Req. No. 8486 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 2nd Session of the 59th Legislature (2024) HOUSE BILL 3139 By: Humphrey AS INTRODUCED An Act relating to administrative law; creating the Administrative Hearings Reform Act; amending 75 O.S. 2021, Sections 308a, 309, 310, 312, 315, 316, 317, and 323, which relate to individual proceedings; creating jurisdiction of district judges regarding individual proceedings; prohibiting agencies from conducting individual proceedings; preventing the hiring of hearing officers and admi nistrative law judges; disallowing individ ual proceedings at executive sessions; eliminating recording requirement; clarifying evidentiary procedures; clarifying final order provisions; changing production and subpoena language to provide for district courts; changing disqualification language from agencies to district judges; construing rehearing, reopening , and reconsideration p rovisions to apply to district judges; providing for stay of order during rehearing, reopening, or reconsideration under certain circumstances; clarifying review and appeal language; repealing 75 O.S. 2021, Sections 311, 311.1, 311.2, as amended by Section 26, Chapter 243, O.S.L. 2022, 313, 318, 319, 320, 321, and 322 (75 O.S. Supp. 2023, Section 311.2) which relate to individual proceedings; providing for codification; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law not to be codified in the Oklahoma Statutes reads as follows: Req. No. 8486 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 This act shall be known and may be cited as the "Administrative Hearings Reform Act". SECTION 2. AMENDATORY 75 O.S. 2021, Section 308a, is amended to read as follows: Section 308a. The provisions of Article II of the Administrative Procedures Act govern the hearing procedures of agencies, and does not grant jurisdiction, n ot otherwise provided by law. The Legislature reco gnizes that agencies take actions and make decisions, other than by through the individual proceedings for which the right to ju dicial review is intended to be exercised pursuant to other laws process. SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes a s Section 308b of Title 75, unless there is created a duplication in numbe ring, reads as follows: A. No agency shall conduct an individual proceeding, quasi- judicial hearing, or other process of a judicial or quasi-judicial nature to resolve complaints between parties, to review decisions made by an agency against an individual , corporation, or entity, to review pending applications of an individual, corporation, or entity, or to hear evidence brought by affected parties to any proposed applications. All complaints between an agency and another party, or individual proceedings as prescribed by the Oklahoma Statutes, shall be filed and adjudicated in the applicable district court in accordance with the Oklahoma Statutes. Req. No. 8486 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 B. All agencies are proh ibited from hiring administrative law judges or hearing examiners to conduct proceedings and hearings as described by this section or to resolve disputes between parties. C. Oklahoma district courts shall have exclusive jurisdiction over all disputes arising from or related to state agency actions. D. Unless otherwise provided by law, individual proceedin gs or other administrative disputes as described in this section shall be filed in the district court of the county in which the alleged decision, conduct, or violation occurred. E. District courts shall issue final orders in accordance with Section 312 of this title. F. All parties involved in a n administrative dispute shall have the right to present their case before a judge and seek remedies available under applicable law. G. Any administrative judges or hearing examiners currently employed by state agencies shall b e reassigned to other roles within the respective agencies or phased o ut in accordance with existing employment policies. SECTION 4. AMENDATORY 75 O.S. 2021, Section 309, is amended to read as follows: Section 309. A. In an individual procee ding, all parties shall be afforded an opportunity for hearing after reasonable notice. B. The notice shall include: 1. A statement of the time, place, and nature of the hear ing; Req. No. 8486 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. A statement of the legal autho rity and jurisdiction under which the hearing is to be held; 3. A reference to th e particular sections of the statutes and rules involved; and 4. A short and plain statement of the matters asserted. If the agency or other party is unable to state the ma tters in detail at the time the notice is served, the initial notice may be limite d to a statement of the issues involved. Thereafter u pon application a more definite and detail ed statement shall be furnished. C. Opportunity shall be afforded all parties to respond and present evidence and argu ment on all issues involved. D. Deliberations by administrative heads, hearing examiners, and other persons authorized by law may be hel d in executive session pursuant to paragraph 8 of subsection B of Section 307 of Title 25 of the Oklahoma Statutes. E. Unless precluded by law, informal dispo sition may be made of any individual proceeding by sti pulation, agreed settlement, consent order, or default. F. E. The record in an indiv idual proceeding shall include: 1. All pleadings, motions , and intermediate rulings; 2. Evidence received or consider