Makes various changes to provisions of "Administrative Procedure Act."

A1505

ASSEMBLY, No. 1505

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ROY FREIMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblywoman LUANNE M. PETERPAUL

District 11 (Monmouth)

Assemblyman DAN HUTCHISON

District 4 (Atlantic, Camden and Gloucester)

Assemblywoman MITCHELLE DRULIS

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

SYNOPSIS

���� Makes various changes to provisions of
"Administrative Procedure Act."

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
concerning State agency procedures and amending
P.L.1968, c.410, P.L.2001, c.5, P.L.2011, c.33, and P.L.2017, c.262.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 3 of P.L.1968,
c.410 (C.52:14B-3) is amended to read as follows:

���� 3.�
a.
� In addition to
other rule-making requirements imposed by law, each agency shall:

���� (1)�� adopt as a rule a
description of its organization, stating the general course and method of its
operations and the methods whereby the public may obtain information or make
submissions or requests;

���� (2)�� adopt rules of practice
setting forth the nature and requirements of all formal and informal procedures
available, including a description of all forms and instructions used by the
agency, and if not otherwise set forth in an agency's rules, a table of all
permits and their fees, violations and penalties, deadlines, processing times
and appeals procedures.� A complete list of the agency's permits, fees,
violations, penalties, deadlines, processing times, and appeals procedures
shall also be made available for public viewing through publication on the
agency's Internet website;

���� (3)�� make available for
public viewing, through publication on the agency's Internet website, and
through any other means, all final agency orders, decisions, and opinions, in
accordance with the provisions of chapter 73 of the laws of 1963 as amended and
supplemented (C.47:1A-1 et seq.);

���� (4)�� make available for
public viewing, through publication on the agency's Internet website, all of
the agency's rule-making and public hearing notices, publicity documents, press
releases, final and non-confidential agency reports,
[
and
]
rule-making petitions received
by the agency pursuant to subsection (f) of section 4 of P.L.1968, c.410
(C.52:14B-4)
, all public comments received for each proposed rulemaking
action, and all data sets and other information or resources used in the
formulation of a proposed rule, provided that the agency shall not disclose any
confidential information or trade secrets, or any information which may pose a
security threat to a person or property
;
[
and
]

���� (5)�� publish in the New
Jersey Register a quarterly calendar setting forth a schedule of the agency's
anticipated rule-making activities for the next six months.� The calendar shall
include the name of the agency and agency head, a citation to the legal authority
authorizing the rule-making action and a synopsis of the subject matter and the
objective or purpose of the agency's proposed rules
; and

����
(6) provide to the Office
of Administrative Law all information required for the creation and maintenance
of the Statewide database published pursuant to section 1 of P.L.2017, c.262
(C.52:14B-7.1)
.

���� In a manner prescribed by the
Director of the Office of Administrative Law, each agency shall appropriately
publicize that copies of its calendar are available to interested persons for a
reasonable fee.� The amount of the fee shall be set by the director.

���� An agency shall notify the
Director of the Office of Administrative Law when it wishes to amend its
calendar of rule-making activities.� Any amendment which involves the addition
of any rule-making activity to an agency's calendar shall provide that the agency
shall take no action on that matter until at least 45 days following the first
publication of the amended calendar in which the announcement of that proposed
rule-making activity first appears.

���� The provisions of this
paragraph shall not apply to rule-making:

���� (a)�� required or authorized
by federal law when failure to adopt rules in a timely manner will prejudice
the State;

���� (b)�� subject to a specific
statutory authorization requiring promulgation in a lesser time period;

���� (c)�� involving an imminent
peril subject to provisions of subsection (c) of section 4 of P.L.1968, c.410
(C.52:14B-4);

���� (d)��
[
for which the
agency has published a notice of pre-proposal of a rule in accordance with
rules adopted by the Director of the Office of Administrative Law
]

(Deleted
by amendment, P.L. , c. )

(pending
before the Legislature as this bill)
; or

���� (e)�� for which a comment
period of at least
[
60
]

90

days
, commencing on the date of the formal notice of action required
pursuant to subsection a. of section 4 of P.L.1968, c.410 (C.52:14B-4),
is
provided.

���� A proposed rule falling within
any of the exceptions to the provisions of this subsection shall so indicate in
the notice of proposal.

����
b.� A State agency shall
not consolidate rule proposals for rules that have no essential relation to one
another.� Each rulemaking action shall be directed toward a single object.

(cf: P.L.2013, c.259, s.3)

���� 2.��� Section 4 of P.L.1968,
c.410 (C.52:14B-4) is amended to read as follows:

���� 4.� (a) Prior to the adoption,
amendment, or repeal of any rule, except as may be otherwise provided, the
agency shall:

���� (1)�� Give at least
[
30
]

60

days' notice of its intended action.� The notice shall include a statement of
either the terms or substance of the intended action or a description of the
subjects and issues involved, and the time when, the place where, and the
manner in which interested persons may present their views thereon.� The notice
shall be mailed to all persons who have made timely requests of the agency for
advance notice of its rule-making proceedings and, in addition to any other
public notice required by law, shall be published in the New Jersey Register.�
Notice shall also be distributed to the news media maintaining a press office
to cover the State House Complex, and made available for public viewing through
publication on the agency's Internet website.� Each agency shall additionally
publicize the intended action and shall adopt rules to prescribe the manner in
which it will do so.� In order to inform those persons most likely to be
affected by or interested in the intended action, each agency shall distribute
notice of its intended action to interested persons, and shall publicize the
same, through the use of an electronic mailing list or similar type of
subscription-based e-mail service. Additional publicity methods that may be
employed include publication of the notice in newspapers of general circulation
or in trade, industry, governmental or professional publications, distribution
of press releases to the news media and posting of notices in appropriate
locations, including the agency's Internet website.� The rules shall prescribe
the circumstances under which each additional method shall be employed;

���� (2)�� Prepare for public
distribution at the time the notice appears in the Register, and make available
for public viewing through publication on the agency's Internet website, a
statement setting forth a summary of the proposed rule, as well as a clear and
concise explanation of the purpose and effect of the rule, the specific legal
authority under which its adoption is authorized, a description of the expected
socio-economic impact of the rule
, including estimates, in dollars, of the
proposed rule's effects on annual expenditures by the State, municipalities,
businesses, and residents
, a regulatory flexibility analysis
[
,
]
or the
statement of finding that a regulatory flexibility analysis is not required, as
provided in section 4 of P.L.1986, c.169 (C.52:14B-19), a jobs impact statement
which shall include an assessment of the number of jobs to be generated or lost
if the proposed rule takes effect, an agriculture industry impact statement
,

as provided in section 7 of P.L.1998, c.48 (C.4:1C-10.3), a housing
affordability impact statement, a smart growth development impact statement, as
provided in section 31 of P.L.2008, c.46 (C.52:14B-4.1b),
[
and
]
a racial and
ethnic community criminal justice and public safety impact statement as
required in section 3 of P.L.2017, c.286 (C.2C:48B-2)
, and a consideration
of alternatives to the rule proposal, including a no-action alternative, with a
justification as to why the rule proposal serves the public interest better
than the alternatives
;

���� (3)�� Afford all interested
persons a reasonable opportunity to submit data, views, comments, or arguments,
orally or in writing.�
The agency shall begin accepting public comment when
the public notice is published in the New Jersey Register pursuant to paragraph
(1) of this subsection.
� The agency shall consider fully all written and
oral submissions respecting the proposed rule, including any written
submissions that are received by the agency through its e-mail systems or
electronic mailing lists.� If
,
within
[
30
]

60

days of the publication of the proposed rule sufficient public interest is
demonstrated in an extension of the time for submissions, the agency shall
provide an additional 30-day period for the receipt of submissions by
interested parties.� The agency shall not adopt the proposed rule until after
the end of that 30-day extension.

���� The agency shall conduct a
public hearing on the proposed rule at the request of a committee of the
Legislature, or a governmental agency or subdivision,
[
or
]
if sufficient
public interest is shown, provided such request is made to the agency within
[
30
]

60

days following publication of the proposed rule in the Register
, or if the
proposed rule is estimated to cause a substantive increase in expenditures by
the State, local governments, businesses, or residents
.� The agency shall
provide at least 15 days' notice of such hearing, shall publish such hearing
notice on its Internet website, and shall conduct the hearing in accordance
with the provisions of subsection (g) of this section.�

