1-1  By:  Montford                                           S.B. No. 12
    1-2        (In the Senate - Filed March 10, 1995; March 15, 1995, read
    1-3  first time and referred to Committee on Natural Resources;
    1-4  March 30, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 11, Nays 0; March 30, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 12                  By:  Montford
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to administrative hearings for the Texas Natural Resource
   1-11  Conservation Commission provided by the State Office of
   1-12  Administrative Hearings.
   1-13        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-14        SECTION 1.  Subchapter H, Chapter 5, Water Code, is amended
   1-15  to read as follows:
   1-16  SUBCHAPTER H.  DELEGATION OF HEARINGS <OFFICE OF HEARING EXAMINERS>
   1-17        Sec. 5.311.  <CREATION OF OFFICE.  (a)  The commission shall
   1-18  create an office of hearing examiners to assist the commission in
   1-19  carrying out its powers and duties under this code.>
   1-20        <(b)  The office of hearing examiners is independent of the
   1-21  executive director and the divisions of the commission and is under
   1-22  the exclusive control of the commission.>
   1-23        <Sec. 5.312.  ORGANIZATION OF OFFICE OF HEARING EXAMINERS.
   1-24  (a)  The office of hearing examiners shall be under the direction
   1-25  of the chief hearing examiner.>
   1-26        <(b)  The chief hearing examiner and all assistant hearing
   1-27  examiners employed in the office of hearing examiners shall be
   1-28  attorneys licensed to practice law in this state and shall be
   1-29  employed by the commission.>
   1-30        <Sec. 5.313.>  DELEGATION OF RESPONSIBILITY.  (a)  The
   1-31  commission may delegate to an administrative law judge of the State
   1-32  Office of Administrative Hearings <a hearing examiner> the
   1-33  responsibility to hear any matter before the commission.
   1-34        (b)  The administrative law judge <A hearing examiner shall
   1-35  prepare for and hold any hearing as directed by the commission and>
   1-36  shall report to the commission on the hearing in the manner
   1-37  provided by law.
   1-38        Sec. 5.312 <5.314>.  TIME LIMIT FOR ISSUANCE OR DENIAL OF
   1-39  PERMITS.  (a)  Except as provided in Subsection (b), all permit
   1-40  decisions shall be made within 180 days of the receipt of the
   1-41  permit application or application amendment or the determination of
   1-42  administrative completeness, whichever is later.
   1-43        (b)  This section does not apply to permits issued under
   1-44  federally delegated or approved programs unless allowed under that
   1-45  program.
   1-46        Sec. 5.313.  HEARING EXAMINERS REFERENCED IN LAW.  Any
   1-47  reference in law to a hearing examiner who has a duty related to a
   1-48  case pending before the commission means an administrative law
   1-49  judge of the State Office of Administrative Hearings.
   1-50        Sec. 5.314.  STATE OFFICE OF ADMINISTRATIVE HEARINGS FEE.
   1-51  The State Office of Administrative Hearings shall charge the
   1-52  commission a fixed annual fee rather than an hourly rate for
   1-53  services rendered by the utility divisions to the commission.  The
   1-54  State Office of Administrative Hearings and the commission shall
   1-55  negotiate the amount of the fixed fee biennially, subject to the
   1-56  approval of the governor, to coincide with the commission's
   1-57  legislative appropriations request.
   1-58        SECTION 2.  Subsections (a), (b), and (c), Section 26.021,
   1-59  Water Code, are amended to read as follows:
   1-60        (a)  Except for those hearings required to be held before the
   1-61  commission under Section 26.0191(b) of this code, the commission
   1-62  may authorize the chief administrative law judge of the State
   1-63  Office of Administrative Hearings <hearing examiner> to call and
   1-64  hold hearings on any subject on which the commission may hold a
   1-65  hearing.
   1-66        (b)  The commission may also authorize the chief
   1-67  administrative law judge <hearing examiner> to delegate to one or
   1-68  more administrative law judges <hearing examiners> the authority to
    2-1  hold any hearing the chief administrative law judge calls <called
    2-2  by him>.
    2-3        (c)  At any hearing called under this section, the chief
    2-4  administrative law judge or the administrative law judge to whom a
    2-5  hearing is delegated may <by the chief hearing examiner, he or the
    2-6  person delegated the authority by him to hold the hearing is
    2-7  empowered to> administer oaths and receive evidence.
    2-8        SECTION 3.  Subsections (a), (b), and (c), Section 28.029,
    2-9  Water Code, are amended to read as follows:
   2-10        (a)  The commission may authorize the chief administrative
   2-11  law judge of the State Office of Administrative Hearings <hearing
   2-12  examiner> to call and hold hearings on any subject on which the
   2-13  commission may hold a hearing.
   2-14        (b)  The commission may also authorize the chief
   2-15  administrative law judge <hearing examiner> to delegate to one or
   2-16  more administrative law judges <hearing examiners> the authority to
   2-17  hold any hearing the chief administrative law judge calls <called
   2-18  by him>.
