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HB3139
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Oklahoma House Bill HB3139

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Oklahoma 2024 Regular Session

Oklahoma House Bill HB3139 Compare Versions

Only one version of the bill is available at this time.

Version 1 (Old)

Version 2 (New)

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53	53		STATE OF OKLAHOMA
54	54
55	55		2nd Session of the 59th Legislature (2024)
56	56
57	57		HOUSE BILL 3139 By: Humphrey
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63	63		AS INTRODUCED
64	64
65	65		An Act relating to administrative law; creating the
66	66		Administrative Hearings Reform Act; amending 75 O.S.
67	67		2021, Sections 308a, 309, 310, 312, 315, 316, 317,
68	68		and 323, which relate to individual proceedings;
69	69		creating jurisdiction of district judges regarding
70	70		individual proceedings; prohibiting agencies from
71	71		conducting individual proceedings; preventing the
72	72		hiring of hearing officers and admi nistrative law
73	73		judges; disallowing individ ual proceedings at
74	74		executive sessions; eliminating recording
75	75		requirement; clarifying evidentiary procedures;
76	76		clarifying final order provisions; changing
77	77		production and subpoena language to provide for
78	78		district courts; changing disqualification language
79	79		from agencies to district judges; construing
80	80		rehearing, reopening , and reconsideration p rovisions
81	81		to apply to district judges; providing for stay of
82	82		order during rehearing, reopening, or reconsideration
83	83		under certain circumstances; clarifying review and
84	84		appeal language; repealing 75 O.S. 2021, Sections
85	85		311, 311.1, 311.2, as amended by Section 26, Chapter
86	86		243, O.S.L. 2022, 313, 318, 319, 320, 321, and 322
87	87		(75 O.S. Supp. 2023, Section 311.2) which relate to
88	88		individual proceedings; providing for codification;
89	89		and providing an effective date.
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95	95		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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97	97		SECTION 1. NEW LAW A new section of law not to be
98	98		codified in the Oklahoma Statutes reads as follows:
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150	150		This act shall be known and may be cited as the "Administrative
151	151		Hearings Reform Act".
152	152		SECTION 2. AMENDATORY 75 O.S. 2021, Section 308a, is
153	153		amended to read as follows:
154	154		Section 308a. The provisions of Article II of the
155	155		Administrative Procedures Act govern the hearing procedures of
156	156		agencies, and does not grant jurisdiction, n ot otherwise provided by
157	157		law. The Legislature reco gnizes that agencies take actions and make
158	158		decisions, other than by through the individual proceedings for
159	159		which the right to ju dicial review is intended to be exercised
160	160		pursuant to other laws process.
161	161		SECTION 3. NEW LAW A new section of law to be codified
162	162		in the Oklahoma Statutes a s Section 308b of Title 75, unless there
163	163		is created a duplication in numbe ring, reads as follows:
164	164		A. No agency shall conduct an individual proceeding, quasi-
165	165		judicial hearing, or other process of a judicial or quasi-judicial
166	166		nature to resolve complaints between parties, to review decisions
167	167		made by an agency against an individual , corporation, or entity, to
168	168		review pending applications of an individual, corporation, or
169	169		entity, or to hear evidence brought by affected parties to any
170	170		proposed applications. All complaints between an agency and another
171	171		party, or individual proceedings as prescribed by the Oklahoma
172	172		Statutes, shall be filed and adjudicated in the applicable district
173	173		court in accordance with the Oklahoma Statutes.
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225	225		B. All agencies are proh ibited from hiring administrative law
226	226		judges or hearing examiners to conduct proceedings and hearings as
227	227		described by this section or to resolve disputes between parties.
228	228		C. Oklahoma district courts shall have exclusive jurisdiction
229	229		over all disputes arising from or related to state agency actions.
230	230		D. Unless otherwise provided by law, individual proceedin gs or
231	231		other administrative disputes as described in this section shall be
232	232		filed in the district court of the county in which the alleged
233	233		decision, conduct, or violation occurred.
234	234		E. District courts shall issue final orders in accordance with
235	235		Section 312 of this title.
236	236		F. All parties involved in a n administrative dispute shall have
237	237		the right to present their case before a judge and seek remedies
238	238		available under applicable law.
239	239		G. Any administrative judges or hearing examiners currently
240	240		employed by state agencies shall b e reassigned to other roles within
241	241		the respective agencies or phased o ut in accordance with existing
242	242		employment policies.
243	243		SECTION 4. AMENDATORY 75 O.S. 2021, Section 309, is
244	244		amended to read as follows:
245	245		Section 309. A. In an individual procee ding, all parties shall
246	246		be afforded an opportunity for hearing after reasonable notice.
