78R7833 KEG-D

By:  Smith of Tarrant                                             H.B. No. 3233



A BILL TO BE ENTITLED

AN ACT

relating to the transfer of the administrative hearings functions 
of certain state agencies to the State Office of Administrative 
Hearings.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2003.021(b), Government Code, is amended 
to read as follows:
	(b)  The office:                                                               
		(1)  shall, notwithstanding other law, conduct all 
administrative hearings in contested cases under Chapter 2001 that 
are before a state agency [that does not employ an individual whose 
only duty is to preside as a hearings officer over matters related 
to contested cases before the agency];
		(2)  shall conduct administrative hearings in matters 
for which the office is required to conduct the hearing under other 
law;
		(3)  shall conduct alternative dispute resolution 
procedures that the office is required to conduct under law;  and
		(4)  may conduct, for a fee and under a contract, 
administrative hearings or alternative dispute resolution 
procedures in matters voluntarily referred to the office by a 
governmental entity.
	SECTION 2.  (a)  In this section, "state administrative 
hearings functions" means the powers, duties, and related 
activities that:
		(1)  relate to a contested case matter before a state 
agency in this state; and
		(2)  are performed by a state agency that employs an 
individual whose only duty is to preside as a hearings officer over 
contested case matters before the agency.
	(b)  On September 1, 2003:                                                     
		(1)  all state administrative hearings functions and 
all funds appropriated by the legislature for those functions are 
transferred to the State Office of Administrative Hearings;
		(2)  all rulemaking and policymaking authority of a 
state agency that relates to state administrative hearings 
functions is transferred to the State Office of Administrative 
Hearings;
		(3)  all obligations and contracts that relate to state 
administrative hearings functions are transferred to the State 
Office of Administrative Hearings;
		(4)  all records and other property that relate to 
state administrative hearings functions are transferred to the 
State Office of Administrative Hearings;
		(5)  all pending complaints, investigations, or 
contested cases that relate to state administrative hearings 
functions are transferred without change in status to the State 
Office of Administrative Hearings;
		(6)  a rule or form that relates to state 
administrative hearings functions is considered to be a rule or 
form of the State Office of Administrative Hearings and remains in 
effect until changed by the chief administrative law judge;
		(7)  a reference in law to an individual who performs 
state administrative hearings functions is a reference to the State 
Office of Administrative Hearings or an administrative law judge of 
the State Office of Administrative Hearings, as appropriate; and
		(8)  an order in effect that was issued by an individual 
who performed state administrative hearings functions is continued 
in effect and is considered to be an order of an administrative law 
judge of the State Office of Administrative Hearings.
	SECTION 3.  This Act takes effect September 1, 2003.