093_HB1456

 
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 1        AN ACT concerning administrative hearings.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Administrative Procedure Act  is
 5    amended  by  changing  Sections 1-5, 1-15, 1-30, 10-5, 10-15,
 6    10-20, 10-25, 10-45,  10-50,  10-60,  and  10-65  and  adding
 7    Section 1-13 and Article 12 as follows:

 8        (5 ILCS 100/1-5) (from Ch. 127, par. 1001-5)
 9        Sec. 1-5.  Applicability.
10        (a)  This  Act applies to every agency as defined in this
11    Act. Beginning January 1, 1978, in case of  conflict  between
12    the provisions of this Act and the Act creating or conferring
13    power  on an agency, this Act shall control.  If, however, an
14    agency (or its predecessor in the case of an agency that  has
15    been  consolidated or reorganized) has existing procedures on
16    July 1, 1977, specifically for contested cases or  licensing,
17    those existing provisions control, except that this exception
18    respecting  contested  cases  and licensing does not apply if
19    the Act creating or conferring power on the agency adopts  by
20    express  reference the provisions of this Act.  Where the Act
21    creating  or  conferring  power  on  an  agency   establishes
22    administrative  procedures  not  covered  by  this Act, those
23    procedures shall remain in effect.
24        (b)  The provisions of this  Act  do  not  apply  to  (i)
25    preliminary  hearings,  investigations, or practices where no
26    final determinations affecting State funding are made by  the
27    State  Board  of  Education, (ii) legal opinions issued under
28    Section 2-3.7 of the School Code, (iii) as to State  colleges
29    and    universities,   their   disciplinary   and   grievance
30    proceedings, academic  irregularity  and  capricious  grading
31    proceedings, and admission standards and procedures, and (iv)
 
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 1    the   class   specifications  for  positions  and  individual
 2    position  descriptions  prepared  and  maintained  under  the
 3    Personnel Code.  Those class specifications  shall,  however,
 4    be made reasonably available to the public for inspection and
 5    copying.  The provisions of this Act do not apply to hearings
 6    under  Section  20  of  the  Uniform Disposition of Unclaimed
 7    Property Act.
 8        (c)  Section 5-35 of this Act relating to procedures  for
 9    rulemaking does not apply to the following:
10             (1)  Rules  adopted  by  the Pollution Control Board
11        that, in accordance with Section 7.2 of the Environmental
12        Protection Act, are identical  in  substance  to  federal
13        regulations    or   amendments   to   those   regulations
14        implementing the following: Sections  3001,  3002,  3003,
15        3004,  3005,  and  9003  of the Solid Waste Disposal Act;
16        Section 105 of the Comprehensive Environmental  Response,
17        Compensation, and Liability Act of 1980; Sections 307(b),
18        307(c),  307(d),  402(b)(8), and 402(b)(9) of the Federal
19        Water  Pollution  Control  Act;  and  Sections   1412(b),
20        1414(c),  1417(a), 1421, and 1445(a) of the Safe Drinking
21        Water Act.
22             (2)  Rules adopted by the  Pollution  Control  Board
23        that  establish  or  amend  standards for the emission of
24        hydrocarbons and carbon monoxide  from  gasoline  powered
25        motor   vehicles  subject  to  inspection  under  Section
26        13A-105 of the Vehicle Emissions Inspection Law and rules
27        adopted under Section 13B-20  of  the  Vehicle  Emissions
28        Inspection Law of 1995.
29             (3)  Procedural   rules  adopted  by  the  Pollution
30        Control Board governing  requests  for  exceptions  under
31        Section 14.2 of the Environmental Protection Act.
32             (4)  The  Pollution  Control Board's grant, pursuant
33        to an adjudicatory determination, of an adjusted standard
34        for persons who can justify an adjustment consistent with
 
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 1        subsection  (a)  of  Section  27  of  the   Environmental
 2        Protection Act.
 3             (5)  Rules  adopted  by  the Pollution Control Board
 4        that  are  identical  in  substance  to  the  regulations
 5        adopted by the Office of the  State  Fire  Marshal  under
 6        clause (ii) of paragraph (b) of subsection (3) of Section
 7        2 of the Gasoline Storage Act.
 8        (d)  Pay  rates  established  under  Section  8a  of  the
 9    Personnel  Code  shall be amended or repealed pursuant to the
10    process set forth in Section 5-50 within  30  days  after  it
11    becomes  necessary  to  do  so  due to a conflict between the
12    rates and the terms  of  a  collective  bargaining  agreement
13    covering  the  compensation  of  an  employee subject to that
14    Code.
15        (e)  Section 10-45 of this Act shall  not  apply  to  any
16    hearing, proceeding, or investigation conducted under Section
17    13-515 of the Public Utilities Act.
18        (f)  Article  10  of  this  Act  does  not  apply  to any
19    hearing, proceeding, or investigation conducted by the  State
20    Council  for  the  State  of  Illinois  created under Section
21    3-3-11.05 of the  Unified  Code  of  Corrections  or  by  the
22    Interstate    Commission   Commision   for   Adult   Offender
23    Supervision created under the Interstate  Compact  for  Adult
24    Offender Supervision.
25    (Source: P.A. 92-571, eff. 6-26-02; revised 7-25-02.)