247	247		B. The notice shall include:
248	248		1. A statement of the time, place, and nature of the hear ing;
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300	300		2. A statement of the legal autho rity and jurisdiction under
301	301		which the hearing is to be held;
302	302		3. A reference to th e particular sections of the statutes and
303	303		rules involved; and
304	304		4. A short and plain statement of the matters asserted. If the
305	305		agency or other party is unable to state the ma tters in detail at
306	306		the time the notice is served, the initial notice may be limite d to
307	307		a statement of the issues involved. Thereafter u pon application a
308	308		more definite and detail ed statement shall be furnished.
309	309		C. Opportunity shall be afforded all parties to respond and
310	310		present evidence and argu ment on all issues involved.
311	311		D. Deliberations by administrative heads, hearing examiners,
312	312		and other persons authorized by law may be hel d in executive session
313	313		pursuant to paragraph 8 of subsection B of Section 307 of Title 25
314	314		of the Oklahoma Statutes.
315	315		E. Unless precluded by law, informal dispo sition may be made of
316	316		any individual proceeding by sti pulation, agreed settlement, consent
317	317		order, or default.
318	318		F. E. The record in an indiv idual proceeding shall include:
319	319		1. All pleadings, motions , and intermediate rulings;
320	320		2. Evidence received or consider ed at the individual
321	321		proceeding;
322	322		3. A statement of ma tters officially noticed;
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374	374		4. Questions and offers of proof, objections, and ruling s
375	375		thereon;
376	376		5. Proposed findings and exceptions;
377	377		6. Any decision, opinion, or report by the officer presiding at
378	378		the hearing or opinion of the district judg e; and
379	379		7. All other evidence or data submitted to the hearing examiner
380	380		or administrative head district judge in connection with their
381	381		consideration of the case, provided all parties have had access to
382	382		such evidence.
383	383		G. F. Oral proceedings shall be electronically recorded. Such
384	384		recordings shall be maintained for such time so as to protect the
385	385		record through judicial review. Copies of the recordings shall be
386	386		provided by the agenc y at the request of any party to the
387	387		proceeding. Costs of transcription of the recordings shal l be borne
388	388		by the party requesting the tra nscription. For judicial review,
389	389		electronic recordings of an individual proce eding, as certified by
390	390		the agency, may be submitted to the reviewing court by the agency as
391	391		part of the record of the proceedings under review without
392	392		transcription unless otherw ise required to be transcribed by the
393	393		reviewing court. In such case, the expe nse of transcriptions shall
394	394		be taxed and assessed against the nonprevailing party. Parties to
395	395		any proceeding may have the proceedings t ranscribed by a court
396	396		reporter at their ow n expense.
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448	448		H. G. Findings of fact shall be based exclusively on the
449	449		evidence received and on matters officially noticed in the
450	450		individual proceeding unless other wise agreed upon by the parties on
451	451		the record.
452	452		SECTION 5. AMENDATORY 75 O.S. 2021, Section 310 , is
453	453		amended to read as follows:
454	454		Section 310. In individual proceedings:
455	455		1. Agencies District judges may admit and give probative effect
456	456		to evidence which possesses probative value commonly accepted by
457	457		reasonably prudent persons in the conduct of their affairs . They
458	458		shall give effect to the rules of privilege recognized by law in
459	459		respect to: self-incrimination; confidential communications between
460	460		husband and wife during the subsistence of the marriage rela tion;
461	461		communication between attorney and client, made in that relation;
462	462		confessions made to a cl ergyman or priest in his or her professio nal
463	463		capacity in the course of discipline enjoined by the c hurch to which
464	464		he or she belongs; communications made by a pa tient to a licensed
465	465		practitioner of one of the healing arts with reference to any
466	466		physical or supposed physical disease or of knowledge g ained by a
467	467		practitioner through a physical examination of a patient made in a
468	468		professional capacity; records and files of any official or agency
469	469		of any state or of the Unite d States which, by any statute of a
470	470		state or of the United States are made confiden tial and privileged.