���� The head of each agency shall
adopt as part of its rules of practice adopted pursuant to section 3 of
P.L.1968, c.410 (C.52:14B-3) definite standards of what constitutes sufficient
public interest for conducting a public hearing and for granting an extension
pursuant to this paragraph
, provided that the express request by at least 50
commenters for an extension or public hearing, as applicable, shall be
considered sufficient public interest.� The head of each agency shall also adopt
as part of its rules of practice adopted pursuant to section 3 of P.L.1968,
c.410 (C.52:14B-3) definite standards of what constitutes a substantive
increase in expenditures for the purposes of conducting a public hearing
pursuant to this paragraph, provided that an increase in expenditures by the
State, local governments, businesses, or residents, or any combination thereof,
of at least $50 million in a calendar year shall be considered a substantive
increase in expenditures
; and

���� (4)�� Prepare for public
distribution, and make available for public viewing through publication on the
agency's Internet website, a report listing all parties offering written or
oral submissions concerning the rule, summarizing the content of the
submissions
,
and providing the agency's response to the data, views,
comments, and arguments contained in the submissions.�

���� (b)�� A rule prescribing the
organization of an agency may be adopted at any time without prior notice or
hearing.� Such rules shall be effective upon filing in accordance with section
5 of P.L.1968, c.410 (C.52:14B-5) or upon any later date specified by the agency.�

���� (c)�� If an agency finds that
an imminent peril to the public health, safety, or welfare requires adoption of
a rule upon fewer than 30 days' notice and states in writing its reasons for
that finding, and the Governor concurs in writing that an imminent peril exists,
the agency may proceed to adopt the rule without prior notice or hearing, or
upon any abbreviated notice and hearing that it finds practicable.� The agency
shall publish, on its Internet website, a summary of any rule adopted pursuant
to this subsection, and the statement of reasons for the agency's finding that
an imminent peril exists.� Any rule adopted pursuant to this subsection shall
be effective for a period of not more than 60 days, unless each house of the
Legislature passes a resolution concurring in its extension for a period of not
more than 60 additional days.� The rule shall not be effective for more than
120 days unless repromulgated in accordance with normal rule-making
procedures.�

���� (d)�� No rule hereafter
adopted is valid unless adopted in substantial compliance with P.L.1968, c.410
(C.52:14B-1 et seq.).� A proceeding to contest any rule on the ground of
noncompliance with the procedural requirements of P.L.1968, c.410 (C.52:14B-1
et seq.) shall be commenced within one year from the effective date of the
rule.�

���� (e)�� An agency
[
may
]

shall

file a notice of intent with respect to a proposed rule-making proceeding with
the Office of Administrative Law, for publication in the New Jersey Register at

[
any
time
]

least
90 days
prior to the formal notice of action required in subsection (a) of
this section. The notice shall be for the purpose of eliciting the views of
interested parties on an action prior to the filing of a formal rule proposal.�
Such notice shall be distributed to interested persons through the use of an
electronic mailing list or similar type of subscription-based e-mail service,
and made available for public viewing through publication on the agency's
Internet website.� The agency shall afford all interested persons a reasonable
opportunity to submit data, views, comments, or arguments, orally or in
writing, on the proposed action, and shall fully consider all written and oral
submissions, including any written submissions received by the agency through
its e-mail systems or electronic mailing lists.� An agency may use informal
conferences and consultations as means of obtaining the viewpoints and advice
of interested persons with respect to contemplated rule-making. An agency may
also appoint committees of experts or interested persons or representatives of
the general public to advise it with respect to any contemplated rule-making.�

���� (f)�� An interested person may
petition an agency to adopt a new rule, or amend or repeal any existing rule.�
Such petition may be submitted to the agency through mail, e-mail, electronic
mailing list, or through any other means.� Each agency shall prescribe by rule
the form for the petition and the procedure for the consideration and
disposition of the petition.� The petition shall state clearly and concisely:�

���� (1)�� The substance or nature
of the rule-making which is requested;

���� (2)�� The reasons for the
request and the petitioner's interest in the request;
and

���� (3)�� References to the
authority of the agency to take the requested action.�

���� The petitioner may provide the
text of the proposed new rule, amended rule
,
or repealed rule.

