By: Montford S.B. No. 1527
A BILL TO BE ENTITLED
AN ACT
1-1 relating to administrative hearings for the Public Utility
1-2 Commission of Texas provided by the State Office of Administrative
1-3 Hearings.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter C, Chapter 2003, Government Code, is
1-6 amended by adding Section 2003.047 to read as follows:
1-7 Sec. 2003.047. UTILITY DIVISION. (a) The office shall
1-8 establish a utility division to perform the contested case hearings
1-9 for the Public Utility Commission of Texas as prescribed by the
1-10 Public Utility Regulatory Act (Article 1446c, Vernon's Texas Civil
1-11 Statutes) and other applicable law.
1-12 (b) The utility division shall conduct hearings relating to
1-13 contested cases before the commission, other than a hearing
1-14 conducted by one or more commissioners. The commission by rule may
1-15 delegate to the division the responsibility to hear any other
1-16 matter before the commission if consistent with the duties and
1-17 responsibilities of the division.
1-18 (c) Only an administrative law judge in the utility division
1-19 may conduct a hearing on behalf of the commission. An
1-20 administrative law judge in the utility division may conduct
1-21 hearings for other state agencies as time allows. The office may
1-22 transfer an administrative law judge into the division on a
1-23 temporary or permanent basis and may contract with qualified
2-1 individuals to serve as temporary administrative law judges as
2-2 necessary.
2-3 (d) To be eligible to preside at a hearing, an
2-4 administrative law judge, regardless of temporary or permanent
2-5 status, must be licensed to practice law in this state and have not
2-6 less than five years of general experience or three years of
2-7 experience in utility regulatory law.
2-8 (e) At the time the office receives jurisdiction of a
2-9 proceeding, the commission shall provide to the administrative law
2-10 judge a list of issues or areas that must be addressed. In
2-11 addition, the commission may identify and provide to the
2-12 administrative law judge at any time additional issues or areas
2-13 that must be addressed.
2-14 (f) The office and the commission shall jointly adopt rules
2-15 providing for certification to the commission of an issue that
2-16 involves an ultimate finding of compliance with or satisfaction of
2-17 a statutory standard the determination of which is committed to the
2-18 discretion or judgment of the commission by law. The rules must
2-19 address, at a minimum, the issues that are appropriate for
2-20 certification and the procedure to be used in certifying the issue.
2-21 Each agency shall publish the jointly adopted rules.
2-22 (g) Notwithstanding Section 2001.058, the commission may
2-23 change a finding of fact or conclusion of law made by the
2-24 administrative law judge or vacate or modify an order issued by the
2-25 administrative law judge only if the commission:
3-1 (1) determines that the administrative law judge:
3-2 (A) did not properly apply or interpret
3-3 applicable law, agency rules or policies, or prior administrative
3-4 decisions; or
3-5 (B) issued a finding of fact that is not
3-6 supported by a preponderance of the evidence; or
3-7 (2) determines that an agency policy or a prior
3-8 administrative decision on which the administrative law judge
3-9 relied is incorrect or should be changed.
3-10 (h) The commission shall state in writing the specific
3-11 reason and legal basis for its determination under Subsection (g).
3-12 (i) An administrative law judge, on the judge's own motion
3-13 or on motion of a party and after notice and an opportunity for a
3-14 hearing, may impose appropriate sanctions as provided by Subsection
3-15 (j) against a party or its representative for:
3-16 (1) filing a motion or pleading that is groundless and
3-17 brought:
3-18 (A) in bad faith;
3-19 (B) for the purpose of harassment; or
3-20 (C) for any other improper purpose, such as to
3-21 cause unnecessary delay or needless increase in the cost of the
3-22 proceeding;
3-23 (2) abuse of the discovery process in seeking, making,
3-24 or resisting discovery; or
3-25 (3) failure to obey an order of the administrative law
4-1 judge or the commission.
4-2 (j) A sanction imposed under Subsection (i) may include, as
4-3 appropriate and justified, issuance of an order:
4-4 (1) disallowing further discovery of any kind or of a
4-5 particular kind by the offending party;
4-6 (2) charging all or any part of the expenses of
4-7 discovery against the offending party or its representatives;
4-8 (3) holding that designated facts be considered
4-9 admitted for purposes of the proceeding;
4-10 (4) refusing to allow the offending party to support
4-11 or oppose a designated claim or defense or prohibiting the party
4-12 from introducing designated matters in evidence;
4-13 (5) disallowing in whole or in part requests for
4-14 relief by the offending party and excluding evidence in support of
4-15 such requests; and
4-16 (6) striking pleadings or testimony, or both, in whole
4-17 or in part.
4-18 SECTION 2. As soon as practicable, the chief administrative
4-19 law judge of the State Office of Administrative Hearings shall
4-20 consult with the director of the hearings division of the Public
4-21 Utility Commission of Texas to assist the judge in:
4-22 (1) determining the number of and requirements for
4-23 administrative law judges needed to conduct Public Utility
4-24 Commission of Texas hearings effectively; and
4-25 (2) making necessary administrative changes in the
5-1 State Office of Administrative Hearings.
5-2 SECTION 3. (a) On September 1, 1995, all personnel,
5-3 including hearings examiners and administrative law judges,
5-4 equipment, data, facilities, and other items of the hearings
5-5 division of the Public Utility Commission of Texas, other than the
5-6 personnel, equipment, data, facilities, and other items of the
5-7 central records office, are transferred to the utility division of
5-8 the State Office of Administrative Hearings. A hearings examiner
5-9 transferred to the State Office of Administrative Hearings becomes
5-10 an administrative law judge on the date of transfer.
5-11 (b) A hearings examiner or administrative law judge
5-12 transferred from the Public Utility Commission of Texas to the
5-13 State Office of Administrative Hearings shall continue to hear any
5-14 case assigned to the person as if the transfer had not occurred.
5-15 SECTION 4. (a) Except as provided in Subsection (b) of this
5-16 section, this Act takes effect September 1, 1995.
5-17 (b) Section 2 of this Act takes effect immediately.
5-18 SECTION 5. The importance of this legislation and the
5-19 crowded condition of the calendars in both houses create an
5-20 emergency and an imperative public necessity that the
5-21 constitutional rule requiring bills to be read on three several
5-22 days in each house be suspended, and this rule is hereby suspended,
5-23 and that this Act take effect and be in force from and after its
5-24 passage, and it is so enacted.