Texas 2019 - 86th Regular

Texas House Bill HB3114 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~86R22186~~ SLB-F
	1	+	86R12694 SLB-F
2	2		By: Kacal H.B. No. 3114
3		-	Substitute the following for H.B. No. 3114:
4		-	By: Lozano C.S.H.B. No. 3114
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to contested case hearings on matters under the
10	8		jurisdiction of the Texas Commission on Environmental Quality.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		ARTICLE 1. CONTESTED CASE HEARINGS
13		-	SECTION 1.01. Section 5.001, Water Code, is amended by
14		-	amending Subdivision (1) and adding Subdivision (1-a) to read as
15		-	follows:
16		-	(1) "Administrative law judge" means an individual who
17		-	presides at an administrative hearing held under Subchapters H and
18		-	H-1.
19		-	(1-a) "Board" means the Texas Water Development Board.
20		-	SECTION 1.02. Subchapter D, Chapter 5, Water Code, is
21		-	amended by adding Section 5.1101 to read as follows:
22		-	Sec. 5.1101. ADMINISTRATIVE LAW JUDGES. (a) The
23		-	commission may employ or contract with administrative law judges to
24		-	assist the commission in carrying out the duties of the commission
25		-	under this code and other law.
26		-	(b) Administrative law judges are independent of the
27		-	executive director of the commission.
28		-	SECTION 1.03. Section 5.228(c), Water Code, is amended to
29		-	read as follows:
30		-	(c) The executive director shall participate as a party in
31		-	contested case permit hearings before the commission [or the State
32		-	Office of Administrative Hearings] to:
33		-	(1) provide information to complete the
34		-	administrative record; and
35		-	(2) support the executive director's position
36		-	developed in the underlying proceeding, unless the executive
37		-	director has revised or reversed that position.
38		-	SECTION 1.04. The heading to Subchapter H, Chapter 5, Water
	11	+	SECTION 1.01. The heading to Subchapter H, Chapter 5, Water
39	12		Code, is amended to read as follows:
40	13		SUBCHAPTER H. [DELEGATION OF] HEARINGS
41		-	SECTION 1.05. Subchapter H, Chapter 5, Water Code, is
42		-	amended by adding Sections 5.301, 5.302, and 5.310 to read as
43		-	follows:
44		-	Sec. 5.301. POWERS OF ADMINISTRATIVE LAW JUDGE. (a) An
45		-	administrative law judge employed by the commission or a temporary
46		-	administrative law judge may:
47		-	(1) administer an oath;
48		-	(2) take testimony;
49		-	(3) rule on a question of evidence;
50		-	(4) issue an order relating to discovery or another
51		-	hearing or prehearing matter, including an order imposing a
52		-	sanction;
53		-	(5) issue an order that refers a case to an alternative
54		-	dispute resolution procedure, determines how the costs of the
55		-	procedure will be apportioned, and appoints an impartial third
56		-	party as described by Section 2009.053, Government Code, to
57		-	facilitate that procedure;
58		-	(6) issue a proposal for decision that includes
59		-	findings of fact and conclusions of law; and
60		-	(7) serve as an impartial third party as described by
61		-	Section 2009.053, Government Code, for a dispute referred by the
62		-	commission or an administrative law judge, unless one of the
63		-	parties objects to the appointment.
64		-	(b) An administrative law judge may not serve as an
65		-	impartial third party for a dispute that the administrative law
66		-	judge refers to an alternative dispute resolution procedure.
67		-	Sec. 5.302. EX PARTE CONSULTATIONS. (a) Except as provided
68		-	by Subsection (b), the provisions of Section 2001.061, Government
69		-	Code, apply in relation to a matter before the commission without
70		-	regard to whether the matter is considered a contested case under
71		-	this chapter.