471	471		No greater exclusionary effect shall be given any such rule or
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523	523		privilege than would obtain in an action in court. Agencies
524	524		District judges may exclude incompetent, irrelevant, immaterial , and
525	525		unduly repetitious evidence. Objections to evidentiary offers may
526	526		be made and shall be noted in th e record. Subject to these
527	527		requirements, when a hearing will be expedited and the interests of
528	528		the parties will not be prejudiced substantially, any p art of the
529	529		evidence may be received in written form;
530	530		2. Documentary evide nce may be received in the form of copies
531	531		or excerpts, if the original is not readily availa ble. Upon
532	532		request, parties shall be given an opportun ity to compare the copy
533	533		with the original;
534	534		3. A party may conduct cross-examinations required for a full
535	535		and true disclosure of the facts;
536	536		4. Notice may be taken of judicially cognizable facts. In
537	537		addition, notice may be taken of generally recognized te chnical or
538	538		scientific facts within t he agency's specialized knowledge. Parties
539	539		shall be notified either befor e or during the hearing, or by
540	540		reference in preliminary reports or otherwise, of the materia l
541	541		noticed to be proposed for judicial notice , including any staff
542	542		memoranda or data, and they sh all be afforded an opportunity to
543	543		contest the material so if noticed. The agency's experience,
544	544		technical competence, and specialized knowledge may be utilized in
545	545		the evaluation of the evidence.
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597	597		5. Any party shall at all times have the right to counsel,
598	598		provided that such counsel must be duly licensed to practice law by
599	599		the Supreme Court of Oklahoma, a nd provided further that counsel
600	600		shall have the right to appe ar and act for and on behalf of the
601	601		party represented.
602	602		6. A party may request the exclusion of witnesses to the
603	603		extent and for the purposes stated in Section 2615 of Title 12 of
604	604		the Oklahoma Statutes. Exclusion of a witness shall not be a
605	605		violation of the Oklahoma Open Meeting Act.
606	606		SECTION 6. AMENDATORY 75 O.S. 2021, Section 312, is
607	607		amended to read as follows:
608	608		Section 312. A. A final agency order adverse to a party of
609	609		the district court on an individual proceeding or other hearing
610	610		under this act shall:
611	611		1. Be in writing; and
612	612		2. Include findings of fact and conclusions of law, separate ly
613	613		stated. Findings of fac t, if set forth in st atutory language, shall
614	614		be accompanied by a concise and explicit statem ent of the underlying
615	615		facts supporting the findings. If, in accordance with agency rules,
616	616		a party submitted proposed findings of fact, t he final agency order
617	617		shall include a ruling upo n each proposed finding.
618	618		B. Parties shall be notified either personall y or by certified
619	619		mail, return receipt re quested, of any final agency order. Upon
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671	671		request, a copy of the order shall be delivered or mai led forthwith
672	672		to each party and to his or her attorney of record.
673	673		C. When the district judge issues a final order, that order
674	674		shall be binding on all parties and becomes the final order of the
675	675		applicable agency without further proceeding unless there is a
676	676		request for rehearing, reo pening, or reconsider ation pursuant to
677	677		Section 317 of this title.
678	678		SECTION 7. AMENDATORY 75 O.S. 2021, Section 315, is
679	679		amended to read as follows:
680	680		Section 315. A. 1. The agency conducting any parties subject
681	681		to an individual proceeding or agency investigation shall have p ower
682	682		to require the furnishing of such information, th e attendance of
683	683		such witnesses, and the pr oduction of such books, records, papers o r
684	684		other objects as may be necessary and proper fo r the purposes of the
685	685		proceeding or investigation.
686	686		2. The agency, or any party to a proceeding before it, may take
687	687		the depositions of witnesses, within o r without the state, in the
688	688		same manner as is provided by law for the taking of depositions in
689	689		civil actions in courts o f record. Depositions so taken shall be
690	690		admissible in any procee ding affected by this act. P rovided,
691	691		however, all or any part of the d eposition may be objected to at
692	692		time of hearing, and may be received in evidence or excluded from
693	693		the evidence by the agency or individual conducting the hearin g
694	694		district court judge in accordance with the law with reference to
695	695
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746	746		evidence in this act o r with reference to evidence in courts of
747	747		record under the law of the State of Oklahoma.
748	748		B. In furtherance of the powers gran ted by subsection A of this
749	749		section, any agency, administrative h ead, hearing examiner or any
750	750		other duly authorized member or empl oyee thereof, upon its own
751	751		motion may, and upon the request of any party appearing in subject
752	752		to an individual proceeding , or district judge shall may:
753	753		1. Issue subpoenas for witnesses;
754	754		2. Issue subpoenas duces tecum t o compel the production of
755	755		books, records, papers or other objects, which may be served by the
756	756		marshal of the agency or by any person in any manner prescribed for
757	757		the service of a subpoena in a civil ac tion; or
758	758		3. C. Quash The district judge may quash a subpoena or
759	759		subpoenas duces tecum so issued; provided, prior to quashing a
760	760		subpoena or subpoenas duces tecum the agency court shall give notice
761	761		to all parties. A su bpoena or subpoenas duces tecum may not be
762	762		quashed if any party objects.
