existing rule:

(1) the text of the entire part of the rule being amended must

be set out;

(2) the language to be deleted must be bracketed and stricken

through; and

(3) the language to be added must be underlined.

(c) In the notice of a proposed rule that is new or that adds a

complete section to an existing rule, the new rule or section

must be set out and underlined.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1067, Sec. 1, eff.

Sept. 1, 1997.

Sec. 2001.025. EFFECTIVE DATE OF NOTICE. Notice of a proposed

rule becomes effective as notice when published in the Texas

Register, except as provided by Section 2001.028.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.026. NOTICE TO PERSONS REQUESTING ADVANCE NOTICE OF

PROPOSED RULES. A state agency shall mail notice of a proposed

rule to each person who has made a timely written request of the

agency for advance notice of its rulemaking proceedings. Failure

to mail the notice does not invalidate an action taken or rule

adopted.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.027. WITHDRAWAL OF PROPOSED RULE. A proposed rule is

withdrawn six months after the date of publication of notice of

the proposed rule in the Texas Register if a state agency has

failed by that time to adopt, adopt as amended, or withdraw the

proposed rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.028. NOTICE OF PROPOSED LAW ENFORCEMENT RULES. Notice

of the adoption of a proposed rule by the Commission on Jail

Standards or the Commission on Law Enforcement Officer Standards

and Education that affects a law enforcement agency of the state

or of a political subdivision of the state is not effective until

the notice is:

(1) published as required by Section 2001.023; and

(2) mailed to each law enforcement agency that may be affected

by the proposed rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.029. PUBLIC COMMENT. (a) Before adopting a rule, a

state agency shall give all interested persons a reasonable

opportunity to submit data, views, or arguments, orally or in

writing.

(b) A state agency shall grant an opportunity for a public

hearing before it adopts a substantive rule if a public hearing

is requested by:

(1) at least 25 persons;

(2) a governmental subdivision or agency; or

(3) an association having at least 25 members.

(c) A state agency shall consider fully all written and oral

submissions about a proposed rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.030. STATEMENT OF REASONS FOR OR AGAINST ADOPTION. On

adoption of a rule, a state agency, if requested to do so by an

interested person either before adoption or not later than the

30th day after the date of adoption, shall issue a concise

statement of the principal reasons for and against its adoption.

The agency shall include in the statement its reasons for

overruling the considerations urged against adoption.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.031. INFORMAL CONFERENCES AND ADVISORY COMMITTEES.

(a) A state agency may use an informal conference or

consultation to obtain the opinions and advice of interested

persons about contemplated rulemaking.

(b) A state agency may appoint committees of experts or

interested persons or representatives of the public to advise the

agency about contemplated rulemaking.

(c) The power of a committee appointed under this section is

advisory only.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.032. LEGISLATIVE REVIEW. (a) Each house of the

legislature by rule shall establish a process under which the

presiding officer of each house refers each proposed state agency

rule to the appropriate standing committee for review before the

rule is adopted.

(b) A state agency shall deliver to the lieutenant governor and

the speaker of the house of representatives a copy of the notice

of a proposed rule when the agency files notice with the

secretary of state under Section 2001.023.

(c) On the vote of a majority of its members, a standing

committee may send to a state agency a statement supporting or

opposing adoption of a proposed rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.033. STATE AGENCY ORDER ADOPTING RULE. (a) A state

agency order finally adopting a rule must include:

(1) a reasoned justification for the rule as adopted consisting

solely of:

(A) a summary of comments received from parties interested in

the rule that shows the names of interested groups or

associations offering comment on the rule and whether they were

for or against its adoption;

(B) a summary of the factual basis for the rule as adopted which

demonstrates a rational connection between the factual basis for

the rule and the rule as adopted; and

(C) the reasons why the agency disagrees with party submissions

and proposals;

(2) a concise restatement of the particular statutory provisions

under which the rule is adopted and of how the agency interprets

the provisions as authorizing or requiring the rule; and

(3) a certification that the rule, as adopted, has been reviewed

by legal counsel and found to be a valid exercise of the agency's

legal authority.

(b) Nothing in this section shall be construed to require

additional analysis of alternatives not adopted by an agency

beyond that required by Subdivision (1)(C) or to require the

reasoned justification to be stated separately from the

statements required in Subdivision (1).

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1999, 76th Leg., ch. 558, Sec. 2, eff.

Sept. 1, 1999.

Sec. 2001.034. EMERGENCY RULEMAKING. (a) A state agency may

adopt an emergency rule without prior notice or hearing, or with

an abbreviated notice and a hearing that it finds practicable, if

the agency:

(1) finds that an imminent peril to the public health, safety,

or welfare, or a requirement of state or federal law, requires

adoption of a rule on fewer than 30 days' notice; and

(2) states in writing the reasons for its finding under

Subdivision (1).

(b) A state agency shall set forth in an emergency rule's

preamble the finding required by Subsection (a).

(c) A rule adopted under this section may be effective for not

longer than 120 days and may be renewed once for not longer than

60 days. An identical rule may be adopted under Sections 2001.023

and 2001.029.

(d) A state agency shall file an emergency rule adopted under

this section and the agency's written reasons for the adoption in

the office of the secretary of state for publication in the Texas

Register in the manner prescribed by Chapter 2002.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.035. SUBSTANTIAL COMPLIANCE REQUIREMENT; TIME LIMIT ON

PROCEDURAL CHALLENGE. (a) A rule is voidable unless a state

agency adopts it in substantial compliance with Sections

2001.0225 through 2001.034.

(b) A person must initiate a proceeding to contest a rule on the

ground of noncompliance with the procedural requirements of

Sections 2001.0225 through 2001.034 not later than the second

anniversary of the effective date of the rule.

(c) A state agency substantially complies with the requirements

of Section 2001.033 if the agency's reasoned justification

demonstrates in a relatively clear and logical fashion that the

rule is a reasonable means to a legitimate objective.

(d) A mere technical defect that does not result in prejudice to

a person's rights or privileges is not grounds for invalidation

of a rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1999, 76th Leg., ch. 558, Sec. 3, eff.

Sept. 1, 1999.

Sec. 2001.036. EFFECTIVE DATE OF RULES; EFFECT OF FILING WITH

SECRETARY OF STATE. (a) A rule takes effect 20 days after the

date on which it is filed in the office of the secretary of

state, except that:

(1) if a later date is required by statute or specified in the

rule, the later date is the effective date;

(2) if a state agency finds that an expedited effective date is

necessary because of imminent peril to the public health, safety,

or welfare, and subject to applicable constitutional or statutory

provisions, a rule is effective immediately on filing with the

secretary of state, or on a stated date less than 20 days after

the filing date; and

(3) if a federal statute or regulation requires that a state

agency implement a rule by a certain date, the rule is effective

on the prescribed date.

(b) A state agency shall file with its rule the finding

described by Subsection (a)(2), if applicable, and a brief

statement of the reasons for the finding. The agency shall take

appropriate measures to make emergency rules known to persons who

may be affected by them.

(c) A rule adopted as provided by Subsection (a)(3) shall be

filed in the office of the secretary of state and published in

the Texas Register.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.037. OFFICIAL TEXT OF RULE. If a conflict exists, the

official text of a rule is the text on file with the secretary of

state and not the text published in the Texas Register or on file

with the issuing state agency.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.038. DECLARATORY JUDGMENT. (a) The validity or

applicability of a rule, including an emergency rule adopted

under Section 2001.034, may be determined in an action for

declaratory judgment if it is alleged that the rule or its

threatened application interferes with or impairs, or threatens

to interfere with or impair, a legal right or privilege of the

plaintiff.

(b) The action may be brought only in a Travis County district

court.

(c) The state agency must be made a party to the action.

(d) A court may render a declaratory judgment without regard to

whether the plaintiff requested the state agency to rule on the

validity or applicability of the rule in question.

(e) An action brought under this section may not be used to

delay or stay a hearing in which a suspension, revocation, or

cancellation of a license by a state agency is at issue before

the agency after notice of the hearing has been given.

(f) A Travis County district court in which an action is brought

under this section, on its own motion or the motion of any party,

may request transfer of the action to the Court of Appeals for

the Third Court of Appeals District if the district court finds

that the public interest requires a prompt, authoritative

determination of the validity or applicability of the rule in

question and the case would ordinarily be appealed. After filing

of the district court's request with the court of appeals,

transfer of the action may be granted by the court of appeals if

it agrees with the findings of the district court concerning the

application of the statutory standards to the action. On entry of

an order by the court of appeals granting transfer, the action is

transferred to the court of appeals for decision, and the

validity or applicability of the rule in question is subject to

judicial review by the court of appeals. The administrative

record and the district court record shall be filed by the

district clerk with the clerk of the court of appeals. The court

of appeals may direct the district court to conduct any necessary

evidentiary hearings in connection with the action.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1999, 76th Leg., ch. 894, Sec. 1, eff.

Sept. 1, 1999.

Sec. 2001.039. AGENCY REVIEW OF EXISTING RULES. (a) A state

agency shall review and consider for readoption each of its rules

in accordance with this section.

(b) A state agency shall review a rule not later than the fourth

anniversary of the date on which the rule takes effect and every

four years after that date. The adoption of an amendment to an

existing rule does not affect the dates on which the rule must be

reviewed except that the effective date of an amendment is

considered to be the effective date of the rule if the agency

formally conducts a review of the rule in accordance with this

section as part of the process of adopting the amendment.

(c) The state agency shall readopt, readopt with amendments, or

repeal a rule as the result of reviewing the rule under this

section.

