SLS 10RS-1855 ORIGINAL Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2010 SENATE BILL NO. 770 BY SENATOR CHEEK HEALTH/HOSPITALS DEPT. Requires the Department of Health and Hospitals to delegate certain hearing and adjudication functions to the division of administrative law. (8/15/10) AN ACT1 To enact R.S. 40:2009.26, relative to adjudications and fair hearings; to provide for the2 delegation of the fair hearings function; to provide for the adjudication and hearing3 functions of the Department of Health and Hospitals; to provide for the delegation4 of certain functions and authority to the division of administrative law, except where5 prohibited by federal law; to require an agency to prove its exempt status; to provide6 for the transfer of adjudications and the resources related to handling such7 adjudications; and to provide for related matters.8 Be it enacted by the Legislature of Louisiana:9 Section 1. R.S. 40:2009.26 is hereby enacted to read as follows: 10 §2009.26. Adjudications and fair hearings11 A. Notwithstanding any law to the contrary, the secretary of the12 Department of Health and Hospitals shall delegate all adjudicatory and fair13 hearing functions of the Department of Health and Hospitals to the division of14 administrative law.15 B.(1) If the Department of Health and Hospitals is prohibited, pursuant16 to a federal mandate or as a condition of federal funding, from delegating by17 SB NO. 770 SLS 10RS-1855 ORIGINAL Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. contract or other means its fair hearings function, then such fair hearings shall1 be exempt from the provisions of this Section to the extent of the federal2 mandate; however, if such federally mandated hearings function may be3 delegated by contract or other means, the department shall delegate such4 function to the division of administrative law. If the department claims a5 federal mandate exemption, the department shall have the burden of proving6 such exemption.7 (2) If the Department of Health and Hospitals is prohibited, pursuant8 to a federal mandate or as a condition of federal funding, from delegating by9 contract or other means both its fair hearings function and its authority to10 render a final decision or order in an adjudication proceeding, then such fair11 hearings and adjudication proceedings shall be exempt from the provisions of12 this Section to the extent of the federal mandate; however, if such federally13 mandated hearings function and authority to render a final decision or order14 in an adjudication proceeding may be delegated by contract or other means, the15 department shall delegate such function and authority to the division. If the16 department claims a federal mandate exemption, the department shall have the17 burden of proving such exemption.18 (3) If the Department of Health and Hospitals may delegate its fair19 hearings function but is required by federal mandate to render the final20 decision or order in an adjudication proceeding, then in those cases, the division21 of administrative law shall conduct the hearing and issue an initial decision.22 The initial decision shall be mailed or delivered to the secretary of the23 department, who shall have, upon receipt of the initial decision, thirty days to24 reject, modify, or approve the decision. If the secretary of the department25 rejects or modifies the initial decision, such rejection or modification of the26 initial decision shall be in writing and specify the findings of fact or conclusions27 of law which are being rejected or modified which shall be considered to be the28 final decision or order in the adjudication proceeding. If the secretary of the29 SB NO. 770 SLS 10RS-1855 ORIGINAL Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. department does not reject or modify the initial decision within thirty days, or1 if the initial decision is approved, then the initial decision of the division of2 administrative law shall be certified as the final decision or order of the3 department in the adjudication proceeding.4 Section 2. The Department of Health and Hospitals shall work with the division of5 administrative law to complete the transfer to the division of adjudications as provided for6 in this Act and the personnel, equipment, furniture, and budgets related to handling such7 adjudications which are not exempt under the provisions of this Act. Such transfers shall8 be complete by January 1, 2011.9 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Greg Waddell. DIGEST Proposed law provides that the secretary of DHH shall delegate all adjudicatory and fair hearing functions of DHH to the division of administrative law. Proposed law provides that if DHH is prohibited, pursuant to a federal mandate or as a condition of federal funding, from delegating by contract or other means its fair hearings function, then such fair hearings shall be exempt from the provisions of proposed law to the extent of the federal mandate; however, if such federally mandated hearings function may be delegated by contract or other means, DHH shall delegate such function to the division of administrative law. Proposed law provides that if DHH claims a federal mandate exemption, DHH shall have the burden of proving such exemption. Proposed law provides that if DHH may delegate its fair hearings function but is required by federal mandate to render the final decision or order in an adjudication proceeding, then in those cases, the division of administrative law shall conduct the hearing and issue an initial decision. Proposed law further provides that the initial decision shall be mailed or delivered to the secretary of DHH, who shall have, upon receipt of the initial decision, 30 days to reject, modify, or approve the decision. Proposed law provides that if the secretary of DHH rejects or modifies the initial decision, then he shall specify in writing the findings of fact or conclusions of law which are being rejected or modified which shall be considered to be the final decision or order in the adjudication proceeding. Proposed law further provides that if the secretary of DHH does not reject or modify the initial decision within 30 days, or if the initial decision is approved, then the initial decision of the division of administrative law shall be certified as the final decision or order of DHH in the adjudication proceeding. Effective August 15, 2010. (Adds R.S. 40:2009.26)