bill letting administrative law judges issue final decisions

The text as introduced · 886 words

By: Harrison
H.B. No. 940

A BILL TO BE ENTITLED

AN ACT

relating to decisions of an administrative law judge of the State

Office of Administrative Hearings in contested cases.

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

SECTION 1. Sections 2001.058(e), (e-1), and (f), Government

Code, are amended to read as follows:

(e) [ A state agency may change a finding of fact or

conclusion of law made by the administrative law judge, or may

vacate or modify an order issued by the administrative judge, only

if the agency determines:

[ (1) that the administrative law judge did not

properly apply or interpret applicable law, agency rules, written

policies provided under Subsection (c), or prior administrative

decisions;

[ (2) that a prior administrative decision on which the

administrative law judge relied is incorrect or should be changed;

or

[ (3) that a technical error in a finding of fact should

be changed.

[ The agency shall state in writing the specific reason and

legal basis for a change made under this subsection.

[ (e-1) ] Notwithstanding any other law, the administrative

law judge who conducts a contested case hearing shall render the

final decision in the contested case. The final decision rendered

by the administrative law judge is considered a final decision of

the state agency on behalf of which the hearing is being conducted.

A [ Subsection (e), a ] state agency may not change a finding of fact

or conclusion of law made by the administrative law judge and may

not vacate or modify an order of an administrative law judge [ that

awards attorney's fees and costs under Section 2001.903 ].

(f) The [ A state agency by rule may provide that, in a

contested case before the agency that concerns licensing in

relation to an occupational license and that is not disposed of by

stipulation, agreed settlement, or consent order, the

administrative law judge shall render the final decision in the

contested case. If a state agency adopts such a rule, the ]

following provisions apply to contested cases finally decided by

the administrative law judge [ covered by the rule ]:

(1) the administrative law judge shall render the

decision that may become final under Section 2001.144 not later

than the 60th day after the latter of the date on which the hearing

is finally closed or the date by which the judge has ordered all

briefs, reply briefs, and other posthearing documents to be filed,

and the 60-day period may be extended only with the consent of all

parties[ , including the occupational licensing agency ];

(2) the administrative law judge's decision [ judge ]

shall include [ in the ] findings of fact and conclusions of law [ a

determination whether the license at issue is primarily a license

to engage in an occupation ];

(3) the State Office of Administrative Hearings is the

state agency with which a motion for rehearing or a reply to a

motion for rehearing is filed under Section 2001.146 and is the

state agency that acts on the motion or extends a time period under

Section 2001.146;

(4) the State Office of Administrative Hearings is the

state agency responsible for sending a copy of the decision that may

become final under Section 2001.144 or an order ruling on a motion

for rehearing to the parties[ , including the occupational licensing

agency, ] in accordance with Section 2001.142; and

(5) the state [ occupational licensing ] agency and any

other party to the contested case is entitled to obtain judicial

review of the final decision in accordance with this chapter.

SECTION 2. Section 2003.042(a), Government Code, is amended

to read as follows:

(a) An administrative law judge employed by the office or a

temporary administrative law judge may:

(1) administer an oath;

(2) take testimony;

(3) rule on a question of evidence;

(4) issue an order relating to discovery or another

hearing or prehearing matter, including an order imposing a

sanction;

(5) issue an order that refers a case to an alternative

dispute resolution procedure, determines how the costs of the

procedure will be apportioned, and appoints an impartial third

party as described by Section 2009.053 to facilitate that

procedure;

(6) issue a proposal for decision that includes

findings of fact and conclusions of law;

(7) [ if expressly authorized by a state agency rule

adopted under Section 2001.058(f), ] make the final decision in a

contested case;

(8) serve as an impartial third party as described by

Section 2009.053 for a dispute referred by an administrative law

judge, unless one of the parties objects to the appointment; and

(9) serve as an impartial third party as described by

Section 2009.053 for a dispute referred by a government agency

under a contract.

SECTION 3. The following provisions of the Government Code

are repealed:

(1) Section 2001.058(d-1); and

(2) Section 2003.051.

SECTION 4. The changes in law made by this Act apply only to

a contested case hearing that is commenced on or after the effective

date of this Act. A contested case hearing commenced before that

date is governed by the law in effect on the date the hearing

commenced, and the former law is continued in effect for that

purpose.

SECTION 5. This Act takes effect September 1, 2025.