(d) The procedures of this subchapter relating to the original

adoption of a rule apply to the review of a rule and to the

resulting repeal, readoption, or readoption with amendments of

the rule, except as provided by this subsection. Publishing the

Texas Administrative Code citation to a rule under review

satisfies the requirements of this subchapter relating to

publishing the text of the rule unless the agency readopts the

rule with amendments as a result of the review.

(e) A state agency's review of a rule must include an assessment

of whether the reasons for initially adopting the rule continue

to exist.

Added by Acts 1999, 76th Leg., ch. 1499, Sec. 1.11(a), eff. Sept.

1, 1999.

Sec. 2001.040. SCOPE AND EFFECT OF ORDER INVALIDATING AGENCY

RULE. If a court finds that an agency has not substantially

complied with one or more procedural requirements of Sections

2001.0225 through 2001.034, the court may remand the rule, or a

portion of the rule, to the agency and, if it does so remand,

shall provide a reasonable time for the agency to either revise

or readopt the rule through established procedure. During the

remand period, the rule shall remain effective unless the court

finds good cause to invalidate the rule or a portion of the rule,

effective as of the date of the court's order.

Added by Acts 1999, 76th Leg., ch. 558, Sec. 4, eff. Sept. 1,

1999. Renumbered from Sec. 2001.039 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(64), eff. Sept. 1, 2001.

Sec. 2001.041. COMPLIANCE WITH LAW ON DECENTRALIZATION. A state

agency rule, order, or guide relating to decentralization of

agency services or programs must include a statement of the

manner in which the agency complied with Section 391.0091, Local

Government Code.

Added by Acts 2003, 78th Leg., ch. 718, Sec. 2, eff. Sept. 1,

2003.

SUBCHAPTER C. CONTESTED CASES: GENERAL RIGHTS AND PROCEDURES

Sec. 2001.051. OPPORTUNITY FOR HEARING AND PARTICIPATION; NOTICE

OF HEARING. In a contested case, each party is entitled to an

opportunity:

(1) for hearing after reasonable notice of not less than 10

days; and

(2) to respond and to present evidence and argument on each

issue involved in the case.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.052. CONTENTS OF NOTICE. (a) Notice of a hearing in

a contested case must include:

(1) a statement of the time, place, and nature of the hearing;

(2) a statement of the legal authority and jurisdiction under

which the hearing is to be held;

(3) a reference to the particular sections of the statutes and

rules involved; and

(4) a short, plain statement of the matters asserted.

(b) If a state agency or other party is unable to state matters

in detail at the time notice under this section is served, an

initial notice may be limited to a statement of the issues

involved. On timely written application, a more definite and

detailed statement shall be furnished not less than three days

before the date set for the hearing.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.053. RIGHT TO COUNSEL. (a) Each party to a contested

case is entitled to the assistance of counsel before a state

agency.

(b) A party may expressly waive the right to assistance of

counsel.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.054. LICENSES. (a) The provisions of this chapter

concerning contested cases apply to the grant, denial, or renewal

of a license that is required to be preceded by notice and

opportunity for hearing.

(b) If a license holder makes timely and sufficient application

for the renewal of a license or for a new license for an activity

of a continuing nature, the existing license does not expire

until the application has been finally determined by the state

agency. If the application is denied or the terms of the new

license are limited, the existing license does not expire until

the last day for seeking review of the agency order or a later

date fixed by order of the reviewing court.

(c) A revocation, suspension, annulment, or withdrawal of a

license is not effective unless, before institution of state

agency proceedings:

(1) the agency gives notice by personal service or by registered

or certified mail to the license holder of facts or conduct

alleged to warrant the intended action; and

(2) the license holder is given an opportunity to show

compliance with all requirements of law for the retention of the

license.

(d) A license described in Subsection (a) remains valid unless

it expires without timely application for renewal, is amended,

revoked, suspended, annulled, or withdrawn, or the denial of a

renewal application becomes final. The term or duration of a

license described in Subsection (a) is tolled during the period

the license is subjected to judicial review. However, the term or

duration of a license is not tolled if, during judicial review,

the licensee engages in the activity for which the license was

issued.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 589, Sec. 1, eff.

Sept. 1, 1995.

Sec. 2001.055. INTERPRETERS FOR DEAF OR HEARING IMPAIRED PARTIES

AND WITNESSES. (a) In a contested case, a state agency shall

provide an interpreter whose qualifications are approved by the

Texas Commission for the Deaf and Hard of Hearing to interpret

the proceedings for a party or subpoenaed witness who is deaf or

hearing impaired.

(b) In this section, "deaf or hearing impaired" means having a

hearing impairment, whether or not accompanied by a speech

impairment, that inhibits comprehension of the proceedings or

communication with others.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 835, Sec. 18, eff.

Sept. 1, 1995.

Sec. 2001.056. INFORMAL DISPOSITION OF CONTESTED CASE. Unless

precluded by law, an informal disposition may be made of a

contested case by:

(1) stipulation;

(2) agreed settlement;

(3) consent order; or

(4) default.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.057. CONTINUANCES. (a) A state agency may continue a

hearing in a contested case from time to time and from place to

place.

(b) The notice of the hearing must indicate the times and places

at which the hearing may be continued.

(c) If a hearing is not concluded on the day it begins, a state

agency shall, to the extent possible, proceed with the hearing on

each subsequent working day until the hearing is concluded.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.058. HEARING CONDUCTED BY STATE OFFICE OF

ADMINISTRATIVE HEARINGS. (a) This section applies only to an

administrative law judge employed by the State Office of

Administrative Hearings.

(b) An administrative law judge who conducts a contested case

hearing shall consider applicable agency rules or policies in

conducting the hearing, but the state agency deciding the case

may not supervise the administrative law judge.

(c) A state agency shall provide the administrative law judge

with a written statement of applicable rules or policies.

(d) A state agency may not attempt to influence the finding of

facts or the administrative law judge's application of the law in

a contested case except by proper evidence and legal argument.

(e) A state agency may change a finding of fact or conclusion of

law made by the administrative law judge, or may vacate or modify

an order issued by the administrative judge, only if the agency

determines:

(1) that the administrative law judge did not properly apply or

interpret applicable law, agency rules, written policies provided

under Subsection (c), or prior administrative decisions;

(2) that a prior administrative decision on which the

administrative law judge relied is incorrect or should be

changed; or

(3) that a technical error in a finding of fact should be

changed.

The agency shall state in writing the specific reason and legal

basis for a change made under this subsection.

(f) A state agency by rule may provide that, in a contested case

before the agency that concerns licensing in relation to an

occupational license and that is not disposed of by stipulation,

agreed settlement, or consent order, the administrative law judge

shall render the final decision in the contested case. If a state

agency adopts such a rule, the following provisions apply to

contested cases covered by the rule:

(1) the administrative law judge shall render the decision that

may become final under Section 2001.144 not later than the 60th

day after the latter of the date on which the hearing is finally

closed or the date by which the judge has ordered all briefs,

reply briefs, and other posthearing documents to be filed, and

the 60-day period may be extended only with the consent of all

parties, including the occupational licensing agency;

(2) the administrative law judge shall include in the findings

of fact and conclusions of law a determination whether the

license at issue is primarily a license to engage in an

occupation;

(3) the State Office of Administrative Hearings is the state

agency with which a motion for rehearing or a reply to a motion

for rehearing is filed under Section 2001.146 and is the state

agency that acts on the motion or extends a time period under

Section 2001.146;

(4) the State Office of Administrative Hearings is the state

agency responsible for sending a copy of the decision that may

become final under Section 2001.144 or an order ruling on a

motion for rehearing to the parties, including the occupational

licensing agency, in accordance with Section 2001.142; and

(5) the occupational licensing agency and any other party to the

contested case is entitled to obtain judicial review of the final

decision in accordance with this chapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1167, Sec. 1, eff.

Sept. 1, 1997.

Sec. 2001.059. TRANSCRIPT. (a) On the written request of a

party to a contested case, proceedings, or any part of the

proceedings, shall be transcribed.

(b) A state agency may pay the cost of a transcript or may

assess the cost to one or more parties.

(c) This chapter does not limit a state agency to a stenographic

record of proceedings.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.060. RECORD. The record in a contested case includes:

(1) each pleading, motion, and intermediate ruling;

(2) evidence received or considered;

(3) a statement of matters officially noticed;

(4) questions and offers of proof, objections, and rulings on

them;

(5) proposed findings and exceptions;

(6) each decision, opinion, or report by the officer presiding

at the hearing; and

(7) all staff memoranda or data submitted to or considered by

the hearing officer or members of the agency who are involved in

making the decision.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.061. EX PARTE CONSULTATIONS. (a) Unless required for

the disposition of an ex parte matter authorized by law, a member

or employee of a state agency assigned to render a decision or to

make findings of fact and conclusions of law in a contested case

may not directly or indirectly communicate in connection with an

issue of fact or law with a state agency, person, party, or a

representative of those entities, except on notice and

opportunity for each party to participate.

(b) A state agency member may communicate ex parte with another

member of the agency unless prohibited by other law.

(c) Under Section 2001.090, a member or employee of a state

agency assigned to render a decision or to make findings of fact

and conclusions of law in a contested case may communicate ex

parte with an agency employee who has not participated in a

hearing in the case for the purpose of using the special skills

or knowledge of the agency and its staff in evaluating the

evidence.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.062. EXAMINATION OF RECORD BY STATE AGENCY; PROPOSAL

FOR DECISION. (a) In a contested case, if a majority of the

state agency officials who are to render a final decision have

not heard the case or read the record, the decision, if adverse

to a party other than the agency itself, may not be made until:

(1) a proposal for decision is served on each party; and

(2) an opportunity is given to each adversely affected party to

file exceptions and present briefs to the officials who are to

render the decision.

