HB940 - Relating to decisions of an administrative law judge of the State Office of Administrative Hearings in contested cases.

      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.