ed at the individual proceeding; 3. A statement of ma tters officially noticed; Req. No. 8486 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. Questions and offers of proof, objections, and ruling s thereon; 5. Proposed findings and exceptions; 6. Any decision, opinion, or report by the officer presiding at the hearing or opinion of the district judg e; and 7. All other evidence or data submitted to the hearing examiner or administrative head district judge in connection with their consideration of the case, provided all parties have had access to such evidence. G. F. Oral proceedings shall be electronically recorded. Such recordings shall be maintained for such time so as to protect the record through judicial review. Copies of the recordings shall be provided by the agenc y at the request of any party to the proceeding. Costs of transcription of the recordings shal l be borne by the party requesting the tra nscription. For judicial review, electronic recordings of an individual proce eding, as certified by the agency, may be submitted to the reviewing court by the agency as part of the record of the proceedings under review without transcription unless otherw ise required to be transcribed by the reviewing court. In such case, the expe nse of transcriptions shall be taxed and assessed against the nonprevailing party. Parties to any proceeding may have the proceedings t ranscribed by a court reporter at their ow n expense. Req. No. 8486 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 H. G. Findings of fact shall be based exclusively on the evidence received and on matters officially noticed in the individual proceeding unless other wise agreed upon by the parties on the record. SECTION 5. AMENDATORY 75 O.S. 2021, Section 310 , is amended to read as follows: Section 310. In individual proceedings: 1. Agencies District judges may admit and give probative effect to evidence which possesses probative value commonly accepted by reasonably prudent persons in the conduct of their affairs . They shall give effect to the rules of privilege recognized by law in respect to: self-incrimination; confidential communications between husband and wife during the subsistence of the marriage rela tion; communication between attorney and client, made in that relation; confessions made to a cl ergyman or priest in his or her professio nal capacity in the course of discipline enjoined by the c hurch to which he or she belongs; communications made by a pa tient to a licensed practitioner of one of the healing arts with reference to any physical or supposed physical disease or of knowledge g ained by a practitioner through a physical examination of a patient made in a professional capacity; records and files of any official or agency of any state or of the Unite d States which, by any statute of a state or of the United States are made confiden tial and privileged. No greater exclusionary effect shall be given any such rule or Req. No. 8486 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 privilege than would obtain in an action in court. Agencies District judges may exclude incompetent, irrelevant, immaterial , and unduly repetitious evidence. Objections to evidentiary offers may be made and shall be noted in th e record. Subject to these requirements, when a hearing will be expedited and the interests of the parties will not be prejudiced substantially, any p art of the evidence may be received in written form; 2. Documentary evide nce may be received in the form of copies or excerpts, if the original is not readily availa ble. Upon request, parties shall be given an opportun ity to compare the copy with the original; 3. A party may conduct cross-examinations required for a full and true disclosure of the facts; 4. Notice may be taken of judicially cognizable facts. In addition, notice may be taken of generally recognized te chnical or scientific facts within t he agency's specialized knowledge. Parties shall be notified either befor e or during the hearing, or by reference in preliminary reports or otherwise, of the materia l noticed to be proposed for judicial notice , including any staff memoranda or data, and they sh all be afforded an opportunity to contest the material so if noticed. The agency's experience, technical competence, and specialized knowledge may be utilized in the evaluation of the evidence. Req. No. 8486 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. Any party shall at all times have the right to counsel, provided that such counsel must be duly licensed to practice law by the Supreme Court of Oklahoma, a nd provided further that counsel shall have the right to appe ar and act for and on behalf of the party represented. 