72		-	(b) The provisions of Section 2001.061, Government Code, do
73		-	not apply to a matter before the commission to the extent that the
74		-	commission is conducting an alternative dispute resolution
75		-	procedure in relation to the matter. The commission shall adopt
76		-	rules that prescribe the types of alternative dispute resolution
77		-	procedures in which ex parte consultations are prohibited and the
78		-	types of alternative dispute resolution procedures in which ex
79		-	parte consultations are allowed. For alternative dispute
80		-	resolution procedures in which ex parte consultations are
81		-	prohibited, the commission in adopting rules under this subsection
82		-	shall model the prohibition after Section 2001.061, Government
83		-	Code, but may vary the extent of the prohibition if necessary to
84		-	take into account the nature of alternative dispute resolution
85		-	procedures.
86		-	Sec. 5.310. APPLICABILITY. This subchapter applies to
87		-	hearings held for matters under the jurisdiction of the commission.
88		-	SECTION 1.06. Section 5.311, Water Code, is amended to read
	14	+	SECTION 1.02. Section 5.311, Water Code, is amended to read
89	15		as follows:
90	16		Sec. 5.311. DELEGATION OF RESPONSIBILITY. (a) The
91		-	commission may delegate to an administrative law judge employed or
92		-	contracted by [of] the commission [State Office of Administrative
93		-	Hearings] the responsibility to hear any matter before the
94		-	commission.
	17	+	commission by rule may delegate to an administrative law judge of
	18	+	the commission [State Office of Administrative Hearings] the
	19	+	responsibility to hear any matter before the commission, if
	20	+	consistent with the responsibilities of the office of
	21	+	administrative law judge.
95	22		(b) The [Except as provided in Subsection (a), the]
96	23		administrative law judge shall report to the commission on the
97	24		hearing in the manner provided by law.
98		-	SECTION 1.07. Section 5.312(a), Water Code, is amended to
	25	+	SECTION 1.03. Section 5.312(a), Water Code, is amended to
99	26		read as follows:
100	27		(a) Except as provided in Subsection (b) and otherwise in
101		-	this subchapter ~~and Subchapter H-1~~, all permit decisions shall be
102		-	~~made within 180 days~~ of the receipt of the permit application or
103		-	~~application amendment~~ or the determination of administrative
104		-	~~completeness, whichever is~~ later.
105		-	SECTION 1.08. Section 5.315, Water Code, is amended to read
	28	+	this subchapter, all permit decisions shall be made within 180 days
	29	+	of the receipt of the permit application or application amendment
	30	+	or the determination of administrative completeness, whichever is
	31	+	later.
	32	+	SECTION 1.04. Section 5.315, Water Code, is amended to read
106	33		as follows:
107	34		Sec. 5.315. DISCOVERY IN CASES USING PREFILED WRITTEN
108	35		TESTIMONY. In a contested case hearing delegated by the commission
109	36		to an administrative law judge [the State Office of Administrative
110	37		Hearings] that uses prefiled written testimony, all discovery must
111	38		be completed before the deadline set by the administrative law
112		-	judge for the submission of that testimony in accordance with
113		-	Section 5.318.
114		-	SECTION 1.09. Subchapter H, Chapter 5, Water Code, is
115		-	amended by adding Sections 5.316 through 5.325 to read as follows:
	39	+	judge [for the submission of that testimony].
	40	+	SECTION 1.05. Subchapter H, Chapter 5, Water Code, is
	41	+	amended by adding Sections 5.316 through 5.326 to read as follows:
116	42		Sec. 5.316. HEARING BEFORE COMMISSION; APPLICABILITY OF
117	43		OTHER LAW. (a) An administrative law judge to whom the commission
118		-	has delegated a contested case hearing shall conduct the hearing.
	44	+	has delegated a contested case hearing shall conduct the hearing
	45	+	before the commission.
119	46		(b) The provisions of Chapter 2001, Government Code, apply
120	47		to contested case hearings for the commission to the extent not
121		-	inconsistent with this ~~subchapter~~.
122		-	Sec. 5.317. ADMINISTRATIVE LAW JUDGES~~. (a) The commission~~
123		-	may ~~employ or~~ contract with qualified ~~individuals to serve as~~
124		-	temporary or permanent administrative law ~~judges or technical~~
125		-	advisors as necessary.
	48	+	inconsistent with this section.
	49	+	Sec. 5.317. ADMINISTRATIVE LAW JUDGES AND TECHNICAL
	50	+	ADVISORS. (a) The commission may contract with qualified
	51	+	individuals to serve as temporary or permanent administrative law
	52	+	judges or technical advisors as necessary.