���� Within 60 days following
receipt by an agency of any such petition, the agency shall either: (i) deny
the petition, giving a written statement of its reasons; (ii) grant the
petition and initiate a rule-making proceeding within 90 days of granting the
petition; or (iii) refer the matter for further deliberations
,
which
shall be concluded within 90 days of referring the matter for further
deliberations.� Upon conclusion of such further deliberations, the agency shall
either deny the petition and provide a written statement of its reasons or
grant the petition and initiate a rule-making proceeding within 90 days.� Upon
the receipt of the petition, the agency shall file a notice stating the name of
the petitioner and the nature of the request with the Office of Administrative
Law for publication in the New Jersey Register.� Notice of formal agency action
on such petition shall also be filed with the Office of Administrative Law for
publication in the Register, and shall be made available for public viewing
through publication on the agency's Internet website.�

���� If an agency fails to act in
accordance with the time frame set forth in the preceding paragraph, upon
written request by the petitioner, the Director of the Office of Administrative
Law shall order a public hearing on the rule-making petition and shall provide
the agency with a notice of the director's intent to hold the public hearing if
the agency does not.� If the agency does not provide notice of a hearing within
15 days of the director's notice, the director shall schedule, and provide the
public with a notice of, that hearing at least 15 days prior thereto.� Hearing
notice shall also be made available for public viewing through publication on
the agency's Internet website.� If the public hearing is held by the Office of
Administrative Law, it shall be conducted by an administrative law judge, a
person on assignment from another agency, a person from the Office of
Administrative Law assigned pursuant to subsection o. of section 5 of P.L.1978,
c.67 (C.52:14F-5), or an independent contractor assigned by the director.� The
petitioner and the agency shall participate in the public hearing and shall
present a summary of their positions on the petition, a summary of the factual
information on which their positions on the petition are based and shall
respond to questions posed by any interested party.� The hearing procedure
shall otherwise be consistent with the requirements for the conduct of a public
hearing as prescribed in subsection (g) of section 4 of P.L.1968, c.410
(C.52:14B-4), except that the person assigned to conduct the hearing shall make
a report summarizing the factual record presented and the arguments for and
against proceeding with a rule proposal based upon the petition.� This report
shall be filed with the agency and delivered or mailed to the petitioner.� A
copy of the report shall be filed with the Legislature along with the petition
for rule-making.�

���� (g)�� All public hearings
shall be conducted by a hearing officer, who may be an official of the agency,
a member of its staff, a person on assignment from another agency, a person
from the Office of Administrative Law assigned pursuant to subsection o. of section
5 of P.L.1978, c.67 (C.52:14F-5) or an independent contractor.� The hearing
officer shall have the responsibility to make recommendations to the agency
regarding the adoption, amendment or repeal of a rule. These recommendations
shall be made public.� At the beginning of each hearing, or series of hearings,
the agency, if it has made a proposal, shall present a summary of the factual
information on which its proposal is based, and shall respond to questions
posed by any interested party.� Hearings shall be conducted at such times and
in locations which shall afford interested parties the opportunity to attend.�
A verbatim record of each hearing shall be maintained, and copies of the record
shall be available to the public at no more than the actual cost, which shall
be that of the agency where the petition for rule-making originated.

����
(h)�� An interested person
may petition an agency to identify a rule that is inconsistent or in conflict
with another State or federal rule, and urge the agency to amend the rule in
order to resolve the conflict.� The petition may be submitted to the agency
through mail, e-mail, electronic mailing list, or through any other written means.�
Each agency shall prescribe by rule the form for the petition and the procedure
for the consideration and disposition of the petition.� Within 60 days
following receipt by an agency of a complete petition, the agency shall either
deny the petition, giving a written statement of its reasons, or grant the
petition and initiate a rulemaking proceeding within 60 days to amend the rule
to resolve the conflict or inconsistency.� In order to be considered complete,
a petition submitted pursuant to this subsection shall state clearly and
concisely:

����
(1) the rules that are
conflicting or inconsistent with one another, and a description of the nature
of the conflict or inconsistency, including a description of how the conflict
or inconsistency may result in a tangible detriment to a person or property;

����
(2) the reasons for the
request and the petitioner's interest in the request;

����
(3) the petitioner's
suggested course of action to resolve the conflict; and

����
(4) references to the
authority of the agency to take the requested action. ��

(cf: P.L.2017, c.286, s.4)

���� 3.��� Section 10 of P.L.2001,
c.5 (C.52:14B-5.1) is amended to read as follows:

���� 10.� a.� (Deleted by
amendment, P.L.2011, c.45)

���� b.��� Every rule adopted on or
after the effective date of P.L.2001, c.5 (C.52:14B-4.1a et al.) shall expire
seven years following the effective date of the rule unless a sooner expiration
date has been established for the rule.� The expiration date shall be included
in the adoption notice of the rule in the New Jersey Register and noted in the
New Jersey Administrative Code.

