Introduced Version
SENATE BILL No. 296
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 1-1-5.5-24; IC 4-15-10.5-12; IC 4-21.5.
Synopsis: Administrative proceedings. Provides that the office of
administrative legal proceedings (OALP) is the ultimate authority for
agencies subject to the jurisdiction of the OALP. Provides that a court
conducting a judicial review hearing shall review questions of law and
fact de novo. Makes conforming amendments.
Effective: July 1, 2025.
Garten, Baldwin, Koch, Holdman,
Brown L, Freeman, Glick, Gaskill,
Buck, Niemeyer, Alexander, Raatz,
Charbonneau, Rogers, Bassler,
Buchanan, Walker K, Donato, Doriot,
Messmer, Zay, Crane, Tomes, Byrne,
Johnson T, Deery, Carrasco, Maxwell
January 16, 2024, read first time and referred to Committee on Judiciary.
2024 IN 296—LS 6923/DI 106 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
SENATE BILL No. 296
A BILL FOR AN ACT to amend the Indiana Code concerning
administrative law.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 1-1-5.5-24 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2025]: Sec. 24. (a) Except as provided in subsection (b), a
4 SECTION of this act does not apply to an administrative
5 proceeding or a proceeding for judicial review pending on June 30,
6 2025.
7 (b) A SECTION of this act applies to:
8 (1) an administrative proceeding or a proceeding for judicial
9 review commenced after June 30, 2025; and
10 (2) an administrative proceeding conducted after June 30,
11 2025, on remand from a court.
12 (c) After June 30, 2025, any reference to an act that an agency
13 in its capacity as the ultimate authority:
14 (1) may take;
15 (2) shall take;
16 (3) may not take; or
17 (4) shall not take;
2024 IN 296—LS 6923/DI 106 2
1 shall be construed as a reference to an act that, as applicable, may,
2 shall, may not, or shall not be taken by the office of administrative
3 legal proceedings if the office of administrative legal proceedings
4 is the ultimate authority for that agency.
5 SECTION 2. IC 4-15-10.5-12, AS ADDED BY P.L.205-2019,
6 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2025]: Sec. 12. (a) Beginning July 1, 2020, and Except as
8 provided in sections 1 and 2 of this chapter, the office has jurisdiction
9 over all administrative proceedings concerning agency administrative
10 actions under:
11 (1) IC 4-21.5; or
12 (2) any other statute that requires or allows the office to take
13 action.
14 (b) Notwithstanding anything in this chapter or any other statute to
15 the contrary:
16 (1) the office shall not be considered the ultimate authority in any
17 administrative proceeding; and
18 (2) a decision by the office in an administrative proceeding is not
19 a final agency action;
20 unless expressly designated by the agency. This subsection may not be
21 construed as preventing the rescission of an agency's delegation.
22 (b) Except as provided in subsection (c), the office is the ultimate
23 authority in any administrative proceedings under its jurisdiction.
24 Judicial review under IC 4-21.5 shall be taken directly from a final
25 decision of the office.
26 (c) The office is not the ultimate authority if:
27 (1) a particular agency or agency action is exempted under
28 Indiana law; or
29 (2) an agency is required by federal mandate, as a condition
30 of federal funding, to conduct or render a final order in an
31 adjudication.
32 SECTION 3. IC 4-21.5-1-15 IS AMENDED TO READ AS
33 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 15. Subject to
34 IC 4-15-10.5-12, "ultimate authority" means:
35 (1) for an administrative proceeding under the office of
36 administrative law proceedings, the office of administrative
37 law proceedings; or
38 (2) for any other purpose, an individual or panel of individuals
39 in whom the final authority of an agency is vested by law or
40 executive order.
41 SECTION 4. IC 4-21.5-3-9, AS AMENDED BY P.L.13-2021,
42 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2024 IN 296—LS 6923/DI 106 3
1 JULY 1, 2025]: Sec. 9. (a) Except to the extent that a statute other than
2 this article limits an agency's discretion to select an administrative law
3 judge, the ultimate authority for an agency may:
4 (1) act as an administrative law judge;
5 (2) designate one (1) or more members of the ultimate authority
6 (if the ultimate authority is a panel of individuals) to act as an
7 administrative law judge; or
8 (3) before July 1, 2020, designate one (1) or more:
9 (A) attorneys licensed to practice law in Indiana; or
10 (B) persons who served as administrative law judges for a state
11 agency before January 1, 2014;
12 to act as an administrative law judge. After June 30, 2020, the
13 ultimate authority for an agency may request assignment of an
14 administrative law judge by the office of administrative law
15 proceedings.