(b) If a party files exceptions or presents briefs, an

opportunity shall be given to each other party to file replies to

the exceptions or briefs.

(c) A proposal for decision must contain a statement of the

reasons for the proposed decision and of each finding of fact and

conclusion of law necessary to the proposed decision. The

statement must be prepared by the individual who conducted the

hearing or by one who has read the record.

(d) A proposal for decision may be amended in response to

exceptions, replies, or briefs submitted by the parties without

again being served on the parties.

(e) The parties by written stipulation may waive compliance with

this section.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER D. CONTESTED CASES: EVIDENCE, WITNESSES, AND DISCOVERY

Sec. 2001.081. RULES OF EVIDENCE. The rules of evidence as

applied in a nonjury civil case in a district court of this state

shall apply to a contested case except that evidence inadmissible

under those rules may be admitted if the evidence is:

(1) necessary to ascertain facts not reasonably susceptible of

proof under those rules;

(2) not precluded by statute; and

(3) of a type on which a reasonably prudent person commonly

relies in the conduct of the person's affairs.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.082. EXCLUSION OF EVIDENCE. In a contested case,

evidence that is irrelevant, immaterial, or unduly repetitious

shall be excluded.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.083. PRIVILEGE. In a contested case, a state agency

shall give effect to the rules of privilege recognized by law.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.084. OBJECTIONS TO EVIDENCE. An objection to an

evidentiary offer in a contested case may be made and shall be

noted in the record.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.085. WRITTEN EVIDENCE. Subject to the requirements of

Sections 2001.081 through 2001.084, any part of the evidence in a

contested case may be received in writing if:

(1) a hearing will be expedited; and

(2) the interests of the parties will not be substantially

prejudiced.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.086. DOCUMENTARY EVIDENCE. A copy or excerpt of

documentary evidence may be received in a contested case if an

original document is not readily available. On request, a party

shall be given an opportunity to compare the copy or excerpt with

the original document.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.087. CROSS-EXAMINATION. In a contested case, a party

may conduct cross-examination required for a full and true

disclosure of the facts.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.088. WITNESSES. A state agency may swear witnesses

and take their testimony under oath in connection with a

contested case held under this chapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.089. ISSUANCE OF SUBPOENA. On its own motion or on

the written request of a party to a contested case pending before

it, a state agency shall issue a subpoena addressed to the

sheriff or to a constable to require the attendance of a witness

or the production of books, records, papers, or other objects

that may be necessary and proper for the purposes of a proceeding

if:

(1) good cause is shown; and

(2) an amount is deposited that will reasonably ensure payment

of the amounts estimated to accrue under Section 2001.103.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.090. OFFICIAL NOTICE; STATE AGENCY EVALUATION OF

EVIDENCE. (a) In connection with a hearing held under this

chapter, official notice may be taken of:

(1) all facts that are judicially cognizable; and

(2) generally recognized facts within the area of the state

agency's specialized knowledge.

(b) Each party shall be notified either before or during the

hearing, or by reference in a preliminary report or otherwise, of

the material officially noticed, including staff memoranda or

information.

(c) Each party is entitled to be given an opportunity to contest

material that is officially noticed.

(d) The special skills or knowledge of the state agency and its

staff may be used in evaluating the evidence.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.091. DISCOVERY FROM PARTIES: ORDERS FOR PRODUCTION OR

INSPECTION. (a) On the motion of a party, on notice to each

other party, and subject to limitations of the kind provided for

discovery under the Texas Rules of Civil Procedure, a state

agency in which a contested case is pending may order a party:

(1) to produce and to permit the party making the motion or a

person on behalf of that party to inspect and to copy or

photograph a designated document, paper, book, account, letter,

photograph, or tangible thing in the party's possession, custody,

or control that:

(A) is not privileged; and

(B) constitutes or contains, or is reasonably calculated to lead

to the discovery of, evidence that is material to a matter

involved in the contested case; and

(2) to permit entry to designated land or other property in the

party's possession or control to inspect, measure, survey, or

photograph the property or a designated object or operation on

the property that may be material to a matter involved in the

contested case.

(b) An order under this section:

(1) must specify the time, place, and manner of making the

inspection, measurement, or survey or of making copies or

photographs; and

(2) may prescribe other terms and conditions that are just.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.092. DISCOVERY FROM PARTIES: IDENTITY OF WITNESS OR

POTENTIAL PARTY; EXPERT REPORTS. (a) The identity and location

of a potential party or witness in a contested case may be

obtained from a communication or other paper in a party's

possession, custody, or control.

(b) A party may be required to produce and permit the inspection

and copying of a report, including factual observations and

opinions, of an expert who will be called as a witness.

(c) This section does not extend to other communications:

(1) made after the occurrence or transaction on which the

contested case is based;

(2) made in connection with the prosecution, investigation, or

defense of the contested case or the circumstances from which the

case arose; and

(3) that are:

(A) written statements of witnesses;

(B) in writing and between agents, representatives, or employees

of a party; or

(C) between a party and the party's agent, representative, or

employee.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.093. DISCOVERY FROM PARTIES: COPY OF PREVIOUS

STATEMENT. (a) On request, a person, including a person who is

not a party, is entitled to obtain a copy of a statement in a

party's possession, custody, or control that the person has

previously made about the contested case or its subject matter.

(b) A person whose request under Subsection (a) is refused may

move for a state agency order under Section 2001.091.

(c) In this section, a statement is considered to be previously

made if it is:

(1) a written statement signed or otherwise adopted or approved

by the person making it; or

(2) a stenographic, mechanical, electrical, or other recording,

or a transcription of the recording, which is a substantially

verbatim recital of an oral statement by the person making it and

that was contemporaneously recorded.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.094. ISSUANCE OF COMMISSION REQUIRING DEPOSITION. (a)

On its own motion or on the written request of a party to a

contested case pending before it, and on deposit of an amount

that will reasonably ensure payment of the amount estimated to

accrue under Section 2001.103, a state agency shall issue a

commission, addressed to the officers authorized by statute to

take a deposition, requiring that the deposition of a witness be

taken.

(b) The commission shall authorize the issuance of any subpoena

necessary to require that the witness appear and produce, at the

time the deposition is taken, books, records, papers, or other

objects that may be necessary and proper for the purpose of the

proceeding.

(c) The commission shall require an officer to whom it is

addressed to:

(1) examine the witness before the officer on the date and at

the place named in the commission; and

(2) take answers under oath to questions asked the witness by a

party to the proceeding, the state agency, or an attorney for a

party or the agency.

(d) The commission shall require the witness to remain in

attendance from day to day until the deposition is begun and

completed.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.095. DEPOSITION OF STATE AGENCY BOARD MEMBER. The

deposition of a member of a state agency board may not be taken

after a date has been set for hearing in a contested case.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.096. PLACE OF DEPOSITION. A deposition in a contested

case shall be taken in the county where the witness:

(1) resides;

(2) is employed; or

(3) regularly transacts business in person.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.097. OBJECTIONS TO DEPOSITION TESTIMONY. (a) The

officer taking an oral deposition in a contested case may not:

(1) sustain an objection to the testimony taken; or

(2) exclude testimony.

(b) An objection to deposition testimony is reserved for the

action of the state agency before which the matter is pending.

(c) The administrator or other officer conducting the contested

case hearing may consider objections other than those made at the

taking of the testimony.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.098. PREPARATION OF DEPOSITION. (a) A deposition

witness in a contested case shall be carefully examined.

(b) The testimony shall be reduced to writing or typewriting by

the officer taking the deposition, a person under the officer's

personal supervision, or the deposition witness in the officer's

presence.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.099. SUBMISSION OF DEPOSITION TO WITNESS; SIGNATURE.

(a) A deposition in a contested case shall be submitted to the

witness for examination after the testimony is fully transcribed

and shall be read to or by the witness.

(b) The witness and the parties may waive in writing the

examination and reading of a deposition under Subsection (a).

(c) If the witness is a party to the contested case pending

before the agency with an attorney of record, the deposition

officer shall notify the attorney of record in writing by

registered or certified mail that the deposition is ready for

examination and reading at the office of the deposition officer

and that if the witness does not appear and examine, read, and

sign the deposition before the 21st day after the date on which

the notice is mailed, the deposition shall be returned as

provided by this subchapter for unsigned depositions.

(d) A witness must sign a deposition at least three days before

the date of the hearing or the deposition shall be returned as an

unsigned deposition as provided by this subchapter.

(e) The officer taking a deposition shall enter on the

deposition:

(1) a change in form or substance that the witness desires to

make; and

(2) a statement of the reasons given by the witness for making

the change.

(f) After the deposition officer has entered any change and a

statement of reasons for the change on the deposition under

Subsection (e), the witness shall sign the deposition unless:

(1) the parties present at the taking of the deposition by

stipulation waive the signing;

(2) the witness is ill;

(3) the witness cannot be found; or

(4) the witness refuses to sign.

(g) If a deposition is not signed by the witness, the officer

shall sign it and state on the record the fact of the witness's

waiver, illness, absence, or refusal to sign and the reason

given, if any, for failure to sign. The deposition may then be

used as though signed by the witness.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.100. RETURN OF DEPOSITION TO STATE AGENCY. (a) A

deposition may be returned to the state agency before which the

contested case is pending by mail or by a party interested in

taking the deposition or another person.