763	763		C. D. 1. In case of disobedience to any subpoena issued and
764	764		served under this section or to any lawful a gency requirement for
765	765		information, or of the refusal of any person to testify t o any
766	766		matter regarding which he or she m ay be interrogated la wfully in a
767	767		proceeding before an agency, the agency may apply t o the district or
768	768		superior court of the county of such person 's residence or to any
769	769		judge thereof for an order to compel compliance with the subpoena or
770	770
771	771
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821	821		the furnishing of information or the giv ing of testimony.
822	822		Forthwith, the court or the judge shall cite the respondent to
823	823		appear and shall hear the matter as expeditious ly as possible.
824	824		2. If the disobedience or refusal is found to be unlawful, the
825	825		court, or the judge, shall enter an order requi ring compliance.
826	826		Disobedience of such an order shall be punish ed as contempt of court
827	827		in the same manner and by the same procedu re as is provided for like
828	828		conduct committed in the co urse of judicial proceedings.
829	829		SECTION 8. AMENDATORY 75 O.S. 2021, Section 316, is
830	830		amended to read as follows:
831	831		Section 316. A hearing examiner or agency member district
832	832		judge shall withdraw from any individual proceeding in which he
833	833		cannot accord a fair and impartial hearing or consideration. Any
834	834		party may request the disquali fication of a hearing examiner or
835	835		agency member district judge, on the ground of his or her inability
836	836		to give a fair and impartial hearing, by filing an affidavit a
837	837		motion, promptly upon discovery of the alleged disqualificati on,
838	838		stating with particularity the grounds upon which it is claimed that
839	839		a fair and impartial he aring cannot be accorded. The issue shall be
840	840		determined promptly by the administrative he ad of the agency, or, if
841	841		it affects a member or members of the agency, by the remaining
842	842		members thereof, if a quorum. Upon the entry of an order of
843	843		disqualification affecting a hearing examiner, the agency shall
844	844		assign another in his stead or shall conduc t the hearing itself.
845	845
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896	896		Upon the disqualification of a member of an age ncy, the agency shall
897	897		proceed with the proceeding if a quorum remains. If a quorum no
898	898		longer exists, by virtue of the member's disqualification, the
899	899		Governor immediately shall appoint a member pro tempore to sit in
900	900		place of the disqualified member in that proceeding. In further
901	901		action, after the disqualific ation of a member of an agency, the
902	902		provisions of Section 311 of this title shall apply. The
903	903		disqualification shall be addressed in accordance with Rule 15 of
904	904		Title 12 of the Oklahoma Statutes.
905	905		SECTION 9. AMENDATORY 75 O.S. 20 21, Section 317, is
906	906		amended to read as follows:
907	907		Section 317. A. A final agency order issued by an
908	908		administrative head of a n agency a district judge for an individual
909	909		proceeding shall be subject to reh earing, reopening or
910	910		reconsideration by such administrative head district judge. Any
911	911		application or request for such rehearing, reopen ing or
912	912		reconsideration shall be made by an y party aggrieved by the final
913	913		agency order within ten (10) days from the date of the entry of such
914	914		final agency order and shall state the grounds for the requested
915	915		action. The grounds for such action shall be eit her:
916	916		1. Newly discovered or newly available evidence, relevant to
917	917		the issues;
918	918		2. Need for additional evidence adequatel y to develop the facts
919	919		essential to proper decision;
920	920
921	921
922	922		Req. No. 8486 Page 13 1
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971	971		3. Probable error committed by the agency judge in the
972	972		proceeding or in its decis ion such as would be ground for reversal
973	973		on judicial review of the final agency order appeal of the final
974	974		order;
975	975		4. Need for further consideration of the issues and the
976	976		evidence in the public interest; or
977	977		5. A showing that issues not previously considere d ought to be
978	978		examined in order properly t o dispose of the matter.
979	979		B. The order of the agency court granting or denying rehearing,
980	980		reconsideration or review, or the petition of a party therefor,
981	981		shall set forth the grounds which justify such action.
982	982		C. Nothing in this section shall prevent rehea ring, reopening
983	983		or reconsideration of a matter by any agency in accordance with
984	984		other statutory provisions applicable to such agency, or, at any
985	985		time, on the ground of fraud practiced by the prevailing party or of
986	986		procurement of the order by perjured testi mony or fictitious
987	987		evidence.