16 A person designated under subdivision (3) is not required to be an
17 employee of the agency. A designation under subdivision (2) or (3)
18 may be made in advance of the commencement of any particular
19 proceeding for a generally described class of proceedings or may be
20 made for a particular proceeding. A general designation may provide
21 procedures for the assignment of designated individuals to particular
22 proceedings.
23 (b) An agency A person may not knowingly assign an individual to
24 serve alone or with others as an administrative law judge who is subject
25 to disqualification under this chapter.
26 (c) If the administrative law judge assigned to the proceeding
27 believes that the judge's impartiality might reasonably be questioned,
28 or believes that the judge's personal bias, prejudice, or knowledge of a
29 disputed evidentiary fact might influence the decision, the
30 administrative law judge shall:
31 (1) withdraw as the administrative law judge; or
32 (2) inform the parties of the potential basis for disqualification,
33 place a brief statement of this basis on the record of the
34 proceeding, and allow the parties an opportunity to petition for
35 disqualification under subsection (d).
36 (d) Any party to a proceeding may petition for the disqualification
37 of an administrative law judge upon discovering facts establishing
38 grounds for disqualification under this chapter. The administrative law
39 judge assigned to the proceeding shall determine whether to grant the
40 petition, stating facts and reasons for the determination.
41 (e) If the administrative law judge ruling on the disqualification
42 issue is not the ultimate authority for the agency, the party petitioning
2024 IN 296—LS 6923/DI 106 4
1 for disqualification may petition the ultimate authority, or, if the
2 administrative law judge is employed or contracted with the office of
3 administrative law proceedings, the director of the office of
4 administrative law proceedings, in writing for review of the ruling
5 within ten (10) days after notice of the ruling is served. The ultimate
6 authority shall:
7 (1) conduct proceedings described by section 28 of this chapter;
8 or
9 (2) request that the director of the office of administrative law
10 proceedings conduct proceedings described by section 28 of this
11 chapter;
12 to review the petition and affirm, modify, or dissolve the ruling within
13 thirty (30) days after the petition is filed. A determination by the
14 ultimate authority or the director of the office of administrative law
15 proceedings under this subsection is a final order subject to judicial
16 review under IC 4-21.5-5.
17 (f) If a substitute is required for an administrative law judge who is
18 disqualified or becomes unavailable for any other reason, the substitute
19 must be appointed in accordance with subsection (a).
20 (g) Any action taken by a duly appointed substitute for a
21 disqualified or unavailable administrative law judge is as effective as
22 if taken by the latter.
23 (h) If there is a reasonable likelihood that the ultimate authority will
24 be called upon to:
25 (1) review; or
26 (2) issue a final order with respect to;
27 a matter pending before or adjudicated by an administrative law judge,
28 the provisions of section 11 of this chapter that apply to an
29 administrative law judge or to a person communicating with an
30 administrative law judge apply to a member of the ultimate authority
31 and to a person communicating with a member of the ultimate
32 authority.
33 SECTION 5. IC 4-21.5-3-27 IS AMENDED TO READ AS
34 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 27. (a) If the
35 administrative law judge is the ultimate authority for the agency, the
36 ultimate authority's order disposing of a proceeding is a final order. If
37 the administrative law judge is not the ultimate authority, the
38 administrative law judge's order disposing of the proceeding becomes
39 a final order when affirmed under section 29 of this chapter. Regardless
40 of whether the order is final, it must comply with this section.
41 (b) This subsection applies only to an order not subject to subsection
42 (c). The order must include, separately stated, findings of fact for all
2024 IN 296—LS 6923/DI 106 5
1 aspects of the order, including the remedy prescribed and, if applicable,
2 the action taken on a petition for stay of effectiveness. Findings of
3 ultimate fact must be accompanied by a concise statement of the
4 underlying basic facts of record to support the findings. The order must
5 also include a statement of the available procedures and time limit for
6 seeking administrative review of the order (if administrative review is
7 available) and the procedures and time limits for seeking judicial
8 review of the order under IC 4-21.5-5.