126	53		(b) To be eligible to preside at a hearing on behalf of the
127	54		commission, an administrative law judge, regardless of temporary or
128	55		permanent status, must:
129	56		(1) be licensed to practice law in this state; and
130	57		(2) have the expertise necessary to conduct hearings
131	58		regarding technical or other specialized subjects that may come
132	59		before the commission.
	60	+	(c) The commission may also appoint a technical advisor to
	61	+	assist the administrative law judge in presiding over a delegated
	62	+	hearing.
133	63		Sec. 5.318. HEARING TIMELINES. (a) The commission shall
134	64		specify the date by which the administrative law judge is expected
135	65		to complete the proceeding and provide a proposal for decision to
136	66		the commission. The administrative law judge may extend the
137	67		proceeding if the administrative law judge determines that failure
138	68		to grant an extension would deprive a party of due process or
139	69		another constitutional right. The administrative law judge shall
140		-	establish a ~~procedural scheduling~~ order designed to complete the
	70	+	establish a docket control order designed to complete the
141	71		proceeding by the date specified by the commission.
142		-	(b) For a matter relating to an application described by
143		-	Section 11.122(b-1), the administrative law judge must complete the
144		-	proceeding and provide a proposal for decision to the commission
145		-	not later than the 270th day after the date the commission's interim
146		-	order was signed.
147		-	(c) The timeline specified by Subsection (b) may be
148		-	extended:
	72	+	(b) For a matter sent to hearing under Section 5.556 or
	73	+	5.557, the administrative law judge shall complete the proceeding
	74	+	and provide a proposal for decision to the commission not later than
	75	+	the earlier of:
	76	+	(1) the 180th day after the date of the preliminary
	77	+	hearing; or
	78	+	(2) the date specified by the commission.
	79	+	(c) The timeline specified by Subsection (b) or (f), as
	80	+	applicable, may be extended:
149	81		(1) by agreement of the parties with the approval of
150	82		the administrative law judge; or
151	83		(2) by the administrative law judge if the judge
152	84		determines that failure to extend the timeline would unduly deprive
153	85		a party of due process or another constitutional right.
154		-	Sec. 5.319. SCOPE OF HEARING. In delegating a matter for
155		-	hearing, the commission shall provide to the administrative law
156		-	judge a list of specified issues. Except as otherwise provided by
157		-	this section, the scope of the hearing is limited to the issues
158		-	specified by the commission. On the request of a party, the
159		-	administrative law judge may consider an issue that was not
160		-	specified by the commission if the administrative law judge
161		-	determines that:
	86	+	(d) For the purposes of Subsection (c)(2), a political
	87	+	subdivision has the same constitutional rights as an individual.
	88	+	(e) This subsection applies only to a matter sent to hearing
	89	+	under Section 5.557. The administrative law judge may not hold a
	90	+	preliminary hearing until after the executive director has issued a
	91	+	response to public comments under Section 5.555.
	92	+	(f) For a matter relating to an application described by
	93	+	Section 11.122(b-1), the administrative law judge must complete the
	94	+	proceeding and provide a proposal for decision to the commission
	95	+	not later than the 270th day after the date the matter was sent to
	96	+	hearing.
	97	+	Sec. 5.319. SCOPE OF HEARING. (a) In delegating a matter
	98	+	for hearing, the commission shall provide to the administrative law
	99	+	judge a list of specified issues. Each specified issue must have
	100	+	been raised by an affected person in a comment submitted by that
	101	+	affected person in response to a permit application in a timely
	102	+	manner. The list of issues provided must:
	103	+	(1) be detailed and complete; and
	104	+	(2) contain either:
	105	+	(A) only factual questions; or
	106	+	(B) mixed questions of fact and law.
	107	+	(b) Except as otherwise provided by this subsection, the
	108	+	scope of the hearing is limited to the issues specified by the
	109	+	commission. On the request of a party, the administrative law judge
	110	+	may consider an issue that was not specified by the commission if
	111	+	the administrative law judge determines that:
162	112		(1) the issue is material;
163	113		(2) the issue is supported by evidence; and
164	114		(3) there are good reasons for the failure to supply
165	115		available information regarding the issue during the public comment
166	116		period.