(b) For a deposition returned by mail, the state agency shall:

(1) endorse on the deposition the fact that it was received from

the post office; and

(2) have it signed by the agency employee receiving the

deposition.

(c) For a deposition returned by means other than mail, the

person delivering it to the state agency shall execute an

affidavit before the agency stating that:

(1) the person received it from the hands of the officer before

whom it was taken;

(2) it has not been out of the person's possession since the

person received it; and

(3) it has not been altered.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.101. OPENING OF DEPOSITION BY STATE AGENCY EMPLOYEE.

(a) At the request of a party or the party's counsel, a

deposition in a contested case that is filed with a state agency

may be opened by an employee of the agency.

(b) A state agency employee who opens a deposition shall:

(1) endorse on the deposition the day and at whose request it

was opened; and

(2) sign the deposition.

(c) The deposition shall remain on file with the state agency

for the inspection of any party.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.102. USE OF DEPOSITION. A party is entitled to use a

deposition taken under this subchapter in the contested case

pending before the state agency without regard to whether a

cross-interrogatory has been propounded.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.103. EXPENSES OF WITNESS OR DEPONENT. (a) A witness

or deponent in a contested case who is not a party and who is

subpoenaed or otherwise compelled to attend a hearing or

proceeding to give a deposition or to produce books, records,

papers, or other objects that may be necessary and proper for the

purposes of a proceeding under this chapter is entitled to

receive:

(1) 10 cents for each mile, or a greater amount prescribed by

state agency rule, for going to and returning from the place of

the hearing or deposition if the place is more than 25 miles from

the person's place of residence and the person uses the person's

personally owned or leased motor vehicle for the travel;

(2) reimbursement of the transportation expenses of the witness

or deponent for going to and returning from the place where the

hearing is held or the deposition is taken, if the place is more

than 25 miles from the person's place of residence and the person

does not use the person's personally owned or leased motor

vehicle for the travel;

(3) reimbursement of the meal and lodging expenses of the

witness or deponent while going to and returning from the place

where the hearing is held or deposition is taken, if the place is

more than 25 miles from the person's place of residence; and

(4) $10, or a greater amount prescribed by state agency rule,

for each day or part of a day that the person is necessarily

present.

(b) Amounts required to be reimbursed or paid under this section

shall be reimbursed or paid by the party or agency at whose

request the witness appears or the deposition is taken. An agency

required to make a payment or reimbursement shall present to the

comptroller vouchers:

(1) sworn by the witness or deponent; and

(2) appr


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Government-code > Title-10-general-government > Chapter-2001-administrative-procedure

GOVERNMENT CODE

TITLE 10. GENERAL GOVERNMENT

SUBTITLE A. ADMINISTRATIVE PROCEDURE AND PRACTICE

CHAPTER 2001. ADMINISTRATIVE PROCEDURE

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2001.001. PURPOSE. It is the public policy of the state

through this chapter to:

(1) provide minimum standards of uniform practice and procedure

for state agencies;

(2) provide for public participation in the rulemaking process;

and

(3) restate the law of judicial review of state agency action.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.002. SHORT TITLE. This chapter may be cited as the

Administrative Procedure Act.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.003. DEFINITIONS. In this chapter:

(1) "Contested case" means a proceeding, including a ratemaking

or licensing proceeding, in which the legal rights, duties, or

privileges of a party are to be determined by a state agency

after an opportunity for adjudicative hearing.

(2) "License" includes the whole or a part of a state agency

permit, certificate, approval, registration, or similar form of

permission required by law.

(3) "Licensing" includes a state agency process relating to the

granting, denial, renewal, revocation, suspension, annulment,

withdrawal, or amendment of a license.

(4) "Party" means a person or state agency named or admitted as

a party.

(5) "Person" means an individual, partnership, corporation,

association, governmental subdivision, or public or private

organization that is not a state agency.

(6) "Rule":

(A) means a state agency statement of general applicability

that:

(i) implements, interprets, or prescribes law or policy; or

(ii) describes the procedure or practice requirements of a state

agency;

(B) includes the amendment or repeal of a prior rule; and

(C) does not include a statement regarding only the internal

management or organization of a state agency and not affecting

private rights or procedures.

(7) "State agency" means a state officer, board, commission, or

department with statewide jurisdiction that makes rules or

determines contested cases. The term includes the State Office

of Administrative Hearings for the purpose of determining

contested cases. The term does not include:

(A) a state agency wholly financed by federal money;

(B) the legislature;

(C) the courts;

(D) the Texas Department of Insurance, as regards proceedings

and activities under Title 5, Labor Code, of the department, the

commissioner of insurance, or the commissioner of workers'

compensation; or

(E) an institution of higher education.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Amended by:

Acts 2005, 79th Leg., Ch.

265, Sec. 6.007, eff. September 1, 2005.

Sec. 2001.004. REQUIREMENT TO ADOPT RULES OF PRACTICE AND INDEX

RULES, ORDERS, AND DECISIONS. In addition to other requirements

under law, a state agency shall:

(1) adopt rules of practice stating the nature and requirements

of all available formal and informal procedures;

(2) index, cross-index to statute, and make available for public

inspection all rules and other written statements of policy or

interpretations that are prepared, adopted, or used by the agency

in discharging its functions; and

(3) index, cross-index to statute, and make available for public

inspection all final orders, decisions, and opinions.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.005. RULE, ORDER, OR DECISION NOT EFFECTIVE UNTIL

INDEXED. (a) A state agency rule, order, or decision made or

issued on or after January 1, 1976, is not valid or effective

against a person or party, and may not be invoked by an agency,

until the agency has indexed the rule, order, or decision and

made it available for public inspection as required by this

chapter.

(b) This section does not apply in favor of a person or party

that has actual knowledge of the rule, order, or decision.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.006. ACTIONS PREPARATORY TO IMPLEMENTATION OF STATUTE

OR RULE. (a) In this section:

(1) "State agency" means a department, board, commission,

committee, council, agency, office, or other entity in the

executive, legislative, or judicial branch of state government.

The term includes an institution of higher education as defined

by Section 61.003, Education Code, and includes those entities

excluded from the general definition of "state agency" under

Section 2001.003(7).

(2) Legislation is considered to have "become law" if it has

been passed by the legislature and:

(A) the governor has approved it;

(B) the governor has filed it with the secretary of state,

having neither approved nor disapproved it;

(C) the time for gubernatorial action has expired under Section

14, Article IV, Texas Constitution, the governor having neither

approved nor disapproved it; or

(D) the governor has disapproved it and the legislature has

overridden the governor's disapproval in accordance with Section

14, Article IV, Texas Constitution.

(b) In preparation for the implementation of legislation that

has become law but has not taken effect, a state agency may adopt

a rule or take other administrative action that the agency

determines is necessary or appropriate and that the agency would

have been authorized to take had the legislation been in effect

at the time of the action.

(c) In preparation for the implementation of a rule that has

been finally adopted by a state agency but has not taken effect,

a state agency may take administrative action that the agency

determines is necessary or appropriate and that the agency would

have been authorized to take had the rule been in effect at the

time of the action.

(d) A rule adopted under Subsection (b) may not take effect

earlier than the legislation being implemented takes effect.

Administrative action taken under Subsection (b) or (c) may not

result in implementation or enforcement of the applicable

legislation or rule before the legislation or rule takes effect.

Added by Acts 1999, 76th Leg., ch. 558, Sec. 1, eff. Sept. 1,

1999.

Sec. 2001.007. CERTAIN EXPLANATORY INFORMATION MADE AVAILABLE

THROUGH INTERNET. (a) A state agency shall make available

through a generally accessible Internet site:

(1) the text of its rules; and

(2) any material, such as a letter, opinion, or compliance

manual, that explains or interprets one or more of its rules and

that the agency has issued for general distribution to persons

affected by one or more of its rules.

(b) A state agency shall design the generally accessible

Internet site so that a member of the public may send questions

about the agency's rules to the agency electronically and receive

responses to the questions from the agency electronically. If the

agency's rules and the agency's explanatory and interpretive

materials are made available at different Internet sites, both

sites shall be designed in compliance with this subsection.

(c) Repealed by Acts 2005, 79th Leg., Ch. 750, Sec. 2(a), eff.

September 1, 2006.

(d) A state agency may comply with this section through the

actions of another agency, such as the secretary of state, on the

agency's behalf.

Added by Acts 1999, 76th Leg., ch. 1233, Sec. 1, eff. June 18,

1999. Renumbered from Sec. 2001.006 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(63), eff. Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

750, Sec. 2(a), eff. September 1, 2006.

SUBCHAPTER B. RULEMAKING

Sec. 2001.021. PETITION FOR ADOPTION OF RULES. (a) An

interested person by petition to a state agency may request the

adoption of a rule.

(b) A state agency by rule shall prescribe the form for a

petition under this section and the procedure for its submission,

consideration, and disposition.

(c) Not later than the 60th day after the date of submission of

a petition under this section, a state agency shall:

(1) deny the petition in writing, stating its reasons for the

denial; or

(2) initiate a rulemaking proceeding under this subchapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.022. LOCAL EMPLOYMENT IMPACT STATEMENTS. (a) A state

agency shall determine whether a rule may affect a local economy

before proposing the rule for adoption. If a state agency

determines that a proposed rule may affect a local economy, the

agency shall prepare a local employment impact statement for the

proposed rule. The impact statement must describe in detail the

probable effect of the rule on employment in each geographic area

affected by the rule for each year of the first five years that

the rule will be in effect and may include other factors at the

agency's discretion.

