By: Estes	S.B. No. 522
	(Hunter)

	A BILL TO BE ENTITLED
	AN ACT
	relating to contested cases conducted under the Administrative
	Procedure Act.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 2001.052, Government Code, is amended to
	read as follows:
	Sec. 2001.052.  CONTENTS OF NOTICE. (a)  Notice of a
	hearing in a contested case must include:
	(1)  a statement of the time, place, and nature of the
	hearing;
	(2)  a statement of the legal authority and
	jurisdiction under which the hearing is to be held;
	(3)  a reference to the particular sections of the
	statutes and rules involved; and
	(4)  a short, plain statement of the factual matters
	asserted.
	(b)  If a state agency or other party is unable to state
	factual matters in detail at the time notice under this section is
	served, an initial notice may be limited to a statement of the
	issues involved. On timely written application, a more definite
	and detailed statement of the facts shall be furnished not less than
	seven [three] days before the date set for the hearing. In a
	proceeding in which the state agency has the burden of proof, a
	state agency that intends to rely on a section of a statute or rule
	not previously referenced in the notice of hearing must amend the
	notice to refer to the section of the statute or rule not later than
	the seventh day before the date set for the hearing.  This
	subsection does not prohibit the state agency from filing an
	amendment during the hearing of a contested case provided the
	opposing party is granted a continuance of at least seven days to
	prepare its case on request of the opposing party.
	(c)  In a suit for judicial review of a final decision or
	order of a state agency in a contested case, the state agency's
	failure to comply with Subsection (a)(3) or (b) shall constitute
	prejudice to the substantial rights of the appellant under Section
	2001.174(2) unless the court finds that the failure did not
	unfairly surprise and prejudice the appellant.
	SECTION 2.  Section 2001.054, Government Code, is amended by
	adding Subsections (c-1) and (e) to read as follows:
	(c-1)  If a state agency that has been granted the power to
	summarily suspend a license under another statute determines that
	an imminent peril to the public health, safety, or welfare requires
	emergency action and incorporates a factual and legal basis
	establishing that imminent peril in an order, the agency may issue
	an order to summarily suspend the license holder's license pending
	proceedings for revocation or other action. Unless expressly
	provided otherwise by another statute, the agency shall initiate
	the proceedings for revocation or other action not later than the
	30th day after the date the summary suspension order is signed.  The
	proceedings must be promptly determined, and if the proceedings are
	not initiated before the 30th day after the date the order is
	signed, the license holder may appeal the summary suspension order
	to a Travis County district court.  This subsection does not grant
	any state agency the power to suspend a license without notice or a
	hearing.
	(e)  In a suit for judicial review of a final decision or
	order of a state agency brought by a license holder, the agency's
	failure to comply with Subsection (c) shall constitute prejudice to
	the substantial rights of the license holder under Section
	2001.174(2) unless the court determines that the failure did not
	unfairly surprise and prejudice the license holder.
	SECTION 3.  Subsections (a) and (e), Section 2001.141,
	Government Code, are amended to read as follows:
	(a)  A decision or order of a state agency that may become
	final under Section 2001.144 that is adverse to any [a] party in a
	contested case must be in writing and signed by a person authorized
	by the agency to sign the agency decision or order [stated in the
	record].
	(e)  If a party submits under a state agency rule proposed
	findings of fact or conclusions of law, the decision shall include a
	ruling on each proposed finding or conclusion.
	SECTION 4.  Section 2001.142, Government Code, is amended to
	read as follows:
	Sec. 2001.142.  NOTIFICATION OF DECISIONS AND ORDERS.
	(a)  A state agency shall notify each party to [in] a contested case
	[shall be notified either personally or by first class mail] of any
	decision or order of the agency in the following manner:
	(1)  personally;
	(2)  if agreed to by the party to be notified, by
	electronic means to the current e-mail address or telecopier number
	of the party or the party's attorney of record; or
	(3)  by first class, certified, or registered mail sent
	to the last known address of the party or to the party's attorney of
	record.
	(b)  When a decision or order [On issuance] in a contested
	case [of a decision] that may become final under Section 2001.144 is
	signed or when an order ruling on a motion for rehearing is signed,
	a state agency shall send a copy of the decision or order to each
	party in accordance with Subsection (a). The state agency shall
	keep a record documenting the provision of the notice provided to
	each party in accordance with Subsection (a) [by first class mail to
	the attorneys of record and shall keep an appropriate record of the
	mailing. If a party is not represented by an attorney of record,
	the state agency shall send a copy of the decision or order by first
	class mail to the party and shall keep an appropriate record of the
	mailing].
	(c)  If an adversely affected party or the party's attorney
	of record does not receive the notice required by Subsection (a) or
	acquire actual knowledge of a signed decision or order before the
	15th day after the date the decision or order is signed, a period
	specified by or agreed to under Section 2001.144(a), 2001.146,
	2001.147, or 2001.176(a) relating to a decision or motion for
	rehearing begins, with respect to that party, on the date the party
	receives the notice or acquires actual knowledge of the signed
	decision or order, whichever occurs first.  The period may not begin
	earlier than the 15th day or later than the 90th day after the date
	the decision or order was signed [A party or attorney of record
	notified by mail under Subsection (b) is presumed to have been
	notified on the third day after the date on which the notice is
	mailed].
	(d)  To establish a revised period under Subsection (c), the
	adversely affected party must prove, on sworn motion and notice,
	that the date the party received notice from the state agency or
	acquired actual knowledge of the signing of the decision or order
	was after the 14th day after the date the decision or order was
	signed.  The state agency governing board must grant or deny the
	sworn motion not later than the board's next meeting or, for a state
	agency without a governing board, not later than the 10th day after
	the date the agency receives the sworn motion.  If a state agency
	fails to grant or deny the motion at the next meeting, or before the
	10th day after the date the agency receives the motion, as
	appropriate, the motion is considered granted.
	SECTION 5.  The heading to Section 2001.143, Government
	Code, is amended to read as follows:
	Sec. 2001.143.  TIME OF [RENDERING] DECISION.
	SECTION 6.  Subsections (a) and (b), Section 2001.143,
	Government Code, are amended to read as follows:
	(a)  A decision or order that may become final under Section
	2001.144 in a contested case must be signed [rendered] not later
	than the 60th day after the date on which the hearing is finally
	closed.
	(b)  In a contested case heard by other than a majority of the
	officials of a state agency, the agency or the person who conducts
	the contested case hearing may extend the period in which the
	decision or order may be signed [issued].
	SECTION 7.  Section 2001.144, Government Code, is amended to
	read as follows:
	Sec. 2001.144.  DECISIONS OR ORDERS; WHEN FINAL. (a)  A
	decision or order in a contested case is final:
	(1)  if a motion for rehearing is not filed on time, on
	the expiration of the period for filing a motion for rehearing;
	(2)  if a motion for rehearing is filed on time, on the
	date:
	(A)  the order overruling the motion for rehearing
	is signed [rendered]; or
	(B)  the motion is overruled by operation of law;
	(3)  if a state agency finds that an imminent peril to
	the public health, safety, or welfare requires immediate effect of
	a decision or order, on the date the decision or order is signed and
	incorporates in the decision or order a factual and legal basis
	establishing an imminent peril to the public health, safety, or
	welfare [rendered]; or
	(4)  on the date specified in the decision or order for
	a case in which all parties agree to the specified date in writing
	or on the record, provided that if the agreed specified date is
	[not] before the date the decision or order is signed, the date the
	decision or order is signed is the date the decision or order is
	final for purposes of this section [or later than the 20th day after
	the date the order was rendered].
	(b)  If a decision or order is final under Subsection (a)(3),
	a state agency must recite in the decision or order the finding made
	under Subsection (a)(3) and the fact that the decision or order is
	final and effective on the date signed [rendered].
	SECTION 8.  Subsection (b), Section 2001.145, Government
	Code, is amended to read as follows:
	(b)  A decision or order that is final under Section
	2001.144(a)(2), (3), or (4) is appealable.
