By: Estes	S.B. No. 522

	A BILL TO BE ENTITLED
	AN ACT
	relating to contested cases held 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
	10 [three] days before the date set for the hearing. In a
	proceeding concerning the grant, denial, revocation, suspension,
	annulment, withdrawal, or renewal of a license, 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 such statute or rule not less than 10 days before
	the date set for the hearing.
	(c)  In a suit for judicial review of a final decision of a
	state agency in a contested case, the agency's failure to comply
	with Subsection (a)(3) or Subsection (b) shall constitute
	substantial prejudice to the rights of the appellant under Section
	2001.174(2).
	SECTION 2.  Section 2001.054, Government Code, is amended to
	read as follows:
	(a)  The provisions of this chapter concerning contested
	cases apply to the grant, denial, or renewal of a license that is
	required to be preceded by notice and opportunity for hearing.
	(b)  If a license holder makes timely and sufficient
	application for the renewal of a license or for a new license for an
	activity of a continuing nature, the existing license does not
	expire until the application has been finally determined by the
	state agency. If the application is denied or the terms of the new
	license are limited, the existing license does not expire until the
	last day for seeking review of the agency order or a later date
	fixed by order of the reviewing court.
	(c)  A revocation, suspension, annulment, or withdrawal of a
	license is not effective unless, before institution of state agency
	proceedings:
	(1)  the agency gives notice by personal service or by
	registered or certified mail to the license holder of facts or
	conduct alleged to warrant the intended action; and
	(2)  the license holder is given an opportunity to show
	compliance with all requirements of law for the retention of the
	license.
	If, however, the agency finds that an imminent peril to the
	public health, safety or welfare imperatively requires emergency
	action, and incorporates a factual and legal basis establishing
	that imminent peril in an order, summary suspension of a license may
	be ordered pending proceedings for revocation or other action. Such
	an order is final and appealable to a Travis County district court
	upon entry.
	(d)  A license described in Subsection (a) remains valid
	unless it expires without timely application for renewal, is
	amended, revoked, suspended, annulled, or withdrawn, or the denial
	of a renewal application becomes final. The term or duration of a
	license described in Subsection (a) is tolled during the period the
	license is subjected to judicial review. However, the term or
	duration of a license is not tolled if, during judicial review, the
	licensee engages in the activity for which the license was issued.
	(e)  In a suit for judicial review of a final decision of a
	state agency brought by a license holder, the agency's failure to
	comply with Subsection (c) shall constitute substantial prejudice
	to the rights of the license holder under Section 2001.174(2).
	SECTION 3.  Subsections (a) and (e), Section 2001.141,
	Government Code, are amended to read as follows:
	(a)  A decision of a state agency [or order] 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 law to sign the agency decision [or 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 of any decision or order of the agency in the
	following manner:
	(1)  by certified or registered mail sent to the last
	known address of the party or to the party's attorney of record; or
	(2)  by electronic means to the current e-mail address
	or telecopier number of the party or the party's attorney of record
	[shall be notified either personally or by first class mail of any
	decision or order].
	(b)  When a decision [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 must keep a record
	documenting the provision and receipt of the notice [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 does not receive timely
	notice under this section of a signed decision or rehearing order,
	then, with respect to that party, a time period provided under
	Section 2001.144(a), 2001.146, 2001.147, or 2001.176(a) relating
	to a decision or motion for rehearing begins on the date the party
	receives such notice or acquires actual knowledge of the signed
	decision or rehearing order, whichever occurs first. However, in
	no event shall such period begin earlier than the 15th day or later
	than the 90th day after the decision or rehearing 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 time 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 rehearing order was more than 14 days after the decision or
	rehearing order was signed.
	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.  Sections 2001.144 and 2001.145, Government Code,
	are amended to read as follows:
	Sec. 2001.144.  DECISIONS; WHEN FINAL. (a)  A decision 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;
	or
	(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 is signed, and sets
	forth 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 order for a case in
	which all parties agree to the specified date in writing or on the
	record, if the specified date is not before the date the order is
	signed 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].
	Sec. 2001.145.  MOTIONS FOR REHEARING: PREREQUISITES TO
	APPEAL. (a)  A timely motion for rehearing is a prerequisite to an
	appeal in a contested case except that a motion for rehearing of a
	decision [or order] that is final under Section 2001.144(a)(3) [or
	(4)] is not a prerequisite for appeal.
	(b)  A decision that is final under Section 2001.144(a)(2)
	or[,] (3)[, or (4)] is appealable.
	SECTION 8.  Section 2001.146, Government Code, is amended by
	amending Subsections (a), (b), (c), (e), and (f) and adding
	Subsections (g) and (h) to read as follows:
	(a)  A motion for rehearing in a contested case must be filed
	by a party and served on all other parties to the contested case in
	accordance with Rule 21a, Texas Rules of Civil Procedure, not later
	than the 20th day after the date on which the decision that is the
	subject of complaint is signed [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 reply 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 that is the subject [or order]
	of complaint is signed, or not later than the 10th day after a
	motion for rehearing is filed if the time for filing the motion for
	rehearing has been extended by a valid agreement under Section
	2001.147 or by a written agency order under Subsection (e) [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 that is the subject of complaint is signed
	[or order that may become final under Section 2001.144] or the
	motion for rehearing is overruled by operation of law.
	(e)  Not later than the 30th day after a decision that is the
	subject of complaint is signed, a [A] state agency may, on its own
	initiative or on the motion of any party, by written order extend
	the time for filing a motion or reply or taking agency action under
	this section. 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 that is the subject of
	complaint is signed [or order 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, 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 that is the subject of complaint
	is signed [or order 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
	complaint and any evidentiary or legal ruling claimed to be
	erroneous. The motion must also set forth the legal and factual
	basis for the claimed error.
	(h)  After an agency rules on a motion for rehearing, a
	further motion for rehearing must be filed not later than 20 days
	after the order disposing of the original motion for rehearing is
	signed, if that order:
	(1)  modifies in any respect the decision that is the
	subject of complaint, even if the modification does not change the
	outcome of the contested case or makes only typographical,
	grammatical, or immaterial changes to the decision; or
	(2)  vacates the decision that is the subject of
	complaint and issues a new decision.
	SECTION 9.  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 that is the subject of complaint is final and
	appealable. A prematurely filed petition is effective to initiate
	judicial review and is deemed filed on the day of, but after, the
	event that begins the period for filing a petition.
	SECTION 10.  The changes in law made by this Act to Chapter
	2001, Government Code, apply only to an administrative hearing
	conducted, or to a decision in an administrative hearing issued, on
	or after the effective date of this Act. A hearing conducted or
	decision issued before the effective date of this Act is governed by
	the law in effect when the hearing was conducted or the decision was
	issued, and the former law is continued in effect for that purpose.
	SECTION 11.  This Act takes effect September 1, 2013.