167	117		Sec. 5.320. DISCOVERY. (a) The scope of permissible
168	118		discovery is limited to:
169	119		(1) any matter that:
170	120		(A) is reasonably calculated to lead to the
171		-	discovery of admissible evidence regarding any issue;
172		-	~~(B) is specified by~~ the commission; or
173		-	(C) the administrative law judge has agreed to
	121	+	discovery of admissible evidence regarding any issue specified by
	122	+	the commission; or
	123	+	(B) the administrative law judge has agreed to
174	124		consider; and
175	125		(2) the production of documents:
176	126		(A) reviewed or relied on in preparing
177	127		application materials or selecting the site of the proposed
178	128		facility; or
179	129		(B) relating to the ownership of the applicant or
180	130		the owner or operator of the facility or proposed facility.
181	131		(b) The commission by rule shall:
182	132		(1) provide for subpoenas and commissions for
183	133		depositions; and
184	134		(2) require that discovery be conducted in accordance
185	135		with the Texas Rules of Civil Procedure, except that the commission
186	136		by rule shall determine the level of discovery under Rule 190, Texas
187	137		Rules of Civil Procedure, appropriate for each type of case
188	138		considered by the commission, taking into account the nature and
189	139		complexity of the case.
190	140		Sec. 5.321. CERTIFICATION OF ISSUES. The commission shall
191	141		adopt rules providing for certification to the commission of an
192	142		issue that involves an ultimate finding of compliance with or
193	143		satisfaction of a statutory standard the determination of which is
194	144		committed to the discretion or judgment of the commission by law.
195	145		The rules must address, at a minimum:
196	146		(1) the issues that are appropriate for certification;
197	147		and
198	148		(2) the procedure to be used in certifying an issue.
199		-	Sec. 5.322. SANCTIONS. (a) An administrative law judge
	149	+	Sec. 5.322. PRIMA FACIE DEMONSTRATION IN CERTAIN CASES.
	150	+	(a) In a contested case regarding a permit application sent to
	151	+	hearing under Section 5.556 or Section 5.557, the filing with the
	152	+	administrative law judge of the application, the draft permit
	153	+	prepared by the executive director, the preliminary decision issued
	154	+	by the executive director, and other sufficient supporting
	155	+	documentation in the administrative record of the permit
	156	+	application establishes a prima facie demonstration that:
	157	+	(1) the draft permit meets all state and federal legal
	158	+	and technical requirements; and
	159	+	(2) a permit, if issued consistent with the draft
	160	+	permit, would protect human health and safety, the environment, and
	161	+	physical property.
	162	+	(b) A party may rebut a demonstration under Subsection (a)
	163	+	by presenting evidence that:
	164	+	(1) relates to a matter sent to hearing under Section
	165	+	5.557, or an issue included in a list submitted under Section 5.319
	166	+	in connection with a matter specified under Section 5.556; and
	167	+	(2) demonstrates that one or more provisions in the
	168	+	draft permit violate a specifically applicable state or federal
	169	+	requirement.
	170	+	(c) If in accordance with Subsection (b) a party rebuts a
	171	+	presumption established under Subsection (a), the applicant and the
	172	+	executive director may present additional evidence to support the
	173	+	draft permit.
	174	+	Sec. 5.323. SANCTIONS. (a) An administrative law judge
200	175		hearing a case on behalf of the commission, on the judge's own
201	176		motion or on motion of a party and after notice and an opportunity
202	177		for a hearing, may impose appropriate sanctions as provided by
203	178		Subsection (b) against a party or its representative for:
204	179		(1) filing a motion or pleading that is groundless and
205	180		brought:
206	181		(A) in bad faith;
207	182		(B) for the purpose of harassment; or
208	183		(C) for any other improper purpose, such as to
209	184		cause unnecessary delay or needless increase in the cost of the
210	185		proceeding;
211	186		(2) abuse of the discovery process in seeking, making,
212	187		or resisting discovery; or
213	188		(3) failure to obey an order of the administrative law
214	189		judge or the commission.
