By Cuellar                                            H.B. No. 2556
         76R7679 JRD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the State Office of Administrative Hearings.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 2003.021, Government Code, is amended by
 1-5     amending Subsections (a)  and (b) and adding Subsection (e) to read
 1-6     as follows:
 1-7           (a)  The State Office of Administrative Hearings is a state
 1-8     agency created to serve as an independent forum for the conduct of
 1-9     adjudicative hearings in the executive branch of state government.
1-10     The purpose of the office is to separate the adjudicative function
1-11     from the investigative, prosecutorial, and policymaking functions
1-12     in the executive branch in relation to hearings that the office is
1-13     authorized to conduct.
1-14           (b)  The office:
1-15                 (1)  shall conduct all administrative hearings in
1-16     contested cases under Chapter 2001 that are before a state agency
1-17     that does not employ an individual whose only duty is to preside as
1-18     a hearings officer over matters related to contested cases before
1-19     the agency;
1-20                 (2)  shall conduct administrative hearings in matters
1-21     for which the office is required to conduct the hearing under other
1-22     law;
1-23                 (3)  shall [and may] conduct alternative dispute
1-24     resolution procedures that the office is required to conduct under
 2-1     law; and
 2-2                 (4)  may conduct, for a fee and under a contract,
 2-3     administrative hearings or alternate dispute resolution procedures
 2-4     in matters voluntarily referred to the office by a governmental
 2-5     entity.
 2-6           (e)  The office may adopt a seal to authenticate the official
 2-7     acts of the office and of its administrative law judges.
 2-8           SECTION 2.  Section 2003.022, Government Code, is amended by
 2-9     amending Subsection (a) and adding Subsections (c) and (d) to read
2-10     as follows:
2-11           (a)  The office is under the direction of a chief
2-12     administrative law judge appointed by the governor for a two-year
2-13     term. The chief administrative law judge is eligible for
2-14     reappointment.
2-15           (c)  The chief administrative law judge may not engage in the
2-16     practice of law while serving as chief administrative law judge.
2-17     The chief administrative law judge serves in a full-time position.
2-18           (d)  The chief administrative law judge shall:
2-19                 (1)  supervise the office;
2-20                 (2)  protect and ensure the decisional independence of
2-21     each administrative law judge;
2-22                 (3)  adopt a code of conduct for administrative law
2-23     judges that may be modeled on the Code of Judicial Conduct; and
2-24                 (4)  monitor the quality of administrative hearings
2-25     conducted by the office.
2-26           SECTION 3.  Section 2003.041, Government Code, is amended by
2-27     adding Subsection (c) to read as follows:
 3-1           (c)  An administrative law judge employed by the office is
 3-2     not responsible to or subject to the supervision, direction, or
 3-3     indirect influence of any person other than the chief
 3-4     administrative law judge or a senior or master administrative law
 3-5     judge designated by the chief administrative law judge.  In
 3-6     particular, an administrative law judge employed by the office is
 3-7     not responsible to or subject to the supervision, direction, or
 3-8     indirect influence of an officer, employee, or agent of another
 3-9     state agency who performs investigative, prosecutorial, or advisory
3-10     functions for the other agency.
3-11           SECTION 4.  Subchapter C, Chapter 2003, Government Code, is
3-12     amended by adding Sections 2003.0411 and 2003.0412 to read as
3-13     follows:
3-14           Sec. 2003.0411.  SENIOR AND MASTER ADMINISTRATIVE LAW JUDGES.
3-15     (a) The chief administrative law judge may appoint senior
3-16     administrative law judges to perform duties assigned by the chief
3-17     administrative law judge.
3-18           (b)  To be appointed a senior administrative law judge, a
3-19     person must have at least six years of general legal experience,
3-20     must have at least five years of experience presiding over
3-21     administrative hearings or presiding over hearings as a judge or
3-22     master of a court, and must meet other requirements as prescribed
3-23     by the chief administrative law judge.
3-24           (c)  To be appointed a master administrative law judge, a
3-25     person must have at least 10 years of general legal experience,
3-26     must have at least six years of experience presiding over
3-27     administrative hearings or presiding over hearings as a judge or
 4-1     master of a court, and must meet other requirements as prescribed
 4-2     by the chief administrative law judge.
 4-3           Sec. 2003.0412.  EX PARTE CONSULTATIONS.  (a)  Except as
 4-4     provided by Subsection (b), the provisions of Section 2001.061
 4-5     apply in relation to a matter before the office without regard to
 4-6     whether the matter is considered a contested case under Chapter
 4-7     2001.
 4-8           (b)  The provisions of Section 2001.061 do not apply to a
 4-9     matter before the office to the extent that the office is
4-10     conducting an alternative dispute resolution procedure in relation
4-11     to the matter.
