By Gallego                                            H.B. No. 3069
       74R3415 JRD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to judicial review of state agency orders and decisions
    1-3  and of the validity of agency rules under the Administrative
    1-4  Procedure Act.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.   Title 2, Government Code, is amended by adding
    1-7  Subtitle I to read as follows:
    1-8          SUBTITLE I. JUDICIAL REVIEW OF STATE AGENCY ACTIONS
    1-9         CHAPTER 101. STATUTORY COURT OF ADMINISTRATIVE REVIEW
   1-10                   SUBCHAPTER A. GENERAL PROVISIONS
   1-11        Sec. 101.001.  COURT OF ADMINISTRATIVE REVIEW.  The Court of
   1-12  Administrative Review is established as a statutory court in the
   1-13  judicial branch of state government under Section 1, Article V,
   1-14  Texas Constitution.
   1-15        Sec. 101.002.  COMPOSITION; APPOINTMENT.  The court is
   1-16  composed of five judges appointed by the governor with the advice
   1-17  and consent of the senate.
   1-18        Sec. 101.003.  TERMS OF OFFICE.  Judges of the court serve
   1-19  staggered two-year terms of office expiring January 1.
   1-20        Sec. 101.004.  PRESIDING JUDGE.  The governor shall designate
   1-21  one member of the court as the presiding judge to serve in that
   1-22  capacity for a two-year term expiring  on the date the judge's term
   1-23  as a judge expires.
   1-24        Sec. 101.005.  STATUS OF COURT; APPLICABILITY OF OTHER LAW.
    2-1  The court is a trial court but Chapter 23 does not apply to the
    2-2  court.
    2-3        Sec. 101.006.  LOCATION OF COURT.  (a) The court sits in the
    2-4  city of Austin.
    2-5        (b)  The General Services Commission shall provide office
    2-6  space for the court.
    2-7        Sec. 101.007.  TERM OF COURT.  The court's term begins and
    2-8  ends with each calendar year.
    2-9        Sec. 101.008.  PERSONNEL.  The court may employ clerks, court
   2-10  reporters, and other personnel necessary for the business of the
   2-11  court.
   2-12        Sec. 101.009.  COMPENSATION.  (a) The legislature shall
   2-13  determine the salaries of the judges and of the clerks and other
   2-14  officers and employees of the court in its appropriations acts for
   2-15  the support of the judiciary.
   2-16        (b)  Judges of the court are members of the Judicial
   2-17  Retirement System of Texas Plan Two. Other court personnel are
   2-18  state employee members of the Employees Retirement System of Texas.
   2-19           (Sections 101.010-101.050 reserved for expansion
   2-20               SUBCHAPTER B. JURISDICTION AND PROCEDURE
   2-21        Sec. 101.051.  JURISDICTION.  (a) The court has jurisdiction
   2-22  over the judicial review of all state agency contested cases:
   2-23              (1)  for which a petition for judicial review is filed
   2-24  under Subchapter G, Chapter 2001; and
   2-25              (2)  that are subject to judicial review in accordance
   2-26  with Sections 2001.174 and 2001.175.
   2-27        (b)  The court has jurisdiction over all declaratory
    3-1  judgments to determine the validity or applicability of a state
    3-2  agency rule that are brought under Section 2001.038.
    3-3        Sec. 101.052.  POWERS.  In addition to its powers under
    3-4  Chapters 21 and 2001, the court may:
    3-5              (1)  ascertain, on affidavit or otherwise as the court
    3-6  may determine, the matters of fact that are necessary to the proper
    3-7  exercise of its jurisdiction; and
    3-8              (2)  in a proper case, enjoin or modify the enforcement
    3-9  of a state agency's final order or decision in a case that is
   3-10  otherwise before the court for judicial review, pending the court's
   3-11  final judgment in the case.
   3-12        Sec. 101.053.  RULES OF PROCEDURE; ASSIGNMENT OF CASES.  (a)
   3-13  The court may adopt rules of procedure that are consistent with the
   3-14  Texas Rules of Civil Procedure and applicable law. The court's
   3-15  rules shall provide for circumstances under which a case may be
   3-16  heard on rehearing by the court sitting en banc.
   3-17        (b)  Subject to rules adopted by the court, the presiding
   3-18  judge shall assign a case to be heard either by an individual judge
   3-19  or by a panel of three judges. The decision to assign a case to an
   3-20  individual judge or to a panel shall be based on the presiding
   3-21  judge's determination of the size and complexity of the case.
   3-22        Sec. 101.054.  APPEAL FROM JUDGMENT OF COURT.  (a) An appeal
   3-23  from a judgment of the court in a case in which the court is
   3-24  reviewing a contested case under Chapter 2001 is direct to the
   3-25  supreme court. The supreme court shall prescribe the necessary
   3-26  rules of procedure to be followed in perfecting the appeal.
   3-27        (b)  An appeal from a declaratory judgment of the court in a
    4-1  case in which the court is determining the validity or
    4-2  applicability of a state agency rule under Section 2001.038 is to
    4-3  the Court of Appeals for the Third Court of Appeals District in
    4-4  Austin in the manner provided for the appeal of a declaratory
    4-5  judgment from a trial court generally.
    4-6        SECTION 2.  Section 2001.038(b), Government Code, is amended
    4-7  to read as follows:
    4-8        (b)  The action may be brought only in the Court of
    4-9  Administrative Review <a Travis County district court>.
   4-10        SECTION 3.  Section 2001.176(b), Government Code, is amended
   4-11  to read as follows:
   4-12        (b)  Unless otherwise provided by statute:
   4-13              (1)  the petition must be filed:
   4-14                    (A)  in a Travis County district court if the
   4-15  manner of review authorized by law for the decision in the
   4-16  contested case is by trial de novo; or
   4-17                    (B)  in the Court of Administrative Review if the
   4-18  manner of review authorized by law for the decision in the
   4-19  contested case is other than by trial de novo;
   4-20              (2)  a copy of the petition must be served on the state
   4-21  agency and each party of record in the proceedings before the
   4-22  agency; and
   4-23              (3)  the filing of the petition vacates a state agency
   4-24  decision for which trial de novo is the manner of review authorized
   4-25  by law but does not affect the enforcement of an agency decision
   4-26  for which another manner of review is authorized.
   4-27        SECTION 4.  Subchapter G, Chapter 2001, Government Code, is
    5-1  amended by adding Section 2001.1761 to read as follows:
    5-2        Sec. 2001.1761.  TRANSFER IF STATUTE UNCONSTITUTIONALLY
    5-3  AUTHORIZES TRIAL DE NOVO REVIEW.  If a statute authorizes trial de
    5-4  novo review of a contested case in circumstances under which the
    5-5  Texas Constitution does not permit trial de novo review and the
    5-6  petitioner initiates judicial review in the contested case by
    5-7  filing a petition in Travis County district court in accordance
    5-8  with Section 2001.176, the trial court or an appellate court on the
    5-9  motion of a party or on the court's own motion shall transfer the
   5-10  case to the Court of Administrative Review. The Court of
   5-11  Administrative Review shall determine the case as if it had been
   5-12  filed with that court.
   5-13        SECTION 5.  (a) Except as provided by Subsection (b) of this
   5-14  section, this Act takes effect January 1, 1996, and applies only to
   5-15  an action brought under Section 2001.038, Government Code, or an
   5-16  action for which a petition is filed under Section 2001.176,
   5-17  Government Code, on or after that date. An action brought under
   5-18  Section 2001.038, Government Code, or an action for which a
   5-19  petition is filed under Section 2001.176, Government Code, before
   5-20  that date is governed by the law in effect at the time the action
   5-21  is brought or the petition is filed, and the former law is
   5-22  continued in effect for this purpose.
   5-23        (b)  This Act takes effect September 1, 1995, for the limited
   5-24  purpose of allowing the governor to make the initial appointments
   5-25  to the Court of Administrative Review so that the court may adopt
   5-26  and publicize interim rules, hire staff, and take other action
   5-27  necessary for it to begin its business on January 1, 1996.  A judge
    6-1  may qualify for office and a judge or employee of the court may
    6-2  begin administrative duties and receive compensation before January
    6-3  1, 1996.   The governor shall make initial appointments to the
    6-4  court in accordance with Chapter 101, Government Code, as added by
    6-5  this Act.  The governor shall appoint three judges for terms
    6-6  expiring January 1, 1997, and two judges for terms expiring January
    6-7  1, 1998.  The governor shall appoint one of the five judges as the
    6-8  presiding judge.
    6-9        SECTION 6.  The importance of this legislation and the
   6-10  crowded condition of the calendars in both houses create an
   6-11  emergency and an imperative public necessity that the
   6-12  constitutional rule requiring bills to be read on three several
   6-13  days in each house be suspended, and this rule is hereby suspended.