Section 2001.038(a) of the Texas Administrative Procedure Act (TAPA) allows courts to issue declaratory judgments regarding the validity or applicability of an administrative rule. Unlike appeals of contested cases, prior administrative proceedings are not required.

The Supreme Court of Texas (SCOTX) recently considered who can seek a declaration regarding a rule’s applicability and what kinds of applicability declarations courts can issue.

Abandoned Personal Property
A landowner sued, requesting a declaratory judgment that an agency rule did not apply to it. The landowner had foreclosed on certain real estate. The prior owner left behind certain personal property that the landowner did not want. The agency rule applied to that personal property. The agency took enforcement action against the landowner.

Threatened Application Interferes with Legal Right
SCOTX held that any person can seek a declaratory judgment regarding an agency rule if the person alleges the rule or its threatened application interferes with or impairs the person’s legal right or privilege. In this case, the landowner facing enforcement action met that standard.

Broad Authority to Determine “If” a Rule Applies
The agency argued the landowner was improperly seeking the court to determine “how” the rule applied, not “if” the rule applied. SCOTX rejected that argument; a court may properly determine if a rule applies even if the court’s ruling would give guidance on how the rule would apply. If the court must hear evidence, that does not prevent the court from issuing the declaratory judgment. Indeed, even if the court’s ruling would guide the outcome of a rule’s application, the TAPA allows a court to determine if the rule applies to the person challenging it.

To see the opinion https://txcourts.gov/media/1460203/230644.pdf