4-12           SECTION 5.  Section 2003.045, Government Code, is amended to
4-13     read as follows:
4-14           Sec. 2003.045.  OVERSIGHT OF ADMINISTRATIVE LAW JUDGES
4-15     [DIVISION].  The chief administrative law judge may designate
4-16     senior or master administrative law judges to oversee [An
4-17     administrative division in the office oversees] the training,
4-18     evaluation, discipline, and promotion of [all] administrative law
4-19     judges employed by the office.
4-20           SECTION 6.  Section 2003.0451(a), Government Code, is amended
4-21     to read as follows:
4-22           (a)  The office shall provide at least 30 hours of continuing
4-23     legal education and judicial training to each new administrative
4-24     law judge employed by the office who has less than three years of
4-25     presiding experience.  The office shall provide the training
4-26     required by this subsection during the administrative law judge's
4-27     first year of employment with the office.  The office may provide
 5-1     the training through office personnel or through external sources,
 5-2     including state and local bar associations, the Texas Center for
 5-3     the Judiciary, and the National Judicial College.  The training may
 5-4     include the following areas:
 5-5                 (1)  conducting fair and impartial hearings;
 5-6                 (2)  ethics;
 5-7                 (3)  evidence;
 5-8                 (4)  civil trial litigation;
 5-9                 (5)  administrative law;
5-10                 (6)  managing complex litigation;
5-11                 (7)  conducting high-volume proceedings;
5-12                 (8)  judicial writing;
5-13                 (9)  effective case-flow management;
5-14                 (10)  alternative dispute resolution methods; and
5-15                 (11)  other areas that the office considers to be
5-16     relevant to the work of an administrative law judge.
5-17           SECTION 7.  Section 2003.046, Government Code, is amended to
5-18     read as follows:
5-19           Sec. 2003.046. CENTRAL HEARINGS PANEL.  (a) A central
5-20     hearings panel in the office is composed of administrative law
5-21     judges and [six] senior or master administrative law judges
5-22     assigned to the panel [appointed] by the chief administrative law
5-23     judge.
5-24           (b)  The [Under the direction of the] chief administrative
5-25     law judge may create teams or divisions within the central panel,
5-26     including an administrative license revocation division, according
5-27     to the subject matter or types of hearings conducted by [,] the
 6-1     central panel [shall coordinate and supervise the operation of
 6-2     administrative hearings conducted by the office].
 6-3           SECTION 8.  Section 2003.048, Government Code, is amended to
 6-4     read as follows:
 6-5           Sec. 2003.048.  TEXAS NATURAL RESOURCE CONSERVATION
 6-6     COMMISSION HEARINGS FEE.  (a) This section applies only to the
 6-7     extent the legislature does not appropriate money directly to the
 6-8     office for services rendered by the office to the Texas Natural
 6-9     Resource Conservation Commission.
6-10           (b)  The office shall charge the Texas Natural Resource
6-11     Conservation Commission a fixed annual fee rather than an hourly
6-12     rate for services rendered by the office to the commission that is
6-13     consistent with any fee for the services that is established by
6-14     rider in the General Appropriations Act.  [The office and the Texas
6-15     Natural Resource Conservation Commission shall negotiate the amount
6-16     of the fixed fee biennially, subject to the approval of the
6-17     governor, to coincide with the commission's legislative
6-18     appropriations request.]
6-19           SECTION 9.  Section 2003.049(l), Government Code, is amended
6-20     to read as follows:
6-21           (l)  The office shall charge the commission a fixed annual
6-22     fee rather than an hourly rate for services rendered by the utility
6-23     division to the commission that is consistent with any fee for the
6-24     services established by rider in the General Appropriations Act.
6-25     This subsection applies only to the extent the legislature does not
6-26     appropriate money directly to the office for services rendered by
6-27     the utility division to the commission.  [The office and the
 7-1     commission shall negotiate the amount of the fixed fee biennially,
 7-2     subject to the approval of the governor, to coincide with the
 7-3     commission's legislative appropriations request.]
 7-4           SECTION 10.  Subchapter C, Chapter 2003, Government Code, is
 7-5     amended by adding Section 2003.051 to read as follows:
 7-6           Sec. 2003.051.  ROLE OF REFERRING AGENCY.  A state agency
 7-7     that has referred a matter to the office in which the office will
 7-8     conduct a hearing may not take any adjudicative action relating to
 7-9     the matter until the office has issued its proposal for decision or
7-10     otherwise concluded its involvement in the matter.  The state
7-11     agency may exercise its advocacy rights in the matter before the
7-12     office in the same manner as any other party.
7-13           SECTION 11.  The importance of this legislation and the
7-14     crowded condition of the calendars in both houses create an
7-15     emergency and an imperative public necessity that the
7-16     constitutional rule requiring bills to be read on three several
7-17     days in each house be suspended, and this rule is hereby suspended,
7-18     and that this Act take effect and be in force from and after its
7-19     passage, and it is so enacted.