988	988		D. On reconsideration, reopening, or rehearing, t he matter may
989	989		be heard by the agency, or it may be referred to a hearing examiner
990	990		shall be heard by the district court judge who conduc ted the initial
991	991		proceedings. The hearing shall be confined to those grounds upon
992	992		which the reconsideration, reopening or rehearing was ordered.
993	993		E. If an application for rehearing shall be timely filed, the
994	994		period within which judicial review, under the a pplicable statute,
995	995
996	996
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1046	1046		must be sought, shall r un from the final disposition of such
1047	1047		application.
1048	1048		E. The filing of a proceedin g for reconsideration, reopening,
1049	1049		or rehearing shall not stay enforcement of the final order but the
1050	1050		court may order a stay upon such terms as it deems proper, and shall
1051	1051		do so whenever required by subsection F of this section.
1052	1052		F. In an individual proceeding in any court for the
1053	1053		reconsideration, reopening, or rehearing of a final order, upon the
1054	1054		filing of an applicat ion, supported by ver ified statements of
1055	1055		material fact establi shing that the enforcement of the order pending
1056	1056		review of the application would result in present, continuous, and
1057	1057		irreparable impairment of the constitutional rights of the
1058	1058		applicant, a stay of the enforce ment of such order and of the
1059	1059		accrual of penalties thereunder shall be entered upon the condition
1060	1060		that:
1061	1061		1. Injury to adverse parti es or to the public, as the case may
1062	1062		be, can be obviated through the furnishing of security ade quate to
1063	1063		compensate for any lo ss which may be suffered as a result of the
1064	1064		stay in the event the order is affirmed, in whole or in p art;
1065	1065		2. A supersedeas bond, in the amount and with sureties
1066	1066		prescribed and approved by the court, in its sound judicial
1067	1067		discretion, as adequate to meet requirement 1, be filed with such
1068	1068		court. If an application for supersedeas hereunder, accompanied by
1069	1069		a proposal for a supersedeas bond , is not acted upon by the court
1070	1070
1071	1071
1072	1072		Req. No. 8486 Page 15 1
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1121	1121		within forty-five (45) days from the filing thereof, the order
1122	1122		appealed from thereupon shall be aut omatically superseded and
1123	1123		stayed, during the pendency of the appeal, upon the filing of the
1124	1124		bond proposed in the application ; provided, however, that the court
1125	1125		thereafter may reasonably modify the terms of the supersede as as to
1126	1126		amount and surety whereupon the appellant shall comply with such
1127	1127		modification in order to maintain the supersedeas in effe ct.
1128	1128		SECTION 10. AMENDATORY 75 O.S. 2021, Section 323, is
1129	1129		amended to read as follows:
1130	1130		Section 323. An aggrieved party, or the agency, w ithout any
1131	1131		motion for a new trial, may secure a rev iew of any final order or
1132	1132		judgment of a district or superior court under this act by appeal to
1133	1133		the Supreme Court. Such appeal shall be taken in the manner and
1134	1134		time provided by law for appeal to the Suprem e Court from the
1135	1135		district court in civil actions. An agency taking an appeal shall
1136	1136		not be required to give bond.
1137	1137		SECTION 11. REPEALER 75 O.S. 2021, Section 311, is
1138	1138		hereby repealed.
1139	1139		SECTION 12. REPEALER 75 O.S. 2021, Section 311.1, is
1140	1140		hereby repealed.
1141	1141		SECTION 13. REPEALER 75 O.S. 2021, Section 311.2, as
1142	1142		last amended by Section 26, Chapter 243, O.S.L. 2022 (75 O.S. Supp.
1143	1143		2023, Section 311.2), is hereby repealed.
1144	1144
1145	1145
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1195	1195		SECTION 14. REPEALER 75 O.S. 2021, Section 313, is
1196	1196		hereby repealed.
1197	1197		SECTION 15. REPEALER 75 O.S. 2021, Section 318, is
1198	1198		hereby repealed.
1199	1199		SECTION 16. REPEALER 75 O.S. 2021, Section 319, is
1200	1200		hereby repealed.
1201	1201		SECTION 17. REPEALER 75 O.S. 2021, Section 320, is
1202	1202		hereby repealed.
1203	1203		SECTION 18. REPEALER 75 O.S. 2021, Section 321, is
1204	1204		hereby repealed.
1205	1205		SECTION 19. REPEALER 75 O.S. 2021, Section 322, is
1206	1206		hereby repealed.
1207	1207		SECTION 20. This act shall become effective November 1, 2024.
1208	1208
1209	1209		59-2-8486 SW 01/16/24