(b) This section does not apply to the adoption of an emergency

rule.

(c) Failure to comply with this section does not impair the

legal effect of a rule adopted under this chapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 2001, 77th Leg., ch. 871, Sec. 1, eff.

Sept. 1, 2001.

Sec. 2001.0225. REGULATORY ANALYSIS OF MAJOR ENVIRONMENTAL

RULES. (a) This section applies only to a major environmental

rule adopted by a state agency, the result of which is to:

(1) exceed a standard set by federal law, unless the rule is

specifically required by state law;

(2) exceed an express requirement of state law, unless the rule

is specifically required by federal law;

(3) exceed a requirement of a delegation agreement or contract

between the state and an agency or representative of the federal

government to implement a state and federal program; or

(4) adopt a rule solely under the general powers of the agency

instead of under a specific state law.

(b) Before adopting a major environmental rule subject to this

section, a state agency shall conduct a regulatory analysis that:

(1) identifies the problem the rule is intended to address;

(2) determines whether a new rule is necessary to address the

problem; and

(3) considers the benefits and costs of the proposed rule in

relationship to state agencies, local governments, the public,

the regulated community, and the environment.

(c) When giving notice of a major environmental rule subject to

this section, a state agency shall incorporate into the fiscal

note required by Section 2001.024 a draft impact analysis

describing the anticipated effects of the proposed rule. The

draft impact analysis, at a minimum, must:

(1) identify the benefits that the agency anticipates from

adoption and implementation of the rule, including reduced risks

to human health, safety, or the environment;

(2) identify the costs that the agency anticipates state

agencies, local governments, the public, and the regulated

community will experience after implementation of the rule;

(3) describe the benefits and costs anticipated from

implementation of the rule in as quantitative a manner as

feasible, but including a qualitative description when a

quantitative description is not feasible or adequately

descriptive;

(4) describe reasonable alternative methods for achieving the

purpose of the rule that were considered by the agency and

provide the reasons for rejecting those alternatives in favor of

the proposed rule;

(5) identify the data and methodology used in performing the

analysis required by this section;

(6) provide an explanation of whether the proposed rule

specifies a single method of compliance, and, if so, explain why

the agency determines that a specified method of compliance is

preferable to adopting a flexible regulatory approach, such as a

performance-oriented, voluntary, or market-based approach;

(7) state that there is an opportunity for public comment on the

draft impact analysis under Section 2001.029 and that all

comments will be addressed in the publication of the final

regulatory analysis; and

(8) provide information in such a manner that a reasonable

person reading the analysis would be able to identify the impacts

of the proposed rule.

(d) After considering public comments submitted under Section

2001.029 and determining that a proposed rule should be adopted,

the agency shall prepare a final regulatory analysis that

complies with Section 2001.033. Additionally, the agency shall

find that, compared to the alternative proposals considered and

rejected, the rule will result in the best combination of

effectiveness in obtaining the desired results and of economic

costs not materially greater than the costs of any alternative

regulatory method considered.

(e) In preparing the draft impact analysis before publication

for comment and the final regulatory analysis for the agency

order adopting the rule, the state agency shall consider that the

purpose of this requirement is to identify for the public and the

regulated community the information that was considered by the

agency, the information that the agency determined to be relevant

and reliable, and the assumptions and facts on which the agency

made its regulatory decision. In making its final regulatory

decision, the agency shall assess:

(1) all information submitted to it, whether quantitative or

qualitative, consistent with generally accepted scientific

standards;

(2) actual data where possible; and

(3) assumptions that reflect actual impacts that the regulation

is likely to impose.

(f) A person who submitted public comment in accordance with

Section 2001.029 may challenge the validity of a major

environmental rule that is not proposed and adopted in accordance

with the procedural requirements of this section by filing an

action for declaratory judgment under Section 2001.038 not later

than the 30th day after the effective date of the rule. If a

court determines that a major environmental rule was not proposed

and adopted in accordance with the procedural requirements of

this section, the rule is invalid.

(g) In this section:

(1) "Benefit" means a reasonably identifiable, significant,

direct or indirect, favorable effect, including a quantifiable or

nonquantifiable environmental, health, or economic effect, that

is expected to result from implementation of a rule.

(2) "Cost" means a reasonably identifiable, significant, direct

or indirect, adverse effect, including a quantifiable or

nonquantifiable environmental, health, or economic effect, that

is expected to result from implementation of a rule.

(3) "Major environmental rule" means a rule the specific intent

of which is to protect the environment or reduce risks to human

health from environmental exposure and that may adversely affect

in a material way the economy, a sector of the economy,

productivity, competition, jobs, the environment, or the public

health and safety of the state or a sector of the state.

(h) The requirements of this section do not apply to state

agency rules that are proposed or adopted on an emergency basis

to protect the environment or to reduce risks to human health

from environmental exposure.

Added by Acts 1997, 75th Leg., ch. 1034, Sec. 1, eff. Sept. 1,

1997.

Sec. 2001.023. NOTICE OF PROPOSED RULE. (a) A state agency

shall give at least 30 days' notice of its intention to adopt a

rule before it adopts the rule.

(b) A state agency shall file notice of the proposed rule with

the secretary of state for publication in the Texas Register in

the manner prescribed by Chapter 2002.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.024. CONTENT OF NOTICE. (a) The notice of a proposed

rule must include:

(1) a brief explanation of the proposed rule;

(2) the text of the proposed rule, except any portion omitted

under Section 2002.014, prepared in a manner to indicate any

words to be added or deleted from the current text;

(3) a statement of the statutory or other authority under which

the rule is proposed to be adopted, including:

(A) a concise explanation of the particular statutory or other

provisions under which the rule is proposed;

(B) the section or article of the code affected; and

(C) a certification that the proposed rule has been reviewed by

legal counsel and found to be within the state agency's authority

to adopt;

(4) a fiscal note showing the name and title of the officer or

employee responsible for preparing or approving the note and

stating for each year of the first five years that the rule will

be in effect:

(A) the additional estimated cost to the state and to local

governments expected as a result of enforcing or administering

the rule;

(B) the estimated reductions in costs to the state and to local

governments as a result of enforcing or administering the rule;

(C) the estimated loss or increase in revenue to the state or to

local governments as a result of enforcing or administering the

rule; and

(D) if applicable, that enforcing or administering the rule does

not have foreseeable implications relating to cost or revenues of

the state or local governments;

(5) a note about public benefits and costs showing the name and

title of the officer or employee responsible for preparing or

approving the note and stating for each year of the first five

years that the rule will be in effect:

(A) the public benefits expected as a result of adoption of the

proposed rule; and

(B) the probable economic cost to persons required to comply

with the rule;

(6) the local employment impact statement prepared under Section

2001.022, if required;

(7) a request for comments on the proposed rule from any

interested person; and

(8) any other statement required by law.

(b) In the notice of a proposed rule that amends any part of an

existing rule:

(1) the text of the entire part of the rule being amended must

be set out;

(2) the language to be deleted must be bracketed and stricken

through; and

(3) the language to be added must be underlined.

(c) In the notice of a proposed rule that is new or that adds a

complete section to an existing rule, the new rule or section

must be set out and underlined.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1067, Sec. 1, eff.

Sept. 1, 1997.

Sec. 2001.025. EFFECTIVE DATE OF NOTICE. Notice of a proposed

rule becomes effective as notice when published in the Texas

Register, except as provided by Section 2001.028.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.026. NOTICE TO PERSONS REQUESTING ADVANCE NOTICE OF

PROPOSED RULES. A state agency shall mail notice of a proposed

rule to each person who has made a timely written request of the

agency for advance notice of its rulemaking proceedings. Failure

to mail the notice does not invalidate an action taken or rule

adopted.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.027. WITHDRAWAL OF PROPOSED RULE. A proposed rule is

withdrawn six months after the date of publication of notice of

the proposed rule in the Texas Register if a state agency has

failed by that time to adopt, adopt as amended, or withdraw the

proposed rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.028. NOTICE OF PROPOSED LAW ENFORCEMENT RULES. Notice

of the adoption of a proposed rule by the Commission on Jail

Standards or the Commission on Law Enforcement Officer Standards

and Education that affects a law enforcement agency of the state

or of a political subdivision of the state is not effective until

the notice is:

(1) published as required by Section 2001.023; and

(2) mailed to each law enforcement agency that may be affected

by the proposed rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.029. PUBLIC COMMENT. (a) Before adopting a rule, a

state agency shall give all interested persons a reasonable

opportunity to submit data, views, or arguments, orally or in

writing.

(b) A state agency shall grant an opportunity for a public

hearing before it adopts a substantive rule if a public hearing

is requested by:

(1) at least 25 persons;

(2) a governmental subdivision or agency; or

(3) an association having at least 25 members.

(c) A state agency shall consider fully all written and oral

submissions about a proposed rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.030. STATEMENT OF REASONS FOR OR AGAINST ADOPTION. On

adoption of a rule, a state agency, if requested to do so by an

interested person either before adoption or not later than the

30th day after the date of adoption, shall issue a concise

statement of the principal reasons for and against its adoption.

The agency shall include in the statement its reasons for

overruling the considerations urged against adoption.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.031. INFORMAL CONFERENCES AND ADVISORY COMMITTEES.

(a) A state agency may use an informal conference or

consultation to obtain the opinions and advice of interested

persons about contemplated rulemaking.