215	190		(b) A sanction imposed under Subsection (a) may include, as
216	191		appropriate and justified, issuance of an order:
217	192		(1) disallowing further discovery of any kind or of a
218	193		particular kind by the offending party;
219	194		(2) charging all or any part of the expenses of
220	195		discovery against the offending party or its representatives;
221	196		(3) holding that designated facts be considered
222	197		admitted for purposes of the proceeding;
223	198		(4) refusing to allow the offending party to support
224	199		or oppose a designated claim or defense or prohibiting the party
225	200		from introducing designated matters into evidence;
226	201		(5) wholly or partly disallowing requests for relief
227	202		by the offending party and excluding evidence in support of those
228	203		requests; and
229	204		(6) wholly or partly striking pleadings or testimony,
230	205		or both.
231		-	Sec. 5.~~323~~. PROPOSAL FOR DECISION. (a) After hearing
	206	+	Sec. 5.324. PROPOSAL FOR DECISION. (a) After hearing
232	207		evidence and receiving legal argument, an administrative law judge
233	208		shall:
234	209		(1) separately state findings of fact, conclusions of
235	210		law, and any ultimate findings required by statute; and
236	211		(2) make a proposal for decision to the commission and
237	212		serve the proposal for decision on all parties.
238	213		(b) An opportunity shall be given to each party to file
239	214		exceptions to the proposal for decision and briefs related to the
240	215		issues addressed in the proposal for decision.
241	216		(c) The commission shall consider and act on the proposal
242	217		for decision.
243		-	Sec. 5.~~324~~. COMMISSION CONSIDERATION OF AND ACTION ON
	218	+	Sec. 5.325. COMMISSION CONSIDERATION OF AND ACTION ON
244	219		PROPOSAL FOR DECISION. (a) Except as provided by Section 361.0832,
245	220		Health and Safety Code, the commission shall consider the proposal
246	221		for decision prepared by the administrative law judge, the
247	222		exceptions of the parties, and the briefs and argument of the
248	223		parties.
249	224		(b) The commission may amend the proposal for decision,
250	225		including any finding of fact, but an amendment to the proposal for
251	226		decision and order must be based solely on the record made before
252	227		the administrative law judge. An amendment by the commission must
253	228		be accompanied by an explanation of the basis of the amendment.
254	229		(c) The commission may return the matter back to the
255	230		administrative law judge to:
256	231		(1) reconsider any findings and conclusions set forth
257	232		in the proposal for decision; or
258	233		(2) take additional evidence or to make additional
259	234		findings of fact or conclusions of law.
260		-	(d) The commission shall issue its decision and order in
261		-	accordance with Subchapter F, Chapter 2001, Government Code.
262		-	Sec. 5.325. ALTERNATIVE DISPUTE RESOLUTION. (a) On a joint
263		-	motion agreed to by all parties, an administrative law judge
264		-	hearing a case on behalf of the commission may issue an order
265		-	referring the case to an alternative dispute resolution procedure.
	235	+	(d) The commission shall serve a copy of the commission's
	236	+	order, including its finding of facts and conclusions of law, on
	237	+	each party.
	238	+	Sec. 5.326. ALTERNATIVE DISPUTE RESOLUTION. (a) An
	239	+	administrative law judge hearing a case on behalf of the commission
	240	+	may not, without the agreement of all parties, issue an order
	241	+	referring the case to an alternative dispute resolution procedure
	242	+	if the commission has already conducted an unsuccessful alternative
	243	+	dispute resolution procedure.
266	244		(b) If the commission has not already conducted an
267	245		alternative dispute resolution procedure, the administrative law
268	246		judge shall consider the commission's recommendation in
269	247		determining whether to issue an order referring the case to the
270	248		procedure.
271		-	SECTION 1.10. Chapter 5, Water Code, is amended by adding
272		-	Subchapter H-1 to read as follows:
273		-	SUBCHAPTER H-1. HEARINGS ON CERTAIN APPLICATIONS
274		-	Sec. 5.340. APPLICABILITY. This subchapter applies to
275		-	contested cases regarding permit applications:
276		-	(1) filed on or after September 1, 2015; and
277		-	(2) referred to hearing under Section 5.555 or 5.557.
