By Merritt                                            H.B. No. 2438
         77R8501 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to transferring administrative hearings performed by the
 1-3     Railroad Commission of Texas to the State Office of Administrative
 1-4     Hearings.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Chapter 11, Title 112, Revised Statutes, is
 1-7     amended by adding Article 6447k to read as follows:
 1-8           Art. 6447k.  TRANSFER OF CONTESTED CASE HEARINGS TO THE STATE
 1-9     OFFICE OF ADMINISTRATIVE HEARINGS.  (a)  The commission and the
1-10     chief administrative law judge of the State Office of
1-11     Administrative Hearings shall adopt a memorandum of understanding
1-12     under which the State Office of Administrative Hearings, on behalf
1-13     of the commission, conducts all contested case hearings authorized
1-14     or required by law to be conducted by the commission under the
1-15     administrative procedure law, Chapter 2001, Government Code.
1-16           (b)  The memorandum of understanding must require the chief
1-17     administrative law judge and the commission to cooperate in
1-18     connection with a contested case hearing and must authorize the
1-19     State Office of Administrative Hearings to perform any
1-20     administrative act, including giving of notice, that is required to
1-21     be performed by the commission.
1-22           (c)  The memorandum of understanding must require the
1-23     administrative law judge conducting the hearing for the State
1-24     Office of Administrative Hearings on behalf of the commission to
 2-1     enter a final decision in the case after completion of the hearing.
 2-2           (d)  The commission by interagency contract shall reimburse
 2-3     the State Office of Administrative Hearings for the costs incurred
 2-4     in conducting contested case hearings for the commission.  The
 2-5     commission may pay an hourly fee for the costs of conducting those
 2-6     hearings or a fixed annual fee negotiated biennially by the
 2-7     commission and the State Office of Administrative Hearings to
 2-8     coincide with the commission's legislative appropriations request.
 2-9           SECTION 2.  (a)  This Act takes effect September 1, 2001.
2-10           (b)  The Railroad Commission of Texas and the State Office of
2-11     Administrative Hearings shall enter into the memorandum of
2-12     understanding required by Article 6447k, Revised Statutes, as added
2-13     by this Act, not later than January 1, 2002.