BILL ANALYSIS


                                                      C.S.S.B. 12
                                                     By: Montford
                                                Natural Resources
                                                         03-30-95
                                   Committee Report (Substituted)
BACKGROUND

Currently, the Office of Hearings Examiners is a division of the
Texas Natural Resource Conservation Commission (commission) created
to assist the commission in fulfilling its duties under the Water
Code.  The office presides over quasi-legal inquiries into disputed
applications or permits, and the decisions of the inquiries are
forwarded to the commission where they are accepted or rejected.

The State Office of Administrative Hearings was created by the
legislature in 1991 to conduct hearings in contested cases under
the Administrative Procedure and Texas Register Act.  Now, the
office hears contested cases for many state agencies, and could
provide a means for independent hearings for the commission's
contested cases.

PURPOSE

As proposed, S.B. 12 cancels the hearings division of the Texas
Natural Resource Conservation Commission and its ability to hear
administrative hearings for the commission; replaces the hearings
division with administrative law judges of the State Office of
Administrative Hearings.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 5H, Water Code, as follows:

        SUBCHAPTER H.  New heading: DELEGATION OF HEARINGS

     Sec.  5.311.  DELEGATION OF RESPONSIBILITY.  (a) Authorizes
     the Texas Natural Resource Conservation Commission
     (commission) to delegate to an administrative law judge of the
     State Office of Administrative Hearings (office), rather than
     a hearing examiner, responsibility to hear any matter before
     the commission.  Deletes existing Sections 5.311 and 5.312
     relating to the creation and organization of the office of
     hearing examiners.  Redesignates existing Section 5.313.
     
     (b) Deletes language requiring a hearing examiner to prepare
       for and hold any hearing as directed by the commission. 
       Makes a conforming change.
       
       Sec.  5.312.  TIME LIMIT FOR ISSUANCE OR DENIAL OF PERMITS. 
     Redesignates existing Section 5.314.
     
     Sec.  5.313.  HEARING EXAMINERS REFERENCED IN LAW.  Provides
     that any reference to a hearing examiner related to a case
     pending before the commission means an administrative law
     judge of the office.
     
     Sec.  5.314.  STATE OFFICE OF ADMINISTRATIVE HEARINGS FEE. 
     Requires the office to charge the commission a fixed annual
     fee rather than an hourly rate for services rendered by the
     utility divisions to the commission.  Requires the office and
     the commission to negotiate the amount of the fixed fee
     biennially, subject to the governor's approval, to coincide
     with the commission's legislative appropriations request.
     SECTION 2.     Amends Sections 26.021(a)-(c), Water Code, as follows:

     (a) Makes a conforming change.
     
     (b) Authorizes the commission to authorize the chief
     administrative law judge, rather than chief hearing examiner,
     to delegate to other administrative law judges the authority
     to hold any hearing called by the chief administrative law
     judge.
     
     (c) Authorizes the chief administrative law judge or the
     administrative law judge to whom a hearing is delegated,
     rather than the chief hearing examiner or person delegated by
     the chief hearing examiner to hold the hearing, to administer
     oaths and receive evidence at any hearing called under this
     section.
     
     SECTION 3.     Amends Sections 28.029(a)-(c), Water Code, to make
conforming changes.

SECTION 4. Amends Sections 31.009(a)-(c), Water Code, to make
conforming changes.

SECTION 5. Amends Sections 361.0831(a) and (b), Health and Safety
Code, as follows:

     (a) Prohibits a hearings examiner from communicating in any
     way with, among others, an employee of the commission, unless
     permitted by Section 2001.061, Government Code.  Makes
     conforming and nonsubstantive change.
     
     (b) Makes a conforming change.
     
     SECTION 6.     Amends Section 361.0832, Health and Safety Code, by
amending Subsection (a), and adding Subsection (g), as follows:

     (a) Makes a conforming change.
     
     (g) Provides that to the extent of a conflict between this
     section and Section 2001.058(e), Government Code, this section
     controls.
     
     SECTION 7.     Requires the chief administrative law judge to consult,
as soon as practicable, with the chief administrative hearing
examiner of the commission to assist in determining the number of
and requirements for the administrative law judges needed for
commission hearings; and making necessary administrative changes in
the office.

SECTION 8. Provides that on September 1, 1995, all equipment, data,
facilities, and other items of the office of hearing examiners of
the commission are transferred to the office.

     (b)  Requires the chief administrative law judge of the office
     to assign a case to render a proposal or decision to an
     individual if a hearing examiner or administrative law judge
     employed by the office of hearing examiners of the commission
     the individual is hearing the case pending before the
     commission as of the effective date of this Act and accepts a
     position as an administrative law judge of the office.
     
SECTION 9. Effective date for Sections 1-6 and 8: September 1,
1995.          Effective date for Section 7: upon passage.

SECTION 10.    Emergency clause.
           Effective date: upon passage.