HB 940

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
[(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
[(2)  that a prior administrative decision on which the
administrative law judge relied is incorrect or should be changed;
[(3)  that a technical error in a finding of fact should
[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
(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
(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
(a)  An administrative law judge employed by the office or a
temporary administrative law judge may:
(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
(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
(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
(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
SECTION 3.  The following provisions of the Government Code
(1)  Section 2001.058(d-1); and
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
SECTION 5.  This Act takes effect September 1, 2025.