By: Harrison H.B. No. 940
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to decisions of an administrative law judge of the State
  Office of Administrative Hearings in contested cases.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 2001.058(e), (e-1), and (f), Government
  Code, are amended to read as follows:
         (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.
         [(e-1)]  Notwithstanding any other law, the administrative
  law judge who conducts a contested case hearing shall render the
  final decision in the contested case. The final decision rendered
  by the administrative law judge is considered a final decision of
  the state agency on behalf of which the hearing is being conducted.
  A [Subsection (e), a] state agency may not change a finding of fact
  or conclusion of law made by the administrative law judge and may
  not vacate or modify an order of an administrative law judge [that
  awards attorney's fees and costs under Section 2001.903].
         (f)  The [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 finally decided by
  the administrative law judge [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's decision [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 state [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.
         SECTION 2.  Section 2003.042(a), Government Code, is amended
  to read as follows:
         (a)  An administrative law judge employed by the office or a
  temporary administrative law judge may:
               (1)  administer an oath;
               (2)  take testimony;
               (3)  rule on a question of evidence;
               (4)  issue an order relating to discovery or another
  hearing or prehearing matter, including an order imposing a
  sanction;
               (5)  issue an order that refers a case to an alternative
  dispute resolution procedure, determines how the costs of the
  procedure will be apportioned, and appoints an impartial third
  party as described by Section 2009.053 to facilitate that
  procedure;
               (6)  issue a proposal for decision that includes
  findings of fact and conclusions of law;
               (7)  [if expressly authorized by a state agency rule
  adopted under Section 2001.058(f),] make the final decision in a
  contested case;
               (8)  serve as an impartial third party as described by
  Section 2009.053 for a dispute referred by an administrative law
  judge, unless one of the parties objects to the appointment; and
               (9)  serve as an impartial third party as described by
  Section 2009.053 for a dispute referred by a government agency
  under a contract.
         SECTION 3.  The following provisions of the Government Code
  are repealed:
               (1)  Section 2001.058(d-1); and
               (2)  Section 2003.051.
         SECTION 4.  The changes in law made by this Act apply only to
  a contested case hearing that is commenced on or after the effective
  date of this Act. A contested case hearing commenced before that
  date is governed by the law in effect on the date the hearing
  commenced, and the former law is continued in effect for that
  purpose.
         SECTION 5.  This Act takes effect September 1, 2025.