���� c.� (1) Notwithstanding any
other provision of P.L.1968, c.410 (C.52:14B-1 et seq.), or rule adopted
pursuant thereto, to the contrary, in the case of a proposed readoption without
changes to the existing rule, or a proposed readoption with technical changes
as approved by the Office of Administrative Law, an agency may continue in
effect an expiring rule for a seven-year period by filing a public notice with
the Office of Administrative Law for publication in the New Jersey Register at
least 30 days prior to the expiration date of the rule
, provided that the
agency first performs a conformity analysis to verify that the rule is not
inconsistent or in conflict with any other State or federal rules
.� The
notice pursuant to this paragraph shall include the citation for the rule, a
general description of the rule, the specific legal authority under which the
rule is authorized, and the new expiration date of the rule.� The notice
pursuant to this paragraph shall be effective upon filing with the Office of
Administrative Law.

���� Upon the receipt of a public
notice pursuant to this paragraph, the Office of Administrative Law shall
publish the notice in the New Jersey Register.� The new expiration date of the
rule shall be noted in the New Jersey Administrative Code.

���� As used in this paragraph,
"technical changes" means changes to: correct spelling, grammar and
punctuation; correct codification; update contact information; or correct
cross-references.

���� (2)�� In the case of a
proposed readoption of an expiring rule with substantive changes, an agency may
continue the expiring rule for a seven-year period by duly proposing the
readoption with substantive changes and readopting the rule prior to its
expiration.� Upon the filing of a notice of proposed readoption with
substantive changes, the expiration date of the rule shall be extended for 180
days, if such notice is filed prior to the expiration of the rule.

���� As used in this paragraph,
"substantive changes" means any changes that are not technical
changes as defined in paragraph (1) of this subsection.

���� d.� (1) The Governor may, upon
the request of an agency head, and prior to the expiration date of the rule,
continue in effect an expiring rule for a period to be specified by the
Governor.

���� (2)�� The Governor may, upon
the request of an agency head within five days after the expiration of a rule,
restore the effectiveness of an expired rule as of its expiration date, for a
period to be specified by the Governor, in order to effect the readoption of
the rule in accordance with subsection c. of this section.

���� e.���� This section shall not
apply to any rule repealing a rule or any rule prescribed by federal law or
whose expiration would violate any other federal or State law, in which case
the federal or State law shall be cited in the publication of the rule.

(cf: P.L.2011, c.45, s.1)

���� 4.��� Section 1 of P.L.2017,
c.262 (C.52:14B-7.1) is amended to read as follows:

���� 1.� a.� The Office of
Administrative Law shall establish and maintain, at a publicly accessible
location on its Internet website, a searchable database that identifies the
number, nature, and current status of all pending or proposed rule-making
actions in the State.� The database shall include written descriptions and
listings of all such pending or proposed State rule-making actions, and shall
additionally incorporate the use of charts, tables, graphs, and other graphics
or visual aids, as necessary or appropriate, to provide members of the public
with a full, complete, and easily comprehensible overview of pending or
proposed rule-making actions in the State.

���� b. (1) The database
established and maintained pursuant to subsection a. of this section shall
include, with respect to each proposed rule-making action
[
, a summary
description that indicates
]

:

���� (a)�� the title or subject
matter of the rule-making action;

���� (b)�� the State agency
responsible for the rule-making action;

���� (c)�� the identification
number, if any, that is associated with the rule-making action;

���� (d)�� the types or groups of
persons who are the subject of, or who will, or are likely to be, affected by,
the rule-making action;

���� (e)�� the legal authority for
the rule-making action;

���� (f)�� the date on which the
rule-making action was initiated by the State agency;

���� (g)�� the legal deadline, if
any, that is associated with the rule-making action;

���� (h)�� a concise abstract or
synopsis describing the basis for, and pertinent factors necessitating, the
rule-making action;
[
and
]

���� (i)��� a timetable showing the
history of the rule-making action
;

����
(j) all public comments
received related to the rule-making action; and

����
(k) all data sets and other
information or resources used in the formulation of a proposed rule, provided
that the Office of Administrative Law shall not disclose any confidential
information or trade secrets, or any information which may pose a security
threat to a person or property
.

���� (2)�� The
[
summary
description
]

information
required by this subsection shall additionally include a
brief statement that identifies the potential impacts of the rule-making action
on the State and its residents, and the anticipated significance of those
impacts.� At a minimum, this statement shall indicate:

���� (a)�� the type and potential
significance of any expected socio-economic impacts associated with the
rule-making action, as determined in accordance with the provisions of
paragraph (2) of subsection (a) of section 4 of P.L.1968, c.410 (C.52:14B-4);

���� (b)�� the number of jobs that
will, or are likely to, be generated or lost as a result of the rule-making
action, as determined in accordance with the provisions of paragraph (2) of
subsection (a) of section 4 of P.L.1968, c.410 (C.52:14B-4);

���� (c)�� the type and
significance of any expected agricultural industry impacts associated with the
rule-making action, as determined in accordance with the provisions of section
7 of P.L.1998, c.48 (C.4:1C-10.3) and paragraph (2) of subsection (a) of
section 4 of P.L.1968, c.410 (C.52:14B-4);

���� (d)�� whether the State agency
has prepared, or will prepare, a regulatory flexibility analysis in connection
with the rule-making action, in accordance with the provisions of P.L.1986,
c.169 (C.52:14B-16 et seq.) and paragraph (2) of subsection (a) of section 4 of
P.L.1968, c.410 (C.52:14B-4); and

���� (e)�� if a regulatory
flexibility analysis has been prepared in connection with the rule-making
action, the estimated number of small businesses that will, or are likely to,
be affected by the rule-making action.

���� c.���� Notwithstanding the
provisions of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) to the contrary,
[
the
Office of Administrative Law may require
]

each State agency
shall provide
to
[
provide
]

the Office
of Administrative Law
the information to be included in the database
[
summary
description
]

under subsection b. of this section in association with any notice of proposed
rule-making that is submitted by the agency prior to, on, or after, the
effective date of this act.� The form and manner in which the information will
be provided shall be determined by the Office of Administrative Law.

���� d.��� The database established
and maintained pursuant to subsection a. of this section shall also include
distinct listings or graphics that identify the total number of pending
rule-making actions by:� (1) State agency; (2) rule-making type and stage; and
(3) current length, in 30-day intervals, of the State agency review associated
therewith, as determined by looking to the date of each rule-making action's
initiation by the State agency.

���� e.���� The Office of
Administrative Law shall make
[
regular
and timely
]

daily
updates to the database established pursuant to subsection a. of
this section to ensure that it reflects the most current information pertaining
to rule-making actions undertaken by each State agency.� The Office of
Administrative Law shall indicate, on its Internet website, the date on which
the most recent database update was performed pursuant to this subsection.

(cf: P.L.2017, c.262, s.1)

���� 5.��� Section 10 of P.L.1968,
c.410 (C.52:14B-10) is amended to read as follows:

���� 10.� In a contested case:

���� (a) (1) The parties shall not
be bound by rules of evidence whether statutory, common law, or adopted
formally by the Rules of Court.� All relevant evidence is admissible, except as
otherwise provided herein.� The administrative law judge may, in his discretion
, exclude any evidence if he finds that its probative value is substantially
outweighed by the risk that its admission will either necessitate undue
consumption of time or create substantial danger of undue prejudice or
confusion.� The administrative law judge shall give effect to the rules of
privilege recognized by law.� Any party in a contested case may present his
case or defense by oral and documentary evidence, submit rebuttal evidence and
conduct such cross-examination as may be required, in the discretion of the
administrative law judge, for a full and true disclosure of the facts.�

���� (2)�� Where the case involves
a permitting or licensing decision of the Department of Environmental
Protection, the department shall be required to produce and certify a
permitting record within 30 days after the filing of the contested case.� This
deadline may be extended by an administrative law judge upon the unanimous
agreement of the parties.� The production and certification of the department's
permitting record, in accordance with this paragraph, shall not limit the
ability of the parties to further supplement the record.

���� (b)�� Notice may be taken of
judicially noticeable facts.� In addition, notice may be taken of generally
recognized technical or scientific facts within the specialized knowledge of
the agency or administrative law judge.� Parties shall be notified either before
or during the hearing, or by reference in preliminary reports or otherwise, of
the material noticed, including any staff memoranda or data, and they shall be
afforded an opportunity to contest the material so noticed.� The experience,
technical competence, and specialized knowledge of the agency or administrative
law judge may be utilized in the evaluation of the evidence, provided this is
disclosed of record.

