1. (a) The final decision in contested cases will be made by the board, normally on the basis of a proposal for decision, of exceptions to the proposal, and on briefs supporting and opposing the proposal for decision. The board in exceptional cases, on its own motion or on request of a party, may allow oral argument, may make its decision on the record, or may order the hearing to be conducted before the board sitting as a body.
2. (b) If in a contested case a majority of the members of the board have not heard the case or read the record, the decision, if adverse to any party to the proceeding other than the system itself, will not be made until a proposal for decision is served on the party or parties and an opportunity is afforded to each party adversely affected to file exceptions and present briefs to the officials who are to render the decision. The proposal for decision will contain a statement of the reasons for the proposed decision and of each finding of fact and conclusion of law necessary to the proposed decision, prepared by the person who conducted the hearing or by one who has read the record. The parties by written stipulation may waive compliance with this section.
3. (c) When a proposal for decision is prepared, a copy of the proposal shall be served forthwith by the director on each party and his attorney of record, if any. Unless exceptions to the proposal for decision have been filed within the time prescribed in §121.18 of this title (relating to Filing of Exceptions, Briefs, and Replies), the proposal for decision may be adopted at any date thereafter by written order of the system.

Source Note:The provisions of this §121.17 adopted to be effective July 23, 1976, 1 TexReg 1894.