(b) A state agency may appoint committees of experts or

interested persons or representatives of the public to advise the

agency about contemplated rulemaking.

(c) The power of a committee appointed under this section is

advisory only.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.032. LEGISLATIVE REVIEW. (a) Each house of the

legislature by rule shall establish a process under which the

presiding officer of each house refers each proposed state agency

rule to the appropriate standing committee for review before the

rule is adopted.

(b) A state agency shall deliver to the lieutenant governor and

the speaker of the house of representatives a copy of the notice

of a proposed rule when the agency files notice with the

secretary of state under Section 2001.023.

(c) On the vote of a majority of its members, a standing

committee may send to a state agency a statement supporting or

opposing adoption of a proposed rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.033. STATE AGENCY ORDER ADOPTING RULE. (a) A state

agency order finally adopting a rule must include:

(1) a reasoned justification for the rule as adopted consisting

solely of:

(A) a summary of comments received from parties interested in

the rule that shows the names of interested groups or

associations offering comment on the rule and whether they were

for or against its adoption;

(B) a summary of the factual basis for the rule as adopted which

demonstrates a rational connection between the factual basis for

the rule and the rule as adopted; and

(C) the reasons why the agency disagrees with party submissions

and proposals;

(2) a concise restatement of the particular statutory provisions

under which the rule is adopted and of how the agency interprets

the provisions as authorizing or requiring the rule; and

(3) a certification that the rule, as adopted, has been reviewed

by legal counsel and found to be a valid exercise of the agency's

legal authority.

(b) Nothing in this section shall be construed to require

additional analysis of alternatives not adopted by an agency

beyond that required by Subdivision (1)(C) or to require the

reasoned justification to be stated separately from the

statements required in Subdivision (1).

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1999, 76th Leg., ch. 558, Sec. 2, eff.

Sept. 1, 1999.

Sec. 2001.034. EMERGENCY RULEMAKING. (a) A state agency may

adopt an emergency rule without prior notice or hearing, or with

an abbreviated notice and a hearing that it finds practicable, if

the agency:

(1) finds that an imminent peril to the public health, safety,

or welfare, or a requirement of state or federal law, requires

adoption of a rule on fewer than 30 days' notice; and

(2) states in writing the reasons for its finding under

Subdivision (1).

(b) A state agency shall set forth in an emergency rule's

preamble the finding required by Subsection (a).

(c) A rule adopted under this section may be effective for not

longer than 120 days and may be renewed once for not longer than

60 days. An identical rule may be adopted under Sections 2001.023

and 2001.029.

(d) A state agency shall file an emergency rule adopted under

this section and the agency's written reasons for the adoption in

the office of the secretary of state for publication in the Texas

Register in the manner prescribed by Chapter 2002.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.035. SUBSTANTIAL COMPLIANCE REQUIREMENT; TIME LIMIT ON

PROCEDURAL CHALLENGE. (a) A rule is voidable unless a state

agency adopts it in substantial compliance with Sections

2001.0225 through 2001.034.

(b) A person must initiate a proceeding to contest a rule on the

ground of noncompliance with the procedural requirements of

Sections 2001.0225 through 2001.034 not later than the second

anniversary of the effective date of the rule.

(c) A state agency substantially complies with the requirements

of Section 2001.033 if the agency's reasoned justification

demonstrates in a relatively clear and logical fashion that the

rule is a reasonable means to a legitimate objective.

(d) A mere technical defect that does not result in prejudice to

a person's rights or privileges is not grounds for invalidation

of a rule.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1999, 76th Leg., ch. 558, Sec. 3, eff.

Sept. 1, 1999.

Sec. 2001.036. EFFECTIVE DATE OF RULES; EFFECT OF FILING WITH

SECRETARY OF STATE. (a) A rule takes effect 20 days after the

date on which it is filed in the office of the secretary of

state, except that:

(1) if a later date is required by statute or specified in the

rule, the later date is the effective date;

(2) if a state agency finds that an expedited effective date is

necessary because of imminent peril to the public health, safety,

or welfare, and subject to applicable constitutional or statutory

provisions, a rule is effective immediately on filing with the

secretary of state, or on a stated date less than 20 days after

the filing date; and

(3) if a federal statute or regulation requires that a state

agency implement a rule by a certain date, the rule is effective

on the prescribed date.

(b) A state agency shall file with its rule the finding

described by Subsection (a)(2), if applicable, and a brief

statement of the reasons for the finding. The agency shall take

appropriate measures to make emergency rules known to persons who

may be affected by them.

(c) A rule adopted as provided by Subsection (a)(3) shall be

filed in the office of the secretary of state and published in

the Texas Register.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.037. OFFICIAL TEXT OF RULE. If a conflict exists, the

official text of a rule is the text on file with the secretary of

state and not the text published in the Texas Register or on file

with the issuing state agency.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.038. DECLARATORY JUDGMENT. (a) The validity or

applicability of a rule, including an emergency rule adopted

under Section 2001.034, may be determined in an action for

declaratory judgment if it is alleged that the rule or its

threatened application interferes with or impairs, or threatens

to interfere with or impair, a legal right or privilege of the

plaintiff.

(b) The action may be brought only in a Travis County district

court.

(c) The state agency must be made a party to the action.

(d) A court may render a declaratory judgment without regard to

whether the plaintiff requested the state agency to rule on the

validity or applicability of the rule in question.

(e) An action brought under this section may not be used to

delay or stay a hearing in which a suspension, revocation, or

cancellation of a license by a state agency is at issue before

the agency after notice of the hearing has been given.

(f) A Travis County district court in which an action is brought

under this section, on its own motion or the motion of any party,

may request transfer of the action to the Court of Appeals for

the Third Court of Appeals District if the district court finds

that the public interest requires a prompt, authoritative

determination of the validity or applicability of the rule in

question and the case would ordinarily be appealed. After filing

of the district court's request with the court of appeals,

transfer of the action may be granted by the court of appeals if

it agrees with the findings of the district court concerning the

application of the statutory standards to the action. On entry of

an order by the court of appeals granting transfer, the action is

transferred to the court of appeals for decision, and the

validity or applicability of the rule in question is subject to

judicial review by the court of appeals. The administrative

record and the district court record shall be filed by the

district clerk with the clerk of the court of appeals. The court

of appeals may direct the district court to conduct any necessary

evidentiary hearings in connection with the action.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1999, 76th Leg., ch. 894, Sec. 1, eff.

Sept. 1, 1999.

Sec. 2001.039. AGENCY REVIEW OF EXISTING RULES. (a) A state

agency shall review and consider for readoption each of its rules

in accordance with this section.

(b) A state agency shall review a rule not later than the fourth

anniversary of the date on which the rule takes effect and every

four years after that date. The adoption of an amendment to an

existing rule does not affect the dates on which the rule must be

reviewed except that the effective date of an amendment is

considered to be the effective date of the rule if the agency

formally conducts a review of the rule in accordance with this

section as part of the process of adopting the amendment.

(c) The state agency shall readopt, readopt with amendments, or

repeal a rule as the result of reviewing the rule under this

section.

(d) The procedures of this subchapter relating to the original

adoption of a rule apply to the review of a rule and to the

resulting repeal, readoption, or readoption with amendments of

the rule, except as provided by this subsection. Publishing the

Texas Administrative Code citation to a rule under review

satisfies the requirements of this subchapter relating to

publishing the text of the rule unless the agency readopts the

rule with amendments as a result of the review.

(e) A state agency's review of a rule must include an assessment

of whether the reasons for initially adopting the rule continue

to exist.

Added by Acts 1999, 76th Leg., ch. 1499, Sec. 1.11(a), eff. Sept.

1, 1999.

Sec. 2001.040. SCOPE AND EFFECT OF ORDER INVALIDATING AGENCY

RULE. If a court finds that an agency has not substantially

complied with one or more procedural requirements of Sections

2001.0225 through 2001.034, the court may remand the rule, or a

portion of the rule, to the agency and, if it does so remand,

shall provide a reasonable time for the agency to either revise

or readopt the rule through established procedure. During the

remand period, the rule shall remain effective unless the court

finds good cause to invalidate the rule or a portion of the rule,

effective as of the date of the court's order.

Added by Acts 1999, 76th Leg., ch. 558, Sec. 4, eff. Sept. 1,

1999. Renumbered from Sec. 2001.039 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(64), eff. Sept. 1, 2001.

Sec. 2001.041. COMPLIANCE WITH LAW ON DECENTRALIZATION. A state

agency rule, order, or guide relating to decentralization of

agency services or programs must include a statement of the

manner in which the agency complied with Section 391.0091, Local

Government Code.

Added by Acts 2003, 78th Leg., ch. 718, Sec. 2, eff. Sept. 1,

2003.

SUBCHAPTER C. CONTESTED CASES: GENERAL RIGHTS AND PROCEDURES

Sec. 2001.051. OPPORTUNITY FOR HEARING AND PARTICIPATION; NOTICE

OF HEARING. In a contested case, each party is entitled to an

opportunity:

(1) for hearing after reasonable notice of not less than 10

days; and

(2) to respond and to present evidence and argument on each

issue involved in the case.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.052. CONTENTS OF NOTICE. (a) Notice of a hearing in

a contested case must include:

(1) a statement of the time, place, and nature of the hearing;

(2) a statement of the legal authority and jurisdiction under

which the hearing is to be held;

(3) a reference to the particular sections of the statutes and

rules involved; and

(4) a short, plain statement of the matters asserted.