278		-	Sec. 5.341. HEARING TIMELINES. (a) An administrative law
279		-	judge shall complete a proceeding to which this subchapter applies
280		-	and provide a proposal for decision to the commission not later than
281		-	the earlier of:
282		-	(1) the 180th day after the date of the preliminary
283		-	hearing; or
284		-	(2) the date specified by the commission.
285		-	(b) The timeline specified by Subsection (a) or Section
286		-	5.318, as applicable, may be extended:
287		-	(1) by agreement of the parties with the approval of
288		-	the administrative law judge; or
289		-	(2) by the administrative law judge if the judge
290		-	determines that failure to extend the timeline would unduly deprive
291		-	a party of due process or another constitutional right.
292		-	(c) For the purposes of Subsection (b)(2), a political
293		-	subdivision has the same constitutional rights as an individual.
294		-	(d) This subsection applies only to a matter sent to hearing
295		-	under Section 5.557. The administrative law judge may not hold a
296		-	preliminary hearing until after the executive director has issued a
297		-	response to public comments under Section 5.555.
298		-	Sec. 5.342. SCOPE OF HEARING. This section applies only to
299		-	a matter referred to hearing under Section 5.556. Each issue
300		-	specified by the commission for hearing must have been raised by an
301		-	affected person in a comment submitted by that affected person in
302		-	response to a permit application in a timely manner. The list of
303		-	issues provided must:
304		-	(1) be detailed and complete; and
305		-	(2) contain either:
306		-	(A) only factual questions; or
307		-	(B) mixed questions of fact and law.
308		-	Sec. 5.343. PRIMA FACIE DEMONSTRATION. (a) In a contested
309		-	case regarding a permit application to which this subchapter
310		-	applies, the filing with the administrative law judge of the
311		-	application, the draft permit prepared by the executive director,
312		-	the preliminary decision issued by the executive director, and
313		-	other sufficient supporting documentation in the administrative
314		-	record of the permit application establishes a prima facie
315		-	demonstration that:
316		-	(1) the draft permit meets all state and federal legal
317		-	and technical requirements; and
318		-	(2) a permit, if issued consistent with the draft
319		-	permit, would protect human health and safety, the environment, and
320		-	physical property.
321		-	(b) A party may rebut a demonstration under Subsection (a)
322		-	by presenting evidence that:
323		-	(1) relates to a matter sent to hearing under Section
324		-	5.557, or an issue included in a list submitted under Section 5.342
325		-	in connection with a matter specified under Section 5.556; and
326		-	(2) demonstrates that one or more provisions in the
327		-	draft permit violate a specifically applicable state or federal
328		-	requirement.
329		-	(c) If in accordance with Subsection (b) a party rebuts a
330		-	presumption established under Subsection (a), the applicant and the
331		-	executive director may present additional evidence to support the
332		-	draft permit.
333		-	SECTION 1.11. Sections 5.556(d) and (e), Water Code, are
	249	+	SECTION 1.06. Sections 5.556(d) and (e), Water Code, are
334	250		amended to read as follows:
335	251		(d) The commission may not specify [refer] an issue to be
336	252		heard at a contested case [the State Office of Administrative
337	253		Hearings for a] hearing unless the commission determines that the
338	254		issue:
339	255		(1) involves a disputed question of fact;
340	256		(2) was raised during the public comment period; and
341	257		(3) is relevant and material to the decision on the
342	258		application.
343	259		(e) If the commission grants a request for a contested case
344	260		hearing it shall:
345	261		(1) limit the number and scope of the issues to be
346	262		specified [referred to the State Office of Administrative Hearings]
347	263		for a hearing; and
348	264		(2) consistent with the nature and number of the
349	265		issues to be considered at the hearing, specify the maximum
350	266		expected duration of the hearing.
