By:  Montford                                           S.B. No. 12
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to administrative hearings for the Texas Natural Resource
    1-2  Conservation Commission provided by the State Office of
    1-3  Administrative Hearings.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter H, Chapter 5, Water Code, is amended
    1-6  to read as follows:
    1-7  SUBCHAPTER H.  DELEGATION OF HEARINGS <OFFICE OF HEARING EXAMINERS>
    1-8        Sec. 5.311.  <CREATION OF OFFICE.  (a)  The commission shall
    1-9  create an office of hearing examiners to assist the commission in
   1-10  carrying out its powers and duties under this code.>
   1-11        <(b)  The office of hearing examiners is independent of the
   1-12  executive director and the divisions of the commission and is under
   1-13  the exclusive control of the commission.>
   1-14        <Sec. 5.312.  ORGANIZATION OF OFFICE OF HEARING EXAMINERS.
   1-15  (a)  The office of hearing examiners shall be under the direction
   1-16  of the chief hearing examiner.>
   1-17        <(b)  The chief hearing examiner and all assistant hearing
   1-18  examiners employed in the office of hearing examiners shall be
   1-19  attorneys licensed to practice law in this state and shall be
   1-20  employed by the commission.>
   1-21        <Sec. 5.313.>  DELEGATION OF RESPONSIBILITY.  (a)  The
   1-22  commission may delegate to an administrative law judge of the State
   1-23  Office of Administrative Hearings <a hearing examiner> the
    2-1  responsibility to hear any matter before the commission.
    2-2        (b)  The administrative law judge <A hearing examiner shall
    2-3  prepare for and hold any hearing as directed by the commission and>
    2-4  shall report to the commission on the hearing in the manner
    2-5  provided by law.
    2-6        Sec. 5.312 <5.314>.  TIME LIMIT FOR ISSUANCE OR DENIAL OF
    2-7  PERMITS.  (a)  Except as provided in Subsection (b), all permit
    2-8  decisions shall be made within 180 days of the receipt of the
    2-9  permit application or application amendment or the determination of
   2-10  administrative completeness, whichever is later.
   2-11        (b)  This section does not apply to permits issued under
   2-12  federally delegated or approved programs unless allowed under that
   2-13  program.
   2-14        Sec. 5.313.  HEARING EXAMINERS REFERENCED IN LAW.  Any
   2-15  reference in law to a hearing examiner who has a duty related to a
   2-16  case pending before the commission means an administrative law
   2-17  judge of the State Office of Administrative Hearings.
   2-18        Sec. 5.314.  STATE OFFICE OF ADMINISTRATIVE HEARINGS FEE.
   2-19  The State Office of Administrative Hearings shall charge the
   2-20  commission a fixed annual fee rather than an hourly rate for
   2-21  services rendered by the State Office of Administrative Hearings to
   2-22  the commission.  The State Office of Administrative Hearings and
   2-23  the commission shall negotiate the amount of the fixed fee
   2-24  biennially, subject to the approval of the governor, to coincide
   2-25  with the commission's legislative appropriations request.
    3-1        SECTION 2.  Subsections (a), (b), and (c), Section 26.021,
    3-2  Water Code, are amended to read as follows:
    3-3        (a)  Except for those hearings required to be held before the
    3-4  commission under Section 26.0191(b) of this code, the commission
    3-5  may authorize the chief administrative law judge of the State
    3-6  Office of Administrative Hearings <hearing examiner> to call and
    3-7  hold hearings on any subject on which the commission may hold a
    3-8  hearing.
    3-9        (b)  The commission may also authorize the chief
   3-10  administrative law judge <hearing examiner> to delegate to one or
   3-11  more administrative law judges <hearing examiners> the authority to
   3-12  hold any hearing the chief administrative law judge calls <called
   3-13  by him>.
   3-14        (c)  At any hearing called under this section, the chief
   3-15  administrative law judge or the administrative law judge to whom a
   3-16  hearing is delegated may <by the chief hearing examiner, he or the
   3-17  person delegated the authority by him to hold the hearing is
   3-18  empowered to> administer oaths and receive evidence.
   3-19        SECTION 3.  Subsections (a), (b), and (c), Section 28.029,
   3-20  Water Code, are amended to read as follows:
   3-21        (a)  The commission may authorize the chief administrative
   3-22  law judge of the State Office of Administrative Hearings <hearing
   3-23  examiner> to call and hold hearings on any subject on which the
   3-24  commission may hold a hearing.
   3-25        (b)  The commission may also authorize the chief
    4-1  administrative law judge <hearing examiner> to delegate to one or
    4-2  more administrative law judges <hearing examiners> the authority to
    4-3  hold any hearing the chief administrative law judge calls <called
    4-4  by him>.
    4-5        (c)  At any hearing called under this section, the chief
    4-6  administrative law judge or the administrative law judge to whom a
    4-7  hearing is delegated may <by the chief hearing examiner, he or the
    4-8  person delegated the authority by him to hold the hearing is
    4-9  empowered to> administer oaths and receive evidence.