26        (5 ILCS 100/1-13 new)
27        Sec.  1-13.   "Administrative  hearing" means any hearing
28    required to comply with the provisions of this Act concerning
29    a contested case.

30        (5 ILCS 100/1-15) (from Ch. 127, par. 1001-15)
31        Sec.  1-15.   "Administrative  law  judge"    means   the
32    presiding  officer  or officers at the initial administrative
 
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 1    hearing before each agency  and  each  continuation  of  that
 2    administrative  hearing.  The  term  also includes but is not
 3    limited to hearing examiners, hearing officers, referees, and
 4    arbitrators.
 5    (Source: P.A. 87-823.)

 6        (5 ILCS 100/1-30) (from Ch. 127, par. 1001-30)
 7        Sec.  1-30.   "Contested  case"  means  an   adjudicatory
 8    proceeding   (not   including   ratemaking,   rulemaking,  or
 9    quasi-legislative, informational, or similar proceedings)  in
10    which the individual legal rights, duties, or privileges of a
11    party  are required by law to be determined by an agency only
12    after an opportunity for an administrative a hearing.
13    (Source: P.A. 87-823.)

14        (5 ILCS 100/10-5) (from Ch. 127, par. 1010-5)
15        Sec. 10-5.  Rules required for  hearings.   All  agencies
16    shall  adopt rules establishing procedures for administrative
17    contested case hearings.
18    (Source: P.A. 87-823.)

19        (5 ILCS 100/10-15) (from Ch. 127, par. 1010-15)
20        Sec.  10-15.   Standard  of  proof.    Unless   otherwise
21    provided by law or stated in the agency's rules, the standard
22    of  proof  in  any  administrative    contested  case hearing
23    conducted  under  this  Act  by  an  agency  shall   be   the
24    preponderance of the evidence.
25    (Source: P.A. 87-823.)

26        (5 ILCS 100/10-20) (from Ch. 127, par. 1010-20)
27        Sec. 10-20.  Qualifications of administrative law judges.
28    All   Agencies  shall  adopt  rules  concerning  the  minimum
29    qualifications   of    administrative    law    judges    for
30    administrative contested case hearings not subject to Article
 
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 1    12  of  this Act.  The agency head or an attorney licensed to
 2    practice law in Illinois may act  as  an  administrative  law
 3    judge or panel for an agency without adopting any rules under
 4    this  Section.  The  These  rules  may  be  adopted using the
 5    procedures in either Section 5-15 or 5-35.
 6    (Source: P.A. 87-823.)

 7        (5 ILCS 100/10-25) (from Ch. 127, par. 1010-25)
 8        Sec. 10-25. Notice  of  contested  cases;  administrative
 9    notice; hearing.
10        (a)  In  a  contested case, all parties shall be afforded
11    an  opportunity  for  an  administrative  a   hearing   after
12    reasonable  notice.  The notice shall be served personally or
13    by certified or registered mail or as otherwise  provided  by
14    law  upon  the  parties  or their agents appointed to receive
15    service of process and shall include the following:
16             (1)  A statement of the time, place, and  nature  of
17        the administrative hearing.
18             (2)  A   statement   of   the  legal  authority  and
19        jurisdiction under which the administrative hearing is to
20        be held.
21             (3)  A reference to the particular Sections  of  the
22        substantive and procedural statutes and rules involved.
23             (4)  Except  where  a  more  detailed  statement  is
24        otherwise   provided  for  by  law,  a  short  and  plain
25        statement of the matters asserted, the consequences of  a
26        failure  to  respond,  and  the  official  file  or other
27        reference number.
28             (5)  The  names  and  mailing   addresses   of   the
29        administrative  law  judge,  all  parties,  and all other
30        persons  to  whom  the  agency  gives   notice   of   the
31        administrative  hearing  unless otherwise confidential by
32        law.
33        (b)  An opportunity shall be afforded all parties  to  be
 
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 1    represented  by  legal  counsel  and  to  respond and present
 2    evidence and argument.
 3        (c)  Unless precluded by law, disposition may be made  of
 4    any contested case by stipulation, agreed settlement, consent
 5    order, or default.
 6    (Source: P.A. 87-823.)

 7        (5 ILCS 100/10-45) (from Ch. 127, par. 1010-45)
 8        Sec.   10-45.    Proposal  for  decision.   Except  where
 9    otherwise expressly provided by law, when in a contested case
10    a majority of the officials of the agency who are  to  render
11    the   final  decision  has  not  heard  the  case or read the
12    record, the decision, if adverse to a party to the proceeding
13    other than the agency, shall not be made until a proposal for
14    decision is served upon the parties  and  an  opportunity  is
15    afforded  to each party adversely affected to file exceptions
16    and to present a brief and, if the agency  so  permits,  oral
17    argument  to  the  agency  officials  who  are  to render the
18    decision.   The  proposal  for  decision  shall   contain   a
19    statement  of  the reasons therefor and of each issue of fact
20    or law necessary  to  the  proposed  decision  and  shall  be
21    prepared  by  the  persons  who  conducted the administrative
22    hearing or one who has read the record.
23    (Source: P.A. 87-823.)

