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  H.B. No. 3601
 
 
 
 
AN ACT
  relating to the conduct of certain contested cases involving the
  sale or lease of motor vehicles.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2301.607(c), Occupations Code, is
  amended to read as follows:
         (c)  If the administrative law judge [hearing examiner] does
  not issue a proposal for decision and recommend to the director a
  final order before the 151st day after the date a complaint is filed
  under this subchapter, the director shall provide written notice by
  certified mail to the complainant and to the manufacturer,
  converter, or distributor of the expiration of the 150-day period
  and of the complainant's right to file a civil action. The board
  shall extend the 150-day period if a delay is requested or caused by
  the person who filed the complaint.
         SECTION 2.  Section 2301.704, Occupations Code, is amended
  to read as follows:
         Sec. 2301.704.  ADMINISTRATIVE LAW JUDGE [HEARINGS
  EXAMINER].  (a) A hearing under this subchapter must be held by an
  administrative law judge of the State Office of Administrative
  Hearings [the director or a hearings examiner. A reference in this
  chapter to a hearings examiner includes the director if the
  director is conducting the hearing].
         (b)  [A hearings examiner must be licensed to practice law in
  this state.
         [(c)]  An administrative law judge [A hearings examiner] has
  all of the board's power and authority under this chapter to conduct
  hearings, including the power to:
               (1)  hold a hearing;
               (2)  administer an oath;
               (3)  receive pleadings and evidence;
               (4)  issue a subpoena to compel the attendance of a
  witness;
               (5)  compel the production of papers and documents;
               (6)  issue an interlocutory order, including a cease
  and desist order in the nature of a temporary restraining order or a
  temporary injunction;
               (7)  make findings of fact and conclusions of law; and
               (8)  issue a proposal for decision and recommend a
  final order.
         SECTION 3.  Section 2301.709(a), Occupations Code, is
  amended to read as follows:
         (a)  In a contested case, the administrative law judge
  [hearings examiner] shall serve on each party a copy of the
  administrative law judge's [examiner's] proposal for decision and
  recommended order containing findings of fact and conclusions of
  law. A party may file exceptions and replies to the board.
         SECTION 4.  This Act does not affect the validity of any
  interagency cooperation contract entered into between the Motor
  Vehicle Board of the Texas Department of Transportation and the
  State Office of Administrative Hearings before the effective date
  of this Act.
         SECTION 5.  The changes in law made by this Act that relate
  to the procedures governing a hearing before the State Office of
  Administrative Hearings apply only to a contested case that is
  filed on or after the effective date of this Act. A contested case
  filed before the effective date of this Act is governed by the law
  in effect immediately before the effective date of this Act, or by
  an interagency cooperation contract entered into between the Motor
  Vehicle Board of the Texas Department of Transportation and the
  State Office of Administrative Hearings in effect on that date, and
  the former law is continued in effect for that purpose.
         SECTION 6.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3601 was passed by the House on May 2,
  2007, by the following vote:  Yeas 147, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 3601 was passed by the Senate on May
  17, 2007, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor