By Shapiro                                            S.B. No. 1414
         76R3965 JRD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to paying for services provided by the State Office of
 1-3     Administrative Hearings.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 2003, Government Code, is
 1-6     amended by adding Section 2003.024 to read as follows:
 1-7           Sec. 2003.024.  INTERAGENCY CONTRACTS.  (a)  The office and
 1-8     each agency that refers matters to the office for hearing or for
 1-9     the conduct of alternative dispute resolution procedures shall
1-10     enter into an interagency contract under which the referring agency
1-11     pays the office the costs of conducting a hearing or procedure
1-12     based on an hourly rate that is:
1-13                 (1)  set by the office; and
1-14                 (2)  subject to the approval of the legislature.
1-15           (b)  Each state fiscal biennium, the office as part of its
1-16     legislative appropriation request shall file an estimate of its
1-17     hourly costs in conducting each type of hearing or dispute
1-18     resolution procedure. The office shall estimate the hourly cost
1-19     based on the average cost per hour during the preceding state
1-20     fiscal year of:
1-21                 (1)  the salaries of its administrative law judges;
1-22                 (2)  the travel expenses, hearings costs, and telephone
1-23     charges directly related to the conduct of a hearing or procedure;
1-24     and
 2-1                 (3)  the administrative costs of the division of the
 2-2     office that conducts the hearing or procedure.
 2-3           (c)  This section does not apply to hearings conducted:
 2-4                 (1)  by the natural resource conservation division or
 2-5     the utility division; or
 2-6                 (2)  under the administrative license revocation
 2-7     program.
 2-8           SECTION 2.  Section 2003.048, Government Code, is amended to
 2-9     read as follows:
2-10           Sec. 2003.048.  NATURAL RESOURCE CONSERVATION COMMISSION
2-11     HEARINGS FEE.  The office shall charge the Texas Natural Resource
2-12     Conservation Commission a fixed annual fee rather than an hourly
2-13     rate for services rendered by the office to the commission.  The
2-14     amount of the fee may not be less than the amount appropriated to
2-15     the Texas Natural Resource Conservation Commission in the General
2-16     Appropriations Act for payment to the natural resource conservation
2-17     division to conduct commission hearings.  The amount of the fee
2-18     shall be based on the costs of conducting the hearings, the costs
2-19     of travel expenses and telephone charges directly related to the
2-20     hearings, and the administrative costs of the natural resource
2-21     conservation division.  The office and the Texas Natural Resource
2-22     Conservation Commission shall negotiate the amount of the fixed fee
2-23     biennially, subject to the approval of the governor, to coincide
2-24     with the commission's legislative appropriations request.
2-25           SECTION 3.  Section 2003.049(l), Government Code, is amended
2-26     to read as follows:
2-27           (l)  The office shall charge the commission a fixed annual
 3-1     fee rather than an hourly rate for services rendered by the utility
 3-2     division to the commission.  The amount of the fee may not be less
 3-3     than the amount appropriated to the commission in the General
 3-4     Appropriations Act for payment to the utility division to conduct
 3-5     commission hearings.  The amount of the fee shall be based on the
 3-6     costs of conducting the hearings, the costs of travel expenses and
 3-7     telephone charges directly related to the hearings, and the
 3-8     administrative costs of the utility division.  The office and the
 3-9     commission shall negotiate the amount of the fixed fee biennially,
3-10     subject to the approval of the governor, to coincide with the
3-11     commission's legislative appropriations request.
3-12           SECTION 4.  This Act takes effect September 1, 2000.
3-13           SECTION 5.  The importance of this legislation and the
3-14     crowded condition of the calendars in both houses create an
3-15     emergency and an imperative public necessity that the
3-16     constitutional rule requiring bills to be read on three several
3-17     days in each house be suspended, and this rule is hereby suspended.