By Sims, Brown                                         S.B. No. 743
       74R3328 JJT-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to administrative hearings for the Texas Natural Resource
    1-3  Conservation Commission provided by the State Office of
    1-4  Administrative Hearings.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subchapter H, Chapter 5, Water Code, is amended
    1-7  to read as follows:
    1-8  SUBCHAPTER H.  DELEGATION OF HEARINGS <OFFICE OF HEARING EXAMINERS>
    1-9        Sec. 5.311.  <CREATION OF OFFICE.  (a)  The commission shall
   1-10  create an office of hearing examiners to assist the commission in
   1-11  carrying out its powers and duties under this code.>
   1-12        <(b)  The office of hearing examiners is independent of the
   1-13  executive director and the divisions of the commission and is under
   1-14  the exclusive control of the commission.>
   1-15        <Sec. 5.312.  ORGANIZATION OF OFFICE OF HEARING EXAMINERS.
   1-16  (a)  The office of hearing examiners shall be under the direction
   1-17  of the chief hearing examiner.>
   1-18        <(b)  The chief hearing examiner and all assistant hearing
   1-19  examiners employed in the office of hearing examiners shall be
   1-20  attorneys licensed to practice law in this state and shall be
   1-21  employed by the commission.>
   1-22        <Sec. 5.313.>  DELEGATION OF RESPONSIBILITY.  (a)  The
   1-23  commission may delegate to an administrative law judge of the State
   1-24  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        SECTION 2.  Sections 26.021(a)-(c), Water Code, are amended
   2-19  to read as follows:
   2-20        (a)  Except for those hearings required to be held before the
   2-21  commission under Section 26.0191(b) of this code, the commission
   2-22  may authorize the chief administrative law judge of the State
   2-23  Office of Administrative Hearings <hearing examiner> to call and
   2-24  hold hearings on any subject on which the commission may hold a
   2-25  hearing.
   2-26        (b)  The commission may also authorize the chief
   2-27  administrative law judge <hearing examiner> to delegate to one or
    3-1  more administrative law judges <hearing examiners> the authority to
    3-2  hold any hearing the chief administrative law judge calls <called
    3-3  by him>.
    3-4        (c)  At any hearing called under this section, the chief
    3-5  administrative law judge or the administrative law judge to whom a
    3-6  hearing is delegated may <by the chief hearing examiner, he or the
    3-7  person delegated the authority by him to hold the hearing is
    3-8  empowered to> administer oaths and receive evidence.
    3-9        SECTION 3.  Sections 28.029(a)-(c), Water Code, are amended
   3-10  to read as follows:
   3-11        (a)  The commission may authorize the chief administrative
   3-12  law judge of the State Office of Administrative Hearings <hearing
   3-13  examiner> to call and hold hearings on any subject on which the
   3-14  commission may hold a hearing.
   3-15        (b)  The commission may also authorize the chief
   3-16  administrative law judge <hearing examiner> to delegate to one or
   3-17  more administrative law judges <hearing examiners> the authority to
   3-18  hold any hearing the chief administrative law judge calls <called
   3-19  by him>.
   3-20        (c)  At any hearing called under this section, the chief
   3-21  administrative law judge or the administrative law judge to whom a
   3-22  hearing is delegated may <by the chief hearing examiner, he or the
   3-23  person delegated the authority by him to hold the hearing is
   3-24  empowered to> administer oaths and receive evidence.
   3-25        SECTION 4.  Sections 31.009(a)-(c), Water Code, are amended
   3-26  to read as follows:
   3-27        (a)  The commission may authorize the chief administrative
    4-1  law judge of the State Office of Administrative Hearings <hearing
    4-2  examiner> to call and hold hearings on any subject on which the
    4-3  commission may hold a hearing.
    4-4        (b)  The commission may also authorize the chief
    4-5  administrative law judge <hearing examiner> to delegate to one or
    4-6  more administrative law judges <hearing examiners> the authority to
    4-7  hold a hearing the chief administrative law judge calls <called by
    4-8  the chief hearing examiner>.
    4-9        (c)  At a hearing called under this section, the chief
   4-10  administrative law judge or the administrative law judge to whom a
   4-11  hearing is delegated <by the chief hearing examiner, the chief
   4-12  hearing examiner or the person delegated the authority by him to
   4-13  hold the hearing> may administer oaths and receive evidence.
   4-14        SECTION 5.  Sections 361.0831(a) and (b), Health and Safety
   4-15  Code, are amended to read as follows:
   4-16        (a)  Unless required for the disposition of ex parte matters
   4-17  authorized by law, or unless permitted by Section 2001.061,
   4-18  Government Code <17, Administrative Procedure and Texas Register
   4-19  Act (Article 6252-13a, Vernon's Texas Civil Statutes)>, a hearings
   4-20  examiner <of the commission> may not communicate, directly or
   4-21  indirectly, with any employee of the commission <who is not an
   4-22  employee of the office of hearings examiners>, any commissioner, or
   4-23  any party to a hearing conducted by the commission in connection
   4-24  with any issue of fact or law pertaining to a contested case in
   4-25  which the commission or party is involved.