6. A party may request the exclusion of witnesses to the extent and for the purposes stated in Section 2615 of Title 12 of the Oklahoma Statutes. Exclusion of a witness shall not be a violation of the Oklahoma Open Meeting Act. SECTION 6. AMENDATORY 75 O.S. 2021, Section 312, is amended to read as follows: Section 312. A. A final agency order adverse to a party of the district court on an individual proceeding or other hearing under this act shall: 1. Be in writing; and 2. Include findings of fact and conclusions of law, separate ly stated. Findings of fac t, if set forth in st atutory language, shall be accompanied by a concise and explicit statem ent of the underlying facts supporting the findings. If, in accordance with agency rules, a party submitted proposed findings of fact, t he final agency order shall include a ruling upo n each proposed finding. B. Parties shall be notified either personall y or by certified mail, return receipt re quested, of any final agency order. Upon Req. No. 8486 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 request, a copy of the order shall be delivered or mai led forthwith to each party and to his or her attorney of record. C. When the district judge issues a final order, that order shall be binding on all parties and becomes the final order of the applicable agency without further proceeding unless there is a request for rehearing, reo pening, or reconsider ation pursuant to Section 317 of this title. SECTION 7. AMENDATORY 75 O.S. 2021, Section 315, is amended to read as follows: Section 315. A. 1. The agency conducting any parties subject to an individual proceeding or agency investigation shall have p ower to require the furnishing of such information, th e attendance of such witnesses, and the pr oduction of such books, records, papers o r other objects as may be necessary and proper fo r the purposes of the proceeding or investigation. 2. The agency, or any party to a proceeding before it, may take the depositions of witnesses, within o r without the state, in the same manner as is provided by law for the taking of depositions in civil actions in courts o f record. Depositions so taken shall be admissible in any procee ding affected by this act. P rovided, however, all or any part of the d eposition may be objected to at time of hearing, and may be received in evidence or excluded from the evidence by the agency or individual conducting the hearin g district court judge in accordance with the law with reference to Req. No. 8486 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 evidence in this act o r with reference to evidence in courts of record under the law of the State of Oklahoma. B. In furtherance of the powers gran ted by subsection A of this section, any agency, administrative h ead, hearing examiner or any other duly authorized member or empl oyee thereof, upon its own motion may, and upon the request of any party appearing in subject to an individual proceeding , or district judge shall may: 1. Issue subpoenas for witnesses; 2. Issue subpoenas duces tecum t o compel the production of books, records, papers or other objects, which may be served by the marshal of the agency or by any person in any manner prescribed for the service of a subpoena in a civil ac tion; or 3. C. Quash The district judge may quash a subpoena or subpoenas duces tecum so issued; provided, prior to quashing a subpoena or subpoenas duces tecum the agency court shall give notice to all parties. A su bpoena or subpoenas duces tecum may not be quashed if any party objects. C. D. 1. In case of disobedience to any subpoena issued and served under this section or to any lawful a gency requirement for information, or of the refusal of any person to testify t o any matter regarding which he or she m ay be interrogated la wfully in a proceeding before an agency, the agency may apply t o the district or superior court of the county of such person 's residence or to any judge thereof for an order to compel compliance with the subpoena or Req. No. 8486 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the furnishing of information or the giv ing of testimony. Forthwith, the court or the judge shall cite the respondent to appear and shall hear the matter as expeditious ly as possible. 2. If the disobedience or refusal is found to be unlawful, the court, or the judge, shall enter an order requi ring compliance. Disobedience of such an order shall be punish ed as contempt of court in the same manner and by the same procedu re as is provided for like conduct committed in the co urse of judicial proceedings. SECTION 8. AMENDATORY 75 O.S. 2021, Section 316, is amended to read as follows: Section 316. A hearing examiner or agency member district judge shall withdraw from any individual proceeding in which he cannot accord a fair and impartial hearing or consideration. Any party may request the disquali fication of a hearing examiner or agency member district judge, on the ground of his or her inability to give a fair and impartial hearing, by filing an affidavit a motion, promptly upon discovery of the alleged disqualificati on, stating with particularity the grounds upon which it is claimed that a fair and impartial he aring cannot be accorded. The issue shall be determined promptly by the administrative he ad of the agency, or, if it affects a member or members of the agency, by the remaining members thereof, if a quorum. Upon the entry of an order of disqualification affecting a hearing examiner, the agency shall assign another in his stead or shall conduc t the hearing itself. Req. No. 8486 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Upon the disqualification of a member of an age ncy, the agency shall proceed with the proceeding if a quorum remains. If a quorum no longer exists, by virtue of the member's disqualification, the Governor immediately shall appoint a member pro tempore to sit in place of the disqualified member in that proceeding. In further action, after the disqualific ation of a member of an agency, the provisions of Section 311 of this title shall apply. The disqualification shall be addressed in accordance with Rule 15 of Title 12 of the Oklahoma Statutes. SECTION 9. AMENDATORY 75 O.S. 20 21, Section 317, is amended to read as follows: Section 