By Palmer                                             H.B. No. 1600
         76R2414 JRD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the judicial review of state agency orders and
 1-3     decisions under the Administrative Procedure Act and to actions for
 1-4     a declaratory judgment that challenge the validity or applicability
 1-5     of a state agency rule under the Administrative Procedure Act.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  Title 2, Government Code, is amended by adding
 1-8     Subtitle I to read as follows:
 1-9         SUBTITLE I.  JUDICIAL REVIEW OF CERTAIN STATE AGENCY RULES
1-10                                AND DECISIONS
1-11           CHAPTER 101.  STATUTORY COURT OF ADMINISTRATIVE APPEALS
1-12                      SUBCHAPTER A.  GENERAL PROVISIONS
1-13           Sec. 101.001.  COURT OF ADMINISTRATIVE APPEALS.  The Court of
1-14     Administrative Appeals is established as a statutory court in the
1-15     judicial branch of state government under Section 1, Article V,
1-16     Texas Constitution.
1-17           Sec. 101.002.  COMPOSITION; APPOINTMENT.  (a)  The court is
1-18     composed of not more than five judges appointed by the governor
1-19     with the advice and consent of the senate.
1-20           (b)  Each judge appointed to the court must:
1-21                 (1)  be a senior judge under Section 75.001 at the time
1-22     of the appointment; and
1-23                 (2)  have demonstrated competence in administrative
1-24     law.
 2-1           Sec. 101.003.  TERMS OF OFFICE.  Judges of the court serve
 2-2     two-year terms of office expiring January 1 of each odd-numbered
 2-3     year.
 2-4           Sec. 101.004.  PRESIDING JUDGE.  The governor shall designate
 2-5     one member of the court to serve as the presiding judge of the
 2-6     court until the judge's term expires.
 2-7           Sec. 101.005.  LOCATION OF COURT.  (a)  The court shall
 2-8     conduct its sessions in the city of Austin.
 2-9           (b)  The General Services Commission shall provide furniture,
2-10     equipment, and office space for the court.
2-11           (c)  The court shall use the courtroom of the Court of
2-12     Appeals for the Third Supreme Judicial District at times that are
2-13     convenient to the court of appeals.
2-14           Sec. 101.006.  TERM OF COURT.  The court's term begins and
2-15     ends with each calendar year.
2-16           Sec. 101.007.  PERSONNEL.  The clerk and clerical staff of
2-17     the Court of Appeals for the Third Supreme Judicial District shall
2-18     also serve as the clerk and clerical staff of the court.
2-19           Sec. 101.008.  COMPENSATION.  (a)  For each day during which
2-20     the judge is actively performing duties as a judge of the court, a
2-21     judge of the court is entitled to receive as compensation the
2-22     amount that a retired justice or judge would receive under Section
2-23     74.003 for a day of active service on assignment to the Court of
2-24     Appeals for the Third Supreme Judicial District.
2-25           (b)  The state shall pay the compensation on certificates of
2-26     approval by the presiding judge of the court from amounts
2-27     appropriated for that purpose from the general revenue fund.
 3-1              (Sections 101.009-101.050 reserved for expansion)
 3-2                  SUBCHAPTER B.  JURISDICTION AND PROCEDURE
 3-3           Sec. 101.051.  JURISDICTION.  (a)  The court has jurisdiction
 3-4     to hear and determine each suit for the judicial review of a state
 3-5     agency decision in a contested case that is subject to judicial
 3-6     review under the substantial evidence rule or under an undefined
 3-7     scope of review in accordance with Sections 2001.174 and 2001.175.
 3-8           (b)  The court has jurisdiction to hear and determine by
 3-9     declaratory judgment the validity or applicability of a state
3-10     agency rule in all actions that are brought under Section 2001.038.
3-11           Sec. 101.052.  POWERS.  In addition to its powers under
3-12     Chapter 2001, the court may:
3-13                 (1)  determine, by affidavit or otherwise as the court
3-14     may direct, any necessary matters of fact; and
3-15                 (2)  issue such writs as are necessary to the proper
3-16     exercise or enforcement of its jurisdiction.
3-17           Sec. 101.053.  RULES OF PROCEDURE; ASSIGNMENT OF CASES.  (a)
3-18     The court may adopt rules of procedure that are consistent with the
3-19     Texas Rules of Appellate Procedure.