24        (5 ILCS 100/10-50) (from Ch. 127, par. 1010-50)
25        Sec. 10-50.  Decisions and orders.
26        (a)  A final decision or order adverse to a party  (other
27    than  the  agency) in a contested case shall be in writing or
28    stated on in the record.   A  final  decision  shall  include
29    findings  of  fact and conclusions of law, separately stated.
30    Findings of fact, if set forth in statutory  language,  shall
31    be  accompanied  by  a  concise and explicit statement of the
32    underlying facts supporting the findings.  If, in  accordance
 
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 1    with  agency  rules,  a  party submitted proposed findings of
 2    fact, the decision shall include a ruling upon each  proposed
 3    finding.   Parties  or  their  agents  appointed  to  receive
 4    service  of process shall be notified either personally or by
 5    registered or certified mail of any decision or order.   Upon
 6    request a copy of the decision or order shall be delivered or
 7    mailed  forthwith  to  each party and to each his attorney of
 8    record.
 9        (b)  All agency orders shall  specify  whether  they  are
10    final and subject to the Administrative Review Law.
11        (c)  A  decision  by any agency in a contested case under
12    this Act shall be void unless the proceedings  are  conducted
13    in  compliance  with  the  provisions of this Act relating to
14    contested cases, except to the extent  those  provisions  are
15    waived  under  Section  10-70  and  except  to the extent the
16    agency has adopted its  own  rules  for  contested  cases  as
17    authorized in Section 1-5.
18    (Source: P.A. 92-16, eff. 6-28-01.)

19        (5 ILCS 100/10-60) (from Ch. 127, par. 1010-60)
20        Sec. 10-60.  Ex parte communications.
21        (a)  Except  in  the disposition of matters that agencies
22    are authorized by law to entertain or dispose  of  on  an  ex
23    parte    basis,   agency   heads,   agency   employees,   and
24    administrative law judges shall not, after notice of  hearing
25    in a contested case or licensing to which the procedures of a
26    contested case apply under this Act, communicate, directly or
27    indirectly,  in  connection  with any issue of fact, with any
28    person or party, or in connection with any other  issue  with
29    any  party or the representative of any party, without except
30    upon notice and opportunity for all parties to participate.
31        (b)  However, an agency member may communicate with other
32    members of the agency, and an agency member or administrative
33    law judge may have the aid and advice of one or more personal
 
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 1    assistants.
 2        (c)  An ex parte communication  received  by  any  agency
 3    head,  agency  employee, or administrative law judge shall be
 4    made a part of the record of the  pending  matter,  including
 5    all  written  communications,  all  written  responses to the
 6    communications, and a memorandum stating the substance of all
 7    oral communications and all responses made and  the  identity
 8    of  each  person  from  whom  the  ex parte communication was
 9    received.
10        (d)  Communications regarding matters  of  procedure  and
11    practice,  such  as the format of pleadings, number of copies
12    required,  manner  of  service,  scheduling,  and  status  of
13    proceedings, are not considered ex parte communications under
14    this Section.
15    (Source: P.A. 87-823.)

16        (5 ILCS 100/10-65) (from Ch. 127, par. 1010-65)
17        Sec. 10-65.  Licenses.
18        (a)  When any licensing is required by law to be preceded
19    by notice and an opportunity for an administrative a hearing,
20    the provisions of this Act concerning contested  cases  shall
21    apply.
22        (b)  When  a  licensee  has  made  timely  and sufficient
23    application for the renewal of a license  or  a  new  license
24    with  reference  to  any activity of a continuing nature, the
25    existing license shall continue  in  full  force  and  effect
26    until  the  final agency decision on the application has been
27    made unless a later date is fixed by  order  of  a  reviewing
28    court.
29        (c)  An application for the renewal of a license or a new
30    license shall include the applicant's social security number.
31    Each  agency  shall  require  the  licensee to certify on the
32    application form, under penalty of perjury, that he or she is
33    not more than 30 days delinquent in complying  with  a  child
 
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 1    support order.  Every application shall state that failure to
 2    so  certify  shall  result  in  disciplinary action, and that
 3    making a false statement may subject the licensee to contempt
 4    of court.  The agency shall notify each applicant or licensee
 5    who acknowledges a delinquency or who, contrary to his or her
 6    certification,  is  found  to  be  delinquent  or  who  after
 7    receiving notice, fails to comply with a subpoena or  warrant
 8    relating  to  a paternity or a child support proceeding, that
 9    the agency intends to take disciplinary action.  Accordingly,
10    the agency shall provide  written  notice  of  the  facts  or
11    conduct  upon  which  the  agency  will  rely  to support its
12    proposed action and the applicant or licensee shall be  given
13    an  opportunity for an administrative a hearing in accordance
14    with the provisions of the Act  concerning  contested  cases.
15    Any  delinquency  in complying with a child support order can
16    be remedied by arranging for payment of past due and  current
17    support.   Any  failure  to comply with a subpoena or warrant
18    relating to a paternity or child support  proceeding  can  be
19    remedied  by  complying with the subpoena or warrant.  Upon a
20    final finding of delinquency or  failure  to  comply  with  a
21    subpoena  or  warrant,  the  agency shall suspend, revoke, or
22    refuse to issue or renew the license. In cases in  which  the
23    Department  of  Public  Aid has previously determined that an
24    applicant or a licensee is more than 30  days  delinquent  in
25    the  payment  of child support and has subsequently certified
26    the delinquency to the licensing  agency,  and  in  cases  in
27    which  a court has previously determined that an applicant or
28    licensee has been in violation of the Non-Support  Punishment
29    Act  for more than 60 days, the licensing agency shall refuse
30    to issue or renew or shall revoke or  suspend  that  person's
31    license  based  solely  upon the certification of delinquency
32    made by the Department of Public Aid or the certification  of
33    violation  made  by the court.  Further process, hearings, or
34    redetermination  of  the  delinquency  or  violation  by  the
 