   4-10        SECTION 4.  Subsections (a), (b), and (c), Section 31.009,
   4-11  Water Code, are amended to read as follows:
   4-12        (a)  The commission may authorize the chief administrative
   4-13  law judge of the State Office of Administrative Hearings <hearing
   4-14  examiner> to call and hold hearings on any subject on which the
   4-15  commission may hold a hearing.
   4-16        (b)  The commission may also authorize the chief
   4-17  administrative law judge <hearing examiner> to delegate to one or
   4-18  more administrative law judges <hearing examiners> the authority to
   4-19  hold a hearing the chief administrative law judge calls <called by
   4-20  the chief hearing examiner>.
   4-21        (c)  At a hearing called under this section, the chief
   4-22  administrative law judge or the administrative law judge to whom a
   4-23  hearing is delegated <by the chief hearing examiner, the chief
   4-24  hearing examiner or the person delegated the authority by him to
   4-25  hold the hearing> may administer oaths and receive evidence.
    5-1        SECTION 5.  Subsections (a) and (b), Section 361.0831, Health
    5-2  and Safety Code, are amended to read as follows:
    5-3        (a)  Unless required for the disposition of ex parte matters
    5-4  authorized by law, or unless permitted by Section 2001.061,
    5-5  Government Code <17, Administrative Procedure and Texas Register
    5-6  Act (Article 6252-13a, Vernon's Texas Civil Statutes)>, a hearings
    5-7  examiner <of the commission> may not communicate, directly or
    5-8  indirectly, with any employee of the commission <who is not an
    5-9  employee of the office of hearings examiners>, any commissioner, or
   5-10  any party to a hearing conducted by the commission in connection
   5-11  with any issue of fact or law pertaining to a contested case in
   5-12  which the commission or party is involved.
   5-13        (b)  Except for communications allowed under Subsection (a),
   5-14  an employee of the commission, a commissioner, or a party to a
   5-15  hearing conducted by the commission may not attempt to influence
   5-16  the finding of facts or the application of law or rules by a
   5-17  hearings examiner <of the commission> except by proper evidence,
   5-18  pleadings, and legal argument with notice and opportunity for all
   5-19  parties to participate.
   5-20        SECTION 6.  Section 361.0832, Health and Safety Code, is
   5-21  amended by amending Subsection (a) and by adding Subsection (g) to
   5-22  read as follows:
   5-23        (a)  After hearing evidence and receiving legal arguments, a
   5-24  hearings examiner <of the commission> shall make findings of fact,
   5-25  conclusions of law, and any ultimate findings required by statute,
    6-1  all of which shall be separately stated.  The hearings examiner
    6-2  shall make a proposal for decision to the commission and shall
    6-3  serve the proposal for decision on all parties.  The commission
    6-4  shall consider and act on the proposal for decision.
    6-5        (g)  To the extent of a conflict between this section and
    6-6  Section 2001.058(e), Government Code, this section controls.
    6-7        SECTION 7.  As soon as practicable, the chief administrative
    6-8  law judge of the State Office of Administrative Hearings shall
    6-9  consult with the chief administrative hearing examiner of the Texas
   6-10  Natural Resource Conservation Commission to assist the judge in:
   6-11              (1)  determining the number of and requirements for
   6-12  administrative law judges needed to conduct Texas Natural Resource
   6-13  Conservation Commission hearings effectively; and
   6-14              (2)  making necessary administrative changes in the
   6-15  State Office of Administrative Hearings.
   6-16        SECTION 8.  (a)  On September 1, 1995, all equipment, data,
   6-17  facilities, and other items of the office of hearing examiners of
   6-18  the Texas Natural Resource Conservation Commission, are transferred
   6-19  to the State Office of Administrative Hearings.
   6-20        (b)  If a hearing examiner or administrative law judge
   6-21  employed by the office of hearing examiners of the Texas Natural
   6-22  Resource Conservation Commission is hearing a case pending before
   6-23  the commission as of the effective date of this Act and that
   6-24  individual is offered and accepts a position as an administrative
   6-25  law judge of the State Office of Administrative Hearings, the chief
    7-1  administrative law judge of the office shall assign the case to
    7-2  that individual to render a proposal for decision.
    7-3        SECTION 9.  (a)  Except as provided in Subsection (b) of this
    7-4  section, this Act takes effect September 1, 1995.
    7-5        (b)  Section 7 of this Act takes effect immediately.
    7-6        SECTION 10.  The importance of this legislation and the
    7-7  crowded condition of the calendars in both houses create an
    7-8  emergency and an imperative public necessity that the
    7-9  constitutional rule requiring bills to be read on three several
   7-10  days in each house be suspended, and this rule is hereby suspended,
   7-11  and that this Act take effect and be in force from and after its
   7-12  passage, and it is so enacted.