   4-26        (b)  Except for communications allowed under Subsection (a),
   4-27  an employee of the commission, a commissioner, or a party to a
    5-1  hearing conducted by the commission may not attempt to influence
    5-2  the finding of facts or the application of law or rules by a
    5-3  hearings examiner <of the commission> except by proper evidence,
    5-4  pleadings, and legal argument with notice and opportunity for all
    5-5  parties to participate.
    5-6        SECTION 6.  Section 361.0832, Health and Safety Code, is
    5-7  amended by amending Subsection (a) and by adding Subsection (g) to
    5-8  read as follows:
    5-9        (a)  After hearing evidence and receiving legal arguments, a
   5-10  hearings examiner <of the commission> shall make findings of fact,
   5-11  conclusions of law, and any ultimate findings required by statute,
   5-12  all of which shall be separately stated.  The hearings examiner
   5-13  shall make a proposal for decision to the commission and shall
   5-14  serve the proposal for decision on all parties.  The commission
   5-15  shall consider and act on the proposal for decision.
   5-16        (g)  Notwithstanding Section 2001.058(e), Government Code,
   5-17  this section applies to a decision of the commission to:
   5-18              (1)  overturn a finding of fact or a conclusion of law;
   5-19  or
   5-20              (2)  reject a proposal for decision.
   5-21        SECTION 7.  (a)  Not later than January 1, 1996, the chief
   5-22  administrative law judge of the State Office of Administrative
   5-23  Hearings shall:
   5-24              (1)  employ administrative law judges who have the
   5-25  expertise necessary to conduct hearings regarding technical or
   5-26  other specialized subject matters that may come before the Texas
   5-27  Natural Resource Conservation Commission; and
    6-1              (2)  implement all administrative changes necessary for
    6-2  the State Office of Administrative Hearings to assume the functions
    6-3  of the office of hearing examiners in the Texas Natural Resource
    6-4  Conservation Commission.
    6-5        (b)  The chief administrative law judge of the State Office
    6-6  of Administrative Hearings may consult with the chief
    6-7  administrative hearing examiner of the Texas Natural Resource
    6-8  Conservation Commission to assist the judge in:
    6-9              (1)  determining the number of and requirements for
   6-10  administrative law judges needed to conduct Texas Natural Resource
   6-11  Conservation Commission hearings effectively; and
   6-12              (2)  making necessary administrative changes in the
   6-13  State Office of Administrative Hearings.
   6-14        SECTION 8.  (a)  Except as provided by Subsection (b), the
   6-15  Texas Natural Resource Conservation Commission shall continue to
   6-16  employ a hearing examiner who is hearing a case pending before the
   6-17  commission on January 1, 1996, until the examiner renders a
   6-18  proposal for decision in the case, and the hearing examiner shall
   6-19  continue to hear a case assigned to the examiner as if the
   6-20  dissolution of the commission's hearing division had not occurred.
   6-21        (b)  If the hearing examiner accepts a position as an
   6-22  administrative law judge of the State Office of Administrative
   6-23  Hearings, the commission shall transfer any case pending before the
   6-24  commission that the examiner is hearing to the State Office of
   6-25  Administrative Hearings, and the chief administrative law judge of
   6-26  the office shall assign the case to that individual to render a
   6-27  proposal for decision.
    7-1        SECTION 9.  (a)  On January 1, 1996, all office space and
    7-2  facilities, equipment, data, records, case files, and other
    7-3  possessions of the hearing division of the Texas Natural Resource
    7-4  Conservation Commission are transferred to the State Office of
    7-5  Administrative Hearings and the hearing division of the Texas
    7-6  Natural Resource Conservation Commission is dissolved.
    7-7        (b)  The chief administrative law judge of the State Office
    7-8  of Administrative Hearings shall:
    7-9              (1)  make available to a hearing examiner of the Texas
   7-10  Natural Resource Conservation Commission who is hearing a case
   7-11  pending with the commission on January 1, 1996, any equipment,
   7-12  data, record, case file, facility, or other possession transferred
   7-13  to the office from the commission's hearing division; and
   7-14              (2)  assist a hearing examiner of the Texas Natural
   7-15  Resource Conservation Commission who is hearing a case pending with
   7-16  the commission on January 1, 1996, in the performance of the
   7-17  examiner's duties related to the case.
   7-18        SECTION 10.  Notwithstanding Section 2001.058, Government
   7-19  Code, the changes in law made by this Act do not affect the
   7-20  authority of the Texas Natural Resource Conservation Commission to
   7-21  change a finding of fact or conclusion of law made by a hearing
   7-22  examiner or administrative law judge or to vacate or modify an
   7-23  order issued by the hearing examiner or administrative law judge in
   7-24  any case pending before the Texas Natural Resource Conservation
   7-25  Commission that was filed before January 1, 1996.  That authority
   7-26  is governed by the law governing the case that was in effect on
   7-27  December 31, 1995, and that law is continued in effect for that
    8-1  purpose.
    8-2        SECTION 11.  (a)  Sections 1-6 of this Act take effect
    8-3  January 1, 1996.
    8-4        (b)  Sections 7-10 of this Act take effect September 1, 1995.
    8-5        SECTION 12.  The importance of this legislation and the
    8-6  crowded condition of the calendars in both houses create an
    8-7  emergency and an imperative public necessity that the
    8-8  constitutional rule requiring bills to be read on three several
    8-9  days in each house be suspended, and this rule is hereby suspended.