(b) If a state agency or other party is unable to state matters

in detail at the time notice under this section is served, an

initial notice may be limited to a statement of the issues

involved. On timely written application, a more definite and

detailed statement shall be furnished not less than three days

before the date set for the hearing.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.053. RIGHT TO COUNSEL. (a) Each party to a contested

case is entitled to the assistance of counsel before a state

agency.

(b) A party may expressly waive the right to assistance of

counsel.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.054. LICENSES. (a) The provisions of this chapter

concerning contested cases apply to the grant, denial, or renewal

of a license that is required to be preceded by notice and

opportunity for hearing.

(b) If a license holder makes timely and sufficient application

for the renewal of a license or for a new license for an activity

of a continuing nature, the existing license does not expire

until the application has been finally determined by the state

agency. If the application is denied or the terms of the new

license are limited, the existing license does not expire until

the last day for seeking review of the agency order or a later

date fixed by order of the reviewing court.

(c) A revocation, suspension, annulment, or withdrawal of a

license is not effective unless, before institution of state

agency proceedings:

(1) the agency gives notice by personal service or by registered

or certified mail to the license holder of facts or conduct

alleged to warrant the intended action; and

(2) the license holder is given an opportunity to show

compliance with all requirements of law for the retention of the

license.

(d) A license described in Subsection (a) remains valid unless

it expires without timely application for renewal, is amended,

revoked, suspended, annulled, or withdrawn, or the denial of a

renewal application becomes final. The term or duration of a

license described in Subsection (a) is tolled during the period

the license is subjected to judicial review. However, the term or

duration of a license is not tolled if, during judicial review,

the licensee engages in the activity for which the license was

issued.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 589, Sec. 1, eff.

Sept. 1, 1995.

Sec. 2001.055. INTERPRETERS FOR DEAF OR HEARING IMPAIRED PARTIES

AND WITNESSES. (a) In a contested case, a state agency shall

provide an interpreter whose qualifications are approved by the

Texas Commission for the Deaf and Hard of Hearing to interpret

the proceedings for a party or subpoenaed witness who is deaf or

hearing impaired.

(b) In this section, "deaf or hearing impaired" means having a

hearing impairment, whether or not accompanied by a speech

impairment, that inhibits comprehension of the proceedings or

communication with others.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 835, Sec. 18, eff.

Sept. 1, 1995.

Sec. 2001.056. INFORMAL DISPOSITION OF CONTESTED CASE. Unless

precluded by law, an informal disposition may be made of a

contested case by:

(1) stipulation;

(2) agreed settlement;

(3) consent order; or

(4) default.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.057. CONTINUANCES. (a) A state agency may continue a

hearing in a contested case from time to time and from place to

place.

(b) The notice of the hearing must indicate the times and places

at which the hearing may be continued.

(c) If a hearing is not concluded on the day it begins, a state

agency shall, to the extent possible, proceed with the hearing on

each subsequent working day until the hearing is concluded.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.058. HEARING CONDUCTED BY STATE OFFICE OF

ADMINISTRATIVE HEARINGS. (a) This section applies only to an

administrative law judge employed by the State Office of

Administrative Hearings.

(b) An administrative law judge who conducts a contested case

hearing shall consider applicable agency rules or policies in

conducting the hearing, but the state agency deciding the case

may not supervise the administrative law judge.

(c) A state agency shall provide the administrative law judge

with a written statement of applicable rules or policies.

(d) A state agency may not attempt to influence the finding of

facts or the administrative law judge's application of the law in

a contested case except by proper evidence and legal argument.

(e) A state agency may change a finding of fact or conclusion of

law made by the administrative law judge, or may vacate or modify

an order issued by the administrative judge, only if the agency

determines:

(1) that the administrative law judge did not properly apply or

interpret applicable law, agency rules, written policies provided

under Subsection (c), or prior administrative decisions;

(2) that a prior administrative decision on which the

administrative law judge relied is incorrect or should be

changed; or

(3) that a technical error in a finding of fact should be

changed.

The agency shall state in writing the specific reason and legal

basis for a change made under this subsection.

(f) A state agency by rule may provide that, in a contested case

before the agency that concerns licensing in relation to an

occupational license and that is not disposed of by stipulation,

agreed settlement, or consent order, the administrative law judge

shall render the final decision in the contested case. If a state

agency adopts such a rule, the following provisions apply to

contested cases covered by the rule:

(1) the administrative law judge shall render the decision that

may become final under Section 2001.144 not later than the 60th

day after the latter of the date on which the hearing is finally

closed or the date by which the judge has ordered all briefs,

reply briefs, and other posthearing documents to be filed, and

the 60-day period may be extended only with the consent of all

parties, including the occupational licensing agency;

(2) the administrative law judge shall include in the findings

of fact and conclusions of law a determination whether the

license at issue is primarily a license to engage in an

occupation;

(3) the State Office of Administrative Hearings is the state

agency with which a motion for rehearing or a reply to a motion

for rehearing is filed under Section 2001.146 and is the state

agency that acts on the motion or extends a time period under

Section 2001.146;

(4) the State Office of Administrative Hearings is the state

agency responsible for sending a copy of the decision that may

become final under Section 2001.144 or an order ruling on a

motion for rehearing to the parties, including the occupational

licensing agency, in accordance with Section 2001.142; and

(5) the occupational licensing agency and any other party to the

contested case is entitled to obtain judicial review of the final

decision in accordance with this chapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1167, Sec. 1, eff.

Sept. 1, 1997.

Sec. 2001.059. TRANSCRIPT. (a) On the written request of a

party to a contested case, proceedings, or any part of the

proceedings, shall be transcribed.

(b) A state agency may pay the cost of a transcript or may

assess the cost to one or more parties.

(c) This chapter does not limit a state agency to a stenographic

record of proceedings.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.060. RECORD. The record in a contested case includes:

(1) each pleading, motion, and intermediate ruling;

(2) evidence received or considered;

(3) a statement of matters officially noticed;

(4) questions and offers of proof, objections, and rulings on

them;

(5) proposed findings and exceptions;

(6) each decision, opinion, or report by the officer presiding

at the hearing; and

(7) all staff memoranda or data submitted to or considered by

the hearing officer or members of the agency who are involved in

making the decision.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.061. EX PARTE CONSULTATIONS. (a) Unless required for

the disposition of an ex parte matter authorized by law, a member

or employee of a state agency assigned to render a decision or to

make findings of fact and conclusions of law in a contested case

may not directly or indirectly communicate in connection with an

issue of fact or law with a state agency, person, party, or a

representative of those entities, except on notice and

opportunity for each party to participate.

(b) A state agency member may communicate ex parte with another

member of the agency unless prohibited by other law.

(c) Under Section 2001.090, a member or employee of a state

agency assigned to render a decision or to make findings of fact

and conclusions of law in a contested case may communicate ex

parte with an agency employee who has not participated in a

hearing in the case for the purpose of using the special skills

or knowledge of the agency and its staff in evaluating the

evidence.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.062. EXAMINATION OF RECORD BY STATE AGENCY; PROPOSAL

FOR DECISION. (a) In a contested case, if a majority of the

state agency officials who are to render a final decision have

not heard the case or read the record, the decision, if adverse

to a party other than the agency itself, may not be made until:

(1) a proposal for decision is served on each party; and

(2) an opportunity is given to each adversely affected party to

file exceptions and present briefs to the officials who are to

render the decision.

(b) If a party files exceptions or presents briefs, an

opportunity shall be given to each other party to file replies to

the exceptions or briefs.

(c) A proposal for decision must contain a statement of the

reasons for the proposed decision and of each finding of fact and

conclusion of law necessary to the proposed decision. The

statement must be prepared by the individual who conducted the

hearing or by one who has read the record.

(d) A proposal for decision may be amended in response to

exceptions, replies, or briefs submitted by the parties without

again being served on the parties.

(e) The parties by written stipulation may waive compliance with

this section.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER D. CONTESTED CASES: EVIDENCE, WITNESSES, AND DISCOVERY

Sec. 2001.081. RULES OF EVIDENCE. The rules of evidence as

applied in a nonjury civil case in a district court of this state

shall apply to a contested case except that evidence inadmissible

under those rules may be admitted if the evidence is:

(1) necessary to ascertain facts not reasonably susceptible of

proof under those rules;

(2) not precluded by statute; and

(3) of a type on which a reasonably prudent person commonly

relies in the conduct of the person's affairs.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.082. EXCLUSION OF EVIDENCE. In a contested case,

evidence that is irrelevant, immaterial, or unduly repetitious

shall be excluded.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.083. PRIVILEGE. In a contested case, a state agency

shall give effect to the rules of privilege recognized by law.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.084. OBJECTIONS TO EVIDENCE. An objection to an

evidentiary offer in a contested case may be made and shall be

noted in the record.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.085. WRITTEN EVIDENCE. Subject to the requirements of

Sections 2001.081 through 2001.084, any part of the evidence in a

contested case may be received in writing if:

(1) a hearing will be expedited; and

(2) the interests of the parties will not be substantially

prejudiced.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.086. DOCUMENTARY EVIDENCE. A copy or excerpt of

documentary evidence may be received in a contested case if an

original document is not readily available. On request, a party

shall be given an opportunity to compare the copy or excerpt with

the original document.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.087. CROSS-EXAMINATION. In a contested case, a party

may conduct cross-examination required for a full and true

disclosure of the facts.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.088. WITNESSES. A state agency may swear witnesses

and take their testimony under oath in connection with a

contested case held under this chapter.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.089. ISSUANCE OF SUBPOENA. On its own motion or on

the written request of a party to a contested case pending before

it, a state agency shall issue a subpoena addressed to the

sheriff or to a constable to require the attendance of a witness

or the production of books, records, papers, or other objects

that may be necessary and proper for the purposes of a proceeding

if:

(1) good cause is shown; and

(2) an amount is deposited that will reasonably ensure payment

of the amounts estimated to accrue under Section 2001.103.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.090. OFFICIAL NOTICE; STATE AGENCY EVALUATION OF

EVIDENCE. (a) In connection with a hearing held under this

chapter, official notice may be taken of:

(1) all facts that are judicially cognizable; and

(2) generally recognized facts within the area of the state

agency's specialized knowledge.

