BILL ANALYSIS

Senate Research Center	H.B. 3146
89R11695 JON-F	By: Bumgarner (Zaffirini)
	Economic Development
	5/9/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The State Office of Administrative Hearings (SOAH) serves as an independent and neutral shared services agency for hearing and mediating administrative disputes and appeals between the public and more than 50 state agencies. The SOAH hearings process is governed by Chapter 2003 of the Government Code, which sets out the requirements for agencies to refer cases to SOAH for hearings, the rules of procedure that govern hearings, and the requirements for entering into an interagency contract to cover the costs of SOAH's services. Among these provisions are duplicative and redundant requirements for certain agencies to maintain memoranda of understanding with SOAH to govern the formal hearing procedures and associated costs.

H.B. 3146 would repeal requirements to maintain memoranda of understanding regarding certain hearings conducted by SOAH for the Department of Agriculture, the Health and Human Services Commission, the Department of Family and Protective Services, the Department of Insurance, the Division of Workers' Compensation, and the Department of Public Safety. What's more, H.B. 3146 would make conforming changes across multiple statutory codes to reflect the amendment to the Government Code.

H.B. 3146 amends current law relating to certain hearings conducted by the State Office of Administrative Hearings.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends the heading to Section 12.032, Agriculture Code, to read as follows:

Sec. 12.032. HEARINGS CONDUCTED BY STATE OFFICE OF ADMINISTRATIVE HEARINGS.

�

SECTION 2. Amends the heading to Section 40.066, Human Resources Code, to read as follows:

Sec. 40.066. HEARINGS CONDUCTED BY STATE OFFICE OF ADMINISTRATIVE HEARINGS.

SECTION 3. Amends Section 40.066(c), Human Resources Code, as follows:

(c) Requires the administrative law judge who conducts the hearing, if the State Office of Administrative Hearings (SOAH) conducts a contested case hearing for the Department of Family and Protective Services (DFPS) under Chapter 2001 (Administrative Procedure), Government Code, to enter the final decision in the case after completion of the hearing.

Deletes existing text requiring the administrative law judge who conducts a contested case hearing for SOAH on behalf of DFPS to enter the final decision in the case after completion of the hearing.

SECTION 4. Amends the heading to Section 402.073, Labor Code, to read as follows:

Sec. 402.073. HEARINGS CONDUCTED BY STATE OFFICE OF ADMINISTRATIVE HEARINGS.

SECTION 5. Amends Section 402.073(c), Labor Code, as follows:

(c) Deletes existing text requiring the administrative law judge who conducts the hearing for SOAH, in a case in which a hearing is conducted in conjunction with certain provisions, including 402.072 (Sanctions), and in other cases under Subtitle A (Texas Workers' Compensation Act) that are not subject to Subsection (b) (relating to requiring the administrative law judge who conduct the hearing for SOAH to enter the final decision in the case after completion of the hearing), to propose a decision to the commissioner of workers' compensation (commissioner) for final consideration and decision by the commissioner.

SECTION 6. Amends Section 524.032(b), Transportation Code, as follows:

(b) Requires a hearing to be rescheduled if, before the fifth day before the date scheduled for the hearing, a request for a continuance from the person who requested the hearing is received by SOAH, rather than is received in accordance with the memorandum of understanding adopted under Section 524.033(c) (relating to DFPS and the chief administrative law judge of SOAH adopting and at least biennially updating a memorandum of understanding establishing that SOAH has primary scheduling responsibility for a hearing).

SECTION 7. Repealers: Sections 12.032(a) (relating to requiring the commissioner of agriculture and the chief administrative law judge of SOAH by rule to adopt a memorandum of understanding) and (e) (relating to requiring the department of agriculture by interagency contract to reimburse SOAH for certain costs), Agriculture Code.

Repealer: Section 22.018 (Cooperation With State Office of Administrative Hearings), Human Resources Code.

Repealers: Sections 40.066(a) (relating to requiring DFPS and the chief administrative law judge of SOAH to adopt a memorandum of understanding) and (b) (relating to requiring the memorandum of understanding to require certain persons to cooperate in connection with a contested case hearing), Human Resources Code.

Repealer: Section 40.066(d) (relating to requiring DFPS by interagency contract to reimburse SOAH for the costs incurred in conducting contested case hearings), Human Resources Code.

Repealer: Section 40.004 (Public Interest Information and Public Access), Insurance Code.

Repealer: Section 402.073(a) (relating to requiring the commissioner and the chief administrative law judge of SOAH to adopt a memorandum of understanding governing administrative procedure law hearings), Labor Code.

Repealers: Sections 524.033(c) (relating to requiring the Department of Public Safety (DPS) and the chief administrative law judge of SOAH to adopt and at least biennially update a memorandum of understanding) and (d) (relating to requiring SOAH and DPS to consult with certain agencies to complete the transfer of scheduling responsibilities), Transportation Code.

SECTION 8. Effective date: September 1, 2025.�

