SECTION 32.5. Disposition of Contested Cases

(a) In all cases referred to SOAH, the commission retains the right to make the final decision in a contested case. After the conclusion of a contested case hearing, the ALJ shall prepare and serve on the parties a proposal for decision that includes findings of fact and conclusions of law, modified as necessary by the ALJ to address any exceptions and replies timely filed in accordance with §2001.062 of the Texas Government Code and SOAH rules.

(b) The executive director shall place the proposal for decision and a proposed final order on the commission's agenda for discussion and possible action at a subsequent meeting of the commission.

(c) At a meeting of the commission where the proposed final order is set for discussion and possible action, public testimony is allowed. However, no further evidence shall be received or considered. The commission may, in its discretion, allow oral arguments.

(d) The commission may, on its own motion, remand to SOAH for any additional fact finding it determines is necessary, or the commission may change a finding of fact or conclusion of law made by the ALJ for any reason enumerated in §2001.058(e) of the Texas Government Code. If the commission determines that the findings of fact and conclusions of law are supported by the evidence, the commission shall issue a final order by a majority of those present or by a majority of the quorum, whichever is greater. The commission shall adopt findings of fact and conclusions of law which shall be part of the commission's final order. Findings of fact shall be based exclusively on the evidence or on matters officially noticed.

(e) Disposition by Default.

(1) In contested cases where the party not bearing the burden of proof at the hearing fails to appear, the ALJ may issue an order finding that adequate notice has been given, deeming factual allegations in the notice of hearing admitted, conditionally dismissing the case from the SOAH docket, and conditionally remanding the case to the commission for disposition by default as permitted by Texas Government Code, §2001.056 and §2001.058(d-1).

(2) Pursuant to 1 TAC §155.501(e), the defaulting party shall be provided with adequate notice of the conditional order and an opportunity to set aside the default. If no motion to set aside is granted, the conditional order of dismissal and remand becomes final.

(3) When the order of dismissal and remand is final, the executive director shall prepare a proposed order for the commission's action containing findings of fact as set forth in the notice of hearing, conclusions of law, and granting the relief requested. The matter shall be placed on the commission's agenda for discussion and possible action at a subsequent meeting. Although public testimony is allowed, no further evidence shall be received or considered. The commission may, in its discretion, allow oral arguments.

(f) Upon rendition of the commission's final order, parties adversely affected may file a motion for rehearing in accordance with the Act and the rules of SOAH. Judicial review will be by district court in Travis County, in accordance with the Act.

Source Note: The provisions of this §32.5 adopted to be effective December 18, 1992, 17 TexReg 8287; amended to be effective September 6, 1998, 23 TexReg 8828; amended to be effective February 15, 2024, 49 TexReg 633