1-1 By: Armbrister S.B. No. 331
1-2 (In the Senate - Filed January 28, 1997; February 3, 1997,
1-3 read first time and referred to Committee on State Affairs;
1-4 February 17, 1997, reported favorably by the following vote: Yeas
1-5 13, Nays 0; February 17, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to procedures in a contested case in which the hearing is
1-9 conducted by the State Office of Administrative Hearings.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 2003.042, Government Code, is amended to
1-12 read as follows:
1-13 Sec. 2003.042. POWERS OF ADMINISTRATIVE LAW JUDGE. An
1-14 administrative law judge employed by the office or a temporary
1-15 administrative law judge may:
1-16 (1) administer an oath;
1-17 (2) take testimony;
1-18 (3) rule on a question of evidence;
1-19 (4) [subject to review by the state agency before
1-20 which the contested case is brought,] issue an order relating to
1-21 discovery or another hearing or prehearing matter, including an
1-22 order imposing a sanction [that the agency may impose]; and
1-23 (5) issue a proposal for decision that includes
1-24 findings of fact and conclusions of law.
1-25 SECTION 2. Subchapter C, Chapter 2003, Government Code, is
1-26 amended by adding Section 2003.0421 to read as follows:
1-27 Sec. 2003.0421. SANCTIONS. (a) An administrative law judge
1-28 employed by the office or a temporary administrative law judge, on
1-29 the judge's own motion or on motion of a party and after notice and
1-30 an opportunity for a hearing, may impose appropriate sanctions as
1-31 provided by Subsection (b) against a party or its representative
1-32 for:
1-33 (1) filing a motion or pleading that is groundless and
1-34 brought:
1-35 (A) in bad faith;
1-36 (B) for the purpose of harassment; or
1-37 (C) for any other improper purpose, such as to
1-38 cause unnecessary delay or needless increase in the cost of the
1-39 proceeding;
1-40 (2) abuse of the discovery process in seeking, making,
1-41 or resisting discovery; or
1-42 (3) failure to obey an order of the administrative law
1-43 judge or of the state agency on behalf of which the hearing is
1-44 being conducted.
1-45 (b) A sanction imposed under Subsection (a) may include, as
1-46 appropriate and justified, issuance of an order:
1-47 (1) disallowing further discovery of any kind or of a
1-48 particular kind by the offending party;
1-49 (2) charging all or any part of the expenses of
1-50 discovery against the offending party or its representatives;
1-51 (3) holding that designated facts be considered
1-52 admitted for purposes of the proceeding;
1-53 (4) refusing to allow the offending party to support
1-54 or oppose a designated claim or defense or prohibiting the party
1-55 from introducing designated matters in evidence;
1-56 (5) disallowing in whole or in part requests for
1-57 relief by the offending party and excluding evidence in support of
1-58 those requests; and
1-59 (6) striking pleadings or testimony, or both, in whole
1-60 or in part.
1-61 (c) This section does not apply to a contested case in which
1-62 the hearing is conducted by an administrative law judge on behalf
1-63 of the Texas Natural Resource Conservation Commission or the Public
1-64 Utility Commission of Texas.
2-1 SECTION 3. Subchapter C, Chapter 2003, Government Code, is
2-2 amended by adding Section 2003.050 to read as follows:
2-3 Sec. 2003.050. PROCEDURAL RULES. (a) The chief
2-4 administrative law judge shall adopt rules that govern the
2-5 procedures, including the discovery procedures, that relate to a
2-6 hearing conducted by the office.
2-7 (b) Notwithstanding other law, the procedural rules of the
2-8 state agency on behalf of which the hearing is conducted govern
2-9 procedural matters that relate to the hearing only to the extent
2-10 that the chief administrative law judge's rules adopt the agency's
2-11 procedural rules by reference.
2-12 SECTION 4. (a) The changes in law relating to procedural
2-13 rules under Section 2003.050, Government Code, as added by this
2-14 Act, take effect January 1, 1998, and apply only to a contested
2-15 case filed at a state agency on or after that date. A contested
2-16 case filed at a state agency before that date is governed by the
2-17 law in effect at the time the contested case is filed at the
2-18 agency, and the former law is continued in effect for that purpose.
2-19 The State Office of Administrative Hearings may publish proposed
2-20 and adopted rules under Section 2003.050, Government Code, as added
2-21 by this Act, before January 1, 1998, so that the rules will be in
2-22 effect on that date.
2-23 (b) The changes in law made by this Act to Section 2003.042,
2-24 Government Code, and the changes in law relating to sanctions under
2-25 Section 2003.0421, Government Code, as added by this Act, take
2-26 effect September 1, 1997, and apply only to a contested case filed
2-27 at a state agency on or after that date. A contested case filed at
2-28 a state agency before that date is governed by the law in effect at
2-29 the time the contested case is filed at the agency, and the former
2-30 law is continued in effect for that purpose.
2-31 SECTION 5. The importance of this legislation and the
2-32 crowded condition of the calendars in both houses create an
2-33 emergency and an imperative public necessity that the
2-34 constitutional rule requiring bills to be read on three several
2-35 days in each house be suspended, and this rule is hereby suspended.
2-36 * * * * *