By Wentworth                                          S.B. No. 1691
         77R1290 MTB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to judicial review under the Administrative Procedure Act
 1-3     of state agency orders and decisions and of the validity of agency
 1-4     rules.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Title 2, Government Code, is amended by adding
 1-7     Subtitle I to read as follows:
 1-8         SUBTITLE I. JUDICIAL REVIEW OF CERTAIN STATE AGENCY ACTIONS
 1-9            CHAPTER 101. STATUTORY COURT OF ADMINISTRATIVE REVIEW
1-10                      SUBCHAPTER A. GENERAL PROVISIONS
1-11           Sec. 101.001.  COURT OF ADMINISTRATIVE REVIEW.  The Court of
1-12     Administrative Review is established as a statutory court in the
1-13     judicial branch of state government under Section 1, Article V,
1-14     Texas Constitution.
1-15           Sec. 101.002.  COMPOSITION; ELECTION.  The court is composed
1-16     of four judges and a presiding judge elected by the qualified
1-17     voters of the state at a general election.
1-18           Sec. 101.003.  TERMS OF OFFICE.  Judges of the court serve
1-19     staggered two-year terms of office with two judges' terms expiring
1-20     January 1 of each odd-numbered year and three judges' terms
1-21     expiring January 1 of each even-numbered year.
1-22           Sec. 101.004.  VACANCY.  In the event of a vacancy on the
1-23     court, the governor shall fill the vacancy by appointment until the
1-24     next succeeding general election.
 2-1           Sec. 101.005.  STATUS OF COURT; APPLICABILITY OF OTHER LAW.
 2-2     The court is a trial court but Chapter 23 does not apply to the
 2-3     court.
 2-4           Sec. 101.006.  LOCATION OF COURT.  (a)  The court sits in the
 2-5     city of Austin.
 2-6           (b)  The General Services Commission shall provide office
 2-7     space and supplies for the court.  The commission shall provide
 2-8     courtroom space for the court unless the court can satisfy its need
 2-9     for courtroom space by using the courtroom of the Court of Appeals
2-10     for the Third Supreme Judicial District at times that are
2-11     convenient to the court of appeals.
2-12           Sec. 101.007.  TERM OF COURT.  The court's term begins and
2-13     ends with each calendar year.
2-14           Sec. 101.008.  PERSONNEL.  The court may employ clerks, court
2-15     reporters, and other personnel necessary for the business of the
2-16     court.
2-17           Sec. 101.009.  COMPENSATION.  (a)  The legislature shall
2-18     determine the salaries of the judges and of the clerks and other
2-19     officers and employees of the court in its appropriations acts for
2-20     the support of the judiciary.
2-21           (b)  Judges of the court are members of the Judicial
2-22     Retirement System of Texas Plan Two. Other court personnel are
2-23     state employee members of the Employees Retirement System of Texas.
2-24              (Sections 101.010-101.050 reserved for expansion
2-25                  SUBCHAPTER B. JURISDICTION AND PROCEDURE
2-26           Sec. 101.051.  JURISDICTION.  (a)  The court has jurisdiction
2-27     to hear and determine each suit for the judicial review of a state
 3-1     agency decision in a contested case that is subject to judicial
 3-2     review under the substantial evidence rule or under an undefined
 3-3     scope of review in accordance with Sections 2001.174 and 2001.175.
 3-4           (b)  The court has jurisdiction to hear and determine by
 3-5     declaratory judgment the validity or applicability of a state
 3-6     agency rule in all actions that are brought under Section 2001.038.
 3-7           Sec. 101.052.  POWERS.  In addition to its powers under
 3-8     Chapters 21 and 2001, the court may:
 3-9                 (1)  ascertain, on affidavit or otherwise as the court
3-10     may determine, the matters of fact that are necessary to the proper
3-11     exercise of its jurisdiction;
3-12                 (2)  issue such writs as are necessary to the proper
3-13     exercise or enforcement of its jurisdiction; and
3-14                 (3)  in a proper case, enjoin or modify the enforcement
3-15     of a state agency's final order or decision in a case that is
3-16     otherwise before the court for judicial review, pending the court's
3-17     final judgment in the case.
3-18           Sec. 101.053.  RULES OF PROCEDURE; ASSIGNMENT OF CASES.  (a)
3-19     The court may adopt rules of procedure that are consistent with the
3-20     Texas Rules of Civil Procedure and applicable law.
3-21           (b)  The court may in its discretion hear and determine a
3-22     matter en banc or provide that the matter will be heard and
3-23     determined by a panel of judges or by an individual judge.
3-24           Sec. 101.054.  APPEAL FROM JUDGMENT OF COURT.  An appeal from
3-25     a judgment of the court is direct to the supreme court. The supreme
3-26     court shall prescribe the necessary rules of procedure to be
3-27     followed in perfecting the appeal.
 4-1           SECTION 2.  Section 2001.038(b), Government Code, is amended
 4-2     to read as follows:
 4-3           (b)  The action may be brought only in the Court of
 4-4     Administrative Review [a Travis County district court].
