88R4368 MCK-D
	By: Harrison	H.B. No. 4254

	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, 2023.