SB248INTRODUCED
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SB248
L56QFYW-1
By Senators Orr, Butler
RFD: State Governmental Affairs
First Read: 18-Mar-25
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5 L56QFYW-1 03/13/2025 KMS (L)cr 2025-1237
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First Read: 18-Mar-25
SYNOPSIS:
Under the Alabama Administrative Procedure Act,
agency rulings in contested cases are required to be
taken as prima facie just and reasonable by a reviewing
court on questions of fact and the agency's
interpretation of laws based on those facts.
This bill would revise the standard of judicial
review to provide that a court may consider, not defer,
to an agency's interpretation of law and to favor a
reasonable interpretation which limits agency power and
maximizes individual liberty.
A BILL
TO BE ENTITLED
AN ACT
Relating to the Alabama Administrative Procedure Act;
to amend Section 41-22-20, Code of Alabama 1975; to revise the
standard of judicial review of agency rulings.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 41-22-20 of the Code of Alabama
1975, is amended to read as follows:
"ยง41-22-20
(a) A person who has exhausted all administrative
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(a) A person who has exhausted all administrative
remedies available within the agency, other than rehearing,
and who is aggrieved by a final decision in a contested case
is entitled to judicial review under this chapter. A
preliminary, procedural, or intermediate agency action or
ruling is immediately reviewable if review of the final agency
decision would not provide an adequate remedy.
(b) All proceedings for review may be instituted by
filing of notice of appeal or review and a cost bond with the
agency to cover the reasonable costs of preparing the
transcript of the proceeding under review, unless waived by
the agency or the court on a showing of substantial hardship.
A petition shall be filed either in the Circuit Court of
Montgomery County or in the circuit court of the county in
which the agency maintains its headquarters, or unless
otherwise specifically provided by statute, in the circuit
court of the county where a party other than an intervenor,
resides or if a party, other than an intervenor, is a
corporation, domestic or foreign, having a registered office
or business office in this state, then in the county of the
registered office or principal place of business within this
state.
(c) The filing of the notice of appeal or the petition
does not itself stay enforcement of the agency decision. If
the agency decision has the effect of suspending or revoking a
license, a stay or supersedeas shall be granted as a matter of
right upon such conditions as are reasonable, unless the
reviewing court, upon petition of the agency, determines that
a stay or supersedeas would constitute a probable danger to
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a stay or supersedeas would constitute a probable danger to
the public health, safety, or welfare. In all other cases, the
agency may grant, or the reviewing court may order, a stay
upon appropriate terms, but, in any event, the order shall
specify the conditions upon which the stay or supersedeas is
granted; provided, however, if the appeal or proceedings for
review to any reviewing court is from an order of the agency
increasing or reducing or refusing to increase rates, fares,
or charges, or any of them, or any schedule or parts of any
schedule of rates, fares, or charges, the reviewing court
shall not direct or order a supersedeas or stay of the action
or order to be reviewed without requiring, as a condition
precedent to the granting of such the supersedeas, that the
party applying for supersedeas or stay shall execute and file
with the clerk of the court a bond as provided for and
required by statute or law. If the circuit court shall fail
fails or refuse refuses to grant supersedeas or stay, the
party seeking such relief may petition the appropriate court
to which the appeal or review lies to order a supersedeas or
stay of the action or order of the agency from which review is
sought. After the required bond shall have has been filed and
approved by the clerk, such the agency order shall be stayed
and superseded, and it shall be lawful to charge the rates,
fares, or charges which have been reduced, refused, or denied
by the agency order, until the final disposition of the cause.
The provisions of this This subsection shall apply when
applicable, anything in Rule 60 of the Alabama Rules of Civil
Procedure restricting the provisions of this subsection to the
contrary notwithstanding.
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contrary notwithstanding.
(d) The notice of appeal or review shall be filed
within 30 days after the receipt of the notice of or other
service of the final decision of the agency upon the
petitioner or, if a rehearing is requested under Section
41-22-17, within 30 days after the receipt of the notice of or
other service of the decision of the agency thereon. The
petition for judicial review in the circuit court shall be
filed within 30 days after the filing of the notice of appeal
or review. Copies of the petition shall be served upon the
agency and all parties of record. Any person aggrieved who is
not a party may petition to become a party by filing a motion
to intervene as provided in Section 41-22-14. Failure to file
such the petition within the time stated shall operate as a
waiver of the right of such the person to review under this
chapter, except that for good cause shown, the judge of the
reviewing court may extend the time for filing, not to exceed
an additional 30 days, or, within four months after the
issuance of the agency order, issue an order permitting a
review of the agency decision under this chapter
notwithstanding such the waiver. Any notice required herein in
this subsection which is mailed by the petitioner, certified
mail return receipt requested, shall be deemed to have been
filed as of the date it the notice is postmarked. This section
shall apply to judicial review from the final order or action
of all agencies, and amends the judicial review statutes
relating to all agencies to provide a period of 30 days within
which to appeal or to institute judicial review.
(e) If there has been no hearing prior to agency action
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(e) If there has been no hearing prior to agency action
and the reviewing court finds that the validity of the action
depends upon disputed facts, the court shall order the agency
to conduct a prompt fact-finding proceeding under this chapter
after having a reasonable opportunity to reconsider its
determination on the record of the proceedings.
(f) Unreasonable delay on the part of an agency in
reaching a final decision shall be justification for any
person whose rights, duties, or privileges are adversely
affected by such the delay to seek a court order compelling
action by the agency.
(g) Within 30 days after receipt of the notice of
appeal or within such additional time as the court may allow,
the agency shall transmit to the reviewing court the original
or a certified copy of the entire record and transcript of the
proceedings under review. With the permission of the court,
the record of the proceedings under review may be shortened by
stipulation of all parties to the review proceedings. Any
party found by the reviewing court to have unreasonably
refused to stipulate to limit the record may be taxed by the
court for such the additional costs as may be occasioned by
the refusal. The court may require or permit subsequent
corrections or additions to the record when deemed desirable.
(h) The petition for review shall name the agency as
respondent and shall contain a concise statement of:
(1) The nature of the agency action which is the
subject of the petition;
(2) The particular agency action appealed from;
(3) The facts and law on which jurisdiction and venue
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(3) The facts and law on which jurisdiction and venue
are based;
(4) The grounds on which relief is sought; and
(5) The relief sought.
(i) In proceedings for judicial review of agency action
in a contested case, except where appeal or judicial review is
by a trial de novo, a reviewing court shall not itself hear or
accept any further evidence with respect to those issues of
fact whose determination was entrusted by law to the agency in
that contested case proceeding; provided, however, that
evidence may be introduced in the reviewing court as to fraud
or misconduct of some person engaged in the administration of
the agency or procedural irregularities before the agency not
shown in the record and the affecting order, ruling, or award
from which review is sought, and proof thereon may be taken in
the reviewing court. If, before the date set for hearing a
petition for judicial review of agency action in a contested
case, it is shown to the satisfaction of the court that
additional evidence is material and that there were good
reasons for failure to present it that additional evidence in
the contested case proceeding before the agency, the court may
remand to the agency and order that the additional evidence be
taken before the agency upon conditions determined by the
court. The agency may modify its findings and decision in the
case by reason of the additional evidence and shall file that
evidence and any modification, new findings, or decision with
the reviewing court and mail copies of the new findings, or
decision to all parties.
(j) The review shall be conducted by the court without
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(j) The review shall be conducted by the court without
a jury and, except as herein provided, shall in the review of
contested cases be confined to the record and the additions
thereto as may be made under subsection (i) of this section .
Judicial review shall be by trial de novo in the circuit court
where review is sought from tax assessments, tax
determinations or tax redeterminations, rulings of the Revenue
Department of Revenue granting, denying, or revoking licenses,
or rulings on petitions for tax refunds, or, unless a
subsequent agency statute provides otherwise, where an agency
statute existing on the effective date of Act No. 81-855, 1981
Acts of Alabama, or thereafter enacted provides for a trial de
novo on appeal to or review by the courts; provided, however,
in the review of tax assessments, tax determinations, or tax
redeterminations, rulings of the Revenue Department of Revenue
granting, denying, or revoking licenses, or rulings on
petitions for tax refunds, the administrative record and
transcript shall be transmitted to the reviewing court as
provided in subsection (g) of this section , and, on motion of
either party, shall be admitted into evidence in the trial de
novo, subject to the rights of either party to assign errors,
objections, or motions to exclude calling attention to any
testimony or evidence in the administrative record or
transcript which is deemed objectionable or inadmissible.
Provided further that, with the consent of all parties,
judicial review may be on the administrative record and
transcript. The court, upon request, shall hear oral argument
and receive written briefs.
(k) Except where judicial review is by trial de novo,
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(k) Except where judicial review is by trial de novo,
the agency order shall be taken as prima facie just and
reasonable and the court shall not substitute its judgment for
that of the agency as to the weight of the evidence on
questions of fact, except where otherwise authorized by
statute. The court may affirm the agency action or remand the
case to the agency for taking additional testimony and
evidence or for further proceedings. The court may reverse or
modify the decision or grant other appropriate relief from the
agency action, equitable or legal, including declaratory
relief, if the court finds that the agency action is due to be
set aside or modified under standards set forth in appeal or
review statutes applicable to that agency or if substantial
rights of the petitioner have been prejudiced because the
agency action is any one or more of the following:
(1) In violation of constitutional or statutory
provisions;.
(2) In excess of the statutory authority of the
agency;.
(3) In violation of any pertinent agency rule ;.
(4) Made upon unlawful procedure ;.
(5) Affected by other error of law ;.
(6) Clearly erroneous in view of the reliable,
probative, and substantial evidence on the whole record ; or.
(7) Unreasonable, arbitrary, or capricious, or
characterized by an abuse of discretion or a clearly
unwarranted exercise of discretion.
(l) During the review, when interpreting any statute or
rule, the court may consider but shall not defer to an
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rule, the court may consider but shall not defer to an
agency's interpretation and shall instead interpret its
meaning and effect de novo. In an action brought by or against
an agency, after applying all customary tools of
interpretation, the court shall exercise any remaining doubt
in favor of a reasonable interpretation which limits agency
power and maximizes individual liberty.
(l)(m) Unless the court affirms the decision of the
agency, the court shall set out in writing, which writing
shall become a part of the record, the reasons for its
decision."
Section 2. This act shall become effective on October
1, 2025.
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