Relating to certain hearings conducted by the State Office of Administrative Hearings.
LowStandard timeline
Low Cost
Effective:2025-06-20
Enforcing Agencies
State Office of Administrative Hearings (SOAH) • Department of Public Safety (DPS) • Texas Department of Insurance (TDI) • Department of Agriculture • Health and Human Services Commission (HHSC) • Department of Family and Protective Services (DFPS)
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Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).
Compliance Deadline:Immediate. Legal teams must apply the new continuance protocols to any hearing scheduled on or after June 25, 2025.
Agency Rulemaking: While no specific rulemaking is mandated, the repeal of MOUs creates a procedural vacuum. Monitor the *Texas Register* for emergency practice directives from SOAH regarding discovery and evidence exchange previously governed by the repealed agreements.
Immediate Action Plan
Audit Active Dockets: Immediately review all pending ALR (driver's license) hearings scheduled for the next 14 days. File continuance requests immediately if the 5-day window is still open.
Update Calendaring Software: Configure legal docketing systems to flag a "Hard Stop" deadline 7 days prior to any Transportation Code hearing.
Revise Litigation Strategy (DFPS): If you operate a licensed care facility facing DFPS enforcement, instruct counsel to treat the SOAH hearing as binding arbitration. There is no administrative appeal after this step.
Notify Drivers: Issue a memo to CDL holders stating that failure to hand over citation notices within 24 hours may result in an un-appealable license suspension due to tighter legal deadlines.
Operational Changes Required
Contracts
Outside Counsel Engagement Letters: Amend agreements with defense counsel handling traffic and licensure cases. Insert a clause requiring adherence to the Transportation Code 5-day continuance rule to prevent malpractice or inadvertent license forfeiture.
TPA Agreements: For businesses using Third-Party Administrators for workers' compensation, verify their hearing calendars reflect that the Department of Insurance MOU is no longer the controlling procedural document.
Hiring/Training
Fleet Managers & HR: Train staff to report Notices of Suspension immediately. The window to reschedule a hearing is now statutory and unforgiving.
In-House Counsel: Retrain legal staff handling DFPS (Department of Family and Protective Services) matters. The ALJ’s decision is now final, not a proposal. You must prepare for the SOAH hearing as the final trial on the merits, not a preliminary step.
Reporting & Record-Keeping
Proof of Submission: For ALR hearings, you must implement a system to capture and store verifiable proof of receipt (e-file stamp or fax confirmation) for continuance requests submitted prior to the 5-day cutoff. This record is your only defense if an ALJ attempts to deny a statutory right to reschedule.
Fees & Costs
Litigation Costs: Expect front-loaded legal costs for DFPS cases. Since the ALJ decision is final, you cannot save your "best arguments" for an appeal to the Commissioner. Full resource deployment is required at the initial hearing stage.
Strategic Ambiguities & Considerations
The "Procedural Vacuum": The bill repeals the requirement for MOUs between SOAH and agencies like Agriculture and Transportation. Previously, these MOUs defined specific discovery limits and timelines unique to those industries.
The Risk: It is unclear if SOAH will default strictly to the Texas Rules of Civil Procedure or apply generic SOAH rules (1 TAC Part 7). Until clarified, businesses should prepare for broader discovery requests from opposing state agencies, as the restrictive MOU protections are gone.
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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
According to the State Office of Administrative Hearings, the office was established in 1993 as an independent and neutral shared services agency for hearing and mediating administrative disputes and appeals between the public and over 50 other state agencies. The SOAH hearings process is governed by Chapter 2003 of the Government Code, which sets out the requirements for agencies to refer cases to SOAH for hearing, the rules of procedure that govern hearings conducted by SOAH, and the requirements for entering into an interagency contract to cover the costs of SOAH's services. H.B. 3146 makes revisions to various codes by removing duplicative and redundant requirements for certain agencies to maintain memoranda of understanding with SOAH to govern the formal hearing procedures and associated costs.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 3146 repeals the following statutory provisions relating to certain hearings conducted by the State Office of Administrative Hearings (SOAH):
·provisions relating to the requirement for the commissioner of agriculture and the chief administrative law judge of SOAH by rule to adopt a memorandum of understanding under which SOAH conducts hearings for the Department of Agriculture under the Agriculture Code;
·provisions relating to the requirement for the Health and Human Services Commission (HHSC) and the chief administrative law judge of SOAH to adopt a memorandum of understanding under which SOAH, on HHSC's behalf, conducts all contested case hearings under provisions relating to human services and protective services;
·provisions relating to the requirement for the Department of Family and Protective Services (DFPS) and the chief administrative law judge of SOAH to adopt a memorandum of understanding under which SOAH, on DFPS's behalf, conducts all contested case hearings authorized or required by law;
·provisions relating to the requirement for the commissioner of insurance and the chief administrative law judge of SOAH by rule to adopt a memorandum of understanding governing hearings conducted by SOAH under the Insurance Code or another state insurance law;
·provisions relating to the requirement for the commissioner of workers' compensation and the chief administrative law judge of SOAH to adopt a memorandum of understanding governing administrative procedure law hearings under the Texas Workers' Compensation Act conducted by SOAH; and
·provisions relating to the requirement for the Department of Public Safety (DPS) and the chief administrative law judge of SOAH to adopt and at least biennially update a memorandum of understanding establishing that SOAH has primary scheduling responsibility for a hearing under Transportation Code provisions governing hearings relating to the administrative suspension of a person's driver's license following an arrest for certain alcohol and related offenses.
H.B. 3146 amends the Agriculture Code, Human Resources Code, Labor Code, and Transportation Code to make conforming and nonsubstantive changes.
H.B. 3146 repeals the following provisions:
·Sections 12.032(a) and (e), Agriculture Code;
·Section 22.018, Human Resources Code;
·Sections 40.066(a), (b), and (d), Human Resources Code;
·Section 40.004, Insurance Code;
·Section 402.073(a), Labor Code; and
·Sections 524.033(c) and (d), Transportation Code.
Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3146 by Bumgarner (Relating to certain hearings conducted by the State Office of Administrative Hearings.), As Introduced
No significant fiscal implication to the State is anticipated.
It is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td >
360 State Office of Administrative Hearings, 405 Department of Public Safety, 454 Department of Insurance, 529 Health and Human Services Commission, 530 Family and Protective Services, Department of, 551 Department of Agriculture
LBB Staff: b > td >
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Related Legislation
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HB3146 fundamentally alters the procedural landscape for administrative disputes by eliminating agency-specific Memoranda of Understanding (MOUs) with the State Office of Administrative Hearings (SOAH), forcing reliance on statutory defaults. The most critical operational change is a strict new statutory deadline for rescheduling Administrative License Revocation (ALR) hearings, directly impacting commercial fleet management and driver eligibility. Implementation Timeline Effective Date: June 20, 2025 (Immediate effect due to supermajority vote).
Q
Who authored HB3146?
HB3146 was authored by Texas Representative Ben Bumgarner during the Regular Session.
Q
When was HB3146 signed into law?
HB3146 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB3146?
HB3146 is enforced by State Office of Administrative Hearings (SOAH), Department of Public Safety (DPS), Texas Department of Insurance (TDI), Department of Agriculture, Health and Human Services Commission (HHSC) and Department of Family and Protective Services (DFPS).
Q
How urgent is compliance with HB3146?
The compliance urgency for HB3146 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB3146?
The cost impact of HB3146 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB3146 address?
HB3146 addresses topics including state agencies, boards & commissions, state agencies, boards & commissions--admin. procedure and administrative hearings, state office of.
Legislative data provided by LegiScanLast updated: November 25, 2025
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