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 1    licensing agency  shall  not  be  required.    The  licensing
 2    agency  may  issue  or  renew  a  license if the licensee has
 3    arranged for  payment  of  past  and  current  child  support
 4    obligations  in  a  manner  satisfactory to the Department of
 5    Public Aid or the court.  The  licensing  agency  may  impose
 6    conditions,  restrictions,  or  disciplinary action upon that
 7    license.
 8        (d)  Except as provided  in  subsection  (c),  no  agency
 9    shall  revoke, suspend, annul, withdraw, amend materially, or
10    refuse to  renew  any  valid  license  without  first  giving
11    written  notice  to the licensee of the facts or conduct upon
12    which the agency will rely to support its proposed action and
13    an opportunity for an administrative a hearing in  accordance
14    with  the  provisions of this Act concerning contested cases.
15    At the administrative hearing, the licensee  shall  have  the
16    right to show compliance with all lawful requirements for the
17    retention,  continuation,  or  renewal  of  the license.  If,
18    however, the agency finds that the public  interest,  safety,
19    or welfare imperatively requires emergency action, and if the
20    agency  incorporates  a  finding to that effect in its order,
21    summary suspension  of  a  license  may  be  ordered  pending
22    proceedings   for   revocation   or   other   action.   Those
23    proceedings shall be promptly instituted and determined.
24        (e)  Any  application  for  renewal  of  a  license  that
25    contains required and relevant information,  data,  material,
26    or  circumstances  that  were not contained in an application
27    for the existing license shall be subject to  the  provisions
28    of subsection (a).
29    (Source: P.A. 90-18, eff. 7-1-99; 91-613, eff. 10-1-99.)

30        (5 ILCS 100/Art. 12 heading new)
31             ARTICLE 12.  OFFICE OF ADMINISTRATIVE HEARINGS

32        (5 ILCS 100/12-5 new)
 
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 1        Sec.  12-5.  Applicability.   This Article applies to all
 2    agencies under the jurisdiction of the  Governor  other  than
 3    the following:
 4        (a)  Illinois  Labor  Relations Board and the State Panel
 5    and Local Panel  created  under  the  Illinois  Public  Labor
 6    Relations Act;
 7        (b)  Illinois Educational Labor Relations Board;
 8        (c)  Illinois Commerce Commission;
 9        (d)  Illinois Industrial Commission;
10        (e)  Civil Service Commission;
11        (f)  Pollution Control Board;
12        (g)  Illinois State Police Merit Board;
13        (h)  Property Tax Appeal Board; and
14        (i)  Human Rights Commission.

15        (5 ILCS 100/12-10 new)
16        Sec. 12-10.  Office of Administrative Hearings.
17        (a)  The  Office  of  Administrative Hearings (Office) is
18    established.  The Office is an independent  State  agency  in
19    the  executive  branch  and  is  responsible  for  conducting
20    administrative  hearings  in  accordance with the legislative
21    intent expressed by this Act.
22        (b)  The  Office  is  under  the  direction  of  a  Chief
23    Administrative Law Judge, appointed by the Governor,  by  and
24    with  the  advice  and  consent  of  the  Senate.   The Chief
25    Administrative Law Judge, as a condition of appointment, must
26    have been admitted to practice law in the State  of  Illinois
27    for  at  least  10 years, must have substantial knowledge and
28    experience suitable to the duties of the Office, and  may  be
29    removed   only   for  good  cause  following  notice  and  an
30    opportunity for an adjudicative hearing.
31        (c)  The Chief Administrative Law Judge must maintain his
32    or her principal office in Springfield and may  maintain  any
33    other   offices   that   may   be   necessary.    The   Chief
 
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 1    Administrative  Law Judge may purchase or lease any equipment
 2    and supplies that may be necessary to carry out  his  or  her
 3    duties and must maintain records and files of the work of the
 4    Office.

 5        (5 ILCS 100/12-15 new)
 6        Sec. 12-15.  Term of office and salary.
 7        (a)  The Chief Administrative Law Judge shall serve for a
 8    term  of  6  years, provided that he or she shall hold office
 9    until a successor is appointed.
10        (b)  The Chief Administrative Law Judge shall receive  an
11    annual  salary  of  $95,000  or the amount established by the
12    Compensation Review Board, whichever is greater.

13        (5 ILCS 100/12-20 new)
14        Sec. 12-20.  Oath.  Each prospective Chief Administrative
15    Law Judge, before taking office, must take and  subscribe  to
16    the  oath  or  affirmation prescribed by Section 3 of Article
17    XIII of the Illinois Constitution, an executed copy of  which
18    must be filed with the Secretary of State.

