(a) Following the hearing the administrative law judge upon request shall give the parties an opportunity to file written briefs and proposed findings of fact and conclusions of law. Pursuant to Government Code, §2001.062, the administrative law judge shall review these materials and all evidence and testimony, and prepare a proposal for decision containing a statement of the reasons for the proposed decision and of each finding of fact and conclusion of law necessary to the proposed decision. The administrative law judge shall also prepare a proposed final order for the agency head to sign adopting the proposed decision. Upon completion, the administrative law judge shall serve copies of the proposal for decision and proposed final order on all parties and give each adversely affected party an opportunity to file exceptions and present briefs. If a party files exceptions or presents briefs, the administrative law judge shall give an opportunity to other parties tofile replies to the exceptions or briefs. Exceptions, replies to exceptions, and related briefs must be filed within deadlines established by the administrative law judge. The  administrative law judge may amend the proposal for decision and proposed final order in response to the exceptions, replies, or briefs submitted. If the administrative law judge makes substantive revisions, the administrative law judge shall circulate the amended proposal for decision and proposed final order to the parties for additional exceptions and briefs before submitting the proposal for decision and the proposed final order based thereon to the agency head(s) for approval.      
        (b) After the administrative law judge has circulated the proposal for decision and proposed order to the parties and the parties have had an opportunity to file exceptions and briefs in the manner provided in subsection (a) of this section, the administrative law judge shall submit the proposal for decision andproposed order together with all materials listed in Government Code, §2001.060, to the agency head(s) for review.  No additional briefs may be submitted after the case is under submission to the agency head(s) for decision unless requested by the agency head(s). The agency head(s) may:        
          (1) adopt the proposal for decision and proposed final order, in whole or in part;          
            (2) modify and adopt the proposal for decision and proposed final order, in whole or in part;            
              (3) decline to adopt the proposal for decision and proposed final order, in whole or in part;              
                (4) remand the proceeding for further examination by the administrative law judge, including for the limited purpose of receiving additional briefing or evidence from the parties on specific issues; or                
                  (5) take another lawful and appropriate action with regard to the case.                  
                    (c) If a court renders a decision thatmay be pertinent to the outcome of the case after it is under submission to the agency head, a party may direct the agency's attention to such decision by a cover letter transmitting a copy of the decision to the administrative law judge and agency head(s) (at the same time furnishing a copy to opposing parties). The cover letter may reference the case to which the decision pertains but may not contain arguments.                    
                      (d) If remand pursuant to subsection (b) of this section results in a substantially revised proposal for decision and order, the administrative law judge shall circulate the revised proposal for decision and order to the parties for additional exceptions and replies in the manner provided by subsection (a) of this section. After the parties have had an opportunity to file additional exceptions and replies, the administrative law judge shall submit the revised proposal for decision and order, together with the supplemental record, to the agency head(s)for consideration in the manner provided by subsection (b) of this section.                     
     Source Note:        The provisions of this §9.34 adopted to be effective November 13, 1997, 22 TexReg 10951; amended to be effective July 2, 1998, 23 TexReg 6714.