   2-19        (c)  At any hearing called under this section, the chief
   2-20  administrative law judge or the administrative law judge to whom a
   2-21  hearing is delegated may <by the chief hearing examiner, he or the
   2-22  person delegated the authority by him to hold the hearing is
   2-23  empowered to> administer oaths and receive evidence.
   2-24        SECTION 4.  Subsections (a), (b), and (c), Section 31.009,
   2-25  Water Code, are amended to read as follows:
   2-26        (a)  The commission may authorize the chief administrative
   2-27  law judge of the State Office of Administrative Hearings <hearing
   2-28  examiner> to call and hold hearings on any subject on which the
   2-29  commission may hold a hearing.
   2-30        (b)  The commission may also authorize the chief
   2-31  administrative law judge <hearing examiner> to delegate to one or
   2-32  more administrative law judges <hearing examiners> the authority to
   2-33  hold a hearing the chief administrative law judge calls <called by
   2-34  the chief hearing examiner>.
   2-35        (c)  At a hearing called under this section, the chief
   2-36  administrative law judge or the administrative law judge to whom a
   2-37  hearing is delegated <by the chief hearing examiner, the chief
   2-38  hearing examiner or the person delegated the authority by him to
   2-39  hold the hearing> may administer oaths and receive evidence.
   2-40        SECTION 5.  Subsections (a) and (b), Section 361.0831, Health
   2-41  and Safety Code, are amended to read as follows:
   2-42        (a)  Unless required for the disposition of ex parte matters
   2-43  authorized by law, or unless permitted by Section 2001.061,
   2-44  Government Code <17, Administrative Procedure and Texas Register
   2-45  Act (Article 6252-13a, Vernon's Texas Civil Statutes)>, a hearings
   2-46  examiner <of the commission> may not communicate, directly or
   2-47  indirectly, with any employee of the commission <who is not an
   2-48  employee of the office of hearings examiners>, any commissioner, or
   2-49  any party to a hearing conducted by the commission in connection
   2-50  with any issue of fact or law pertaining to a contested case in
   2-51  which the commission or party is involved.
   2-52        (b)  Except for communications allowed under Subsection (a),
   2-53  an employee of the commission, a commissioner, or a party to a
   2-54  hearing conducted by the commission may not attempt to influence
   2-55  the finding of facts or the application of law or rules by a
   2-56  hearings examiner <of the commission> except by proper evidence,
   2-57  pleadings, and legal argument with notice and opportunity for all
   2-58  parties to participate.
   2-59        SECTION 6.  Section 361.0832, Health and Safety Code, is
   2-60  amended by amending Subsection (a) and by adding Subsection (g) to
   2-61  read as follows:
   2-62        (a)  After hearing evidence and receiving legal arguments, a
   2-63  hearings examiner <of the commission> shall make findings of fact,
   2-64  conclusions of law, and any ultimate findings required by statute,
   2-65  all of which shall be separately stated.  The hearings examiner
   2-66  shall make a proposal for decision to the commission and shall
   2-67  serve the proposal for decision on all parties.  The commission
   2-68  shall consider and act on the proposal for decision.
   2-69        (g)  To the extent of a conflict between this section and
   2-70  Section 2001.058(e), Government Code, this section controls.
    3-1        SECTION 7.  As soon as practicable, the chief administrative
    3-2  law judge of the State Office of Administrative Hearings shall
    3-3  consult with the chief administrative hearing examiner of the Texas
    3-4  Natural Resource Conservation Commission to assist the judge in:
    3-5              (1)  determining the number of and requirements for
    3-6  administrative law judges needed to conduct Texas Natural Resource
    3-7  Conservation Commission hearings effectively; and
    3-8              (2)  making necessary administrative changes in the
    3-9  State Office of Administrative Hearings.
   3-10        SECTION 8.  (a)  On September 1, 1995, all equipment, data,
   3-11  facilities, and other items of the office of hearing examiners of
   3-12  the Texas Natural Resource Conservation Commission, are transferred
   3-13  to the State Office of Administrative Hearings.
   3-14        (b)  If a hearing examiner or administrative law judge
   3-15  employed by the office of hearing examiners of the Texas Natural
   3-16  Resource Conservation Commission is hearing a case pending before
   3-17  the commission as of the effective date of this Act and that
   3-18  individual is offered and accepts a position as an administrative
   3-19  law judge of the State Office of Administrative Hearings, the chief
   3-20  administrative law judge of the office shall assign the case to
   3-21  that individual to render a proposal for decision.
   3-22        SECTION 9.  (a)  Except as provided in Subsection (b) of this
   3-23  section, this Act takes effect September 1, 1995.
   3-24        (b)  Section 7 of this Act takes effect immediately.
   3-25        SECTION 10.  The importance of this legislation and the
   3-26  crowded condition of the calendars in both houses create an
   3-27  emergency and an imperative public necessity that the
   3-28  constitutional rule requiring bills to be read on three several
   3-29  days in each house be suspended, and this rule is hereby suspended,
   3-30  and that this Act take effect and be in force from and after its
   3-31  passage, and it is so enacted.
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