Oklahoma 2024 Regular Session

Oklahoma House Bill HB3139 Latest Draft

Bill / Introduced Version Filed 01/17/2024

                             
 
 
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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:   
 
 
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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.   
 
 
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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;   
 
 
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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;   
 
 
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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.   
 
 
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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   
 
 
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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.   
 
 
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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   
 
 
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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   
 
 
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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   
 
 
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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.    
 
 
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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;   
 
 
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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,   
 
 
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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   
 
 
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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.   
 
 
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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