December 3, 2018

Earlier this year, the Austin Court of Appeals ruled in favor of Appellant Badger Tavern, represented by Ryan Law Firm LLP, in Badger Taven v. Hegar. In that case, the Austin Court of Appeals held that Comptroller statements in the Texas Register could be challenged as administrative rules for the purposes of the Administrative Procedure Act. The ruling was an important victory for Texas taxpayers.

The Comptroller—who considers the holding in Badger Tavern a major decision, as indicated by the Comptroller’s discussion of the case at the 2018 Annual Comptroller Briefing—filed a Motion for Rehearing. A Motion for Rehearing is a procedural right that allows the losing party to petition the court to reconsider all or part of the court’s ruling. In the Motion, the Comptroller argued that the Court of Appeals erred in declaring the Comptroller’s statements to be challengeable rules.

On November 27, the Court of Appeals summarily denied the Comptroller’s Motion. Accordingly, the holding in Badger Tavern was unaltered and remains binding precedent on what can be considered an administrative rule under Texas law.