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.