	SECTION 9.  Section 2001.146, Government Code, is amended by
	amending Subsections (a), (b), (c), (e), and (f) and adding
	Subsections (g), (h), and (i) to read as follows:
	(a)  A motion for rehearing in a contested case must be filed
	by a party not later than the 20th day after the date [on which] the
	decision or order that is the subject of the motion is signed,
	unless the time for filing the motion for rehearing has been
	extended by an agreement under Section 2001.147 or by a written
	state agency order issued under Subsection (e).  On filing of the
	motion for rehearing, copies of the motion shall be sent to all
	other parties using the notification procedures specified by
	Section 2001.142(a) [party or the party's attorney of record is
	notified as required by Section 2001.142 of a decision or order that
	may become final under Section 2001.144].
	(b)  A party must file with the state agency a reply, if any,
	to a motion for rehearing [must be filed with the state agency] not
	later than the 30th day after the date [on which the party or the
	party's attorney of record is notified as required by Section
	2001.142 of] the decision or order that is the subject of the motion
	is signed, or not later than the 10th day after the date a motion for
	rehearing is filed if the time for filing the motion for rehearing
	has been extended by an agreement under Section 2001.147 or by a
	written state agency order under Subsection (e).  On filing of the
	reply, copies of the reply shall be sent to all other parties using
	the notification procedures specified by Section 2001.142(a) [or
	order that may become final under Section 2001.144].
	(c)  A state agency shall act on a motion for rehearing not
	later than the 45th day after the date [on which the party or the
	party's attorney of record is notified as required by Section
	2001.142 of] the decision or order that is the subject of the motion
	is signed [that may become final under Section 2001.144] or the
	motion for rehearing is overruled by operation of law.
	(e)  A state agency may, on its own initiative or on the
	motion of any party for cause shown, by written order extend the
	time for filing a motion or reply or taking agency action under this
	section if the agency extends the time or takes the action not later
	than the 10th day after the date the period for filing a motion or
	reply or taking agency action expires. An[, except that an]
	extension may not extend the period for agency action beyond the
	90th day after the date [on which the party or the party's attorney
	of record is notified as required by Section 2001.142 of] the
	decision or order that is the subject of the motion is signed [that
	may become final under Section 2001.144].
	(f)  In the event of an extension, a motion for rehearing is
	overruled by operation of law on the date fixed by the order or, in
	the absence of a fixed date, the 90th day [90 days] after the date
	[on which the party or the party's attorney of record is notified as
	required by Section 2001.142 of] the decision or order that is the
	subject of the motion is signed [that may become final under Section
	2001.144].
	(g)  A motion for rehearing must identify with particularity
	findings of fact or conclusions of law that are the subject of the
	complaint and any evidentiary or legal ruling claimed to be
	erroneous. The motion must also state the legal and factual basis
	for the claimed error.
	(h)  A subsequent motion for rehearing is not required after
	a state agency rules on a motion for rehearing unless the order
	disposing of the original motion for rehearing:
	(1)  modifies, corrects, or reforms in any respect the
	decision or order that is the subject of the complaint, other than a
	typographical, grammatical, or other clerical change identified as
	such by the agency in the order, including any modification,
	correction, or reformation that does not change the outcome of the
	contested case; or
	(2)  vacates the decision or order that is the subject
	of the motion and provides for a new decision or order.
	(i)  A subsequent motion for rehearing required by
	Subsection (h) must be filed not later than the 20th day after the
	date the order disposing of the original motion for rehearing is
	signed.
	SECTION 10.  Subsection (a), Section 2001.176, Government
	Code, is amended to read as follows:
	(a)  A person initiates judicial review in a contested case
	by filing a petition not later than the 30th day after the date [on
	which] the decision or order that is the subject of complaint is
	final and appealable. In a contested case in which a motion for
	rehearing is a prerequisite for seeking judicial review, a
	prematurely filed petition is effective to initiate judicial review
	and is considered to be filed:
	(1)  on the date the last timely motion for rehearing is
	overruled; and
	(2)  after the motion is overruled.
	SECTION 11.  The changes in law made by this Act to Chapter
	2001, Government Code, apply only to an administrative hearing that
	is set by the State Office of Administrative Hearings, or another
	state agency conducting an administrative hearing, on or after the
	effective date of this Act. A hearing set before the effective date
	of this Act, or any decision issued or appeal from the hearing, is
	governed by the law in effect when the hearing was set, and the
	former law is continued in effect for that purpose.
	SECTION 12.  This Act takes effect September 1, 2013.