19        (5 ILCS 100/12-25 new)
20        Sec.    12-25.  Powers    and   Duties   of   the   Chief
21    Administrative Law Judge.  The Chief Administrative Law Judge
22    has the following powers and duties:
23        (a)  The Chief Administrative Law Judge  may  select  any
24    administrative law judges that are necessary to carry out the
25    purposes of this Article.  The Chief Administrative Law Judge
26    may  establish  different  levels of administrative law judge
27    positions.  The Chief Administrative Law Judge may employ and
28    direct  other  staff,  including  administrative,  technical,
29    clerical, and other specialized or technical  personnel  that
30    may be necessary to carry out the purposes of this Article.
31             (1) Except as otherwise provided in paragraph (2) of
 
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 1        this  subsection, each administrative law judge must have
 2        been admitted to practice as an attorney  in  this  State
 3        for  at  least  5  years  and  must  have  a demonstrated
 4        knowledge of and experience  in  administrative  law  and
 5        procedure  that  is suitable to the duties of the Office.
 6        An administrative  law  judge  must  be  a  full-time  or
 7        part-time  employee  of the Office, except that the Chief
 8        Administrative Law Judge may contract for the services of
 9        an attorney to serve as an administrative law judge for a
10        specific case, when  necessary,  because  of  a  lack  of
11        available employees with the expertise required to handle
12        a specialized contested case.
13             (2)  The  Chief  Administrative Law Judge may employ
14        persons who are not admitted to practice as  an  attorney
15        to   act   as  administrative  law  judges  if  they  are
16        transferred to the Office under subsection (c) of Section
17        12-40 of this Article. The Chief Administrative Law Judge
18        may also employ or contract with persons not admitted  to
19        practice   law   if  those  persons  have  the  requisite
20        knowledge of administrative law  and  procedure  and  the
21        specialized    subject-matter   expertise   to   act   as
22        administrative law judges in highly technical cases.
23        (b)  Employees of the  Office  are  not  subject  to  the
24    Personnel  Code.   The  Chief  Administrative  Law Judge must
25    establish hiring procedures based upon merit and fitness  and
26    may  discipline  and terminate employees based only upon good
27    cause.  The Chief Administrative Law Judge must fix  salaries
28    of  Office employees and adopt personnel rules establishing a
29    general salary schedule  according  to  a  classification  of
30    employees,  subject  to  merit increases, that applies to all
31    employees.  The Chief Administrative Law Judge must  adopt  a
32    code  of conduct and rules concerning the hiring, discipline,
33    and termination of employees.
34        (c)  The Chief Administrative Law Judge  must  assign  an
 
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 1    administrative  law judge for any proceeding that is required
 2    by this Article to be conducted by the  Office  and  for  any
 3    proceeding  for  which  the  Office  has agreed to furnish an
 4    administrative law judge as provided in subsection  (d).  Any
 5    administrative  law  judge  so  assigned  does  not become an
 6    employee of the agency  during  the  assignment  and  is  not
 7    subject  to the direction or the supervision of the agency to
 8    whose  proceeding  the  administrative  law  judge  has  been
 9    assigned.
10        (d)  The Office may enter into an  interagency  agreement
11    with  any  agency  to  furnish  administrative  law judges to
12    conduct administrative hearings not otherwise required to  be
13    conducted  by  the Office.  The Office may also enter into an
14    agreement with a unit of local government or school  district
15    to    furnish    administrative   law   judges   to   conduct
16    administrative hearings.
17        (e)  In assigning administrative law  judges,  the  Chief
18    Administrative  Law  Judge must, when possible, use personnel
19    having experience in the  field  or  subject  matter  of  the
20    hearing and assign administrative law judges primarily to the
21    hearings  of  particular  agencies on a long-term basis.  The
22    Chief Administrative Law Judge may act as  an  administrative
23    law judge in a particular case.
24        (f)  The Office may adopt rules as necessary to carry out
25    its  powers  and  duties  under  this  Act.   The  rules must
26    include,  but  are  not  limited  to,  the   procedures   for
27    requesting  the  assignment of administrative law judges.  No
28    agency, however, may select any individual administrative law
29    judge  for  any   proceeding   or   reject   any   individual
30    administrative  law  judge,  except  in  accordance  with the
31    provisions of this Article regarding disqualifications.
32        (g)  The Office must develop and institute a  program  of
33    continuing  education  and  training  for  administrative law
34    judges and may permit administrative law judges  and  hearing
 
                            -15-     LRB093 03877 JAM 03912 b
 1    examiners  employed  by  other agencies to participate in its
 2    program.   The  Office  may  develop  and   institute   other
 3    educational  programs  in  the area of administrative law and
 4    procedure for the benefit of State employees  and  those  who
 5    participate in administrative hearings.
 6        (h)  The Office must:
 7             (1)  annually  collect information on administrative
 8        law  and   procedure   in   Illinois   and   must   study
 9        administrative  law  and  procedure  for  the  purpose of
10        improving the fairness,  efficiency,  and  uniformity  of
11        administrative adjudicatory proceedings in Illinois;
12             (2)  monitor   the   quality   and   cost  of  State
13        administrative hearings; and
14             (3)  annually    report     its     findings     and
15        recommendations  to  the  Governor  and  to  the  General
16        Assembly no later than March 15 of each year.

