By Palmer                                       H.B. No. 1643

      75R4719 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 each state agency contested case for

2-23     which a petition for judicial review is filed under Subchapter G,

2-24     Chapter 2001, and that is subject to judicial review in accordance

2-25     with Sections 2001.174 and 2001.175.

2-26           (b)  The court has jurisdiction over all declaratory

2-27     judgments to determine the validity or applicability of a state

 3-1     agency rule that are brought under Section 2001.038.

 3-2           Sec. 101.052.  POWERS.  In addition to its powers under

 3-3     Chapters 21 and 2001, the court may:

 3-4                 (1)  ascertain, on affidavit or otherwise as the court

 3-5     may determine, the matters of fact that are necessary to the proper

 3-6     exercise of its jurisdiction; and

 3-7                 (2)  in a proper case, enjoin or modify the enforcement

 3-8     of a state agency's final order or decision in a case that is

 3-9     otherwise before the court for judicial review, pending the court's

3-10     final judgment in the case.

3-11           Sec. 101.053.  RULES OF PROCEDURE; ASSIGNMENT OF CASES.  (a)

3-12     The court may adopt rules of procedure that are consistent with the

3-13     Texas Rules of Civil Procedure and applicable law. The court's

3-14     rules shall provide for circumstances under which a case may be

3-15     heard on rehearing by the court sitting en banc.

3-16           (b)  Subject to rules adopted by the court, the presiding

3-17     judge shall assign a case to be heard either by an individual judge

3-18     or by a panel of three judges. The decision to assign a case to an

3-19     individual judge or to a panel shall be based on the presiding

3-20     judge's determination of the size and complexity of the case.

3-21           Sec. 101.054.  APPEAL FROM JUDGMENT OF COURT.  (a) An appeal

3-22     from a judgment of the court in a case in which the court is

3-23     reviewing a contested case under Chapter 2001 is direct to the

3-24     supreme court. The supreme court shall prescribe the necessary

3-25     rules of procedure to be followed in perfecting the appeal.

3-26           (b)  An appeal from a declaratory judgment of the court in a

3-27     case in which the court is determining the validity or

 4-1     applicability of a state agency rule under Section 2001.038 is to

 4-2     the Court of Appeals for the Third Court of Appeals District in

 4-3     Austin in the manner provided for the appeal of a declaratory

 4-4     judgment from a trial court generally.

 4-5           SECTION 2.  Section 2001.038(b), Government Code, is amended

 4-6     to read as follows:

 4-7           (b)  The action may be brought only in the Court of

 4-8     Administrative Review [a Travis County district court].

 4-9           SECTION 3.  Section 2001.176, Government Code, is amended by

4-10     amending Subsection (b) and adding Subsection (c) to read as

4-11     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           (c)  Another statute that provides that a Travis County

 5-1     district court is the reviewing court for a decision in a contested

 5-2     case for which the manner of review authorized by law is other than

 5-3     by trial de novo is considered to provide that the Court of

 5-4     Administrative Review is the reviewing court for the decision.

 5-5           SECTION 4.  Subchapter G, Chapter 2001, Government Code, is

 5-6     amended by adding Section 2001.1761 to read as follows:

 5-7           Sec. 2001.1761.  TRANSFER IF STATUTE UNCONSTITUTIONALLY

 5-8     AUTHORIZES TRIAL DE NOVO REVIEW.  If a statute authorizes trial de

 5-9     novo review of a contested case in circumstances under which the

5-10     Texas Constitution does not permit trial de novo review and the

5-11     petitioner initiates judicial review in the contested case by

5-12     filing a petition in Travis County district court in accordance

5-13     with Section 2001.176, the trial court or an appellate court on the

5-14     motion of a party or on the court's own motion shall transfer the

5-15     case to the Court of Administrative Review. The Court of

5-16     Administrative Review shall determine the case as if it had been

5-17     filed with that court.

5-18           SECTION 5.  (a) Except as provided by Subsection (b) of this

5-19     section, this Act takes effect January 1, 1998, and applies only to

5-20     an action brought under Section 2001.038, Government Code, or an

5-21     action for which a petition is filed under Section 2001.176,

5-22     Government Code, on or after that date. An action brought under

5-23     Section 2001.038, Government Code, or an action for which a

5-24     petition is filed under Section 2001.176, Government Code, before

5-25     that date is governed by the law in effect at the time the action

5-26     is brought or the petition is filed, and the former law is

5-27     continued in effect for this purpose.

 6-1           (b)  This Act takes effect September 1, 1997, for the limited

 6-2     purpose of allowing the governor to make the initial appointments

 6-3     to the Court of Administrative Review so that the court may adopt

 6-4     and publicize interim rules, hire staff, and take other action

 6-5     necessary for it to begin its business on January 1, 1998.  A judge

 6-6     may qualify for office and a judge or employee of the court may

 6-7     begin administrative duties and receive compensation before January

 6-8     1, 1998.  The governor shall make initial appointments to the court

 6-9     in accordance with Chapter 101, Government Code, as added by this

6-10     Act.  The governor shall appoint three judges for terms expiring

6-11     January 1, 1999, and two judges for terms expiring January 1, 2000.

6-12     The governor shall appoint one of the five judges as the presiding

6-13     judge.

6-14           SECTION 6.  The importance of this legislation and the

6-15     crowded condition of the calendars in both houses create an

6-16     emergency and an imperative public necessity that the

6-17     constitutional rule requiring bills to be read on three several

6-18     days in each house be suspended, and this rule is hereby suspended.