3-20           (b)  The court may in its discretion hear and determine a
3-21     matter en banc or provide that the matter will be heard and
3-22     determined by a panel of judges or by an individual judge.
3-23           Sec. 101.054.  APPEAL FROM JUDGMENT OF COURT.  (a)  An appeal
3-24     from a judgment of the court is directly to the supreme court. The
3-25     supreme court has discretion to exercise or to refuse to exercise
3-26     its jurisdiction to hear the appeal.
3-27           (b)  If the Texas Rules of Appellate Procedure do not
 4-1     specifically prescribe the procedures for an appeal under this
 4-2     section, a party appealing a judgment of the court shall petition
 4-3     the supreme court for review  in the same manner that a party in
 4-4     other civil cases petitions the supreme court to review a judgment
 4-5     of a court of appeals.
 4-6           SECTION 2.  Section 2001.038(b), Government Code, is amended
 4-7     to read as follows:
 4-8           (b)  The action may be brought only in the Court of
 4-9     Administrative Appeals [a Travis County district court].
4-10           SECTION 3.  Section 2001.176, Government Code, is amended by
4-11     amending Subsection (b) and adding Subsection (c) to read as
4-12     follows:
4-13           (b)  Unless otherwise provided by statute:
4-14                 (1)  the petition must be filed:
4-15                       (A)  in a Travis County district court if the
4-16     manner of review authorized by law for the decision in the
4-17     contested case is by trial de novo; or
4-18                       (B)  in the Court of Administrative Appeals if
4-19     the manner of review authorized by law for the decision in the
4-20     contested case is other than by trial de novo;
4-21                 (2)  a copy of the petition must be served on the state
4-22     agency and each party of record in the proceedings before the
4-23     agency; and
4-24                 (3)  the filing of the petition vacates a state agency
4-25     decision for which trial de novo is the manner of review authorized
4-26     by law but does not affect the enforcement of an agency decision
4-27     for which another manner of review is authorized.
 5-1           (c)  Another statute that provides that a Travis County
 5-2     district court is the reviewing court for a decision in a contested
 5-3     case for which the manner of review authorized by law is other than
 5-4     by trial de novo is considered to provide that the Court of
 5-5     Administrative Appeals is the reviewing court for the decision.
 5-6           SECTION 4.  Subchapter G, Chapter 2001, Government Code, is
 5-7     amended by adding Section 2001.1761 to read as follows:
 5-8           Sec. 2001.1761.  TRANSFER IF STATUTE UNCONSTITUTIONALLY
 5-9     AUTHORIZES TRIAL DE NOVO REVIEW.  (a)  This section applies only if
5-10     a statute authorizes trial de novo review of a contested case and
5-11     the petitioner accordingly initiates judicial review in the
5-12     contested case by filing a petition in Travis County district court
5-13     as prescribed by Section 2001.176.
5-14           (b)  If a reviewing court holds that the Texas Constitution
5-15     does not permit trial de novo review of the contested case, the
5-16     reviewing court on its own motion or on the motion of a party shall
5-17     transfer the cause to the Court of Administrative Appeals.  After
5-18     allowing a reasonable time for the preparation and filing of the
5-19     state agency record, the Court of Administrative Appeals shall hear
5-20     and determine the cause as if it had been filed with that court.
5-21           SECTION 5.  (a)  Except as provided by Subsection (b) of this
5-22     section, the change in law made by this Act applies only to an
5-23     action brought under Section 2001.038, Government Code, or an
5-24     action for which a petition is filed under Section 2001.176,
5-25     Government Code, on or after January 1, 2000. An action brought
5-26     under Section 2001.038, Government Code, or an action for which a
5-27     petition is filed under Section 2001.176, Government Code, before
 6-1     that date is governed by the law in effect immediately preceding
 6-2     September 1, 1999, and the former law is continued in effect for
 6-3     that purpose.
 6-4           (b)  The governor shall make the initial appointment of
 6-5     judges to the Court of Administrative Appeals for terms expiring
 6-6     January 1, 2001, so that the appointed judges may adopt rules and
 6-7     organize the court before January 1, 2000.
 6-8           SECTION 6.  This Act takes effect September 1, 1999.
 6-9           SECTION 7.  The importance of this legislation and the
6-10     crowded condition of the calendars in both houses create an
6-11     emergency and an imperative public necessity that the
6-12     constitutional rule requiring bills to be read on three several
6-13     days in each house be suspended, and this rule is hereby suspended.