9 (c) This subsection applies only to an order of the ultimate authority
10 entered under IC 13, IC 14, or IC 25. The order must include separately
11 stated findings of fact and, if a final order, conclusions of law for all
12 aspects of the order, including the remedy prescribed and, if applicable,
13 the action taken on a petition for stay of effectiveness. Findings of
14 ultimate fact must be accompanied by a concise statement of the
15 underlying basic facts of record to support the findings. Conclusions of
16 law must consider prior final orders (other than negotiated orders) of
17 the ultimate authority under the same or similar circumstances if those
18 prior final orders are raised on the record in writing by a party and must
19 state the reasons for deviations from those prior orders. The order must
20 also include a statement of the available procedures and time limit for
21 seeking administrative review of the order (if administrative review is
22 available) and the procedures and time limits for seeking judicial
23 review of the order under IC 4-21.5-5.
24 (d) Findings must be based exclusively upon the evidence of record
25 in the proceeding and on matters officially noticed in that proceeding.
26 Findings must be based upon the kind of evidence that is substantial
27 and reliable. The administrative law judge's experience, technical
28 competence, and specialized knowledge may be used in evaluating
29 evidence.
30 (e) A substitute administrative law judge may issue the order under
31 this section upon the record that was generated by a previous
32 administrative law judge.
33 (f) The administrative law judge may allow the parties a designated
34 amount of time after conclusion of the hearing for the submission of
35 proposed findings.
36 (g) An order under this section shall be issued in writing within
37 ninety (90) days after conclusion of the hearing or after submission of
38 proposed findings in accordance with subsection (f), unless this period
39 is waived or extended with the written consent of all parties or for good
40 cause shown.
41 (h) The administrative law judge shall have copies of the order
42 under this section delivered to each party and to the ultimate authority
2024 IN 296—LS 6923/DI 106 6
1 for the agency (if it is not rendered by the ultimate authority).
2 SECTION 6. IC 4-21.5-3-31 IS AMENDED TO READ AS
3 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 31. (a) An agency
4 ultimate authority has jurisdiction to modify a final order under this
5 section before the earlier of the following:
6 (1) Thirty (30) days after the agency has served the final order
7 under section 27, 29, or 30 of this chapter.
8 (2) Another agency assumes jurisdiction over the final order
9 under section 30 of this chapter.
10 (3) A court assumes jurisdiction over the final order under
11 IC 4-21.5-5.
12 (b) A party may petition the ultimate authority for an agency for a
13 stay of effectiveness of a final order. The ultimate authority or its
14 designee may, before or after the order becomes effective, stay the final
15 order in whole or in part.
16 (c) A party may petition the ultimate authority for an agency for a
17 rehearing of a final order. The ultimate authority or its designee may
18 grant a petition for rehearing only if the petitioning party demonstrates
19 that:
20 (1) the party is not in default under this chapter;
21 (2) newly discovered material evidence exists; and
22 (3) the evidence could not, by due diligence, have been
23 discovered and produced at the hearing in the proceeding.
24 The rehearing may be limited to the issues directly affected by the
25 newly discovered evidence. If the rehearing is conducted by a person
26 other than the ultimate authority, section 29 of this chapter applies to
27 review of the order resulting from the rehearing.
28 (d) Clerical mistakes and other errors resulting from oversight or
29 omission in a final order or other part of the record of a proceeding may
30 be corrected by an ultimate authority or its designee on the motion of
31 any party or on the motion of the ultimate authority or its designee.
32 (e) An action of a petitioning party or an agency under this section
33 neither tolls the period in which a party may object to a second agency
34 under section 30 of this chapter nor tolls the period in which a party
35 may petition for judicial review under IC 4-21.5-5. However, if a
36 rehearing is granted under subsection (c), these periods are tolled and
37 a new period begins on the date that a new final order is served.
38 SECTION 7. IC 4-21.5-5-11 IS AMENDED TO READ AS
39 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 11. (a) Judicial review
40 of disputed issues of fact must be confined to the agency record for the
41 agency action supplemented by additional evidence taken under section
42 12 of this chapter. The court may not try the cause de novo or substitute
2024 IN 296—LS 6923/DI 106 7
1 its judgment for that of the agency. The court shall decide all
2 questions of fact de novo based on the record developed during the
3 administrative hearing.
4 (b) The court shall decide all questions of law de novo, including
5 any interpretation of a federal or state constitutional provision,
6 state statute, or agency rule, without deference to any previous
7 interpretation made by the agency.
2024 IN 296—LS 6923/DI 106