17        (5 ILCS 100/12-30 new)
18        Sec.  12-30.  Proceedings.  Beginning on January 1, 2005,
19    an administrative law judge of the Office shall preside  over
20    any  administrative  hearing  of  any  agency subject to this
21    Article, except that an administrative hearing in a contested
22    case commenced before January 1, 2005 and pending  before  an
23    administrative  law  judge  not  transferred to the Office of
24    Administrative Hearings by operation of Section 12-40 of this
25    Article shall not be heard by an administrative law judge  of
26    the Office without the agreement of the parties.

27        (5 ILCS 100/12-35 new)
28        Sec. 12-35.  Administrative Hearing Procedures.
29        (a)  Time  and place of hearing.  The Office must consult
30    the  agency  and  determine  the  place  and  the   time   of
31    commencement of the administrative hearing.
32        (b)  Powers    of    administrative   law   judge.    The
 
                            -16-     LRB093 03877 JAM 03912 b
 1    administrative  law  judge  presides  at  the  administrative
 2    hearing and may:
 3             (1)  administer oaths and affirmations;
 4             (2)  rule on offers of proof  and  receive  relevant
 5        evidence;
 6             (3)  regulate  the  schedule  and  the course of the
 7        hearing;
 8             (4)  dispose  of  procedural  requests  or   similar
 9        matters;
10             (5)  sign  and  issue  subpoenas  in the name of the
11        agency requiring attendance and giving  of  testimony  by
12        witnesses  and the production of books, papers, and other
13        documentary evidence;
14             (6)  exercise  any  other  powers  relating  to  the
15        conduct of the administrative hearing that  are  lawfully
16        delegated  to  him  or  her  by  the  agency  or  by  the
17        examining,  advisory,  or  disciplinary board.  Whenever,
18        after an  agency  head  or  an  examining,  advisory,  or
19        disciplinary  board has commenced  hearing a case with an
20        administrative law judge presiding, a  quorum  no  longer
21        exists,  the administrate law judge who is presiding must
22        complete the hearing as if sitting alone and must  render
23        a  proposed decision in accordance with subsection (e) of
24        this Section; and
25             (7)  perform other necessary and appropriate acts in
26        the performance of his or her duties.
27        (c) Disqualifications.
28             (1)  An administrative law judge of the Office  must
29        voluntarily  disqualify  himself  or herself and withdraw
30        from any case for bias, prejudice, interest, or any other
31        cause for which, under the laws of this  State,  a  State
32        court  judge  is  disqualified  from hearing a particular
33        case.  An administrative law  judge  should  perform  the
34        duties of the Office impartially and diligently.
 
                            -17-     LRB093 03877 JAM 03912 b
 1             (2)  Any party may petition for the disqualification
 2        of  any  administrative  law judge by filing an affidavit
 3        stating with particularity the grounds upon which  it  is
 4        claimed  that  a  fair  and  impartial  hearing cannot be
 5        accorded.  The affidavit must be filed before the  taking
 6        of  evidence  or,  if  evidence  has  already been taken,
 7        promptly upon discovering facts establishing grounds  for
 8        disqualification.
 9             (3)  The     administrative    law    judge    whose
10        disqualification is requested must determine  whether  to
11        grant  the  petition,  stating  facts and reasons for the
12        determination.
13             (4)  If  an   administrative   law   judge   becomes
14        unavailable as a result of recusal or  any other reasons,
15        the  Chief  Administrative  Law Judge must assign another
16        administrative law judge to preside at the administrative
17        hearing.
18        (d)  Ex parte communications.  Except in  disposition  of
19    matters that are authorized by law to be disposed of on an ex
20    parte  basis,  no administrative law judge of the Office may,
21    after notice of an  administrative  hearing  in  a  contested
22    case, communicate, directly or indirectly, in connection with
23    any issue of fact, with any person or party, or in connection
24    with   any   other  issue  with  any  party  or  his  or  her
25    representative,  without  notice  and  opportunity  for   all
26    parties   to  participate.    An  administrative  law  judge,
27    however, may communicate with other employees of the Office.
28    No member of the Office  may  communicate  regarding  pending
29    matters  to  any  member  of  an  agency  or of an examining,
30    advisory, or disciplinary board if the  agency  or  board  is
31    hearing  the  case  with  the  administrative  law judge.  An
32    administrative law judge may have the aid and advice  of  one
33    or more assistants.
34        (e)  Proposed  decisions.  When a majority of the members
 
                            -18-     LRB093 03877 JAM 03912 b
 1    of an agency or of an examining,  advisory,  or  disciplinary
 2    board has not heard a case with the administrative law judge,
 3    any proposed decision prepared by an administrative law judge
 4    of  the  Office is subject to this subsection (e) and Section
 5    10-45 of this Act.
 6             (1)  When an administrative law judge hears  a  case
 7        alone,  he  or  she must prepare a proposed decision in a
 8        form that may be adopted as the  decision  in  the  case.
 9        The  administrative  law  judge  must submit the proposed
10        decision to the agency or, in  the  case  of  proceedings
11        that  an  examining,  advisory,  or disciplinary board is
12        authorized by an Act  to  hear  and  make  a  recommended
13        decision,  to  the  examining,  advisory, or disciplinary
14        board.
15             (2)  When an administrative law judge hears  a  case
16        with  an  agency  head or with an examining, advisory, or
17        disciplinary board, the administrative law judge must  be
18        present during the consideration of the case and must, if
19        requested  by  the  agency  or  by  the  board, prepare a
20        proposed decision and submit it to the agency or board.
21             (3)  In reviewing a proposed decision  submitted  by
22        an administrative law judge of the Office, an agency head
23        or  an  examining, advisory, or disciplinary board is not
24        bound by the proposed decision and may adopt  all,  some,
25        or  none  of  the  proposed  decision  as its recommended
26        decision.  If the agency head or examining, advisory,  or
27        disciplinary  board  does not adopt the proposed decision
28        in its entirety, it must either (i) recommend a  decision
29        in  the case based upon the record, including transcript,
30        or (ii) remand the case to the  same  administrative  law
31        judge to take additional evidence.
32             (4)  If   a   case   has   been   remanded   to   an
33        administrative  law  judge to take additional evidence or
34        to include more detailed findings of fact or  conclusions
 
                            -19-     LRB093 03877 JAM 03912 b
 1        of  law,  the  administrative  law  judge  must prepare a
 2        proposed decision upon the additional evidence  and  upon
 3        the  transcript  and  other  papers  that are part of the
 4        record of the prior hearing and must submit the  proposed
 5        decision  to the agency or to the examining, advisory, or
 6        disciplinary board.  If the administrative law judge  who
 7        heard  the  case  originally  is  unavailable to take the
 8        additional  evidence,  by  reason  of  illness  or  other
 9        disability or because he or she is no longer employed  by
10        the  Office,  the  Chief  Administrative  Law  Judge must
11        assign a different administrative law judge to  take  the
12        additional evidence.

13        (5 ILCS 100/12-40 new)
14        Sec. 12-40.  Transition.
15        (a)  The Governor must appoint a Chief Administrative Law
16    Judge to take office on July  1, 2004.
17        (b)  No later than July 1, 2004, each agency must provide
18    to   the   Chief   Administrative   Law  Judge  all  relevant
19    information  concerning   hearings,   number   of   hearings,
20    personnel  used  as  hearing  officers and support staff, and
21    actual expenditures for contracted hearing officer  services,
22    equipment, and travel.
23        (c)  All   full-time   administrative   law  judges  used
24    principally to preside over administrative hearings conducted
25    by an agency subject to the provisions of  this  Act  for  at
26    least  one  year before July 1, 2004 must be administratively
27    transferred to the Office no later than January 1, 2005.
28        (d)  All full-time employees who have principally  served
29    as   support  staff  of  those  employees  transferred  under
30    subsection (c)  of  this  Section  must  be  administratively
31    transferred to the Office no later than January 1, 2005.
32        (e)  All   equipment   or  other  tangible  property,  in
33    possession of agencies, used or held principally by personnel
 
                            -20-     LRB093 03877 JAM 03912 b
 1    transferred under this Section must  be  transferred  to  the
 2    Office not later than January 1, 2005, unless the head of the
 3    agency  and the Chief Administrative Law Judge determine that
 4    the equipment or property will be more  efficiently  used  by
 5    the agency if not transferred.

 6        Section  10.  The  Personnel  Code is amended by changing
 7    Section 4c as follows:

 8        (20 ILCS 415/4c) (from Ch. 127, par. 63b104c)
 9        Sec. 4c.  General exemptions.  The following positions in
10    State service shall be exempt from jurisdictions A, B, and C,
11    unless the jurisdictions shall be  extended  as  provided  in
12    this Act:
13             (1)  All officers elected by the people.
14             (2)  All  positions  under  the Lieutenant Governor,
15        Secretary of State, State Treasurer,  State  Comptroller,
16        State Board of Education, Clerk of the Supreme Court, and
17        Attorney General.
18             (3)  Judges,  and  officers  and  employees  of  the
19        courts, and notaries public.
20             (4)  All  officers  and  employees  of  the Illinois
21        General   Assembly,   all   employees   of    legislative
22        commissions,  all officers and employees of  the Illinois
23        Legislative Reference Bureau,  the  Legislative  Research
24        Unit, and the Legislative Printing Unit.
25             (5)  All  positions  in  the Illinois National Guard
26        and Illinois State Guard,  paid  from  federal  funds  or
27        positions  in  the  State   Military  Service  filled  by
28        enlistment and paid from State funds.
29             (6)  All  employees of the Governor at the executive
30        mansion and on his immediate personal staff.
31             (7)  Directors of Departments, the Adjutant General,
32        the Assistant  Adjutant  General,  the  Director  of  the
 