(b) Each party shall be notified either before or during the

hearing, or by reference in a preliminary report or otherwise, of

the material officially noticed, including staff memoranda or

information.

(c) Each party is entitled to be given an opportunity to contest

material that is officially noticed.

(d) The special skills or knowledge of the state agency and its

staff may be used in evaluating the evidence.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.091. DISCOVERY FROM PARTIES: ORDERS FOR PRODUCTION OR

INSPECTION. (a) On the motion of a party, on notice to each

other party, and subject to limitations of the kind provided for

discovery under the Texas Rules of Civil Procedure, a state

agency in which a contested case is pending may order a party:

(1) to produce and to permit the party making the motion or a

person on behalf of that party to inspect and to copy or

photograph a designated document, paper, book, account, letter,

photograph, or tangible thing in the party's possession, custody,

or control that:

(A) is not privileged; and

(B) constitutes or contains, or is reasonably calculated to lead

to the discovery of, evidence that is material to a matter

involved in the contested case; and

(2) to permit entry to designated land or other property in the

party's possession or control to inspect, measure, survey, or

photograph the property or a designated object or operation on

the property that may be material to a matter involved in the

contested case.

(b) An order under this section:

(1) must specify the time, place, and manner of making the

inspection, measurement, or survey or of making copies or

photographs; and

(2) may prescribe other terms and conditions that are just.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.092. DISCOVERY FROM PARTIES: IDENTITY OF WITNESS OR

POTENTIAL PARTY; EXPERT REPORTS. (a) The identity and location

of a potential party or witness in a contested case may be

obtained from a communication or other paper in a party's

possession, custody, or control.

(b) A party may be required to produce and permit the inspection

and copying of a report, including factual observations and

opinions, of an expert who will be called as a witness.

(c) This section does not extend to other communications:

(1) made after the occurrence or transaction on which the

contested case is based;

(2) made in connection with the prosecution, investigation, or

defense of the contested case or the circumstances from which the

case arose; and

(3) that are:

(A) written statements of witnesses;

(B) in writing and between agents, representatives, or employees

of a party; or

(C) between a party and the party's agent, representative, or

employee.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.093. DISCOVERY FROM PARTIES: COPY OF PREVIOUS

STATEMENT. (a) On request, a person, including a person who is

not a party, is entitled to obtain a copy of a statement in a

party's possession, custody, or control that the person has

previously made about the contested case or its subject matter.

(b) A person whose request under Subsection (a) is refused may

move for a state agency order under Section 2001.091.

(c) In this section, a statement is considered to be previously

made if it is:

(1) a written statement signed or otherwise adopted or approved

by the person making it; or

(2) a stenographic, mechanical, electrical, or other recording,

or a transcription of the recording, which is a substantially

verbatim recital of an oral statement by the person making it and

that was contemporaneously recorded.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.094. ISSUANCE OF COMMISSION REQUIRING DEPOSITION. (a)

On its own motion or on the written request of a party to a

contested case pending before it, and on deposit of an amount

that will reasonably ensure payment of the amount estimated to

accrue under Section 2001.103, a state agency shall issue a

commission, addressed to the officers authorized by statute to

take a deposition, requiring that the deposition of a witness be

taken.

(b) The commission shall authorize the issuance of any subpoena

necessary to require that the witness appear and produce, at the

time the deposition is taken, books, records, papers, or other

objects that may be necessary and proper for the purpose of the

proceeding.

(c) The commission shall require an officer to whom it is

addressed to:

(1) examine the witness before the officer on the date and at

the place named in the commission; and

(2) take answers under oath to questions asked the witness by a

party to the proceeding, the state agency, or an attorney for a

party or the agency.

(d) The commission shall require the witness to remain in

attendance from day to day until the deposition is begun and

completed.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.095. DEPOSITION OF STATE AGENCY BOARD MEMBER. The

deposition of a member of a state agency board may not be taken

after a date has been set for hearing in a contested case.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.096. PLACE OF DEPOSITION. A deposition in a contested

case shall be taken in the county where the witness:

(1) resides;

(2) is employed; or

(3) regularly transacts business in person.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.097. OBJECTIONS TO DEPOSITION TESTIMONY. (a) The

officer taking an oral deposition in a contested case may not:

(1) sustain an objection to the testimony taken; or

(2) exclude testimony.

(b) An objection to deposition testimony is reserved for the

action of the state agency before which the matter is pending.

(c) The administrator or other officer conducting the contested

case hearing may consider objections other than those made at the

taking of the testimony.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.098. PREPARATION OF DEPOSITION. (a) A deposition

witness in a contested case shall be carefully examined.

(b) The testimony shall be reduced to writing or typewriting by

the officer taking the deposition, a person under the officer's

personal supervision, or the deposition witness in the officer's

presence.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.099. SUBMISSION OF DEPOSITION TO WITNESS; SIGNATURE.

(a) A deposition in a contested case shall be submitted to the

witness for examination after the testimony is fully transcribed

and shall be read to or by the witness.

(b) The witness and the parties may waive in writing the

examination and reading of a deposition under Subsection (a).

(c) If the witness is a party to the contested case pending

before the agency with an attorney of record, the deposition

officer shall notify the attorney of record in writing by

registered or certified mail that the deposition is ready for

examination and reading at the office of the deposition officer

and that if the witness does not appear and examine, read, and

sign the deposition before the 21st day after the date on which

the notice is mailed, the deposition shall be returned as

provided by this subchapter for unsigned depositions.

(d) A witness must sign a deposition at least three days before

the date of the hearing or the deposition shall be returned as an

unsigned deposition as provided by this subchapter.

(e) The officer taking a deposition shall enter on the

deposition:

(1) a change in form or substance that the witness desires to

make; and

(2) a statement of the reasons given by the witness for making

the change.

(f) After the deposition officer has entered any change and a

statement of reasons for the change on the deposition under

Subsection (e), the witness shall sign the deposition unless:

(1) the parties present at the taking of the deposition by

stipulation waive the signing;

(2) the witness is ill;

(3) the witness cannot be found; or

(4) the witness refuses to sign.

(g) If a deposition is not signed by the witness, the officer

shall sign it and state on the record the fact of the witness's

waiver, illness, absence, or refusal to sign and the reason

given, if any, for failure to sign. The deposition may then be

used as though signed by the witness.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.100. RETURN OF DEPOSITION TO STATE AGENCY. (a) A

deposition may be returned to the state agency before which the

contested case is pending by mail or by a party interested in

taking the deposition or another person.

(b) For a deposition returned by mail, the state agency shall:

(1) endorse on the deposition the fact that it was received from

the post office; and

(2) have it signed by the agency employee receiving the

deposition.

(c) For a deposition returned by means other than mail, the

person delivering it to the state agency shall execute an

affidavit before the agency stating that:

(1) the person received it from the hands of the officer before

whom it was taken;

(2) it has not been out of the person's possession since the

person received it; and

(3) it has not been altered.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.101. OPENING OF DEPOSITION BY STATE AGENCY EMPLOYEE.

(a) At the request of a party or the party's counsel, a

deposition in a contested case that is filed with a state agency

may be opened by an employee of the agency.

(b) A state agency employee who opens a deposition shall:

(1) endorse on the deposition the day and at whose request it

was opened; and

(2) sign the deposition.

(c) The deposition shall remain on file with the state agency

for the inspection of any party.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.102. USE OF DEPOSITION. A party is entitled to use a

deposition taken under this subchapter in the contested case

pending before the state agency without regard to whether a

cross-interrogatory has been propounded.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 2001.103. EXPENSES OF WITNESS OR DEPONENT. (a) A witness

or deponent in a contested case who is not a party and who is

subpoenaed or otherwise compelled to attend a hearing or

proceeding to give a deposition or to produce books, records,

papers, or other objects that may be necessary and proper for the

purposes of a proceeding under this chapter is entitled to

receive:

(1) 10 cents for each mile, or a greater amount prescribed by

state agency rule, for going to and returning from the place of

the hearing or deposition if the place is more than 25 miles from

the person's place of residence and the person uses the person's

personally owned or leased motor vehicle for the travel;

(2) reimbursement of the transportation expenses of the witness

or deponent for going to and returning from the place where the

hearing is held or the deposition is taken, if the place is more

than 25 miles from the person's place of residence and the person

does not use the person's personally owned or leased motor

vehicle for the travel;

(3) reimbursement of the meal and lodging expenses of the

witness or deponent while going to and returning from the place

where the hearing is held or deposition is taken, if the place is

more than 25 miles from the person's place of residence; and

(4) $10, or a greater amount prescribed by state agency rule,

for each day or part of a day that the person is necessarily

present.

(b) Amounts required to be reimbursed or paid under this section

shall be reimbursed or paid by the party or agency at whose

request the witness appears or the deposition is taken. An agency

required to make a payment or reimbursement shall present to the

comptroller vouchers:

(1) sworn by the witness or deponent; and

(2) appr