1. (a) Hearing Procedures. Unless otherwise expressly set forth in the Manufactured Housing Standards Act and implementing regulations, the Texas Department of Housing and Community Affairs (Department) Section 8 Administrative Plan or any other applicable state plan approved by a federal funding source or this section, all formal hearings for a contested case shall be held and conducted pursuant to the Administrative Procedure Act (APA), Texas Government Code, Chapter 2001, and the State Office of Administrative Hearings Rules of Procedure (SOAH Rules), 1 TAC Chapter 155.

   1. (1) A contested case is defined pursuant to §2001.003(1) of the APA as a proceeding in which the legal rights, duties, or privileges of a party are to be determined by a state agency after an opportunity for adjudicative hearing.
   2. (2) A party is defined pursuant to §2001.003(4) of the APA as a person or state agency named or admitted as a party.
   3. (3) A person is defined pursuant to §2001.003(5) of the APA as an individual, partnership, corporation, association, governmental subdivision, or public or private organization that is not a state agency.

   4. (4) A state agency is defined pursuant to §2001.003(7) as a state officer, board, commission, or department with statewise jurisdiction that makes rules or determines contested cases. The term includes the State Office of Administrative Hearings for the purpose of determining contested cases. The term does not include:

      1. (A) a state agency wholly financed by federal money;
      2. (B) the legislature;
      3. (C) the courts;
      4. (D) the Texas Workers' Compensation Commission; or
      5. (E) an institution of higher education.
   5. (5) An informal review or an informal conference that provides a party an additional opportunity to respond to a formal complaint is not an adjudicative proceeding of a contested case for the purposes of Chapter 2001 of the APA and this section.
2. (b) Request for Hearing. Pursuant to §2001.051 and §2001.052 of the APA, the Department, on its own motion or on the request of a party, may request a formal hearing from the State Office of Administrative Hearings. A request for a formal hearing by a party must be submitted within 15 calendar days of receipt of notice of the action giving rise to the request for hearing. The request for a formal hearing shall state the specific grounds upon which the party wishes to challenge the department's action.
3. (c) Notice of Hearing; Default Judgment. Service of notice of a formal hearing shall be provided pursuant to §2001.051 and §2001.052 of the APA and §155.27 of the SOAH Rules. Service may be made by sending the notice to the party's last known address as shown by the Department's records by certified mail, with return receipt requested. If, after receiving notice of a hearing, a party fails to appear in person or by representative on the day and time set for hearing or fails to appear by telephone in accordance with §155.45 of the SOAH Rules, the hearing may proceed in that party's absence and a default judgment may be entered pursuant to §155.55 of the SOAH Rules.
4. (d) Proposal for Decision. At the conclusion of the formal hearing, the Administrative Law Judge issues a written Proposal for Decision which includes findings of fact and conclusions of law, separately stated, pursuant to §2001.141 and §2001.062 of the APA.
5. (e) Exceptions. Pursuant to §2001.0623(d) of the APA, each party has the right to file exceptions to the Proposal for Decision issued by the Administrative Law Judge and present a brief with respect to the exceptions. All exceptions must be filed with the Department within ten working days of the Proposal for Decision, with replies to be filed within ten working days of the filing of exceptions.
6. (f) Final Order. The Department's Board of Directors shall consider the final Proposal for Decision and decide whether to accept the recommended findings of fact and conclusion of law and the sanction to be imposed. The Department's Board of Directors adopts and incorporates the accepted findings of fact and conclusion of law in the written Final Order.
7. (g) Motion for Rehearing and Judicial Review. A person who wishes to challenge a final decision must first file a motion for rehearing in accordance with §§2001.145 - 2001.147 of the APA. A person who has exhausted all administrative remedies available within the Department and who is aggrieved by a final decision in a contested case is entitled to judicial review in accordance with §§2001.171 - 2001.178 of the APA.
8. (h) Agreed Orders. The Department may dispose of a contested case by agreement pursuant to §2001.056 of the APA.
9. (i) Ex Parte Communications. Pursuant to §2001.061(a) of the APA, unless required for the disposition of an ex parte matter unauthorized by law, an employee or member of the Department assigned to render a decision or to make findings of fact and conclusions of law in a contested case may not directly or indirectly communicate in connection with an issue of fact or law with a party or representative of a party, except on notice and opportunity for each party to participate.

Source Note:The provisions of this §1.12 adopted to be effective June 30, 2002, 27 TexReg 5519.