351		-	SECTION 1.12. Section 5.557(b), Water Code, is amended to
	267	+	SECTION 1.07. Section 5.557(b), Water Code, is amended to
352	268		read as follows:
353		-	(b) Sections 5.318, 5.319, 5.554, 5.555, and 5.556 [of ~~this~~
354		-	code and Sections 2003.047(e) and (f), Government Code,] do ~~not~~
355		-	apply to an application referred for a hearing under Subsection
	269	+	(b) Sections 5.318(a), 5.319, 5.554, 5.555, and 5.556 [of
	270	+	this code and Sections 2003.047(e) and (f), Government Code,] do
	271	+	not apply to an application referred for a hearing under Subsection
356	272		(a).
357	273		ARTICLE 2. CONFORMING AMENDMENTS
358	274		SECTION 2.01. Section 2003.024(d), Government Code, is
359	275		amended to read as follows:
360	276		(d) This section does not apply to hearings conducted:
361	277		(1) under Section [2003.047 or] 2003.049; or
362	278		(2) under the administrative license revocation
363	279		program.
364	280		SECTION 2.02. Section 2003.025(a), Government Code, is
365	281		amended to read as follows:
366	282		(a) This section applies to a state agency that has entered
367	283		into a contract with the office for the conduct of hearings and
368	284		alternative dispute resolution procedures for the agency,
369	285		including a contract under Section 2003.024, [2003.048,] 2003.049,
370	286		or 2003.105, during any of the three most recent state fiscal years.
371	287		SECTION 2.03. Section 2003.0421(c), Government Code, is
372	288		amended to read as follows:
373	289		(c) This section applies to any contested case hearing
374	290		conducted by the office, except hearings conducted on behalf of
375	291		[the Texas Commission on Environmental Quality or] the Public
376	292		Utility Commission of Texas which are governed by Section [Sections
377	293		2003.047 and] 2003.049.
378	294		ARTICLE 3. REPEALER
379	295		SECTION 3.01. The following provisions are repealed:
380	296		(1) Section 2003.047, Government Code;
381	297		(2) Section 2003.048, Government Code; and
382		-	(3) Section 5.313, Water Code.
	298	+	(2) Section 5.313, Water Code.
383	299		ARTICLE 4. TRANSITION; EFFECTIVE DATE
384		-	SECTION 4.01. Not later than September 1, 2020, the Texas
385		-	Commission on Environmental Quality shall adopt rules to implement
386		-	the changes in law made by this Act.
387		-	SECTION 4.02. As soon as practicable after the effective
388		-	date of this Act, the chief administrative law judge of the State
389		-	Office of Administrative Hearings and the executive director of the
390		-	Texas Commission on Environmental Quality shall enter into a
391		-	memorandum of understanding to:
392		-	(1) determine the number of administrative law judges
393		-	necessary to conduct hearings for the Texas Commission on
394		-	Environmental Quality effectively and other details related to the
395		-	qualification and requirements of those administrative law judges;
396		-	(2) make the necessary changes in the State Office of
397		-	Administrative Hearings to implement the changes in law made by
398		-	this Act; and
399		-	(3) arrange for the transfer from the State Office of
400		-	Administrative Hearings to the Texas Commission on Environmental
401		-	Quality all equipment, data, facilities, and other items related to
402		-	hearings conducted on behalf of the commission, to occur not later
403		-	than September 1, 2020.
404		-	SECTION 4.03. The changes in law made by this Act apply only
	300	+	SECTION 4.01. The changes in law made by this Act apply only
405	301		to a contested case hearing referred by the Texas Commission on
406	302		Environmental Quality to an administrative law judge on or after
407		-	~~September 1,~~ ~~2020~~. A contested case hearing referred ~~by the Texas~~
408		-	Commission on Environmental Quality to an ~~administrative law judge~~
409		-	before ~~September 1,~~ ~~2020,~~ is ~~governed by the law in effect at the~~
410		-	time the case was referred, and ~~the former law is continued in~~
411		-	effect for that purpose.
412		-	SECTION 4.04. This Act takes effect September 1, 2019.
	303	+	the effective date of this Act. A contested case hearing referred
	304	+	by the Texas Commission on Environmental Quality to an
	305	+	administrative law judge before the effective date of this Act is
	306	+	governed by the law in effect at the time the case was referred and
	307	+	the former law is continued in effect for that purpose.
	308	+	SECTION 4.02. This Act takes effect September 1, 2019.