AN ACT

 1-1     relating to the decisions of certain administrative law judges in

 1-2     occupational licensing contested cases and to judicial review of

 1-3     those decisions.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 2001.058, Government Code, is amended by

 1-6     amending Subsection (e) and adding Subsection (f) to read as

 1-7     follows:

 1-8           (e)  A state agency may change a finding of fact or

 1-9     conclusion of law made by the administrative law judge, or may

1-10     vacate or modify an order issued by the administrative judge, only

1-11     if the agency determines:

1-12                 (1)  that the administrative law judge did not properly

1-13     apply or interpret applicable law, agency rules, written policies

1-14     provided under Subsection (c), or prior administrative decisions;

1-15                 (2)  that a prior administrative decision on which the

1-16     administrative law judge relied is incorrect or should be changed;

1-17     or

1-18                 (3)  that a technical error in a finding of fact should

1-19     be changed [for reasons of policy].

1-20           The agency shall state in writing the specific reason and

1-21     legal basis for a change made under this subsection.

1-22           (f)  A state agency by rule may provide that, in a contested

1-23     case before the agency that concerns licensing in relation to an

 2-1     occupational license and that is not disposed of by stipulation,

 2-2     agreed settlement, or consent order, the administrative law judge

 2-3     shall render the final decision in the contested case.  If a state

 2-4     agency adopts such a rule, the following provisions apply to

 2-5     contested cases covered by the rule:

 2-6                 (1)  the administrative law judge shall render the

 2-7     decision that may become final under Section 2001.144 not later

 2-8     than the 60th day after the latter of the date on which the hearing

 2-9     is finally closed or the date by which the judge has ordered all

2-10     briefs, reply briefs, and other posthearing documents to be filed,

2-11     and the 60-day period may be extended only with the consent of all

2-12     parties, including the occupational licensing agency;

2-13                 (2)  the administrative law judge shall include in the

2-14     findings of fact and conclusions of law a determination whether the

2-15     license at issue is primarily a license to engage in an occupation;

2-16                 (3)  the State Office of Administrative Hearings is the

2-17     state agency with which a motion for rehearing or a reply to a

2-18     motion for rehearing is filed under Section 2001.146 and is the

2-19     state agency that acts on the motion or extends a time period under

2-20     Section 2001.146;

2-21                 (4)  the State Office of Administrative Hearings is the

2-22     state agency responsible for sending a copy of the decision that

2-23     may become final under Section 2001.144 or an order ruling on a

2-24     motion for rehearing to the parties, including the occupational

2-25     licensing agency, in accordance with Section 2001.142; and

 3-1                 (5)  the occupational licensing agency and any other

 3-2     party to the contested case is entitled to obtain judicial review

 3-3     of the final decision in accordance with this chapter.

 3-4           SECTION 2.  Section 2003.042, Government Code, is amended to

 3-5     read as follows:

 3-6           Sec. 2003.042.  POWERS OF ADMINISTRATIVE LAW JUDGE.  An

 3-7     administrative law judge may:

 3-8                 (1)  administer an oath;

 3-9                 (2)  take testimony;

3-10                 (3)  rule on a question of evidence;

3-11                 (4)  subject to review by the state agency before which

3-12     the contested case is brought, issue an order relating to discovery

3-13     or another hearing or prehearing matter, including an order

3-14     imposing a sanction that the agency may impose; [and]

3-15                 (5)  issue a proposal for decision that includes

3-16     findings of fact and conclusions of law; and

3-17                 (6)  if expressly authorized by a state agency rule

3-18     adopted under Section 2001.058(f), make the final decision in a

3-19     contested case.

3-20           SECTION 3.  This Act takes effect September 1, 1997, and

3-21     applies only to a contested case filed at an occupational licensing

3-22     agency on or after that date. A contested case filed at an

3-23     occupational licensing agency before that date is governed by the

3-24     law in effect at the time the case is filed at the occupational

3-25     licensing agency, and the former law is continued in effect for

 4-1     that purpose.

 4-2           SECTION 4.  The importance of this legislation and the

 4-3     crowded condition of the calendars in both houses create an

 4-4     emergency and an imperative public necessity that the

 4-5     constitutional rule requiring bills to be read on three several

 4-6     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 332 passed the Senate on

         March 25, 1997, by a viva-voce vote; and that the Senate concurred

         in House amendments on May 29, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 332 passed the House, with

         amendments, on May 25, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor