Indiana 2024 Regular Session

Indiana House Bill HB1003 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	EH1003.2
	2	+	Reprinted
	3	+	March 5, 2024
	4	+	ENGROSSED
	5	+	HOUSE BILL No. 1003
	6	+	_____
	7	+	DIGEST OF HB 1003 (Updated March 4, 2024 3:02 pm - DI 149)
	8	+	Citations Affected: IC 1-1; IC 4-15; IC 4-21.5; IC 4-22; IC 13-14;
	9	+	IC 13-15; IC 13-17; IC 13-18; IC 13-19; IC 13-20; IC 13-23; IC 13-24;
	10	+	IC 13-25; IC 13-30; IC 14-10; IC 14-34; IC 34-52; noncode.
	11	+	Synopsis: Administrative law. Makes the office of administrative law
	12	+	proceedings the ultimate authority in any administrative proceeding
	13	+	under its jurisdiction. Provides certain exceptions. Provides that the bill
	14	+	applies to certain proceedings filed after June 30, 2024. Specifies when
	15	+	a state agency may be required to pay reasonable attorney's fees for
	16	+	judicial review proceedings. Outlines procedures for the ultimate
	17	+	(Continued next page)
	18	+	Effective: July 1, 2024; July 1, 2025.
	19	+	Steuerwald, Jeter, Meltzer, Bartels
	20	+	(SENATE SPONSORS — CARRASCO, KOCH, GARTEN, DORIOT)
	21	+	January 8, 2024, read first time and referred to Committee on Judiciary.
	22	+	January 18, 2024, amended, reported — Do Pass.
	23	+	January 22, 2024, read second time, ordered engrossed. Engrossed.
	24	+	January 23, 2024, read third time, passed. Yeas 85, nays 10.
	25	+	SENATE ACTION
	26	+	February 5, 2024, read first time and referred to Committee on Judiciary.
	27	+	February 29, 2024, amended, reported favorably — Do Pass.
	28	+	March 4, 2024, read second time, amended, ordered engrossed.
	29	+	EH 1003—LS 6926/DI 151 Digest Continued
	30	+	authority regarding nonfinal orders and procedures to file objections to
	31	+	final orders. Permits a final order to be corrected by means of a motion
	32	+	to correct error. Provides that the court shall decide all questions of
	33	+	law, including any interpretation of a federal or state constitutional
	34	+	provision, state statute, or agency rule, without deference to any
	35	+	previous interpretation made by the state agency. Provides that a court
	36	+	is not bound by a finding of fact made by the ultimate authority if the
	37	+	finding of fact is not supported by the record. Requires the state agency
	38	+	to transmit the agency record to the court for judicial review.
	39	+	Eliminates the office of environmental adjudication and transfers
	40	+	proceedings to the office of administrative law proceedings. Creates
	41	+	requirements for administrative law judges that are assigned to certain
	42	+	environmental matters. Provides that until the office of administrative
	43	+	law proceedings adopts or amends rules related to environmental
	44	+	matters, it must continue to follow and implement rules under 315 IAC.
	45	+	Requires the office of administrative law proceedings to continue to
	46	+	index and make publicly available, in a substantially similar online
	47	+	searchable format, the final orders of contested appeals currently
	48	+	maintained by the office. Makes conforming changes.
	49	+	EH 1003—LS 6926/DI 151EH 1003—LS 6926/DI 151 Reprinted
	50	+	March 5, 2024
1	51		Second Regular Session of the 123rd General Assembly (2024)
2	52		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	53		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	54		additions will appear in this style type, and deletions will appear in this style type.
5	55		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	56		provision adopted), the text of the new provision will appear in this style type. Also, the
7	57		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	58		a new provision to the Indiana Code or the Indiana Constitution.
9	59		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	60		between statutes enacted by the 2023 Regular Session of the General Assembly.
11		-	HOUSE ENROLLED ACT No. 1003
12		-	AN ACT to amend the Indiana Code concerning state offices and
13		-	administration.
	61	+	ENGROSSED
	62	+	HOUSE BILL No. 1003
	63	+	A BILL FOR AN ACT to amend the Indiana Code concerning state
	64	+	offices and administration.
14	65		Be it enacted by the General Assembly of the State of Indiana:
15		-	SECTION 1. IC 1-1-5.5-24 IS ADDED TO THE INDIANA CODE
16		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
17		-	1, 2025]: Sec. 24. (a) Except as provided in subsection (b), a
18		-	SECTION of HEA 1003-2024 does not apply to an administrative
19		-	proceeding or a proceeding for judicial review pending on June 30,
20		-	2024.
21		-	(b) A SECTION of HEA 1003-2024 applies to:
22		-	(1) an administrative proceeding or a proceeding for judicial
23		-	review commenced after June 30, 2024; or
24		-	(2) an administrative proceeding conducted after June 30,
25		-	2024, on remand from a court.
26		-	(c) After June 30, 2024, any reference to a duty of an ultimate
27		-	authority with respect to an administrative proceeding or
28		-	proceeding for judicial review shall be construed as a duty of the
29		-	office of administrative legal proceedings if the office of
30		-	administrative legal proceedings is the ultimate authority for that
31		-	agency.
32		-	SECTION 2. IC 4-15-10.5-2, AS ADDED BY P.L.205-2019,
33		-	SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34		-	JULY 1, 2024]: Sec. 2. This chapter does not apply to:
35		-	(1) the department of workforce development;
36		-	(2) the unemployment insurance review board of the department
37		-	HEA 1003 — Concur 2
38		-	of workforce development;
39		-	(3) the worker's compensation board of Indiana;
40		-	(4) the Indiana utility regulatory commission;
41		-	(5) the department of state revenue;
42		-	(6) the department of local government finance;
43		-	(7) the Indiana board of tax review;
44		-	(8) the natural resources commission;
45		-	(9) the office of environmental adjudication;
46		-	(10) (9) the Indiana education employment relations board;
47		-	(11) (10) the state employees appeals commission; or
48		-	(12) (11) before July 1, 2022, any other agency or category of
49		-	proceeding determined by the governor to be exempt from this
50		-	chapter for good cause.
51		-	SECTION 3. IC 4-15-10.5-12, AS ADDED BY P.L.205-2019,
52		-	SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
53		-	JULY 1, 2024]: Sec. 12. (a) Beginning July 1, 2020, and Except as
54		-	provided in sections 1 and 2 of this chapter, the office has jurisdiction
55		-	over all administrative proceedings concerning agency administrative
56		-	actions under:
57		-	(1) IC 4-21.5; or
58		-	(2) any other statute that requires or allows the office to take
59		-	action.
60		-	(b) Notwithstanding anything in this chapter or any other statute to
61		-	the contrary:
62		-	(1) the office shall not be considered the ultimate authority in any
63		-	administrative proceeding; and
64		-	(2) a decision by the office in an administrative proceeding is not
65		-	a final agency action;
66		-	unless expressly designated by the agency. This subsection may not be
67		-	construed as preventing the rescission of an agency's delegation.
68		-	(b) Except as provided in subsection (c), the office is the ultimate
69		-	authority in any administrative proceeding under its jurisdiction.
70		-	Judicial review under IC 4-21.5 shall be taken directly from a final
71		-	decision of the office.
72		-	(c) The office is not the ultimate authority if:
73		-	(1) a particular agency or agency action is exempted under
74		-	Indiana law; or
75		-	(2) an agency is required by federal mandate, as a condition
76		-	of federal funding, to conduct or render a final order in an
77		-	adjudication.
78		-	SECTION 4. IC 4-21.5-1-3 IS AMENDED TO READ AS
79		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. "Agency" means any
80		-	HEA 1003 — Concur 3
81		-	officer, board, commission, department division, bureau, or committee
82		-	of state government that is responsible for any stage of a proceeding
83		-	under this article. Except as provided in IC 4-21.5-7, The term does not
84		-	include the judicial department of state government, the legislative
85		-	department of state government, or a political subdivision.
86		-	SECTION 5. IC 4-21.5-1-15 IS AMENDED TO READ AS
87		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 15. Subject to
88		-	IC 4-15-10.5-12, "ultimate authority" means:
89		-	(1) for an administrative proceeding under the office of
90		-	administrative law proceedings, the office of administrative
91		-	law proceedings; or
92		-	(2) for any other purpose, an individual or panel of individuals
93		-	in whom the final authority of an agency is vested by law or
94		-	executive order.
95		-	SECTION 6. IC 4-21.5-3-9, AS AMENDED BY P.L.13-2021,
96		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
97		-	JULY 1, 2024]: Sec. 9. (a) Except to the extent that a statute other than
98		-	this article limits an agency's discretion to select an administrative law
99		-	judge, the ultimate authority for an agency may:
100		-	(1) act as an administrative law judge;
101		-	(2) designate one (1) or more members of the ultimate authority
102		-	(if the ultimate authority is a panel of individuals) to act as an
103		-	administrative law judge; or
104		-	(3) before July 1, 2020, designate one (1) or more:
105		-	(A) attorneys licensed to practice law in Indiana; or
106		-	(B) persons who served as administrative law judges for a state
107		-	agency before January 1, 2014;
108		-	to act as an administrative law judge. After June 30, 2020, the
109		-	ultimate authority for an agency may request assignment of an
110		-	administrative law judge by the office of administrative law
111		-	proceedings.
112		-	A person designated under subdivision (3) is not required to be an
113		-	employee of the agency. A designation under subdivision (2) or (3)
114		-	may be made in advance of the commencement of any particular
115		-	proceeding for a generally described class of proceedings or may be
116		-	made for a particular proceeding. A general designation may provide
117		-	procedures for the assignment of designated individuals to particular
118		-	proceedings.
119		-	(b) If the case involves:
	66	+	1 SECTION 1. IC 1-1-5.5-24 IS ADDED TO THE INDIANA CODE
	67	+	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	68	+	3 1, 2025]: Sec. 24. (a) Except as provided in subsection (b), a
	69	+	4 SECTION of HEA 1003-2024 does not apply to an administrative
	70	+	5 proceeding or a proceeding for judicial review pending on June 30,
	71	+	6 2024.
	72	+	7 (b) A SECTION of HEA 1003-2024 applies to:
	73	+	8 (1) an administrative proceeding or a proceeding for judicial
	74	+	9 review commenced after June 30, 2024; or
	75	+	10 (2) an administrative proceeding conducted after June 30,
	76	+	11 2024, on remand from a court.
	77	+	12 (c) After June 30, 2024, any reference to a duty of an ultimate
	78	+	13 authority with respect to an administrative proceeding or
	79	+	14 proceeding for judicial review shall be construed as a duty of the
	80	+	15 office of administrative legal proceedings if the office of
	81	+	16 administrative legal proceedings is the ultimate authority for that
	82	+	17 agency.
	83	+	EH 1003—LS 6926/DI 151 2
	84	+	1 SECTION 2. IC 4-15-10.5-2, AS ADDED BY P.L.205-2019,
	85	+	2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	86	+	3 JULY 1, 2024]: Sec. 2. This chapter does not apply to:
	87	+	4 (1) the department of workforce development;
	88	+	5 (2) the unemployment insurance review board of the department
	89	+	6 of workforce development;
	90	+	7 (3) the worker's compensation board of Indiana;
	91	+	8 (4) the Indiana utility regulatory commission;
	92	+	9 (5) the department of state revenue;
	93	+	10 (6) the department of local government finance;
	94	+	11 (7) the Indiana board of tax review;
	95	+	12 (8) the natural resources commission;
	96	+	13 (9) the office of environmental adjudication;
	97	+	14 (10) (9) the Indiana education employment relations board;
	98	+	15 (11) (10) the state employees appeals commission; or
	99	+	16 (12) (11) before July 1, 2022, any other agency or category of
	100	+	17 proceeding determined by the governor to be exempt from this
	101	+	18 chapter for good cause.
	102	+	19 SECTION 3. IC 4-15-10.5-12, AS ADDED BY P.L.205-2019,
	103	+	20 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	104	+	21 JULY 1, 2024]: Sec. 12. (a) Beginning July 1, 2020, and Except as
	105	+	22 provided in sections 1 and 2 of this chapter, the office has jurisdiction
	106	+	23 over all administrative proceedings concerning agency administrative
	107	+	24 actions under:
	108	+	25 (1) IC 4-21.5; or
	109	+	26 (2) any other statute that requires or allows the office to take
	110	+	27 action.
	111	+	28 (b) Notwithstanding anything in this chapter or any other statute to
	112	+	29 the contrary:
	113	+	30 (1) the office shall not be considered the ultimate authority in any
	114	+	31 administrative proceeding; and
	115	+	32 (2) a decision by the office in an administrative proceeding is not
	116	+	33 a final agency action;
	117	+	34 unless expressly designated by the agency. This subsection may not be
	118	+	35 construed as preventing the rescission of an agency's delegation.
	119	+	36 (b) Except as provided in subsection (c), the office is the ultimate
	120	+	37 authority in any administrative proceeding under its jurisdiction.
	121	+	38 Judicial review under IC 4-21.5 shall be taken directly from a final
	122	+	39 decision of the office.
	123	+	40 (c) The office is not the ultimate authority if:
	124	+	41 (1) a particular agency or agency action is exempted under
	125	+	42 Indiana law; or
	126	+	EH 1003—LS 6926/DI 151 3
	127	+	1 (2) an agency is required by federal mandate, as a condition
	128	+	2 of federal funding, to conduct or render a final order in an
	129	+	3 adjudication.
	130	+	4 SECTION 4. IC 4-21.5-1-3 IS AMENDED TO READ AS
	131	+	5 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. "Agency" means any
	132	+	6 officer, board, commission, department division, bureau, or committee
	133	+	7 of state government that is responsible for any stage of a proceeding
	134	+	8 under this article. Except as provided in IC 4-21.5-7, The term does not
	135	+	9 include the judicial department of state government, the legislative
	136	+	10 department of state government, or a political subdivision.
	137	+	11 SECTION 5. IC 4-21.5-1-15 IS AMENDED TO READ AS
	138	+	12 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 15. Subject to
	139	+	13 IC 4-15-10.5-12, "ultimate authority" means:
	140	+	14 (1) for an administrative proceeding under the office of
	141	+	15 administrative law proceedings, the office of administrative
	142	+	16 law proceedings; or
	143	+	17 (2) for any other purpose, an individual or panel of individuals
	144	+	18 in whom the final authority of an agency is vested by law or
	145	+	19 executive order.
	146	+	20 SECTION 6. IC 4-21.5-3-9, AS AMENDED BY P.L.13-2021,
	147	+	21 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	148	+	22 JULY 1, 2024]: Sec. 9. (a) Except to the extent that a statute other than
	149	+	23 this article limits an agency's discretion to select an administrative law
	150	+	24 judge, the ultimate authority for an agency may:
	151	+	25 (1) act as an administrative law judge;
	152	+	26 (2) designate one (1) or more members of the ultimate authority
	153	+	27 (if the ultimate authority is a panel of individuals) to act as an
	154	+	28 administrative law judge; or
	155	+	29 (3) before July 1, 2020, designate one (1) or more:
	156	+	30 (A) attorneys licensed to practice law in Indiana; or
	157	+	31 (B) persons who served as administrative law judges for a state
	158	+	32 agency before January 1, 2014;
	159	+	33 to act as an administrative law judge. After June 30, 2020, the
	160	+	34 ultimate authority for an agency may request assignment of an
	161	+	35 administrative law judge by the office of administrative law
	162	+	36 proceedings.
	163	+	37 A person designated under subdivision (3) is not required to be an
	164	+	38 employee of the agency. A designation under subdivision (2) or (3)
	165	+	39 may be made in advance of the commencement of any particular
	166	+	40 proceeding for a generally described class of proceedings or may be
	167	+	41 made for a particular proceeding. A general designation may provide
	168	+	42 procedures for the assignment of designated individuals to particular
	169	+	EH 1003—LS 6926/DI 151 4
	170	+	1 proceedings.
	171	+	2 (b) If the case involves:
	172	+	3 (1) adjudication of:
	173	+	4 (A) air pollution control laws (as defined in IC 13-11-2-6);
	174	+	5 (B) water pollution control laws (as defined in
	175	+	6 IC 13-11-2-261);
	176	+	7 (C) environmental management laws (as defined in
	177	+	8 IC 13-11-2-71); or
	178	+	9 (D) solid waste and hazardous waste management laws
	179	+	10 under IC 13-19;
	180	+	11 (2) rules of a board described in IC 13-14-9-1;
	181	+	12 (3) the financial assurance board created by IC 13-23-11-1; or
	182	+	13 (4) any agency action of the department of environmental
	183	+	14 management;
	184	+	15 the administrative law judge assigned by the office of
	185	+	16 administrative law proceedings must meet the requirements listed
	186	+	17 under subsection (c).
	187	+	18 (c) An administrative law judge assigned under subsection (b)
	188	+	19 must:
	189	+	20 (1) be a citizen of Indiana;
	190	+	21 (2) be an attorney in good standing admitted to practice in
	191	+	22 Indiana;
	192	+	23 (3) have at least five (5) years of experience practicing
	193	+	24 environmental or administrative law;
	194	+	25 (4) be independent of the agency;
	195	+	26 (5) meet the qualifications specific to environmental law as
	196	+	27 determined by the office of administrative law proceedings'
	197	+	28 training program; and
	198	+	29 (6) be one (1) of three (3) administrative law judges in the
	199	+	30 office of administrative law proceedings designated to hear
	200	+	31 environmental matters.
	201	+	32 (b) (d) An agency A person may not knowingly assign an individual
	202	+	33 to serve alone or with others as an administrative law judge who is
	203	+	34 subject to disqualification under this chapter.
	204	+	35 (c) (e) If the administrative law judge assigned to the proceeding
	205	+	36 believes that the judge's impartiality might reasonably be questioned,
	206	+	37 or believes that the judge's personal bias, prejudice, or knowledge of a
	207	+	38 disputed evidentiary fact might influence the decision, the
	208	+	39 administrative law judge shall:
	209	+	40 (1) withdraw as the administrative law judge; or
	210	+	41 (2) inform the parties of the potential basis for disqualification,
	211	+	42 place a brief statement of this basis on the record of the
	212	+	EH 1003—LS 6926/DI 151 5
	213	+	1 proceeding, and allow the parties an opportunity to petition for
	214	+	2 disqualification under subsection (d). (f).
	215	+	3 (d) (f) Any party to a proceeding may petition for the
	216	+	4 disqualification of an administrative law judge upon discovering facts
	217	+	5 establishing grounds for disqualification under this chapter. The
	218	+	6 administrative law judge assigned to the proceeding shall determine
	219	+	7 whether to grant the petition, stating facts and reasons for the
	220	+	8 determination.
	221	+	9 (e) (g) If the administrative law judge ruling on the disqualification
	222	+	10 issue is not the ultimate authority, for the agency, the party petitioning
	223	+	11 for disqualification may petition the ultimate authority, or, if the
	224	+	12 administrative law judge is employed or contracted with the office of
	225	+	13 administrative law proceedings, the director of the office of
	226	+	14 administrative law proceedings, in writing for review of the ruling
	227	+	15 within ten (10) days after notice of the ruling is served. The ultimate
	228	+	16 authority shall:
	229	+	17 (1) conduct proceedings described by section 28 of this chapter;
	230	+	18 or
	231	+	19 (2) request that the director of the office of administrative law
	232	+	20 proceedings conduct proceedings described by section 28 of this
	233	+	21 chapter;
	234	+	22 to review the petition and affirm, modify, or dissolve the ruling within
	235	+	23 thirty (30) days after the petition is filed. A determination by the
	236	+	24 ultimate authority or the director of the office of administrative law
	237	+	25 proceedings under this subsection is a final order subject to judicial
	238	+	26 review under IC 4-21.5-5.
	239	+	27 (f) (h) If a substitute is required for an administrative law judge who
	240	+	28 is disqualified or becomes unavailable for any other reason, the
	241	+	29 substitute must be appointed in accordance with subsection (a).
	242	+	30 (g) (i) Any action taken by a duly appointed substitute for a
	243	+	31 disqualified or unavailable administrative law judge is as effective as
	244	+	32 if taken by the latter.
	245	+	33 (h) (j) If there is a reasonable likelihood that the ultimate authority
	246	+	34 will be called upon to:
	247	+	35 (1) review; or
	248	+	36 (2) issue a final order with respect to;
	249	+	37 a matter pending before or adjudicated by an administrative law judge,
	250	+	38 the provisions of section 11 of this chapter that apply to an
	251	+	39 administrative law judge or to a person communicating with an
	252	+	40 administrative law judge apply to a member of the ultimate authority
	253	+	41 and to a person communicating with a member of the ultimate
	254	+	42 authority.
	255	+	EH 1003—LS 6926/DI 151 6
	256	+	1 SECTION 7. IC 4-21.5-3-10, AS AMENDED BY THE
	257	+	2 TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL
	258	+	3 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	259	+	4 JULY 1, 2024]: Sec. 10. (a) An administrative law judge is subject to
	260	+	5 disqualification for:
	261	+	6 (1) bias, prejudice, or interest in the outcome of a proceeding;
	262	+	7 (2) failure to dispose of the subject of a proceeding in an orderly
	263	+	8 and reasonably prompt manner after a written request by a party;
	264	+	9 (3) unless waived or extended with the written consent of all
	265	+	10 parties or for good cause shown, failure to issue an order not later
	266	+	11 than ninety (90) days after the latest of:
	267	+	12 (A) the filing of a motion to dismiss or a motion for summary
	268	+	13 judgment under section 23 of this chapter that is filed after
	269	+	14 June 30, 2011;
	270	+	15 (B) the conclusion of a hearing that begins after June 30, 2011;
	271	+	16 or
	272	+	17 (C) the completion of any schedule set for briefing or for
	273	+	18 submittal of proposed findings of fact and conclusions of law
	274	+	19 for a disposition under clauses (A) or (B); or
	275	+	20 (4) any cause for which a judge of a court may be disqualified.
	276	+	21 Before July 1, 2020, nothing in this subsection prohibits an individual
	277	+	22 who is an employee of an agency from serving as an administrative law
	278	+	23 judge.
	279	+	24 (b) This subsection does not apply to a proceeding concerning a
	280	+	25 regulated occupation (as defined in IC 25-1-7-1), except for a
	281	+	26 proceeding concerning a water well driller (as described in IC 25-39-3)
	282	+	27 or an out of state mobile health care entity regulated by the Indiana
	283	+	28 department of health. An individual who is disqualified under
	284	+	29 subsection (a)(2) or (a)(3) shall provide the parties a list of at least
	285	+	30 three (3) special administrative law judges who meet the requirements
	286	+	31 of:
	287	+	32 (1) IC 4-21.5-7-6, if the case is pending in the office of
	288	+	33 environmental adjudication;
	289	+	34 (1) section 9(c) of this chapter, if the case involves an
	290	+	35 environmental matter described in section 9(b) of this
	291	+	36 chapter;
	292	+	37 (2) IC 14-10-2-2, if the case is pending before the division of
	293	+	38 hearings of the natural resources commission; or
	294	+	39 (3) subject to subsection (d), any other statute or rule governing
	295	+	40 qualification to serve an agency other than those described in
	296	+	41 subdivision (1) or (2).
	297	+	42 Subject to subsection (c), the parties may agree to the selection of one
	298	+	EH 1003—LS 6926/DI 151 7
	299	+	1 (1) individual from the list.
	300	+	2 (c) If the parties do not agree to the selection of an individual as
	301	+	3 provided in subsection (b) not later than ten (10) days after the parties
	302	+	4 are provided a list of judges under subsection (b), a special
	303	+	5 administrative law judge who meets the requirements of subsection (b)
	304	+	6 shall be selected under the procedure set forth in Trial Rule 79(D).
	305	+	7 79(E), or 79(F).
	306	+	8 (d) This subsection applies after June 30, 2020, to an agency whose
	307	+	9 proceedings are subject to the jurisdiction of the office of
	308	+	10 administrative law proceedings. If an administrative law judge is
	309	+	11 disqualified under this section, the director of the office of
	310	+	12 administrative law proceedings shall assign another administrative law
	311	+	13 judge.
	312	+	14 SECTION 8. IC 4-21.5-3-27 IS AMENDED TO READ AS
	313	+	15 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 27. (a) If the
	314	+	16 administrative law judge is the ultimate authority for the agency, the
	315	+	17 ultimate authority's order disposing of a proceeding is a final order. If
	316	+	18 the administrative law judge is not the ultimate authority, the
	317	+	19 administrative law judge's order disposing of the proceeding becomes
	318	+	20 a final order when affirmed under section 29 of this chapter. Regardless
	319	+	21 of whether the order is final, it must comply with this section.
	320	+	22 (b) This subsection applies only to an order not subject to subsection
	321	+	23 (c). The order must include, separately stated, findings of fact for all
	322	+	24 aspects of the order, including the remedy prescribed and, if applicable,
	323	+	25 the action taken on a petition for stay of effectiveness. Findings of
	324	+	26 ultimate fact must be accompanied by a concise statement of the
	325	+	27 underlying basic facts of record to support the findings. The order must
	326	+	28 also include a statement of the available procedures and time limit for
	327	+	29 seeking administrative review of the order (if administrative review is
	328	+	30 available) and the procedures and time limits for seeking judicial
	329	+	31 review of the order under IC 4-21.5-5.
	330	+	32 (c) This subsection applies only to an order of the ultimate authority
	331	+	33 entered under IC 13, IC 14, or IC 25. The order must include separately
	332	+	34 stated findings of fact and, if a final order, conclusions of law for all
	333	+	35 aspects of the order, including the remedy prescribed and, if applicable,
	334	+	36 the action taken on a petition for stay of effectiveness. Findings of
	335	+	37 ultimate fact must be accompanied by a concise statement of the
	336	+	38 underlying basic facts of record to support the findings. Conclusions of
	337	+	39 law must consider prior final orders (other than negotiated orders) of
	338	+	40 the ultimate authority under the same or similar circumstances if those
	339	+	41 prior final orders are raised on the record in writing by a party and must
	340	+	42 state the reasons for deviations from those prior orders. The order must
	341	+	EH 1003—LS 6926/DI 151 8
	342	+	1 also include a statement of the available procedures and time limit for
	343	+	2 seeking administrative review of the order (if administrative review is
	344	+	3 available) and the procedures and time limits for seeking judicial
	345	+	4 review of the order under IC 4-21.5-5.
	346	+	5 (d) Findings must be based exclusively upon the evidence of record
	347	+	6 in the proceeding and on matters officially noticed in that proceeding.
	348	+	7 Findings must be based upon the kind of evidence that is substantial
	349	+	8 and reliable. The administrative law judge's experience, technical
	350	+	9 competence, and specialized knowledge may be used in evaluating
	351	+	10 evidence.
	352	+	11 (e) A substitute administrative law judge may issue the order under
	353	+	12 this section upon the record that was generated by a previous
	354	+	13 administrative law judge.
	355	+	14 (f) The administrative law judge may allow the parties a designated
	356	+	15 amount of time after conclusion of the hearing for the submission of
	357	+	16 proposed findings.
	358	+	17 (g) An order under this section shall be issued in writing within
	359	+	18 ninety (90) days after conclusion of the hearing or after submission of
	360	+	19 proposed findings in accordance with subsection (f), unless this period
	361	+	20 is waived or extended with the written consent of all parties or for good
	362	+	21 cause shown.
	363	+	22 (h) The administrative law judge shall have copies of the order
	364	+	23 under this section delivered to each party and to the ultimate authority
	365	+	24 for the agency (if it is not rendered by the ultimate authority).
	366	+	25 SECTION 9. IC 4-21.5-3-27.5, AS AMENDED BY P.L.249-2023,
	367	+	26 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	368	+	27 JULY 1, 2024]: Sec. 27.5. (a) In a proceeding under this chapter
	369	+	28 concerning an agency action, the administrative law judge shall order
	370	+	29 the agency to pay the reasonable attorney's fees incurred in the
	371	+	30 proceeding by the prevailing party challenging the agency action if:
	372	+	31 (1) the party challenging the agency action proves, by a
	373	+	32 preponderance of the evidence, that:
	374	+	33 (A) the agency's action was frivolous or groundless; or
	375	+	34 (B) the agency pursued the action in bad faith;
	376	+	35 (2) the agency action was based on an invalid unsupported by a
	377	+	36 statute or a valid rule, as provided in IC 4-22-2-44; or
	378	+	37 (3) the agency has failed to demonstrate that the agency acted
	379	+	38 within its legal authority.
	380	+	39 (b) Except as provided in subsection (c) and subject to
	381	+	40 IC 34-52-2-1.5, in a judicial review proceeding, the court shall
	382	+	41 order the agency to pay the other party's reasonable attorney's fees
	383	+	42 if:
	384	+	EH 1003—LS 6926/DI 151 9
	385	+	1 (1) the other party prevailed before an administrative law
	386	+	2 judge;
	387	+	3 (2) the agency initiated the proceeding for judicial review;
	388	+	4 and
	389	+	5 (3) the other party prevailed in the judicial review proceeding.
	390	+	6 (c) In a judicial review proceeding, the court may not award
	391	+	7 attorney's fees against an agency under this section if:
	392	+	8 (1) the agency's only involvement in the case resulted from the
	393	+	9 agency's role as an arbiter of the legal rights, duties,
	394	+	10 immunities, privileges, or other legal interests of two (2) or
	395	+	11 more parties; or
	396	+	12 (2) the position of the agency as a party became unjustified as
	397	+	13 a result of an intervening change in applicable law.
	398	+	14 SECTION 10. IC 4-21.5-3-29 IS AMENDED TO READ AS
	399	+	15 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 29. (a) This section
	400	+	16 does not apply if the administrative law judge issuing an order under
	401	+	17 section 27 of this chapter is the ultimate authority for the agency.
	402	+	18 (b) After an administrative law judge issues an a nonfinal order
	403	+	19 under section 27 of this chapter, the ultimate authority or its designee
	404	+	20 shall issue: a final order:
	405	+	21 (1) a final order affirming the administrative law judge's
	406	+	22 order;
	407	+	23 (2) a final order modifying the administrative law judge's
	408	+	24 order; or
	409	+	25 (3) dissolving; the administrative law judge's order. The ultimate
	410	+	26 authority or its designee may remand an order remanding the
	411	+	27 matter, with or without instructions, to an administrative law
	412	+	28 judge for further proceedings.
	413	+	29 (c) In the absence of an objection or notice under subsection (d) or
	414	+	30 (e), the ultimate authority or its designee shall affirm the order. the
	415	+	31 order is final and the agency issuing the nonfinal order shall issue
	416	+	32 a notice of final order within thirty (30) days after the deadline to
	417	+	33 file a notice under subsection (e).
	418	+	34 (d) To preserve an objection to an order of an administrative law
	419	+	35 judge for judicial review, a party must not be in default under this
	420	+	36 chapter and must object to the order in a writing that:
	421	+	37 (1) identifies the basis of the objection with reasonable
	422	+	38 particularity; and
	423	+	39 (2) is filed with the ultimate authority responsible for reviewing
	424	+	40 the order.
	425	+	41 The written objection must be served on all parties and the agency
	426	+	42 issuing the nonfinal order within fifteen (15) days (or any longer
	427	+	EH 1003—LS 6926/DI 151 10
	428	+	1 period set by statute) after the order is served on the petitioner.
	429	+	2 (e) Without an objection under subsection (d), the ultimate authority
	430	+	3 or its designee may serve written notice of its intent to review any issue
	431	+	4 related to the order. The notice shall be served on all parties, the
	432	+	5 agency issuing the nonfinal order, and all other persons described by
	433	+	6 section 5(d) of this chapter within sixty (60) days after the nonfinal
	434	+	7 order is served on the parties. The notice of intent to review must
	435	+	8 identify the issues that the ultimate authority or its designee intends to
	436	+	9 review.
	437	+	10 (f) A final order disposing of a proceeding or an order remanding an
	438	+	11 order to an administrative law judge for further proceedings shall be
	439	+	12 issued within sixty (60) days after the latter of:
	440	+	13 (1) the date that the order was issued under section 27 of this
	441	+	14 chapter;
	442	+	15 (2) the receipt of briefs; or
	443	+	16 (3) the close of oral argument;
	444	+	17 unless the period is waived or extended with the written consent of all
	445	+	18 parties or for good cause shown.
	446	+	19 (g) After remand of an order under this section to an administrative
	447	+	20 law judge, the judge's order is also subject to review under this section.
	448	+	21 SECTION 11. IC 4-21.5-3-31 IS AMENDED TO READ AS
	449	+	22 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 31. (a) An agency
	450	+	23 ultimate authority has jurisdiction to modify a final order under this
	451	+	24 section before the earlier of the following:
	452	+	25 (1) Thirty (30) days after the agency has served the final order
	453	+	26 under section 27, 29, or 30 of this chapter.
	454	+	27 (2) Another agency assumes jurisdiction over the final order
	455	+	28 under section 30 of this chapter.
	456	+	29 (3) A court assumes jurisdiction over the final order under
	457	+	30 IC 4-21.5-5.
	458	+	31 (b) A party may petition the ultimate authority for an agency for a
	459	+	32 stay of effectiveness of a final order. The ultimate authority or its
	460	+	33 designee may, before or after the order becomes effective, stay the final
	461	+	34 order in whole or in part.
	462	+	35 (c) A party may petition the ultimate authority for an agency for a
	463	+	36 rehearing of a final order. The ultimate authority or its designee may
	464	+	37 grant a petition for rehearing only if the petitioning party demonstrates
	465	+	38 that:
	466	+	39 (1) the party is not in default under this chapter;
	467	+	40 (2) newly discovered material evidence exists; and
	468	+	41 (3) the evidence could not, by due diligence, have been
	469	+	42 discovered and produced at the hearing in the proceeding.
	470	+	EH 1003—LS 6926/DI 151 11
	471	+	1 The rehearing may be limited to the issues directly affected by the
	472	+	2 newly discovered evidence. If the rehearing is conducted by a person
	473	+	3 other than the ultimate authority, section 29 of this chapter applies to
	474	+	4 review of the order resulting from the rehearing.
	475	+	5 (d) Clerical mistakes and other errors resulting from oversight or
	476	+	6 omission Errors in a final order or other part of the record of a
	477	+	7 proceeding may be corrected by an ultimate authority or its designee on
	478	+	8 the motion of any party or on the motion of the ultimate authority or its
	479	+	9 designee.
	480	+	10 (e) An action of a petitioning party or an agency under this section,
	481	+	11 neither including a motion to correct error, tolls the period in which
	482	+	12 a party may object to a second agency under section 30 of this chapter
	483	+	13 nor and tolls the period in which a party may petition for judicial
	484	+	14 review under IC 4-21.5-5. However, if a rehearing is granted under
	485	+	15 subsection (c), these periods are tolled and a new period begins on the
	486	+	16 date that a new final order is served. A new period begins to run on
	487	+	17 the date a motion to correct error is denied or a new order is
	488	+	18 issued. A motion to correct error or motion for a rehearing is
	489	+	19 deemed denied thirty (30) days after it was filed if there is no ruling
	490	+	20 on the motion or no hearing is set on the motion.
	491	+	21 SECTION 12. IC 4-21.5-5-11 IS AMENDED TO READ AS
	492	+	22 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 11. (a) Judicial review
	493	+	23 of disputed issues of fact must be confined to the agency record for the
	494	+	24 agency action supplemented by additional evidence taken under section
	495	+	25 12 of this chapter. The court may not try the cause de novo or substitute
	496	+	26 its judgment for that of the agency. A court is not bound by a finding
	497	+	27 of fact made by the ultimate authority if the finding of fact is not
	498	+	28 supported by the record.
	499	+	29 (b) The court shall decide all questions of law, including any
	500	+	30 interpretation of a federal or state constitutional provision, state
	501	+	31 statute, or agency rule, without deference to any previous
	502	+	32 interpretation made by the agency.
	503	+	33 SECTION 13. IC 4-21.5-5-13 IS AMENDED TO READ AS
	504	+	34 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 13. (a) Within Not
	505	+	35 later than thirty (30) days after the filing of the petition, after receipt
	506	+	36 of the petition for judicial review served under section 8 of this
	507	+	37 chapter or within further time allowed by the court or by other law, the
	508	+	38 petitioner office or ultimate authority shall transmit to the court the
	509	+	39 original or a certified copy of the agency record for judicial review of
	510	+	40 the agency action.
	511	+	41 (b) consisting The record consists of:
	512	+	42 (1) any agency documents expressing the agency action;
	513	+	EH 1003—LS 6926/DI 151 12
	514	+	1 (2) other documents identified by the agency as having been
	515	+	2 considered by it before its action and used as a basis for its action;
	516	+	3 and
	517	+	4 (3) any other material described in this article as the agency
	518	+	5 record for the type of agency action at issue, subject to this
	519	+	6 section.
	520	+	7 (b) (c) An extension of time in which to file the record shall be
	521	+	8 granted by the court for good cause shown. Inability of the office or
	522	+	9 ultimate authority to obtain compile the record from the responsible
	523	+	10 agency within the time permitted by this section is good cause. Failure
	524	+	11 to file the record within the time permitted by this subsection, including
	525	+	12 any extension period ordered by the court, is cause for dismissal of the
	526	+	13 petition for review by the court, on its own motion, or on petition of any
	527	+	14 party of record to the proceeding.
	528	+	15 (c) (d) Upon a written request by the petitioner, the agency taking
	529	+	16 the action being reviewed shall prepare the agency record for the
	530	+	17 petitioner. If part of the record has been preserved without a transcript,
	531	+	18 the agency shall prepare a transcript for inclusion in the record
	532	+	19 transmitted to the court, except for portions that the parties to the
	533	+	20 judicial review proceeding stipulate to omit in accordance with
	534	+	21 subsection (e). (f).
	535	+	22 (d) (e) Notwithstanding IC 5-14-3-8, the agency shall charge the
	536	+	23 petitioner with the reasonable cost of preparing any necessary copies
	537	+	24 and transcripts for transmittal to the court, unless a person files with the
	538	+	25 court, under oath and in writing, the statement described by
	539	+	26 IC 33-37-3-2.
	540	+	27 (e) (f) By stipulation of all parties to the review proceedings, the
	541	+	28 record may be shortened, summarized, or organized.
	542	+	29 (f) (g) The court may tax the cost of preparing transcripts and copies
	543	+	30 for the record:
	544	+	31 (1) against a party to the judicial review proceeding who
	545	+	32 unreasonably refuses to stipulate to shorten, summarize, or
	546	+	33 organize the record; or
	547	+	34 (2) in accordance with the rules governing civil actions in the
	548	+	35 courts or other law.
	549	+	36 (g) (h) Additions to the record concerning evidence received under
	550	+	37 section 12 of this chapter must be made as ordered by the court. The
	551	+	38 court may require or permit subsequent corrections or additions to the
	552	+	39 record.
	553	+	40 SECTION 14. IC 4-21.5-5-14 IS AMENDED TO READ AS
	554	+	41 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 14. (a) The burden of
	555	+	42 demonstrating the invalidity of agency action is on the party to the
	556	+	EH 1003—LS 6926/DI 151 13
	557	+	1 judicial review proceeding asserting invalidity.
	558	+	2 (b) The validity of agency action shall be determined in accordance
	559	+	3 with the standards of review provided in this section, as applied to the
	560	+	4 agency action at the time it was taken.
	561	+	5 (c) The court shall make findings of fact on each material issue on
	562	+	6 which the court's decision is based.
	563	+	7 (d) The court shall grant relief under section 15 of this chapter only
	564	+	8 if it determines that a person seeking judicial relief has been prejudiced
	565	+	9 by an agency action that is:
	566	+	10 (1) arbitrary, capricious, an abuse of discretion, or otherwise not
	567	+	11 in accordance with law;
	568	+	12 (2) contrary to constitutional right, power, privilege, or immunity;
	569	+	13 (3) in excess of statutory jurisdiction, authority, or limitations, or
	570	+	14 short of statutory right;
	571	+	15 (4) without observance of procedure required by law; or
	572	+	16 (5) unsupported by substantial a preponderance of the evidence.
	573	+	17 SECTION 15. IC 4-21.5-7 IS REPEALED [EFFECTIVE JULY 1,
	574	+	18 2024]. (Environmental Adjudication).
	575	+	19 SECTION 16. IC 4-22-2-19.6, AS ADDED BY P.L.249-2023,
	576	+	20 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	577	+	21 JULY 1, 2024]: Sec. 19.6. (a) A rule adopted under this article or
	578	+	22 IC 13-14-9 that includes a fee, fine, or civil penalty must comply with
	579	+	23 this section. Subsections (b), (c), and (d) do not apply to a rule that
	580	+	24 must be adopted in a certain form to comply with federal law.
	581	+	25 (b) For each fee, fine, or civil penalty imposed by an agency that is
	582	+	26 not set as a specific amount in a state law, a rule must describe the
	583	+	27 circumstances for which the agency will assess a fee, fine, or civil
	584	+	28 penalty and set forth the amount of the fee, fine, or civil penalty:
	585	+	29 (1) as a specific dollar amount;
	586	+	30 (2) under a formula by which a specific dollar amount can be
	587	+	31 reasonably calculated by persons regulated or otherwise affected
	588	+	32 by the rule; or
	589	+	33 (3) as a range of potential dollar amounts, stating the factors that
	590	+	34 the agency will utilize to set a specific dollar amount in an
	591	+	35 individual case with sufficient certainty that a review of an agency
	592	+	36 action under IC 4-21.5 or comparable process can evaluate
	593	+	37 whether the amount was reasonable.
	594	+	38 A rule concerning fines or civil penalties does not prohibit an agency
	595	+	39 to enter into a settlement agreement with a person against whom a fine
	596	+	40 or civil penalty is being assessed to determine the fine or civil penalty
	597	+	41 to be paid for a violation.
	598	+	42 (c) The amount of a fee must be reasonably based on the amount
	599	+	EH 1003—LS 6926/DI 151 14
	600	+	1 necessary to carry out the purposes for which the fee is imposed.
	601	+	2 (d) An agency setting a fine or civil penalty shall consider the
	602	+	3 following:
	603	+	4 (1) Whether the violation has a major or minor impact on the
	604	+	5 health, safety, or welfare of a person, the health or safety of
	605	+	6 animals or natural resources, or other facts set forth in the
	606	+	7 agency's rule.
	607	+	8 (2) The number of previous violations committed by the offender
	608	+	9 of laws, rules, or programs administered by the agency.
	609	+	10 (3) The need for deterrence of future violations.
	610	+	11 (4) Whether the conduct, if proved beyond a reasonable doubt,
	611	+	12 would constitute a criminal offense, and the level of penalty set by
	612	+	13 law for the criminal offense.
	613	+	14 (e) An agency is not liable for a fee, fine, or civil penalty that is not
	614	+	15 in conformity with this section if:
	615	+	16 (1) the fee, fine, or civil penalty was included in a rule that
	616	+	17 became effective before January 1, 2023, and that otherwise
	617	+	18 complies with subsection (b);
	618	+	19 (2) the fee, fine, or civil penalty was:
	619	+	20 (A) set by an agency before January 1, 2023;
	620	+	21 (B) reviewed by the budget committee:
	621	+	22 (i) in the case of the department of environmental
	622	+	23 management, the boards listed in IC 13-14-9-1, the office of
	623	+	24 environmental adjudication, the natural resources
	624	+	25 commission, the department of natural resources, the
	625	+	26 Indiana gaming commission, and the Indiana horse racing
	626	+	27 commission, before December 31, 2023; and
	627	+	28 (ii) in the case of an agency not described in item (i), before
	628	+	29 July 1, 2024; and
	629	+	30 (C) included in a rule that complies with this section and
	630	+	31 becomes effective before:
	631	+	32 (i) in the case of the department of environmental
	632	+	33 management, the boards listed in IC 13-14-9-1, the office of
	633	+	34 environmental adjudication, the natural resources
	634	+	35 commission, the department of natural resources, the
	635	+	36 Indiana gaming commission, and the Indiana horse racing
	636	+	37 commission, December 31, 2024; and
	637	+	38 (ii) in the case of an agency not described in item (i), July 1,
	638	+	39 2025; or
	639	+	40 (3) the agency withdraws or otherwise ceases to enforce or apply
	640	+	41 the fee, fine, or civil penalty before:
	641	+	42 (A) in the case of the department of environmental
	642	+	EH 1003—LS 6926/DI 151 15
	643	+	1 management, the boards listed in IC 13-14-9-1, the office of
	644	+	2 environmental adjudication, the natural resources commission,
	645	+	3 the department of natural resources, the Indiana gaming
	646	+	4 commission, and the Indiana horse racing commission,
	647	+	5 December 31, 2023; and
	648	+	6 (B) in the case of an agency not described in clause (A), July
	649	+	7 1, 2024.
	650	+	8 Readoption without changes under IC 4-22-2.6 of a nonconforming fee,
	651	+	9 fine, or civil penalty that meets the requirements of subdivision (1) or
	652	+	10 (2) does not invalidate the nonconforming fee, fine, or civil penalty.
	653	+	11 (f) Beginning January 1, 2024, an agency shall post on its website
	654	+	12 a schedule of fines and civil penalties that apply to violations of laws,
	655	+	13 rules, and requirements of federal programs administered by the
	656	+	14 agency.
	657	+	15 SECTION 17. IC 13-14-8-11 IS AMENDED TO READ AS
	658	+	16 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 11. (a) A person
	659	+	17 affected by a decision of the commissioner under sections 8 and 9 of
	660	+	18 this chapter may, within fifteen (15) days after receipt of notice of the
	661	+	19 decision, appeal the decision to the office of environmental
	662	+	20 adjudication. administrative law proceedings. All proceedings under
	663	+	21 this section to appeal the commissioner's decision are governed by
	664	+	22 IC 4-21.5.
	665	+	23 (b) The commissioner's decision to grant a variance does not take
	666	+	24 effect until available administrative remedies are exhausted.
	667	+	25 SECTION 18. IC 13-15-6-1 IS AMENDED TO READ AS
	668	+	26 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 1. (a) Not later than
	669	+	27 fifteen (15) days after being served the notice provided by the
	670	+	28 commissioner under IC 13-15-5-3:
	671	+	29 (1) the permit applicant; or
	672	+	30 (2) any other person aggrieved by the commissioner's action;
	673	+	31 may appeal the commissioner's action to the office of environmental
	674	+	32 adjudication administrative law proceedings and request that an
	675	+	33 environmental administrative law judge hold an adjudicatory hearing
	676	+	34 concerning the action under IC 4-21.5-3 and IC 4-21.5-7. IC 4-15-10.5.
	677	+	35 (b) Notwithstanding subsection (a) and IC 4-21.5-3-7(a)(3), a person
	678	+	36 may file an appeal of the commissioner's action in issuing an initial
	679	+	37 permit under the operating permit program under 42 U.S.C. 7661
	680	+	38 through 7661f not later than thirty (30) days after the date the person
	681	+	39 received the notice provided under IC 13-15-5-3, for a permit issued
	682	+	40 after April 30, 1999.
	683	+	41 SECTION 19. IC 13-15-6-3 IS AMENDED TO READ AS
	684	+	42 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) Not later than
	685	+	EH 1003—LS 6926/DI 151 16
	686	+	1 thirty (30) days after being served a request for an adjudicatory hearing,
	687	+	2 an environmental administrative law judge under IC 4-21.5-7
	688	+	3 IC 4-15-10.5 shall, if the environmental administrative law judge
	689	+	4 determines that:
	690	+	5 (1) the request was properly submitted; and
	691	+	6 (2) the request establishes a jurisdictional basis for a hearing;
	692	+	7 assign the matter for a hearing.
	693	+	8 (b) Upon assigning the matter for a hearing, an environmental
	694	+	9 administrative law judge may stay the force and effect of the
	695	+	10 following:
	696	+	11 (1) A contested permit provision.
	697	+	12 (2) A permit term or condition the environmental administrative
	698	+	13 law judge considers inseverable from a contested permit
	699	+	14 provision.
	700	+	15 (c) After a final hearing under this section, a final order of an
	701	+	16 environmental administrative law judge on a permit application is
	702	+	17 subject to review under IC 4-21.5-5.
	703	+	18 SECTION 20. IC 13-15-7-3 IS AMENDED TO READ AS
	704	+	19 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. A person aggrieved
	705	+	20 by the revocation or modification of a permit may appeal the revocation
	706	+	21 or modification to the office of environmental adjudication
	707	+	22 administrative law proceedings for an administrative review under
	708	+	23 IC 4-21.5-3. Pending the decision resulting from the hearing under
	709	+	24 IC 4-21.5-3 concerning the permit revocation or modification, the
	710	+	25 permit remains in force. However, the commissioner may seek
	711	+	26 injunctive relief with regard to the activity described in the permit
	712	+	27 while the decision resulting from the hearing is pending.
	713	+	28 SECTION 21. IC 13-17-3-7 IS AMENDED TO READ AS
	714	+	29 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 7. (a) The
	715	+	30 commissioner may enter into agreed orders as provided in
	716	+	31 IC 13-30-3-6.
	717	+	32 (b) An environmental administrative law judge under IC 4-21.5-7
	718	+	33 IC 4-15-10.5 shall review orders and determinations of the
	719	+	34 commissioner.
	720	+	35 SECTION 22. IC 13-17-6-10 IS AMENDED TO READ AS
	721	+	36 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. (a) If the
	722	+	37 commissioner finds that an asbestos project is not being performed in
	723	+	38 accordance with air pollution control laws or rules adopted under air
	724	+	39 pollution control laws, the commissioner may enjoin further work on
	725	+	40 the asbestos project without prior notice or hearing by delivering a
	726	+	41 notice to:
	727	+	42 (1) the asbestos contractor engaged in the asbestos project; or
	728	+	EH 1003—LS 6926/DI 151 17
	729	+	1 (2) the agent or representative of the asbestos contractor.
	730	+	2 (b) A notice issued under this section must:
	731	+	3 (1) specifically enumerate the violations of law that are occurring
	732	+	4 on the asbestos project; and
	733	+	5 (2) prohibit further work on the asbestos project until the
	734	+	6 violations enumerated under subdivision (1) cease and the notice
	735	+	7 is rescinded by the commissioner.
	736	+	8 (c) Not later than ten (10) days after receiving written notification
	737	+	9 from a contractor that violations enumerated in a notice issued under
	738	+	10 this section have been corrected, the commissioner shall issue a
	739	+	11 determination whether or not to rescind the notice.
	740	+	12 (d) An asbestos contractor or any other person aggrieved or
	741	+	13 adversely affected by the issuance of a notice under subsection (a) may
	742	+	14 obtain a review of the commissioner's action under IC 4-21.5 and
	743	+	15 IC 4-21.5-7. IC 4-15-10.5.
	744	+	16 SECTION 23. IC 13-18-3-4 IS AMENDED TO READ AS
	745	+	17 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 4. (a) The
	746	+	18 commissioner may enter into agreed orders as provided in
	747	+	19 IC 13-30-3-6.
	748	+	20 (b) An environmental administrative law judge under IC 4-21.5-7
	749	+	21 IC 4-15-10.5 shall review orders and determinations of the
	750	+	22 commissioner.
	751	+	23 SECTION 24. IC 13-18-11-8, AS AMENDED BY P.L.159-2011,
	752	+	24 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	753	+	25 JULY 1, 2024]: Sec. 8. (a) The commissioner may suspend or revoke
	754	+	26 the certificate of an operator issued under this chapter, following a
	755	+	27 hearing under IC 13-15-7-3 and IC 4-21.5, if any of the following
	756	+	28 conditions are found:
	757	+	29 (1) The operator has practiced fraud or deception in any state or
	758	+	30 other jurisdiction.
	759	+	31 (2) Reasonable care, judgment, or the application of the operator's
	760	+	32 knowledge or ability was not used in the performance of the
	761	+	33 operator's duties.
	762	+	34 (3) The operator is incompetent or unable to properly perform the
	763	+	35 operator's duties.
	764	+	36 (4) A certificate of the operator issued:
	765	+	37 (A) under this chapter; or
	766	+	38 (B) by any other state or jurisdiction for a purpose comparable
	767	+	39 to the purpose for which a certificate is issued under this
	768	+	40 chapter;
	769	+	41 has been revoked.
	770	+	42 (5) The operator has been convicted of a crime related to a
	771	+	EH 1003—LS 6926/DI 151 18
	772	+	1 certificate of the operator issued:
	773	+	2 (A) under this chapter; or
	774	+	3 (B) by any other state or jurisdiction for a purpose comparable
	775	+	4 to the purpose for which a certificate is issued under this
	776	+	5 chapter.
	777	+	6 (b) A hearing and further proceedings shall be conducted in
	778	+	7 accordance with IC 4-21.5-7. IC 4-15-10.5.
	779	+	8 SECTION 25. IC 13-19-3-2 IS AMENDED TO READ AS
	780	+	9 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 2. (a) The
	781	+	10 commissioner may enter into agreed orders as provided in
	782	+	11 IC 13-30-3-6.
	783	+	12 (b) An environmental administrative law judge under IC 4-21.5-7
	784	+	13 IC 4-15-10.5 shall review orders and determinations of the
	785	+	14 commissioner.
	786	+	15 SECTION 26. IC 13-20-13-5.5, AS AMENDED BY P.L.263-2013,
	787	+	16 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	788	+	17 JULY 1, 2024]: Sec. 5.5. (a) A certificate of registration issued by the
	789	+	18 department under this chapter may be revoked or modified by the
	790	+	19 commissioner, or by a designated staff member of the department, after
	791	+	20 notification in writing is sent in accordance with IC 13-14-2-1 to the
	792	+	21 holder of the certificate for:
	793	+	22 (1) failure to disclose all relevant facts;
	794	+	23 (2) making a misrepresentation in obtaining the registration; or
	795	+	24 (3) failure to correct, within the time established by the
	796	+	25 department:
	797	+	26 (A) a violation of a condition of the registration; or
	798	+	27 (B) a violation of this chapter or a rule adopted by the board
	799	+	28 under section 11 of this chapter.
	800	+	29 (b) A person aggrieved by the revocation or modification of a
	801	+	30 certificate of registration may appeal the revocation or modification to
	802	+	31 the office of environmental adjudication administrative law
	803	+	32 proceedings under IC 4-21.5-7. IC 4-15-10.5. Pending the decision
	804	+	33 resulting from a hearing under IC 4-21.5-3 concerning the revocation
	805	+	34 or modification, the registration remains in force. However, subsequent
	806	+	35 to revocation or modification, the commissioner may seek injunctive
	807	+	36 relief concerning the activity described in the registration.
	808	+	37 SECTION 27. IC 13-20-14-5.6, AS AMENDED BY P.L.263-2013,
	809	+	38 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	810	+	39 JULY 1, 2024]: Sec. 5.6. (a) A certificate of registration issued by the
	811	+	40 department under this chapter may be revoked or modified by the
	812	+	41 commissioner, or by a designated staff member of the department, after
	813	+	42 notification in writing is sent in accordance with IC 13-14-2-1 to the
	814	+	EH 1003—LS 6926/DI 151 19
	815	+	1 holder of the certificate, for:
	816	+	2 (1) failure to disclose all relevant facts;
	817	+	3 (2) making a misrepresentation in obtaining the registration; or
	818	+	4 (3) failure to correct, within the time established by the
	819	+	5 department, a violation of:
	820	+	6 (A) a condition of the registration;
	821	+	7 (B) this chapter; or
	822	+	8 (C) a rule adopted by the board under section 6 of this chapter.
	823	+	9 (b) A person aggrieved by the revocation or modification of a
	824	+	10 certificate of registration may appeal the revocation or modification to
	825	+	11 the office of environmental adjudication administrative law
	826	+	12 proceedings under IC 4-21.5-7. IC 4-15-10.5. Pending the decision
	827	+	13 resulting from a hearing under IC 4-21.5-3 concerning the revocation
	828	+	14 or modification, the registration remains in force. However, subsequent
	829	+	15 to revocation or modification, the commissioner may seek injunctive
	830	+	16 relief concerning the activity described in the registration.
	831	+	17 SECTION 28. IC 13-23-9-4, AS AMENDED BY P.L.96-2016,
	832	+	18 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	833	+	19 JULY 1, 2024]: Sec. 4. If the administrator denies an ELTF claim
	834	+	20 under this chapter, the claimant may appeal the denial under IC 4-21.5
	835	+	21 to the office of environmental adjudication administrative law
	836	+	22 proceedings under IC 4-21.5-7. IC 4-15-10.5.
	837	+	23 SECTION 29. IC 13-24-1-4 IS AMENDED TO READ AS
	838	+	24 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 4. (a) Except where an
	839	+	25 owner or operator can prove that a release from a petroleum facility
	840	+	26 was caused by:
	841	+	27 (1) an act of God;
	842	+	28 (2) an act of war;
	843	+	29 (3) negligence on the part of a local government, the state
	844	+	30 government, or the federal government;
	845	+	31 (4) except as provided in subsection (b), an act or omission of a
	846	+	32 responsible person; or
	847	+	33 (5) a combination of the causes set forth in subdivisions (1)
	848	+	34 through (4);
	849	+	35 the owner or operator is liable to the state for the reasonable costs of
	850	+	36 any response or remedial action taken under section 2 of this chapter
	851	+	37 involving the petroleum facility. A responsible person is liable to the
	852	+	38 state for the reasonable costs of any response or remedial action taken
	853	+	39 under section 2 of this chapter involving the petroleum facility.
	854	+	40 (b) The owner, operator, or responsible person is entitled to all
	855	+	41 rights of the state to recover from another responsible person all or a
	856	+	42 part of the costs described in subsection (a) incurred or paid to the state
	857	+	EH 1003—LS 6926/DI 151 20
	858	+	1 by the owner, operator, or responsible person in an action brought in a
	859	+	2 circuit or superior court with jurisdiction in the county in which the
	860	+	3 release occurred.
	861	+	4 (c) Money recovered by the state under this section in connection
	862	+	5 with a removal or remedial action undertaken with respect to a release
	863	+	6 of petroleum shall be deposited in the hazardous substances response
	864	+	7 trust fund.
	865	+	8 (d) The state may recover removal or remedial action costs under
	866	+	9 this section as follows:
	867	+	10 (1) Commence an action under IC 13-14-2-6 or IC 13-14-2-7.
	868	+	11 (2) Impose a lien under IC 13-25-4-11 on the property on which
	869	+	12 the removal or the remedial action was undertaken.
	870	+	13 (e) In an administrative action brought under this chapter, an
	871	+	14 environmental administrative law judge shall apportion the costs of
	872	+	15 a response or a remedial action in proportion to each party's
	873	+	16 responsibility for a release.
	874	+	17 SECTION 30. IC 13-25-4-20 IS AMENDED TO READ AS
	875	+	18 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 20. (a) Before the date
	876	+	19 on which the state intends to impose a lien on real property under
	877	+	20 section 11 of this chapter, the owner of the real property may request
	878	+	21 that a hearing be conducted under IC 4-21.5. A hearing conducted
	879	+	22 under this section and IC 4-21.5 shall be limited to determining if there
	880	+	23 is probable cause to believe that:
	881	+	24 (1) a removal or a remedial action was conducted on the real
	882	+	25 property under:
	883	+	26 (A) this chapter; or
	884	+	27 (B) IC 13-24-1; and
	885	+	28 (2) if the removal or the remedial action was conducted under this
	886	+	29 chapter, the owner of the real property would be subject to
	887	+	30 liability under 42 U.S.C. 9607 (Section 107 of the federal
	888	+	31 Comprehensive Environmental Response, Compensation, and
	889	+	32 Liability Act).
	890	+	33 (b) For the purposes of a hearing conducted under this section and
	891	+	34 IC 4-21.5, an environmental administrative law judge is the ultimate
	892	+	35 authority.
	893	+	36 SECTION 31. IC 13-30-3-5 IS AMENDED TO READ AS
	894	+	37 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) Except as
	895	+	38 otherwise provided in:
	896	+	39 (1) a notice issued under section 4 of this chapter; or
	897	+	40 (2) a law relating to emergency orders;
	898	+	41 an order of the commissioner under this chapter takes effect twenty
	899	+	42 (20) days after the alleged violator receives the notice, unless the
	900	+	EH 1003—LS 6926/DI 151 21
	901	+	1 alleged violator requests under subsection (b) a review of the order
	902	+	2 before the twentieth day after receiving the notice.
	903	+	3 (b) To request a review of the order, the alleged violator must:
	904	+	4 (1) file a written request with the office of environmental
	905	+	5 adjudication administrative law proceedings under IC 4-21.5-7;
	906	+	6 IC 4-15-10.5; and
	907	+	7 (2) serve a copy of the request on the commissioner.
	908	+	8 (c) If a review of an order is requested under this section, the office
	909	+	9 of environmental adjudication administrative law proceedings
	910	+	10 established under IC 4-21.5-7 IC 4-15-10.5 shall review the order
	911	+	11 under IC 4-21.5.
	912	+	12 SECTION 32. IC 13-30-3-6 IS AMENDED TO READ AS
	913	+	13 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 6. If an alleged violator
	914	+	14 who has requested a review of an order of the commissioner under
	915	+	15 section 5 of this chapter agrees to resolve the controversy concerning
	916	+	16 the order in a manner satisfactory to the commissioner before a final
	917	+	17 order is issued by the office of environmental adjudication,
	918	+	18 administrative law proceedings, the commissioner may approve an
	919	+	19 agreed order based on the agreement.
	920	+	20 SECTION 33. IC 13-30-3-7 IS AMENDED TO READ AS
	921	+	21 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 7. A final order of an
	922	+	22 environmental administrative law judge is subject to judicial review
	923	+	23 under IC 4-21.5-5.
	924	+	24 SECTION 34. IC 14-10-2-2.5, AS ADDED BY P.L.84-2008,
	925	+	25 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	926	+	26 JULY 1, 2024]: Sec. 2.5. (a) A person who is the party in a hearing
	927	+	27 under this title or IC 4-21.5-7 IC 4-15-10.5 may move to have the:
	928	+	28 (1) environmental administrative law judge appointed under
	929	+	29 IC 4-21.5-7; IC 4-15-10.5; or
	930	+	30 (2) administrative law judge appointed under section 2 of this
	931	+	31 chapter;
	932	+	32 consolidate multiple proceedings that are subject to the jurisdiction of
	933	+	33 both the office of environmental adjudication administrative law
	934	+	34 proceedings and the division of hearings.
	935	+	35 (b) The environmental law judge or the An administrative law judge
	936	+	36 shall grant the motion made under subsection (a) if the following
	937	+	37 findings are made:
	938	+	38 (1) The proceedings include the following:
	939	+	39 (A) Common questions of law or fact.
	940	+	40 (B) At least one (1) person, other than the department or the
	941	+	41 department of environmental management, who is a party to
	942	+	42 all the proceedings.
	943	+	EH 1003—LS 6926/DI 151 22
	944	+	1 (C) Issues of water quality, water quantity, or both.
	945	+	2 (2) Consolidation may support administrative efficiency.
	946	+	3 (c) If a motion to consolidate proceedings has been granted under
	947	+	4 subsection (b), the hearing must be conducted by a panel that consists
	948	+	5 of at least one (1) environmental law judge and one (1) two (2)
	949	+	6 administrative law judge. judges. The panel is the ultimate authority
	950	+	7 for matters authorized under IC 4-21.5-7-5 and this title. Any party,
	951	+	8 including the department and the department of environmental
	952	+	9 management, may petition an appropriate court for judicial review of
	953	+	10 a final determination of the panel.
	954	+	11 (d) The office of environmental adjudication administrative law
	955	+	12 proceedings and the division of hearings shall adopt joint rules to
	956	+	13 implement this section.
	957	+	14 SECTION 35. IC 14-34-2-2, AS AMENDED BY P.L.84-2008,
	958	+	15 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	959	+	16 JULY 1, 2024]: Sec. 2. (a) The commission shall appoint the following:
	960	+	17 (1) An administrative law judge to conduct proceedings under
	961	+	18 IC 4-21.5. An administrative law judge is subject to IC 14-10-2-2.
	962	+	19 (2) A hearing officer to conduct proceedings under IC 4-22-2.
	963	+	20 (b) An administrative law judge is the ultimate authority for the
	964	+	21 department for any administrative review proceeding under this article,
	965	+	22 except for the following:
	966	+	23 (1) Proceedings concerning the approval or disapproval of a
	967	+	24 permit application or permit renewal under IC 14-34-4-13.
	968	+	25 (2) Proceedings for suspension or revocation of a permit under
	969	+	26 IC 14-34-15-7.
	970	+	27 (3) Proceedings consolidated with the office of environmental
	971	+	28 adjudication administrative law proceedings under
	972	+	29 IC 14-10-2-2.5.
	973	+	30 (c) An order made by an administrative law judge granting or
	974	+	31 denying temporary relief from a decision of the director is a final order
	975	+	32 of the department.
	976	+	33 (d) Judicial review of a final order made by an administrative law
	977	+	34 judge under subsection (b) or (c) or under IC 13-4.1-2-1(c) or
	978	+	35 IC 13-4.1-2-1(d) (before their repeal) may be taken under IC 4-21.5-5.
	979	+	36 SECTION 36. IC 34-52-2-1.5, AS ADDED BY P.L.249-2023,
	980	+	37 SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	981	+	38 JULY 1, 2024]: Sec. 1.5. (a) In a proceeding conducted under
	982	+	39 IC 4-21.5-5, to judicially review a final order made by a state agency,
	983	+	40 the court shall apply the same standard as an administrative law judge
	984	+	41 under described in IC 4-21.5-3-27.5 regarding an order for the
	985	+	42 payment of attorney's fees.
	986	+	EH 1003—LS 6926/DI 151 23
	987	+	1 (b) An order for the payment of attorney's fees under this section is
	988	+	2 not subject to sections 2, 3, and 4 of this chapter.
	989	+	3 SECTION 37. [EFFECTIVE JULY 1, 2024] (a) As used in this
	990	+	4 SECTION, "office" means the office of environmental adjudication
	991	+	5 established under IC 4-21.5-7.
	992	+	6 (b) As used in this SECTION, "office of administrative law
	993	+	7 proceedings" means the office of administrative law proceedings
	994	+	8 established under IC 4-15-10.5.
	995	+	9 (c) On July 1, 2024, all agreements and liabilities of the office
	996	+	10 are transferred to the office of administrative law proceedings, as
	997	+	11 the successor agency.
	998	+	12 (d) On July 1, 2024, all records and property of the office,
	999	+	13 including appropriations and other funds under the control or
	1000	+	14 supervision of the office, are transferred to the office of
	1001	+	15 administrative law proceedings, as the successor agency.
	1002	+	16 (e) After July 1, 2024, any amounts owed to the office before
	1003	+	17 July 1, 2024, are considered to be owed to the office of
	1004	+	18 administrative law proceedings, as the successor agency.
	1005	+	19 (f) After July 1, 2024, a reference to the office in a statute, rule,
	1006	+	20 or other document is considered a reference to the office of
	1007	+	21 administrative law proceedings, as the successor agency.
	1008	+	22 (g) After July 1, 2024, a reference to an environmental law
	1009	+	23 judge is considered a reference to an administrative law judge
	1010	+	24 under IC 4-15-10.5.
	1011	+	25 (h) All powers, duties, agreements, and liabilities of the office
	1012	+	26 with respect to bonds issued by the office in connection with any
	1013	+	27 trust agreement or indenture securing those bonds are transferred
	1014	+	28 to the office of administrative law proceedings, as the successor
	1015	+	29 agency.
	1016	+	30 (i) The director and employees of the office on June 30, 2024,
	1017	+	31 become employees of the office of administrative law proceedings
	1018	+	32 on July 1, 2024, without change in compensation, seniority, or
	1019	+	33 benefits, and are entitled to have their service under the office
	1020	+	34 included for purposes of computing any applicable employment
	1021	+	35 and retirement benefits.
	1022	+	36 (j) After July 1, 2024, all pending proceedings of the office are
	1023	+	37 transferred to the office of administrative law proceedings.
	1024	+	38 (k) Until the office of administrative law proceedings adopts or
	1025	+	39 amends rules related to environmental matters, the office must
	1026	+	40 continue to follow and implement rules under 315 IAC.
	1027	+	41 (l) The office of administrative law proceedings must continue
	1028	+	42 to index and make publicly available, in a substantially similar
	1029	+	EH 1003—LS 6926/DI 151 24
	1030	+	1 online searchable format, the final orders of contested appeals
	1031	+	2 currently maintained by the office.
	1032	+	3 (m) This SECTION expires July 1, 2025.
	1033	+	EH 1003—LS 6926/DI 151 25
	1034	+	COMMITTEE REPORT
	1035	+	Mr. Speaker: Your Committee on Judiciary, to which was referred
	1036	+	House Bill 1003, has had the same under consideration and begs leave
	1037	+	to report the same back to the House with the recommendation that said
	1038	+	bill be amended as follows:
	1039	+	Page 3, between lines 26 and 27, begin a new paragraph and insert:
	1040	+	"(b) If the case involves:
120	1041		(1) adjudication of:
121	1042		(A) air pollution control laws (as defined in IC 13-11-2-6);
122	1043		(B) water pollution control laws (as defined in
123		-	HEA 1003 — Concur 4
124	1044		IC 13-11-2-261);
125	1045		(C) environmental management laws (as defined in
126	1046		IC 13-11-2-71); or
127	1047		(D) solid waste and hazardous waste management laws
128	1048		under IC 13-19;
129	1049		(2) rules of a board described in IC 13-14-9-1;
130	1050		(3) the financial assurance board created by IC 13-23-11-1; or
131	1051		(4) any agency action of the department of environmental
132	1052		management;
133	1053		the administrative law judge assigned by the office of
134	1054		administrative law proceedings must meet the requirements listed
135	1055		under subsection (c).
136	1056		(c) An administrative law judge assigned under subsection (b)
137	1057		must:
138	1058		(1) be a citizen of Indiana;
139	1059		(2) be an attorney in good standing admitted to practice in
140	1060		Indiana;
141	1061		(3) have at least five (5) years of experience practicing
142	1062		environmental or administrative law;
143	1063		(4) be independent of the agency;
144	1064		(5) meet the qualifications specific to environmental law as
145	1065		determined by the office of administrative law proceedings'
146	1066		training program; and
147	1067		(6) be one (1) of three (3) administrative law judges in the
148	1068		office of administrative law proceedings designated to hear
149		-	environmental matters.
150		-	(b) (d) An agency A person may not knowingly assign an individual
151		-	to serve alone or with others as an administrative law judge who is
152		-	subject to disqualification under this chapter.
153		-	(c) (e) If the administrative law judge assigned to the proceeding
154		-	believes that the judge's impartiality might reasonably be questioned,
155		-	or believes that the judge's personal bias, prejudice, or knowledge of a
156		-	disputed evidentiary fact might influence the decision, the
157		-	administrative law judge shall:
158		-	(1) withdraw as the administrative law judge; or
159		-	(2) inform the parties of the potential basis for disqualification,
160		-	place a brief statement of this basis on the record of the
161		-	proceeding, and allow the parties an opportunity to petition for
162		-	disqualification under subsection (d). (f).
163		-	(d) (f) Any party to a proceeding may petition for the
164		-	disqualification of an administrative law judge upon discovering facts
165		-	establishing grounds for disqualification under this chapter. The
166		-	HEA 1003 — Concur 5
167		-	administrative law judge assigned to the proceeding shall determine
168		-	whether to grant the petition, stating facts and reasons for the
169		-	determination.
170		-	(e) (g) If the administrative law judge ruling on the disqualification
171		-	issue is not the ultimate authority, for the agency, the party petitioning
172		-	for disqualification may petition the ultimate authority, or, if the
173		-	administrative law judge is employed or contracted with the office of
174		-	administrative law proceedings, the director of the office of
175		-	administrative law proceedings, in writing for review of the ruling
176		-	within ten (10) days after notice of the ruling is served. The ultimate
177		-	authority shall:
178		-	(1) conduct proceedings described by section 28 of this chapter;
179		-	or
180		-	(2) request that the director of the office of administrative law
181		-	proceedings conduct proceedings described by section 28 of this
182		-	chapter;
183		-	to review the petition and affirm, modify, or dissolve the ruling within
184		-	thirty (30) days after the petition is filed. A determination by the
185		-	ultimate authority or the director of the office of administrative law
186		-	proceedings under this subsection is a final order subject to judicial
187		-	review under IC 4-21.5-5.
188		-	(f) (h) If a substitute is required for an administrative law judge who
189		-	is disqualified or becomes unavailable for any other reason, the
190		-	substitute must be appointed in accordance with subsection (a).
191		-	(g) (i) Any action taken by a duly appointed substitute for a
192		-	disqualified or unavailable administrative law judge is as effective as
193		-	if taken by the latter.
194		-	(h) (j) If there is a reasonable likelihood that the ultimate authority
195		-	will be called upon to:
196		-	(1) review; or
197		-	(2) issue a final order with respect to;
198		-	a matter pending before or adjudicated by an administrative law judge,
199		-	the provisions of section 11 of this chapter that apply to an
200		-	administrative law judge or to a person communicating with an
201		-	administrative law judge apply to a member of the ultimate authority
202		-	and to a person communicating with a member of the ultimate
203		-	authority.
204		-	SECTION 7. IC 4-21.5-3-10, AS AMENDED BY THE
205		-	TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL
206		-	ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
207		-	JULY 1, 2024]: Sec. 10. (a) An administrative law judge is subject to
208		-	disqualification for:
209		-	HEA 1003 — Concur 6
210		-	(1) bias, prejudice, or interest in the outcome of a proceeding;
211		-	(2) failure to dispose of the subject of a proceeding in an orderly
212		-	and reasonably prompt manner after a written request by a party;
213		-	(3) unless waived or extended with the written consent of all
214		-	parties or for good cause shown, failure to issue an order not later
215		-	than ninety (90) days after the latest of:
216		-	(A) the filing of a motion to dismiss or a motion for summary
217		-	judgment under section 23 of this chapter that is filed after
218		-	June 30, 2011;
219		-	(B) the conclusion of a hearing that begins after June 30, 2011;
220		-	or
221		-	(C) the completion of any schedule set for briefing or for
222		-	submittal of proposed findings of fact and conclusions of law
223		-	for a disposition under clauses (A) or (B); or
224		-	(4) any cause for which a judge of a court may be disqualified.
225		-	Before July 1, 2020, nothing in this subsection prohibits an individual
226		-	who is an employee of an agency from serving as an administrative law
227		-	judge.
228		-	(b) This subsection does not apply to a proceeding concerning a
229		-	regulated occupation (as defined in IC 25-1-7-1), except for a
230		-	proceeding concerning a water well driller (as described in IC 25-39-3)
231		-	or an out of state mobile health care entity regulated by the Indiana
232		-	department of health. An individual who is disqualified under
233		-	subsection (a)(2) or (a)(3) shall provide the parties a list of at least
234		-	three (3) special administrative law judges who meet the requirements
235		-	of:
236		-	(1) IC 4-21.5-7-6, if the case is pending in the office of
237		-	environmental adjudication;
238		-	(1) section 9(c) of this chapter, if the case involves an
	1069	+	environmental matters.".
	1070	+	Page 3, line 27, strike "(b)" and insert "(d)".
	1071	+	Page 3, line 30, strike "(c)" and insert "(e)".
	1072	+	Page 3, line 39, strike "(d)." and insert "(f).".
	1073	+	Page 3, line 40, strike "(d)" and insert "(f)".
	1074	+	Page 4, line 3, strike "(e)" and insert "(g)".
	1075	+	Page 4, line 21, strike "(f)" and insert "(h)".
	1076	+	EH 1003—LS 6926/DI 151 26
	1077	+	Page 4, line 24, strike "(g)" and insert "(i)".
	1078	+	Page 4, line 27, strike "(h)" and insert "(j)".
	1079	+	Page 5, between lines 27 and 28, begin a new line block indented
	1080	+	and insert:
	1081	+	"(1) section 9(c) of this chapter, if the case involves an
239	1082		environmental matter described in section 9(b) of this
240		-	chapter;
241		-	(2) IC 14-10-2-2, if the case is pending before the division of
242		-	hearings of the natural resources commission; or
243		-	(3) subject to subsection (d), any other statute or rule governing
244		-	qualification to serve an agency other than those described in
245		-	subdivision (1) or (2).
246		-	Subject to subsection (c), the parties may agree to the selection of one
247		-	(1) individual from the list.
248		-	(c) If the parties do not agree to the selection of an individual as
249		-	provided in subsection (b) not later than ten (10) days after the parties
250		-	are provided a list of judges under subsection (b), a special
251		-	administrative law judge who meets the requirements of subsection (b)
252		-	HEA 1003 — Concur 7
253		-	shall be selected under the procedure set forth in Trial Rule 79(D).
254		-	79(E), or 79(F).
255		-	(d) This subsection applies after June 30, 2020, to an agency whose
256		-	proceedings are subject to the jurisdiction of the office of
257		-	administrative law proceedings. If an administrative law judge is
258		-	disqualified under this section, the director of the office of
259		-	administrative law proceedings shall assign another administrative law
260		-	judge.
261		-	SECTION 8. IC 4-21.5-3-27 IS AMENDED TO READ AS
262		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 27. (a) If the
263		-	administrative law judge is the ultimate authority for the agency, the
264		-	ultimate authority's order disposing of a proceeding is a final order. If
265		-	the administrative law judge is not the ultimate authority, the
266		-	administrative law judge's order disposing of the proceeding becomes
267		-	a final order when affirmed under section 29 of this chapter. Regardless
268		-	of whether the order is final, it must comply with this section.
269		-	(b) This subsection applies only to an order not subject to subsection
270		-	(c). The order must include, separately stated, findings of fact for all
271		-	aspects of the order, including the remedy prescribed and, if applicable,
272		-	the action taken on a petition for stay of effectiveness. Findings of
273		-	ultimate fact must be accompanied by a concise statement of the
274		-	underlying basic facts of record to support the findings. The order must
275		-	also include a statement of the available procedures and time limit for
276		-	seeking administrative review of the order (if administrative review is
277		-	available) and the procedures and time limits for seeking judicial
278		-	review of the order under IC 4-21.5-5.
279		-	(c) This subsection applies only to an order of the ultimate authority
280		-	entered under IC 13, IC 14, or IC 25. The order must include separately
281		-	stated findings of fact and, if a final order, conclusions of law for all
282		-	aspects of the order, including the remedy prescribed and, if applicable,
283		-	the action taken on a petition for stay of effectiveness. Findings of
284		-	ultimate fact must be accompanied by a concise statement of the
285		-	underlying basic facts of record to support the findings. Conclusions of
286		-	law must consider prior final orders (other than negotiated orders) of
287		-	the ultimate authority under the same or similar circumstances if those
288		-	prior final orders are raised on the record in writing by a party and must
289		-	state the reasons for deviations from those prior orders. The order must
290		-	also include a statement of the available procedures and time limit for
291		-	seeking administrative review of the order (if administrative review is
292		-	available) and the procedures and time limits for seeking judicial
293		-	review of the order under IC 4-21.5-5.
294		-	(d) Findings must be based exclusively upon the evidence of record
295		-	HEA 1003 — Concur 8
296		-	in the proceeding and on matters officially noticed in that proceeding.
297		-	Findings must be based upon the kind of evidence that is substantial
298		-	and reliable. The administrative law judge's experience, technical
299		-	competence, and specialized knowledge may be used in evaluating
300		-	evidence.
301		-	(e) A substitute administrative law judge may issue the order under
302		-	this section upon the record that was generated by a previous
303		-	administrative law judge.
304		-	(f) The administrative law judge may allow the parties a designated
305		-	amount of time after conclusion of the hearing for the submission of
306		-	proposed findings.
307		-	(g) An order under this section shall be issued in writing within
308		-	ninety (90) days after conclusion of the hearing or after submission of
309		-	proposed findings in accordance with subsection (f), unless this period
310		-	is waived or extended with the written consent of all parties or for good
311		-	cause shown.
312		-	(h) The administrative law judge shall have copies of the order
313		-	under this section delivered to each party and to the ultimate authority
314		-	for the agency (if it is not rendered by the ultimate authority).
315		-	SECTION 9. IC 4-21.5-3-27.5, AS AMENDED BY P.L.249-2023,
	1083	+	chapter;".
	1084	+	Page 5, line 28, reset in roman "(2)".
	1085	+	Page 5, line 28, delete "(1)".
	1086	+	Page 5, line 30, reset in roman "(3)".
	1087	+	Page 5, line 30, delete "(2)".
	1088	+	Page 7, line 24, after "frivolous" delete ";".
	1089	+	Page 7, line 24, reset in roman "or groundless;".
	1090	+	Page 10, line 22, delete "agency" and insert "office or ultimate
	1091	+	authority".
	1092	+	Page 10, line 35, delete "If the petitioner is the agency, failure" and
	1093	+	insert "Failure".
	1094	+	Page 10, line 38, after "court," insert "unless good cause is shown".
	1095	+	Page 10, line 39, after "proceeding." insert "The inability to obtain
	1096	+	the record from the office or ultimate authority within the time
	1097	+	permitted by this section is good cause.".
	1098	+	Page 21, between lines 34 and 35, begin a new paragraph and insert:
	1099	+	"(k) Until the office of administrative law proceedings adopts or
	1100	+	amends rules related to environmental matters, the office must
	1101	+	continue to follow and implement rules under 315 IAC.
	1102	+	(l) The office of administrative law proceedings must continue
	1103	+	to index and make publicly available, in a substantially similar
	1104	+	online searchable format, the final orders of contested appeals
	1105	+	currently maintained by the office.".
	1106	+	Page 21, line 35, delete "(k)" and insert "(m)".
	1107	+	and when so amended that said bill do pass.
	1108	+	(Reference is to HB 1003 as introduced.)
	1109	+	JETER
	1110	+	Committee Vote: yeas 11, nays 0.
	1111	+	EH 1003—LS 6926/DI 151 27
	1112	+	COMMITTEE REPORT
	1113	+	Madam President: The Senate Committee on Judiciary, to which
	1114	+	was referred House Bill No. 1003, has had the same under
	1115	+	consideration and begs leave to report the same back to the Senate with
	1116	+	the recommendation that said bill be AMENDED as follows:
	1117	+	Page 1, between the enacting clause and line 1, begin a new
	1118	+	paragraph and insert:
	1119	+	"SECTION 1. IC 1-1-5.5-24 IS ADDED TO THE INDIANA CODE
	1120	+	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	1121	+	1, 2025]: Sec. 24. (a) Except as provided in subsection (b), a
	1122	+	SECTION of HEA 1003-2024 does not apply to an administrative
	1123	+	proceeding or a proceeding for judicial review pending on June 30,
	1124	+	2024.
	1125	+	(b) A SECTION of HEA 1003-2024 applies to:
	1126	+	(1) an administrative proceeding or a proceeding for judicial
	1127	+	review commenced after June 30, 2024; or
	1128	+	(2) an administrative proceeding conducted after June 30,
	1129	+	2024, on remand from a court.
	1130	+	(c) After June 30, 2024, any reference to a duty of an ultimate
	1131	+	authority with respect to an administrative proceeding or
	1132	+	proceeding for judicial review shall be construed as a duty of the
	1133	+	office of administrative legal proceedings if the office of
	1134	+	administrative legal proceedings is the ultimate authority for that
	1135	+	agency.".
	1136	+	Page 8, delete lines 8 through 36, begin a new paragraph and insert:
	1137	+	"SECTION 8. IC 4-21.5-3-27.5, AS AMENDED BY P.L.249-2023,
316	1138		SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
317		-	JULY 1, 2024]: Sec. 27.5. ~~(a)~~ In a proceeding under this chapter
	1139	+	JULY 1, 2024]: Sec. 27.5. In a proceeding under this chapter
318	1140		concerning an agency action, the administrative law judge shall order
319	1141		the agency to pay the reasonable attorney's fees incurred in the
320	1142		proceeding by the prevailing party challenging the agency action if:
321	1143		(1) the party challenging the agency action proves, by a
322	1144		preponderance of the evidence, that:
323	1145		(A) the agency's action was frivolous or groundless; or
324	1146		(B) the agency pursued the action in bad faith;
325	1147		(2) the agency action was based on an invalid unsupported by a
326	1148		statute or a valid rule, as provided in IC 4-22-2-44; or
327	1149		(3) the agency has failed to demonstrate that the agency acted
328		-	within its legal authority.
329		-	(b) Except as provided in subsection (c) and subject to
330		-	IC 34-52-2-1.5, in a judicial review proceeding, the court shall
331		-	order the agency to pay the other party's reasonable attorney's fees
332		-	if:
333		-	(1) the other party prevailed before an administrative law
334		-	judge;
335		-	(2) the agency initiated the proceeding for judicial review;
336		-	and
337		-	(3) the other party prevailed in the judicial review proceeding.
338		-	HEA 1003 — Concur 9
339		-	(c) In a judicial review proceeding, the court may not award
340		-	attorney's fees against an agency under this section if:
341		-	(1) the agency's only involvement in the case resulted from the
342		-	agency's role as an arbiter of the legal rights, duties,
343		-	immunities, privileges, or other legal interests of two (2) or
344		-	more parties; or
345		-	(2) the position of the agency as a party became unjustified as
346		-	a result of an intervening change in applicable law.
347		-	SECTION 10. IC 4-21.5-3-29 IS AMENDED TO READ AS
348		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 29. (a) This section
349		-	does not apply if the administrative law judge issuing an order under
350		-	section 27 of this chapter is the ultimate authority for the agency.
351		-	(b) After an administrative law judge issues an a nonfinal order
352		-	under section 27 of this chapter, the ultimate authority or its designee
353		-	shall issue: a final order:
354		-	(1) a final order affirming the administrative law judge's
355		-	order;
356		-	(2) a final order modifying the administrative law judge's
357		-	order; or
358		-	(3) dissolving; the administrative law judge's order. The ultimate
359		-	authority or its designee may remand an order remanding the
360		-	matter, with or without instructions, to an administrative law
361		-	judge for further proceedings.
362		-	(c) In the absence of an objection or notice under subsection (d) or
363		-	(e), the ultimate authority or its designee shall affirm the order. the
364		-	order is final and the agency issuing the nonfinal order shall issue
365		-	a notice of final order within thirty (30) days after the deadline to
366		-	file a notice under subsection (e).
367		-	(d) To preserve an objection to an order of an administrative law
368		-	judge for judicial review, a party must not be in default under this
369		-	chapter and must object to the order in a writing that:
370		-	(1) identifies the basis of the objection with reasonable
371		-	particularity; and
372		-	(2) is filed with the ultimate authority responsible for reviewing
373		-	the order.
374		-	The written objection must be served on all parties and the agency
375		-	issuing the nonfinal order within fifteen (15) days (or any longer
376		-	period set by statute) after the order is served on the petitioner.
377		-	(e) Without an objection under subsection (d), the ultimate authority
378		-	or its designee may serve written notice of its intent to review any issue
379		-	related to the order. The notice shall be served on all parties, the
380		-	agency issuing the nonfinal order, and all other persons described by
381		-	HEA 1003 — Concur 10
382		-	section 5(d) of this chapter within sixty (60) days after the nonfinal
383		-	order is served on the parties. The notice of intent to review must
384		-	identify the issues that the ultimate authority or its designee intends to
385		-	review.
386		-	(f) A final order disposing of a proceeding or an order remanding an
387		-	order to an administrative law judge for further proceedings shall be
388		-	issued within sixty (60) days after the latter of:
389		-	(1) the date that the order was issued under section 27 of this
390		-	chapter;
391		-	(2) the receipt of briefs; or
392		-	(3) the close of oral argument;
393		-	unless the period is waived or extended with the written consent of all
394		-	parties or for good cause shown.
395		-	(g) After remand of an order under this section to an administrative
396		-	law judge, the judge's order is also subject to review under this section.
397		-	SECTION 11. IC 4-21.5-3-31 IS AMENDED TO READ AS
398		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 31. (a) An agency
399		-	ultimate authority has jurisdiction to modify a final order under this
400		-	section before the earlier of the following:
401		-	(1) Thirty (30) days after the agency has served the final order
402		-	under section 27, 29, or 30 of this chapter.
403		-	(2) Another agency assumes jurisdiction over the final order
404		-	under section 30 of this chapter.
405		-	(3) A court assumes jurisdiction over the final order under
406		-	IC 4-21.5-5.
407		-	(b) A party may petition the ultimate authority for an agency for a
408		-	stay of effectiveness of a final order. The ultimate authority or its
409		-	designee may, before or after the order becomes effective, stay the final
410		-	order in whole or in part.
411		-	(c) A party may petition the ultimate authority for an agency for a
412		-	rehearing of a final order. The ultimate authority or its designee may
413		-	grant a petition for rehearing only if the petitioning party demonstrates
414		-	that:
415		-	(1) the party is not in default under this chapter;
416		-	(2) newly discovered material evidence exists; and
417		-	(3) the evidence could not, by due diligence, have been
418		-	discovered and produced at the hearing in the proceeding.
419		-	The rehearing may be limited to the issues directly affected by the
420		-	newly discovered evidence. If the rehearing is conducted by a person
421		-	other than the ultimate authority, section 29 of this chapter applies to
422		-	review of the order resulting from the rehearing.
423		-	(d) Clerical mistakes and other errors resulting from oversight or
424		-	HEA 1003 — Concur 11
425		-	omission Errors in a final order or other part of the record of a
426		-	proceeding may be corrected by an ultimate authority or its designee on
427		-	the motion of any party or on the motion of the ultimate authority or its
428		-	designee.
429		-	(e) An action of a petitioning party or an agency under this section,
430		-	neither including a motion to correct error, tolls the period in which
431		-	a party may object to a second agency under section 30 of this chapter
432		-	nor and tolls the period in which a party may petition for judicial
433		-	review under IC 4-21.5-5. However, if a rehearing is granted under
434		-	subsection (c), these periods are tolled and a new period begins on the
435		-	date that a new final order is served. A new period begins to run on
436		-	the date a motion to correct error is denied or a new order is
437		-	issued. A motion to correct error or motion for a rehearing is
438		-	deemed denied thirty (30) days after it was filed if there is no ruling
439		-	on the motion or no hearing is set on the motion.
440		-	SECTION 12. IC 4-21.5-5-11 IS AMENDED TO READ AS
441		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 11. (a) Judicial review
442		-	of disputed issues of fact must be confined to the agency record for the
443		-	agency action supplemented by additional evidence taken under section
444		-	12 of this chapter. The court may not try the cause de novo or substitute
445		-	its judgment for that of the agency. A court is not bound by a finding
446		-	of fact made by the ultimate authority if the finding of fact is not
447		-	supported by the record.
448		-	(b) The court shall decide all questions of law, including any
449		-	interpretation of a federal or state constitutional provision, state
450		-	statute, or agency rule, without deference to any previous
451		-	interpretation made by the agency.
452		-	SECTION 13. IC 4-21.5-5-13 IS AMENDED TO READ AS
453		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 13. (a) Within Not
454		-	later than thirty (30) days after the filing of the petition, after receipt
455		-	of the petition for judicial review served under section 8 of this
456		-	chapter or within further time allowed by the court or by other law, the
457		-	petitioner office or ultimate authority shall transmit to the court the
458		-	original or a certified copy of the agency record for judicial review of
459		-	the agency action.
460		-	(b) consisting The record consists of:
461		-	(1) any agency documents expressing the agency action;
462		-	(2) other documents identified by the agency as having been
463		-	considered by it before its action and used as a basis for its action;
464		-	and
465		-	(3) any other material described in this article as the agency
466		-	record for the type of agency action at issue, subject to this
467		-	HEA 1003 — Concur 12
468		-	section.
469		-	(b) (c) An extension of time in which to file the record shall be
	1150	+	within its legal authority.".
	1151	+	Page 10, line 28, strike "Clerical mistakes and other errors resulting
	1152	+	from oversight or".
	1153	+	Page 10, line 29, strike "omission" and insert "Errors".
	1154	+	EH 1003—LS 6926/DI 151 28
	1155	+	Page 10, line 32, after "section" insert ",".
	1156	+	Page 10, line 33, strike "neither" and insert "including a motion to
	1157	+	correct error,".
	1158	+	Page 10, line 34, strike "nor" and insert "and".
	1159	+	Page 10, line 35, strike "However, if a".
	1160	+	Page 10, strike line 36.
	1161	+	Page 10, line 37, strike "a new period begins on the date that a new
	1162	+	final order is served." and insert "A new period begins to run on the
	1163	+	date a motion to correct error is denied or a new order is issued. A
	1164	+	motion to correct error or motion for a rehearing is deemed denied
	1165	+	thirty (30) days after it was filed if there is no ruling on the motion
	1166	+	or no hearing is set on the motion.".
	1167	+	Page 11, line 1, after "agency." insert "The court shall decide all
	1168	+	questions of fact based on the record developed during the
	1169	+	administrative hearing independent of any previous factual finding
	1170	+	made by the agency.".
	1171	+	Page 11, line 8, delete ":".
	1172	+	Page 11, line 9, delete "(1)".
	1173	+	Page 11, line 9, strike "after the filing of the petition," and insert
	1174	+	"after receipt of the petition for judicial review served under
	1175	+	section 8 of this chapter".
	1176	+	Page 11, line 9, delete "if the petitioner is the agency;".
	1177	+	Page 11, delete lines 10 through 12.
	1178	+	Page 11, run in lines 8 through 13.
	1179	+	Page 11, delete lines 25 through 34, begin a new paragraph and
	1180	+	insert:
	1181	+	"(b) (c) An extension of time in which to file the record shall be
470	1182		granted by the court for good cause shown. Inability of the office or
471	1183		ultimate authority to obtain compile the record from the responsible
472	1184		agency within the time permitted by this section is good cause. Failure
473	1185		to file the record within the time permitted by this subsection, including
474	1186		any extension period ordered by the court, is cause for dismissal of the
475	1187		petition for review by the court, on its own motion, or on petition of any
476		-	party of record to the proceeding.
477		-	(c) (d) Upon a written request by the petitioner, the agency taking
478		-	the action being reviewed shall prepare the agency record for the
479		-	petitioner. If part of the record has been preserved without a transcript,
480		-	the agency shall prepare a transcript for inclusion in the record
481		-	transmitted to the court, except for portions that the parties to the
482		-	judicial review proceeding stipulate to omit in accordance with
483		-	subsection (e). (f).
484		-	(d) (e) Notwithstanding IC 5-14-3-8, the agency shall charge the
485		-	petitioner with the reasonable cost of preparing any necessary copies
486		-	and transcripts for transmittal to the court, unless a person files with the
487		-	court, under oath and in writing, the statement described by
488		-	IC 33-37-3-2.
489		-	(e) (f) By stipulation of all parties to the review proceedings, the
490		-	record may be shortened, summarized, or organized.
491		-	(f) (g) The court may tax the cost of preparing transcripts and copies
492		-	for the record:
493		-	(1) against a party to the judicial review proceeding who
494		-	unreasonably refuses to stipulate to shorten, summarize, or
495		-	organize the record; or
496		-	(2) in accordance with the rules governing civil actions in the
497		-	courts or other law.
498		-	(g) (h) Additions to the record concerning evidence received under
499		-	section 12 of this chapter must be made as ordered by the court. The
500		-	court may require or permit subsequent corrections or additions to the
501		-	record.
502		-	SECTION 14. IC 4-21.5-5-14 IS AMENDED TO READ AS
	1188	+	party of record to the proceeding.".
	1189	+	Page 12, between lines 17 and 18, begin a new paragraph and insert:
	1190	+	"SECTION 15. IC 4-21.5-5-14 IS AMENDED TO READ AS
503	1191		FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 14. (a) The burden of
504	1192		demonstrating the invalidity of agency action is on the party to the
505	1193		judicial review proceeding asserting invalidity.
506	1194		(b) The validity of agency action shall be determined in accordance
507	1195		with the standards of review provided in this section, as applied to the
508	1196		agency action at the time it was taken.
	1197	+	EH 1003—LS 6926/DI 151 29
509	1198		(c) The court shall make findings of fact on each material issue on
510		-	HEA 1003 — Concur 13
511	1199		which the court's decision is based.
512	1200		(d) The court shall grant relief under section 15 of this chapter only
513	1201		if it determines that a person seeking judicial relief has been prejudiced
514	1202		by an agency action that is:
515	1203		(1) arbitrary, capricious, an abuse of discretion, or otherwise not
516	1204		in accordance with law;
517	1205		(2) contrary to constitutional right, power, privilege, or immunity;
518	1206		(3) in excess of statutory jurisdiction, authority, or limitations, or
519	1207		short of statutory right;
520	1208		(4) without observance of procedure required by law; or
521	1209		(5) unsupported by substantial a preponderance of the evidence.
522		-	SECTION 15. IC 4-21.5-7 IS REPEALED [EFFECTIVE JULY 1,
523		-	2024]. (Environmental Adjudication).
524		-	SECTION 16. IC 4-22-2-19.6, AS ADDED BY P.L.249-2023,
525		-	SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
526		-	JULY 1, 2024]: Sec. 19.6. (a) A rule adopted under this article or
527		-	IC 13-14-9 that includes a fee, fine, or civil penalty must comply with
528		-	this section. Subsections (b), (c), and (d) do not apply to a rule that
529		-	must be adopted in a certain form to comply with federal law.
530		-	(b) For each fee, fine, or civil penalty imposed by an agency that is
531		-	not set as a specific amount in a state law, a rule must describe the
532		-	circumstances for which the agency will assess a fee, fine, or civil
533		-	penalty and set forth the amount of the fee, fine, or civil penalty:
534		-	(1) as a specific dollar amount;
535		-	(2) under a formula by which a specific dollar amount can be
536		-	reasonably calculated by persons regulated or otherwise affected
537		-	by the rule; or
538		-	(3) as a range of potential dollar amounts, stating the factors that
539		-	the agency will utilize to set a specific dollar amount in an
540		-	individual case with sufficient certainty that a review of an agency
541		-	action under IC 4-21.5 or comparable process can evaluate
542		-	whether the amount was reasonable.
543		-	A rule concerning fines or civil penalties does not prohibit an agency
544		-	to enter into a settlement agreement with a person against whom a fine
545		-	or civil penalty is being assessed to determine the fine or civil penalty
546		-	to be paid for a violation.
547		-	(c) The amount of a fee must be reasonably based on the amount
548		-	necessary to carry out the purposes for which the fee is imposed.
549		-	(d) An agency setting a fine or civil penalty shall consider the
550		-	following:
551		-	(1) Whether the violation has a major or minor impact on the
552		-	health, safety, or welfare of a person, the health or safety of
553		-	HEA 1003 — Concur 14
554		-	animals or natural resources, or other facts set forth in the
555		-	agency's rule.
556		-	(2) The number of previous violations committed by the offender
557		-	of laws, rules, or programs administered by the agency.
558		-	(3) The need for deterrence of future violations.
559		-	(4) Whether the conduct, if proved beyond a reasonable doubt,
560		-	would constitute a criminal offense, and the level of penalty set by
561		-	law for the criminal offense.
562		-	(e) An agency is not liable for a fee, fine, or civil penalty that is not
563		-	in conformity with this section if:
564		-	(1) the fee, fine, or civil penalty was included in a rule that
565		-	became effective before January 1, 2023, and that otherwise
566		-	complies with subsection (b);
567		-	(2) the fee, fine, or civil penalty was:
568		-	(A) set by an agency before January 1, 2023;
569		-	(B) reviewed by the budget committee:
570		-	(i) in the case of the department of environmental
571		-	management, the boards listed in IC 13-14-9-1, the office of
572		-	environmental adjudication, the natural resources
573		-	commission, the department of natural resources, the
574		-	Indiana gaming commission, and the Indiana horse racing
575		-	commission, before December 31, 2023; and
576		-	(ii) in the case of an agency not described in item (i), before
577		-	July 1, 2024; and
578		-	(C) included in a rule that complies with this section and
579		-	becomes effective before:
580		-	(i) in the case of the department of environmental
581		-	management, the boards listed in IC 13-14-9-1, the office of
582		-	environmental adjudication, the natural resources
583		-	commission, the department of natural resources, the
584		-	Indiana gaming commission, and the Indiana horse racing
585		-	commission, December 31, 2024; and
586		-	(ii) in the case of an agency not described in item (i), July 1,
587		-	2025; or
588		-	(3) the agency withdraws or otherwise ceases to enforce or apply
589		-	the fee, fine, or civil penalty before:
590		-	(A) in the case of the department of environmental
591		-	management, the boards listed in IC 13-14-9-1, the office of
592		-	environmental adjudication, the natural resources commission,
593		-	the department of natural resources, the Indiana gaming
594		-	commission, and the Indiana horse racing commission,
595		-	December 31, 2023; and
596		-	HEA 1003 — Concur 15
597		-	(B) in the case of an agency not described in clause (A), July
598		-	1, 2024.
599		-	Readoption without changes under IC 4-22-2.6 of a nonconforming fee,
600		-	fine, or civil penalty that meets the requirements of subdivision (1) or
601		-	(2) does not invalidate the nonconforming fee, fine, or civil penalty.
602		-	(f) Beginning January 1, 2024, an agency shall post on its website
603		-	a schedule of fines and civil penalties that apply to violations of laws,
604		-	rules, and requirements of federal programs administered by the
605		-	agency.
606		-	SECTION 17. IC 13-14-8-11 IS AMENDED TO READ AS
607		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 11. (a) A person
608		-	affected by a decision of the commissioner under sections 8 and 9 of
609		-	this chapter may, within fifteen (15) days after receipt of notice of the
610		-	decision, appeal the decision to the office of environmental
611		-	adjudication. administrative law proceedings. All proceedings under
612		-	this section to appeal the commissioner's decision are governed by
613		-	IC 4-21.5.
614		-	(b) The commissioner's decision to grant a variance does not take
615		-	effect until available administrative remedies are exhausted.
616		-	SECTION 18. IC 13-15-6-1 IS AMENDED TO READ AS
617		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 1. (a) Not later than
618		-	fifteen (15) days after being served the notice provided by the
619		-	commissioner under IC 13-15-5-3:
620		-	(1) the permit applicant; or
621		-	(2) any other person aggrieved by the commissioner's action;
622		-	may appeal the commissioner's action to the office of environmental
623		-	adjudication administrative law proceedings and request that an
624		-	environmental administrative law judge hold an adjudicatory hearing
625		-	concerning the action under IC 4-21.5-3 and IC 4-21.5-7. IC 4-15-10.5.
626		-	(b) Notwithstanding subsection (a) and IC 4-21.5-3-7(a)(3), a person
627		-	may file an appeal of the commissioner's action in issuing an initial
628		-	permit under the operating permit program under 42 U.S.C. 7661
629		-	through 7661f not later than thirty (30) days after the date the person
630		-	received the notice provided under IC 13-15-5-3, for a permit issued
631		-	after April 30, 1999.
632		-	SECTION 19. IC 13-15-6-3 IS AMENDED TO READ AS
633		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) Not later than
634		-	thirty (30) days after being served a request for an adjudicatory hearing,
635		-	an environmental administrative law judge under IC 4-21.5-7
636		-	IC 4-15-10.5 shall, if the environmental administrative law judge
637		-	determines that:
638		-	(1) the request was properly submitted; and
639		-	HEA 1003 — Concur 16
640		-	(2) the request establishes a jurisdictional basis for a hearing;
641		-	assign the matter for a hearing.
642		-	(b) Upon assigning the matter for a hearing, an environmental
643		-	administrative law judge may stay the force and effect of the
644		-	following:
645		-	(1) A contested permit provision.
646		-	(2) A permit term or condition the environmental administrative
647		-	law judge considers inseverable from a contested permit
648		-	provision.
649		-	(c) After a final hearing under this section, a final order of an
650		-	environmental administrative law judge on a permit application is
651		-	subject to review under IC 4-21.5-5.
652		-	SECTION 20. IC 13-15-7-3 IS AMENDED TO READ AS
653		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. A person aggrieved
654		-	by the revocation or modification of a permit may appeal the revocation
655		-	or modification to the office of environmental adjudication
656		-	administrative law proceedings for an administrative review under
657		-	IC 4-21.5-3. Pending the decision resulting from the hearing under
658		-	IC 4-21.5-3 concerning the permit revocation or modification, the
659		-	permit remains in force. However, the commissioner may seek
660		-	injunctive relief with regard to the activity described in the permit
661		-	while the decision resulting from the hearing is pending.
662		-	SECTION 21. IC 13-17-3-7 IS AMENDED TO READ AS
663		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 7. (a) The
664		-	commissioner may enter into agreed orders as provided in
665		-	IC 13-30-3-6.
666		-	(b) An environmental administrative law judge under IC 4-21.5-7
667		-	IC 4-15-10.5 shall review orders and determinations of the
668		-	commissioner.
669		-	SECTION 22. IC 13-17-6-10 IS AMENDED TO READ AS
670		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. (a) If the
671		-	commissioner finds that an asbestos project is not being performed in
672		-	accordance with air pollution control laws or rules adopted under air
673		-	pollution control laws, the commissioner may enjoin further work on
674		-	the asbestos project without prior notice or hearing by delivering a
675		-	notice to:
676		-	(1) the asbestos contractor engaged in the asbestos project; or
677		-	(2) the agent or representative of the asbestos contractor.
678		-	(b) A notice issued under this section must:
679		-	(1) specifically enumerate the violations of law that are occurring
680		-	on the asbestos project; and
681		-	(2) prohibit further work on the asbestos project until the
682		-	HEA 1003 — Concur 17
683		-	violations enumerated under subdivision (1) cease and the notice
684		-	is rescinded by the commissioner.
685		-	(c) Not later than ten (10) days after receiving written notification
686		-	from a contractor that violations enumerated in a notice issued under
687		-	this section have been corrected, the commissioner shall issue a
688		-	determination whether or not to rescind the notice.
689		-	(d) An asbestos contractor or any other person aggrieved or
690		-	adversely affected by the issuance of a notice under subsection (a) may
691		-	obtain a review of the commissioner's action under IC 4-21.5 and
692		-	IC 4-21.5-7. IC 4-15-10.5.
693		-	SECTION 23. IC 13-18-3-4 IS AMENDED TO READ AS
694		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 4. (a) The
695		-	commissioner may enter into agreed orders as provided in
696		-	IC 13-30-3-6.
697		-	(b) An environmental administrative law judge under IC 4-21.5-7
698		-	IC 4-15-10.5 shall review orders and determinations of the
699		-	commissioner.
700		-	SECTION 24. IC 13-18-11-8, AS AMENDED BY P.L.159-2011,
701		-	SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
702		-	JULY 1, 2024]: Sec. 8. (a) The commissioner may suspend or revoke
703		-	the certificate of an operator issued under this chapter, following a
704		-	hearing under IC 13-15-7-3 and IC 4-21.5, if any of the following
705		-	conditions are found:
706		-	(1) The operator has practiced fraud or deception in any state or
707		-	other jurisdiction.
708		-	(2) Reasonable care, judgment, or the application of the operator's
709		-	knowledge or ability was not used in the performance of the
710		-	operator's duties.
711		-	(3) The operator is incompetent or unable to properly perform the
712		-	operator's duties.
713		-	(4) A certificate of the operator issued:
714		-	(A) under this chapter; or
715		-	(B) by any other state or jurisdiction for a purpose comparable
716		-	to the purpose for which a certificate is issued under this
717		-	chapter;
718		-	has been revoked.
719		-	(5) The operator has been convicted of a crime related to a
720		-	certificate of the operator issued:
721		-	(A) under this chapter; or
722		-	(B) by any other state or jurisdiction for a purpose comparable
723		-	to the purpose for which a certificate is issued under this
724		-	chapter.
725		-	HEA 1003 — Concur 18
726		-	(b) A hearing and further proceedings shall be conducted in
727		-	accordance with IC 4-21.5-7. IC 4-15-10.5.
728		-	SECTION 25. IC 13-19-3-2 IS AMENDED TO READ AS
729		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 2. (a) The
730		-	commissioner may enter into agreed orders as provided in
731		-	IC 13-30-3-6.
732		-	(b) An environmental administrative law judge under IC 4-21.5-7
733		-	IC 4-15-10.5 shall review orders and determinations of the
734		-	commissioner.
735		-	SECTION 26. IC 13-20-13-5.5, AS AMENDED BY P.L.263-2013,
736		-	SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
737		-	JULY 1, 2024]: Sec. 5.5. (a) A certificate of registration issued by the
738		-	department under this chapter may be revoked or modified by the
739		-	commissioner, or by a designated staff member of the department, after
740		-	notification in writing is sent in accordance with IC 13-14-2-1 to the
741		-	holder of the certificate for:
742		-	(1) failure to disclose all relevant facts;
743		-	(2) making a misrepresentation in obtaining the registration; or
744		-	(3) failure to correct, within the time established by the
745		-	department:
746		-	(A) a violation of a condition of the registration; or
747		-	(B) a violation of this chapter or a rule adopted by the board
748		-	under section 11 of this chapter.
749		-	(b) A person aggrieved by the revocation or modification of a
750		-	certificate of registration may appeal the revocation or modification to
751		-	the office of environmental adjudication administrative law
752		-	proceedings under IC 4-21.5-7. IC 4-15-10.5. Pending the decision
753		-	resulting from a hearing under IC 4-21.5-3 concerning the revocation
754		-	or modification, the registration remains in force. However, subsequent
755		-	to revocation or modification, the commissioner may seek injunctive
756		-	relief concerning the activity described in the registration.
757		-	SECTION 27. IC 13-20-14-5.6, AS AMENDED BY P.L.263-2013,
758		-	SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
759		-	JULY 1, 2024]: Sec. 5.6. (a) A certificate of registration issued by the
760		-	department under this chapter may be revoked or modified by the
761		-	commissioner, or by a designated staff member of the department, after
762		-	notification in writing is sent in accordance with IC 13-14-2-1 to the
763		-	holder of the certificate, for:
764		-	(1) failure to disclose all relevant facts;
765		-	(2) making a misrepresentation in obtaining the registration; or
766		-	(3) failure to correct, within the time established by the
767		-	department, a violation of:
768		-	HEA 1003 — Concur 19
769		-	(A) a condition of the registration;
770		-	(B) this chapter; or
771		-	(C) a rule adopted by the board under section 6 of this chapter.
772		-	(b) A person aggrieved by the revocation or modification of a
773		-	certificate of registration may appeal the revocation or modification to
774		-	the office of environmental adjudication administrative law
775		-	proceedings under IC 4-21.5-7. IC 4-15-10.5. Pending the decision
776		-	resulting from a hearing under IC 4-21.5-3 concerning the revocation
777		-	or modification, the registration remains in force. However, subsequent
778		-	to revocation or modification, the commissioner may seek injunctive
779		-	relief concerning the activity described in the registration.
780		-	SECTION 28. IC 13-23-9-4, AS AMENDED BY P.L.96-2016,
781		-	SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
782		-	JULY 1, 2024]: Sec. 4. If the administrator denies an ELTF claim
783		-	under this chapter, the claimant may appeal the denial under IC 4-21.5
784		-	to the office of environmental adjudication administrative law
785		-	proceedings under IC 4-21.5-7. IC 4-15-10.5.
786		-	SECTION 29. IC 13-24-1-4 IS AMENDED TO READ AS
787		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 4. (a) Except where an
788		-	owner or operator can prove that a release from a petroleum facility
789		-	was caused by:
790		-	(1) an act of God;
791		-	(2) an act of war;
792		-	(3) negligence on the part of a local government, the state
793		-	government, or the federal government;
794		-	(4) except as provided in subsection (b), an act or omission of a
795		-	responsible person; or
796		-	(5) a combination of the causes set forth in subdivisions (1)
797		-	through (4);
798		-	the owner or operator is liable to the state for the reasonable costs of
799		-	any response or remedial action taken under section 2 of this chapter
800		-	involving the petroleum facility. A responsible person is liable to the
801		-	state for the reasonable costs of any response or remedial action taken
802		-	under section 2 of this chapter involving the petroleum facility.
803		-	(b) The owner, operator, or responsible person is entitled to all
804		-	rights of the state to recover from another responsible person all or a
805		-	part of the costs described in subsection (a) incurred or paid to the state
806		-	by the owner, operator, or responsible person in an action brought in a
807		-	circuit or superior court with jurisdiction in the county in which the
808		-	release occurred.
809		-	(c) Money recovered by the state under this section in connection
810		-	with a removal or remedial action undertaken with respect to a release
811		-	HEA 1003 — Concur 20
812		-	of petroleum shall be deposited in the hazardous substances response
813		-	trust fund.
814		-	(d) The state may recover removal or remedial action costs under
815		-	this section as follows:
816		-	(1) Commence an action under IC 13-14-2-6 or IC 13-14-2-7.
817		-	(2) Impose a lien under IC 13-25-4-11 on the property on which
818		-	the removal or the remedial action was undertaken.
819		-	(e) In an administrative action brought under this chapter, an
820		-	environmental administrative law judge shall apportion the costs of
821		-	a response or a remedial action in proportion to each party's
822		-	responsibility for a release.
823		-	SECTION 30. IC 13-25-4-20 IS AMENDED TO READ AS
824		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 20. (a) Before the date
825		-	on which the state intends to impose a lien on real property under
826		-	section 11 of this chapter, the owner of the real property may request
827		-	that a hearing be conducted under IC 4-21.5. A hearing conducted
828		-	under this section and IC 4-21.5 shall be limited to determining if there
829		-	is probable cause to believe that:
830		-	(1) a removal or a remedial action was conducted on the real
831		-	property under:
832		-	(A) this chapter; or
833		-	(B) IC 13-24-1; and
834		-	(2) if the removal or the remedial action was conducted under this
835		-	chapter, the owner of the real property would be subject to
836		-	liability under 42 U.S.C. 9607 (Section 107 of the federal
837		-	Comprehensive Environmental Response, Compensation, and
838		-	Liability Act).
839		-	(b) For the purposes of a hearing conducted under this section and
840		-	IC 4-21.5, an environmental administrative law judge is the ultimate
841		-	authority.
842		-	SECTION 31. IC 13-30-3-5 IS AMENDED TO READ AS
843		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) Except as
844		-	otherwise provided in:
845		-	(1) a notice issued under section 4 of this chapter; or
846		-	(2) a law relating to emergency orders;
847		-	an order of the commissioner under this chapter takes effect twenty
848		-	(20) days after the alleged violator receives the notice, unless the
849		-	alleged violator requests under subsection (b) a review of the order
850		-	before the twentieth day after receiving the notice.
851		-	(b) To request a review of the order, the alleged violator must:
852		-	(1) file a written request with the office of environmental
853		-	adjudication administrative law proceedings under IC 4-21.5-7;
854		-	HEA 1003 — Concur 21
855		-	IC 4-15-10.5; and
856		-	(2) serve a copy of the request on the commissioner.
857		-	(c) If a review of an order is requested under this section, the office
858		-	of environmental adjudication administrative law proceedings
859		-	established under IC 4-21.5-7 IC 4-15-10.5 shall review the order
860		-	under IC 4-21.5.
861		-	SECTION 32. IC 13-30-3-6 IS AMENDED TO READ AS
862		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 6. If an alleged violator
863		-	who has requested a review of an order of the commissioner under
864		-	section 5 of this chapter agrees to resolve the controversy concerning
865		-	the order in a manner satisfactory to the commissioner before a final
866		-	order is issued by the office of environmental adjudication,
867		-	administrative law proceedings, the commissioner may approve an
868		-	agreed order based on the agreement.
869		-	SECTION 33. IC 13-30-3-7 IS AMENDED TO READ AS
870		-	FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 7. A final order of an
871		-	environmental administrative law judge is subject to judicial review
872		-	under IC 4-21.5-5.
873		-	SECTION 34. IC 14-10-2-2.5, AS ADDED BY P.L.84-2008,
874		-	SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
875		-	JULY 1, 2024]: Sec. 2.5. (a) A person who is the party in a hearing
876		-	under this title or IC 4-21.5-7 IC 4-15-10.5 may move to have the:
877		-	(1) environmental administrative law judge appointed under
878		-	IC 4-21.5-7; IC 4-15-10.5; or
879		-	(2) administrative law judge appointed under section 2 of this
880		-	chapter;
881		-	consolidate multiple proceedings that are subject to the jurisdiction of
882		-	both the office of environmental adjudication administrative law
883		-	proceedings and the division of hearings.
884		-	(b) The environmental law judge or the An administrative law judge
885		-	shall grant the motion made under subsection (a) if the following
886		-	findings are made:
887		-	(1) The proceedings include the following:
888		-	(A) Common questions of law or fact.
889		-	(B) At least one (1) person, other than the department or the
890		-	department of environmental management, who is a party to
891		-	all the proceedings.
892		-	(C) Issues of water quality, water quantity, or both.
893		-	(2) Consolidation may support administrative efficiency.
894		-	(c) If a motion to consolidate proceedings has been granted under
895		-	subsection (b), the hearing must be conducted by a panel that consists
896		-	of at least one (1) environmental law judge and one (1) two (2)
897		-	HEA 1003 — Concur 22
898		-	administrative law judge. judges. The panel is the ultimate authority
899		-	for matters authorized under IC 4-21.5-7-5 and this title. Any party,
900		-	including the department and the department of environmental
901		-	management, may petition an appropriate court for judicial review of
902		-	a final determination of the panel.
903		-	(d) The office of environmental adjudication administrative law
904		-	proceedings and the division of hearings shall adopt joint rules to
905		-	implement this section.
906		-	SECTION 35. IC 14-34-2-2, AS AMENDED BY P.L.84-2008,
907		-	SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
908		-	JULY 1, 2024]: Sec. 2. (a) The commission shall appoint the following:
909		-	(1) An administrative law judge to conduct proceedings under
910		-	IC 4-21.5. An administrative law judge is subject to IC 14-10-2-2.
911		-	(2) A hearing officer to conduct proceedings under IC 4-22-2.
912		-	(b) An administrative law judge is the ultimate authority for the
913		-	department for any administrative review proceeding under this article,
914		-	except for the following:
915		-	(1) Proceedings concerning the approval or disapproval of a
916		-	permit application or permit renewal under IC 14-34-4-13.
917		-	(2) Proceedings for suspension or revocation of a permit under
918		-	IC 14-34-15-7.
919		-	(3) Proceedings consolidated with the office of environmental
920		-	adjudication administrative law proceedings under
921		-	IC 14-10-2-2.5.
922		-	(c) An order made by an administrative law judge granting or
923		-	denying temporary relief from a decision of the director is a final order
924		-	of the department.
925		-	(d) Judicial review of a final order made by an administrative law
926		-	judge under subsection (b) or (c) or under IC 13-4.1-2-1(c) or
927		-	IC 13-4.1-2-1(d) (before their repeal) may be taken under IC 4-21.5-5.
928		-	SECTION 36. IC 34-52-2-1.5, AS ADDED BY P.L.249-2023,
	1210	+	(e) In a proceeding in which a nonapplicant petitions as a third
	1211	+	party to challenge an agency's issuance of a license, permit, or
	1212	+	approval, the court may only grant relief under section 15 of this
	1213	+	chapter if the nonapplicant has been prejudiced by an agency
	1214	+	action that is:
	1215	+	(1) arbitrary, capricious, an abuse of discretion, or otherwise
	1216	+	not in accordance with law;
	1217	+	(2) contrary to constitutional right, power, privilege, or
	1218	+	immunity;
	1219	+	(3) in excess of statutory jurisdiction, authority, or limitations
	1220	+	or short of statutory right;
	1221	+	(4) without observance of procedure required by law; or
	1222	+	(5) unsupported by substantial evidence.".
	1223	+	Page 21, between lines 36 and 37, begin a new paragraph and insert:
	1224	+	"SECTION 36. IC 34-52-2-1.7 IS ADDED TO THE INDIANA
	1225	+	CODE AS A NEW SECTION TO READ AS FOLLOWS
	1226	+	[EFFECTIVE JULY 1, 2024]: Sec. 1.7. (a) Except as provided in
	1227	+	subsection (b), in a judicial review proceeding under IC 4-21.5-5,
	1228	+	the court shall order the agency to pay the other party's reasonable
	1229	+	attorney's fees if:
	1230	+	(1) the party prevailed before an administrative law judge;
	1231	+	(2) the agency initiated the proceeding for judicial review;
	1232	+	and
	1233	+	(3) the party prevailed in the judicial review proceeding.
	1234	+	(b) In a judicial review proceeding, the court may not award
	1235	+	attorney's fees against an agency under this section if:
	1236	+	(1) the agency's only involvement in the case resulted from the
	1237	+	agency's role as an arbiter of the legal rights, duties,
	1238	+	immunities, privileges, or other legal interests of two (2) or
	1239	+	more parties; or
	1240	+	EH 1003—LS 6926/DI 151 30
	1241	+	(2) the position of the agency as a party became unjustified as
	1242	+	a result of an intervening change in applicable law.
	1243	+	(c) An order for the payment of attorney's fees under this
	1244	+	section is not subject to section 2, 3, or 4 of this chapter.".
	1245	+	Renumber all SECTIONS consecutively.
	1246	+	and when so amended that said bill do pass.
	1247	+	(Reference is to HB 1003 as printed January 18, 2024.)
	1248	+	BROWN L, Chairperson
	1249	+	Committee Vote: Yeas 8, Nays 3.
	1250	+	_____
	1251	+	SENATE MOTION
	1252	+	Madam President: I move that Engrossed House Bill 1003 be
	1253	+	amended to read as follows:
	1254	+	Page 8, line 27, after "27.5." insert "(a)".
	1255	+	Page 8, between lines 38 and 39, begin a new paragraph and insert:
	1256	+	"(b) Except as provided in subsection (c) and subject to
	1257	+	IC 34-52-2-1.5, in a judicial review proceeding, the court shall
	1258	+	order the agency to pay the other party's reasonable attorney's fees
	1259	+	if:
	1260	+	(1) the other party prevailed before an administrative law
	1261	+	judge;
	1262	+	(2) the agency initiated the proceeding for judicial review;
	1263	+	and
	1264	+	(3) the other party prevailed in the judicial review proceeding.
	1265	+	(c) In a judicial review proceeding, the court may not award
	1266	+	attorney's fees against an agency under this section if:
	1267	+	(1) the agency's only involvement in the case resulted from the
	1268	+	agency's role as an arbiter of the legal rights, duties,
	1269	+	immunities, privileges, or other legal interests of two (2) or
	1270	+	more parties; or
	1271	+	(2) the position of the agency as a party became unjustified as
	1272	+	a result of an intervening change in applicable law.".
	1273	+	Page 11, line 9, delete "The court shall decide all" and insert "A
	1274	+	court is not bound by a finding of fact made by the ultimate
	1275	+	authority if the finding of fact is not supported by the record.".
	1276	+	Page 11, delete lines 10 through 12.
	1277	+	Page 13, delete lines 1 through 13.
	1278	+	EH 1003—LS 6926/DI 151 31
	1279	+	Page 22, delete lines 33 through 42, begin a new paragraph and
	1280	+	insert:
	1281	+	"SECTION 36. IC 34-52-2-1.5, AS ADDED BY P.L.249-2023,
929	1282		SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
930	1283		JULY 1, 2024]: Sec. 1.5. (a) In a proceeding conducted under
931	1284		IC 4-21.5-5, to judicially review a final order made by a state agency,
932	1285		the court shall apply the same standard as an administrative law judge
933	1286		under described in IC 4-21.5-3-27.5 regarding an order for the
934	1287		payment of attorney's fees.
935	1288		(b) An order for the payment of attorney's fees under this section is
936		-	not subject to sections 2, 3, and 4 of this chapter.
937		-	SECTION 37. [EFFECTIVE JULY 1, 2024] (a) As used in this
938		-	SECTION, "office" means the office of environmental adjudication
939		-	established under IC 4-21.5-7.
940		-	HEA 1003 — Concur 23
941		-	(b) As used in this SECTION, "office of administrative law
942		-	proceedings" means the office of administrative law proceedings
943		-	established under IC 4-15-10.5.
944		-	(c) On July 1, 2024, all agreements and liabilities of the office
945		-	are transferred to the office of administrative law proceedings, as
946		-	the successor agency.
947		-	(d) On July 1, 2024, all records and property of the office,
948		-	including appropriations and other funds under the control or
949		-	supervision of the office, are transferred to the office of
950		-	administrative law proceedings, as the successor agency.
951		-	(e) After July 1, 2024, any amounts owed to the office before
952		-	July 1, 2024, are considered to be owed to the office of
953		-	administrative law proceedings, as the successor agency.
954		-	(f) After July 1, 2024, a reference to the office in a statute, rule,
955		-	or other document is considered a reference to the office of
956		-	administrative law proceedings, as the successor agency.
957		-	(g) After July 1, 2024, a reference to an environmental law
958		-	judge is considered a reference to an administrative law judge
959		-	under IC 4-15-10.5.
960		-	(h) All powers, duties, agreements, and liabilities of the office
961		-	with respect to bonds issued by the office in connection with any
962		-	trust agreement or indenture securing those bonds are transferred
963		-	to the office of administrative law proceedings, as the successor
964		-	agency.
965		-	(i) The director and employees of the office on June 30, 2024,
966		-	become employees of the office of administrative law proceedings
967		-	on July 1, 2024, without change in compensation, seniority, or
968		-	benefits, and are entitled to have their service under the office
969		-	included for purposes of computing any applicable employment
970		-	and retirement benefits.
971		-	(j) After July 1, 2024, all pending proceedings of the office are
972		-	transferred to the office of administrative law proceedings.
973		-	(k) Until the office of administrative law proceedings adopts or
974		-	amends rules related to environmental matters, the office must
975		-	continue to follow and implement rules under 315 IAC.
976		-	(l) The office of administrative law proceedings must continue
977		-	to index and make publicly available, in a substantially similar
978		-	online searchable format, the final orders of contested appeals
979		-	currently maintained by the office.
980		-	(m) This SECTION expires July 1, 2025.
981		-	HEA 1003 — Concur Speaker of the House of Representatives
982		-	President of the Senate
983		-	President Pro Tempore
984		-	Governor of the State of Indiana
985		-	Date: Time:
986		-	HEA 1003 — Concur
	1289	+	not subject to sections 2, 3, and 4 of this chapter.".
	1290	+	Page 23, delete lines 1 through 10.
	1291	+	Renumber all SECTIONS consecutively.
	1292	+	(Reference is to EHB 1003 as printed March 1, 2024.)
	1293	+	CARRASCO
	1294	+	EH 1003—LS 6926/DI 151