���� (c)��
(1)
All hearings
of a State agency required to be conducted as a contested case under this act
or any other law shall be conducted by an administrative law judge assigned by
the Director and Chief Administrative Law Judge of the Office of Administrative
Law, except as provided by this amendatory and supplementary act.� A
recommended report and decision which contains recommended findings of fact and
conclusions of law and which shall be based upon sufficient, competent, and
credible evidence shall be filed, not later than 45 days after the hearing is
concluded, with the agency in such form that it may be adopted as the decision
in the case and delivered or mailed, to the parties of record with an
indication of the date of receipt by the agency head; and an opportunity shall
be afforded each party of record to file exceptions, objections, and replies
thereto, and to present argument to the head of the agency or a majority
thereof, either orally or in writing, as the agency may direct.�

����
(2)
Unless the head of
the agency or a party requests that the recommended report and decision be
filed in writing, the recommended report and decision of the administrative law
judge may be filed orally in such appropriate cases as prescribed by the director
and if a transcript has been requested pursuant to subsection (e) of section 9
of P.L.1968, c.410 (C.52:14B-9).

����
(3)
An administrative
law judge may file a recommended report and decision in the form of a checklist
in such appropriate cases and formats as prescribed by the director after
consultation with each State agency.�

����
(4)
The head of the
agency, upon a review of the record submitted by the administrative law judge,
shall adopt, reject or modify the recommended report and decision no later than
45 days after receipt of such recommendations.� In reviewing the decision of an
administrative law judge, the agency head may reject or modify findings of
fact, conclusions of law or interpretations of agency policy in the decision,
but shall state clearly the reasons for doing so.� The agency head may not
reject or modify any findings of fact as to issues of credibility of lay
witness testimony unless it is first determined from a review of the record
that the findings are arbitrary, capricious or unreasonable or are not
supported by sufficient, competent, and credible evidence in the record.� In
rejecting or modifying any findings of fact, the agency head shall state with
particularity the reasons for rejecting the findings and shall make new or
modified findings supported by sufficient, competent, and credible evidence in
the record.� Unless the head of the agency modifies or rejects the report
within such period, the decision of the administrative law judge shall be
deemed adopted as the final decision of the head of the agency.� The
recommended report and decision shall be a part of the record in the case.� For
good cause shown, upon certification by the director and the agency head, the
time limits established herein may be subject to a single extension of not more
than 45 days.� Any additional extension of time shall be subject to, and
contingent upon, the unanimous agreement of the parties.

����
(5) Whenever the head of
the agency rejects or modifies the recommended report and decision of an
administrative law judge pursuant to paragraph (4) of this subsection, and the
modification or rejection is subsequently overturned by judicial review, the agency
shall be liable for the plaintiff's attorneys' fees incurred in the court
challenge to the final agency decision.

���� (d)�� A final decision or
order adverse to a party in a contested case shall be in writing or stated in
the record.� A final decision shall include findings of fact and conclusions of
law, separately stated and shall be based only upon the evidence of record at
the hearing, as such evidence may be established by rules of evidence and
procedure promulgated by the director.

���� Findings of fact, if set forth
in statutory language, shall be accompanied by a concise and explicit statement
of the underlying facts supporting the findings.� The final decision may
incorporate by reference any or all of the recommendations of the administrative
law judge.� Parties shall be notified either personally or by mail of any
decision or order. Upon request a copy of the decision or order shall be
delivered or mailed forthwith by registered or certified mail to each party and
to his attorney of record.

���� (e)�� Except where otherwise
provided by law, the administrative adjudication of the agency shall be
effective on the date of delivery or on the date of mailing, of the final
decision to the parties of record whichever shall occur first, or shall be
effective on any date after the date of delivery or mailing, as the agency may
provide by general rule or by order in the case.� The date of delivery or
mailing shall be stamped on the face of the decision.

���� (f)�� The head of an agency
may order that, in certain appropriate cases, the recommended report and
decision of the administrative law judge shall be deemed adopted, immediately
on filing thereof with the agency, as the final decision of the head of the
agency.� The appropriate cases shall be described in a written order issued by
the head of the agency, filed with the director, and made available to the
public as a government record.� The order shall not include any contested case
for which the head of the agency is specifically required by State or federal
law to review the recommended report and decision and adopt the final
decision.� The head of the agency may revise or revoke an order, issued
pursuant to this subsection, whenever it is deemed appropriate.� The order
shall apply to all appropriate contested cases commenced with the agency after
the order's issuance and until the order is rescinded or modified.� In such
appropriate contested cases, the head of the agency shall not have the
opportunity to reject or modify the administrative law judge's recommended
report and decision pursuant to subsection (c) of this section and the final
decision by the administrative law judge shall comply with the requirements of
and shall be given the same effect as a final decision of the head of the
agency pursuant to subsection (d) of this section.

���� (g)�� Whenever the parties in
a contested case stipulate to the factual record, and agree that there are no
genuine issues of material fact to be adjudicated, the head of the agency may,
in his discretion, render a final agency decision on the matter without obtaining
the prior input of, or a recommended report and decision from, an
administrative law judge.

(cf: P.L.2013, c.236, s.2)

���� 6.� This act shall take effect
one year after the date of enactment.

STATEMENT

���� This bill would make various
changes to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) and other laws that supplement that act, in order to alter
the procedures State agencies are required to follow when they adopt rules and
regulations to implement State and federal laws.� The bill would also provide
for the payment of attorney�s fees in certain circumstances when the head of an
agency rejects or modifies the recommended report and decision of an
administrative law judge and the decision is overturned by a court.

���� Specifically, the bill would
require State agencies to make available for public viewing on the agency's
website (1) all public comments received related to each rule proposal issued
by the agency, and (2) all data sets and other information that were used by
the agency to formulate the proposed rule.� The bill would also require that
each rule proposal be directed toward a single object, prohibiting agencies
from bundling together unrelated rule proposals.

���� The bill would extend the
public comment period for rule proposals from 30 days to 60 days.� The bill
would require that the socio-economic impact statement for rule proposals
include estimates, in dollars, of the proposed rule's effect on annual expenditures
by the State, municipalities, businesses, and residents.� The bill would also
require rule proposals to include a consideration of alternatives to the rule
proposal, with a justification for why the proposed rule is superior to the
alternatives.

���� The bill would provide that,
if 50 or more commenters request a 30-day extension to the public comment
period or a public hearing for a proposed rule, this would constitute
"sufficient public interest" for the purposes of section 4 of
P.L.1968, c.410 (C.52:14B-4) and the agency proposing the rule would be
required to grant the extension or hold a public hearing, as applicable.� In
addition, the bill would require State agencies to hold a public hearing on a
rule proposal if the proposal is estimated to involve a substantive increase
in� expenditures by the State, municipalities, businesses, or residents.� The
bill would direct each State agency to formulate standards for what constitutes
a "substantive increase in expenditures," but would establish a
minimum threshold of $50 million in a calendar year.

���� In addition, the bill would
require State agencies to file a notice of intent for each contemplated
rulemaking at least 90 days prior to issuing a formal rule proposal
notification.� Under current law, agencies are authorized, but not required, to
file a notice of intent.� The notice of intent is required to include a
statement of either the terms or substance of the intended action or a
description of the subjects and issues involved.� The agency would be required
to establish the time when, the place where, and the manner in which interested
persons may present their views on the contemplated rule-making.� The bill
would also require agencies to review and respond to petitions that claim that
one of the agency's rules is in conflict or inconsistent with another State or
federal rule.� Similarly, the bill would require State agencies to analyze
their rules to verify that they do not conflict with other State and federal
rules, prior to readopting them.

���� The bill would require the
Office of Administrative Law (OAL) to include all public comments received, and
all data and other information used, for each rulemaking action in its online
database of rulemaking actions.� The bill would also explicitly require State
agencies to provide all necessary information to the OAL for the development of
the online database.� In addition, the bill would require the OAL to update the
database daily, rather than making "regular and timely updates," as
in current law.

���� Finally, the bill would
provide that, whenever the head of the agency rejects or modifies the
recommended report and decision of an administrative law judge pursuant to
subsection (c) of section 10 of P.L.1968, c.410 (C.52:14B-10), and the
modification or rejection is subsequently overturned by judicial review, the
agency would be liable for the plaintiff's attorneys' fees incurred in the
court challenge to the final agency decision.