 4-5           SECTION 3. Section 2001.176, Government Code, is amended by
 4-6     amending Subsections (b) and (c) and by adding Subsection (d) to
 4-7     read as follows:
 4-8           (b)  Unless otherwise provided by statute:
 4-9                 (1)  the petition must be filed:
4-10                       (A)  in a Travis County district court if the
4-11     manner of review authorized by law for the decision in the
4-12     contested case is by trial de novo; or
4-13                       (B)  in the Court of Administrative Review if the
4-14     manner of review authorized by law for the decision in the
4-15     contested case is other than by trial de novo;
4-16                 (2)  a copy of the petition must be served on the state
4-17     agency and each party of record in the proceedings before the
4-18     agency; and
4-19                 (3)  the filing of the petition vacates a state agency
4-20     decision for which trial de novo is the manner of review authorized
4-21     by law but does not affect the enforcement of an agency decision
4-22     for which another manner of review is authorized.
4-23           (c)  A Travis County district court in which an action is
4-24     brought under Subsection (b)(1)(A) [this section], on its own
4-25     motion or on motion of any party, may request transfer of the
4-26     action to the Court of Appeals for the Third Court of Appeals
4-27     District if the district court finds that the public interest
 5-1     requires a prompt, authoritative determination of the legal issues
 5-2     in the case and the case would ordinarily be appealed.  After
 5-3     filing of the district court's request with the court of appeals,
 5-4     transfer of the action may be granted by the court of appeals if it
 5-5     agrees with the findings of the district court concerning the
 5-6     application of the statutory standards to the action.  On entry of
 5-7     an order by the court of appeals granting transfer, the action is
 5-8     transferred to the court of appeals for decision, and the agency
 5-9     decision in the contested case is subject to judicial review by the
5-10     court of appeals.  The administrative record and the district court
5-11     record shall be filed by the district clerk with the clerk of the
5-12     court of appeals.  The court of appeals may direct the district
5-13     court to conduct any necessary evidentiary hearings in connection
5-14     with the action.
5-15           (d)  Another statute that provides that a Travis County
5-16     district court is the reviewing court for a decision in a contested
5-17     case for which the manner of review authorized by law is other than
5-18     by trial de novo is considered to provide that the Court of
5-19     Administrative Review is the reviewing court for the decision.
5-20           SECTION 4. Subchapter G, Chapter 2001, Government Code, is
5-21     amended by adding Section 2001.1761 to read as follows:
5-22           Sec. 2001.1761.  TRANSFER IF STATUTE UNCONSTITUTIONALLY
5-23     AUTHORIZES TRIAL DE NOVO REVIEW.  If a statute authorizes trial de
5-24     novo review of a contested case in circumstances under which the
5-25     Texas Constitution does not permit trial de novo review and the
5-26     petitioner initiates judicial review in the contested case by
5-27     filing a petition in Travis County district court in accordance
 6-1     with Section 2001.176, the trial court or an appellate court on its
 6-2     own motion or on motion of any party shall transfer the case to the
 6-3     Court of Administrative Review.  After allowing a reasonable time
 6-4     for the preparation and filing of the state agency record, the
 6-5     Court of Administrative Review shall determine the case as if it
 6-6     had been filed with that court.
 6-7           SECTION 5.  Section 2001.038(f), Government Code, is
 6-8     repealed.
 6-9           SECTION 6.  (a)  Except as provided by Subsection (b) of this
6-10     section, this Act takes effect January 1, 2002, and applies only to
6-11     an action brought under Section 2001.038, Government Code, as
6-12     amended by this Act, or an action for which a petition is filed
6-13     under Section 2001.176, Government Code, as amended by this Act, on
6-14     or after that date. An action brought under Section 2001.038,
6-15     Government Code, as amended by this Act, or an action for which a
6-16     petition is filed under Section 2001.176, Government Code, as
6-17     amended by this Act, before that date is governed by the law in
6-18     effect at the time the action is brought or the petition is filed,
6-19     and the former law is continued in effect for this purpose.
6-20           (b)  This Act takes effect September 1, 2001, for the limited
6-21     purpose of allowing the governor to make the initial appointments
6-22     to the Court of Administrative Review as soon as possible on or
6-23     after that date so that the court may adopt and publicize interim
6-24     rules, hire staff, and take other action necessary for it to begin
6-25     its business on January 1, 2002.  A judge may qualify for office
6-26     and a judge or employee of the court may begin administrative
6-27     duties and receive compensation before January 1, 2002. The
 7-1     governor shall appoint:
 7-2                 (1)  two judges for initial terms expiring January 1,
 7-3     2003; and
 7-4                 (2)  three judges for initial terms expiring January 1,
 7-5     2004, one of whom shall be designated by the governor as the
 7-6     presiding judge of the court.
 7-7           (c)  At the general election held on November 5, 2002, two
 7-8     judges shall be elected to replace the appointed judges whose terms
 7-9     expire January 1, 2003.  At the general election held on November
7-10     4, 2003, three judges, including the presiding judge, shall be
7-11     elected to replace the appointed judges whose terms expire January
7-12     1, 2004.