                            -21-     LRB093 03877 JAM 03912 b
 1        Illinois  Emergency  Management Agency, members of boards
 2        and commissions,  and all other  positions  appointed  by
 3        the Governor by and with the consent of the Senate.
 4             (8)  The  presidents, other principal administrative
 5        officers, and teaching, research and extension  faculties
 6        of Chicago State University, Eastern Illinois University,
 7        Governors  State  University,  Illinois State University,
 8        Northeastern  Illinois  University,   Northern   Illinois
 9        University,  Western  Illinois  University,  the Illinois
10        Community College Board,  Southern  Illinois  University,
11        Illinois   Board   of  Higher  Education,  University  of
12        Illinois,  State  Universities  Civil   Service   System,
13        University   Retirement   System  of  Illinois,  and  the
14        administrative  officers  and  scientific  and  technical
15        staff of the Illinois State Museum.
16             (9)  All  other  employees  except  the  presidents,
17        other principal administrative  officers,  and  teaching,
18        research  and  extension  faculties  of  the universities
19        under the jurisdiction of the Board of  Regents  and  the
20        colleges  and universities under the  jurisdiction of the
21        Board of Governors of State  Colleges  and  Universities,
22        Illinois   Community  College  Board,  Southern  Illinois
23        University, Illinois Board of Higher Education, Board  of
24        Governors  of  State Colleges and Universities, the Board
25        of Regents, University  of Illinois,  State  Universities
26        Civil  Service  System,  University  Retirement System of
27        Illinois, so long as these are subject to the  provisions
28        of the State Universities Civil Service Act.
29             (10)  The  State  Police so long as they are subject
30        to the merit provisions of the State Police Act.
31             (11)  The scientific staff of the  State  Scientific
32        Surveys and the Waste Management and Research Center.
33             (12)  The  technical  and  engineering staffs of the
34        Department of Transportation, the Department  of  Nuclear
 
                            -22-     LRB093 03877 JAM 03912 b
 1        Safety,  the  Pollution  Control  Board, and the Illinois
 2        Commerce Commission, and the  technical  and  engineering
 3        staff providing architectural and engineering services in
 4        the Department of Central Management Services.
 5             (13)  All  employees  of  the  Illinois  State  Toll
 6        Highway Authority.
 7             (14)  The Secretary of the Industrial Commission.
 8             (15)  All  persons  who are appointed or employed by
 9        the Director of Insurance  under authority of Section 202
10        of the Illinois Insurance Code to assist the Director  of
11        Insurance in discharging his responsibilities relating to
12        the  rehabilitation,   liquidation,   conservation,   and
13        dissolution   of   companies  that  are  subject  to  the
14        jurisdiction of the Illinois  Insurance Code.
15             (16)  All employees of the  St.  Louis  Metropolitan
16        Area Airport Authority.
17             (17)  All   investment   officers  employed  by  the
18        Illinois State Board of Investment.
19             (18)  Employees  of   the   Illinois   Young   Adult
20        Conservation  Corps program, administered by the Illinois
21        Department of Natural Resources, authorized grantee under
22        Title VIII of the Comprehensive Employment  and  Training
23        Act of 1973, 29 USC 993.
24             (19)  Seasonal   employees   of  the  Department  of
25        Agriculture for the operation of the Illinois State  Fair
26        and  the DuQuoin State Fair, no one person receiving more
27        than 29 days of such employment in any calendar year.
28             (20)  All  "temporary"  employees  hired  under  the
29        Department of Natural  Resources'  Illinois  Conservation
30        Service,  a  youth  employment  program  that hires young
31        people to work in State parks for a period of one year or
32        less.
33             (21)  All  hearing  officers  of  the  Human  Rights
34        Commission.
 
                            -23-     LRB093 03877 JAM 03912 b
 1             (22)  All employees of the Illinois Mathematics  and
 2        Science Academy.
 3             (23)  All  employees  of  the  Kankakee River Valley
 4        Area Airport Authority.
 5             (24)  All employees of the Office of  Administrative
 6        Hearings.
 7    (Source:  P.A.  90-490,  eff.  8-17-97;  91-214, eff. 1-1-00;
 8    91-357, eff. 7-29-99.)

 9        Section 99.  Effective date.  This Act takes effect  upon
10    becoming law.
 
                            -24-     LRB093 03877 JAM 03912 b
 1                                INDEX
 2               Statutes amended in order of appearance
 3    5 ILCS 100/1-5            from Ch. 127, par. 1001-5
 4    5 ILCS 100/1-13 new
 5    5 ILCS 100/1-15           from Ch. 127, par. 1001-15
 6    5 ILCS 100/1-30           from Ch. 127, par. 1001-30
 7    5 ILCS 100/10-5           from Ch. 127, par. 1010-5
 8    5 ILCS 100/10-15          from Ch. 127, par. 1010-15
 9    5 ILCS 100/10-20          from Ch. 127, par. 1010-20
10    5 ILCS 100/10-25          from Ch. 127, par. 1010-25
11    5 ILCS 100/10-45          from Ch. 127, par. 1010-45
12    5 ILCS 100/10-50          from Ch. 127, par. 1010-50
13    5 ILCS 100/10-60          from Ch. 127, par. 1010-60
14    5 ILCS 100/10-65          from Ch. 127, par. 1010-65
15    5 ILCS 100/Art. 12 heading new
16    5 ILCS 100/12-5 new
17    5 ILCS 100/12-10 new
18    5 ILCS 100/12-15 new
19    5 ILCS 100/12-20 new
20    5 ILCS 100/12-25 new
21    5 ILCS 100/12-30 new
22    5 ILCS 100/12-35 new
23    5 ILCS 100/12-40 new
24    20 ILCS 415/4c            from Ch. 127, par. 63b104c