317. A. A final agency order issued by an administrative head of a n agency a district judge for an individual proceeding shall be subject to reh earing, reopening or reconsideration by such administrative head district judge. Any application or request for such rehearing, reopen ing or reconsideration shall be made by an y party aggrieved by the final agency order within ten (10) days from the date of the entry of such final agency order and shall state the grounds for the requested action. The grounds for such action shall be eit her: 1. Newly discovered or newly available evidence, relevant to the issues; 2. Need for additional evidence adequatel y to develop the facts essential to proper decision; Req. No. 8486 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. Probable error committed by the agency judge in the proceeding or in its decis ion such as would be ground for reversal on judicial review of the final agency order appeal of the final order; 4. Need for further consideration of the issues and the evidence in the public interest; or 5. A showing that issues not previously considere d ought to be examined in order properly t o dispose of the matter. B. The order of the agency court granting or denying rehearing, reconsideration or review, or the petition of a party therefor, shall set forth the grounds which justify such action. C. Nothing in this section shall prevent rehea ring, reopening or reconsideration of a matter by any agency in accordance with other statutory provisions applicable to such agency, or, at any time, on the ground of fraud practiced by the prevailing party or of procurement of the order by perjured testi mony or fictitious evidence. D. On reconsideration, reopening, or rehearing, t he matter may be heard by the agency, or it may be referred to a hearing examiner shall be heard by the district court judge who conduc ted the initial proceedings. The hearing shall be confined to those grounds upon which the reconsideration, reopening or rehearing was ordered. E. If an application for rehearing shall be timely filed, the period within which judicial review, under the a pplicable statute, Req. No. 8486 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 must be sought, shall r un from the final disposition of such application. E. The filing of a proceedin g for reconsideration, reopening, or rehearing shall not stay enforcement of the final order but the court may order a stay upon such terms as it deems proper, and shall do so whenever required by subsection F of this section. F. In an individual proceeding in any court for the reconsideration, reopening, or rehearing of a final order, upon the filing of an applicat ion, supported by ver ified statements of material fact establi shing that the enforcement of the order pending review of the application would result in present, continuous, and irreparable impairment of the constitutional rights of the applicant, a stay of the enforce ment of such order and of the accrual of penalties thereunder shall be entered upon the condition that: 1. Injury to adverse parti es or to the public, as the case may be, can be obviated through the furnishing of security ade quate to compensate for any lo ss which may be suffered as a result of the stay in the event the order is affirmed, in whole or in p art; 2. A supersedeas bond, in the amount and with sureties prescribed and approved by the court, in its sound judicial discretion, as adequate to meet requirement 1, be filed with such court. If an application for supersedeas hereunder, accompanied by a proposal for a supersedeas bond , is not acted upon by the court Req. No. 8486 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 within forty-five (45) days from the filing thereof, the order appealed from thereupon shall be aut omatically superseded and stayed, during the pendency of the appeal, upon the filing of the bond proposed in the application ; provided, however, that the court thereafter may reasonably modify the terms of the supersede as as to amount and surety whereupon the appellant shall comply with such modification in order to maintain the supersedeas in effe ct. SECTION 10. AMENDATORY 75 O.S. 2021, Section 323, is amended to read as follows: Section 323. An aggrieved party, or the agency, w ithout any motion for a new trial, may secure a rev iew of any final order or judgment of a district or superior court under this act by appeal to the Supreme Court. Such appeal shall be taken in the manner and time provided by law for appeal to the Suprem e Court from the district court in civil actions. An agency taking an appeal shall not be required to give bond. SECTION 11. REPEALER 75 O.S. 2021, Section 311, is hereby repealed. SECTION 12. REPEALER 75 O.S. 2021, Section 311.1, is hereby repealed. SECTION 13. REPEALER 75 O.S. 2021, Section 311.2, as last amended by Section 26, Chapter 243, O.S.L. 2022 (75 O.S. Supp. 2023, Section 311.2), is hereby repealed. Req. No. 8486 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 14. REPEALER 75 O.S. 2021, Section 313, is hereby repealed. SECTION 15. REPEALER 75 O.S. 2021, Section 318, is hereby repealed. SECTION 16. REPEALER 75 O.S. 2021, Section 319, is hereby repealed. SECTION 17. REPEALER 75 O.S. 2021, Section 320, is hereby repealed. SECTION 18. REPEALER 75 O.S. 2021, Section 321, is hereby repealed. SECTION 19. REPEALER 75 O.S. 2021, Section 322, is hereby repealed. SECTION 20. This act shall become effective November 1, 2024. 59-2-8486 SW 01/16/24