By: Swinford H.B. No. 3601

A BILL TO BE ENTITLED

AN ACT

relating to contested cases involving the regulation of, and enforcement of certain laws concerning the sale or lease of motor vehicles.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2301.704, Occupations Code, is amended to read as follows:

Sec. 2301.704. ADMINISTRATIVE LAW JUDGE [HEARINGS EXAMINER]. (a) A hearing under this subchapter must be held by an administrative law judge in the State Office of Administrative Hearings [the director or a hearings examiner. A reference in this chapter to a hearings examiner includes the director if the director is conducting the hearing].

(b) [A hearings examiner must be licensed to practice law in this state.

(c)] An administrative law judge [A hearings examiner] has all of the board's power and authority under this chapter to conduct hearings, including the power to:

(1) hold a hearing;

(2) administer an oath;

(3) receive pleadings and evidence;

(4) issue a subpoena to compel the attendance of a witness;

(5) compel the production of papers and documents;

(6) issue an interlocutory order, including a cease and desist order in the nature of a temporary restraining order or a temporary injunction;

(7) make findings of fact and conclusions of law; and

(8) issue a proposal for decision and recommend a final order.

SECTION 2. Section 2301.709, Occupations Code, is amended to read as follows:

Sec. 2301.709. PROPOSED DECISION; REVIEW BY BOARD. (a) In a contested case, the administrative law judge [hearings examiner] shall serve on each party a copy of the administrative law judge's [examiner's] proposal for decision and recommended order containing findings of fact and conclusions of law. A party may file exceptions and replies to the board.

(b) In reviewing the case, the board may consider only materials that are submitted timely.

(c) The board may hear such oral argument from any party as the board may allow.

(d) The board shall take any further action conducive to the issuance of a final order and shall issue a written final decision or order. A majority vote of a quorum of the board is required to adopt a final decision or order of the board.

SECTION 3. This Act does not affect the validity of any interagency cooperation contract entered into between the Motor Vehicle Board of the Texas Department of Transportation and the State Office of Administrative Hearings before the effective date of this Act.

SECTION 4. The changes in law made by this Act that relate to the procedures governing a hearing before the State Office of Administrative Hearings apply only to a case that is filed on or after September 1, 2007. Procedures relating to a case filed before September 1, 2007, shall continue to be used in a hearing as those procedures existed on August 31, 2007, or as provided by an interagency cooperation contract entered into between the Motor Vehicle Board of the Texas Department of Transportation and the office in effect on that date, and are continued in effect only for that purpose.

SECTION 5. This Act takes effect September 1, 2007.