"Fiscal Year Ends, A Look Back (and Forward...)"

by Cliff J. Vanell, Director Vol. 4 July 1997

The Office of Administrative Hearings (OAH) in its first 18 months has necessarily been involved in a gestation process. Over time the constituent parts have become refined and functions more developed. As the OAH moves forward, it is good to pause and assess what has been accomplished.

First the statistics...A look back
The OAH commenced operation on January 2, 1996. Pursuant to A.R.S. 41-1092.01, all agencies, unless exempted, were required to use the personnel and services of the OAH in affording parties administrative hearings, either to appeal an agency action, or as required before the agency could take an action. The OAH currently has 12 administrative law judges located in two offices. In addition to conducting hearings in Phoenix and Tucson, the OAH travels two weeks per month to remote locations. In fiscal year 1997 (July 1, 1996 - June 30, 1997), 2,376 cases were filed involving 40 agencies.

Agency acceptance of ALJ decisions without modification is 92%. Rehearings (1.9%) and appeals (3.9%) are rare. Evaluations by participants indicate that ALJ's are consistently rated excellent or good during hearings. Through careful case management, the OAH enjoys a minimal backlog. In FY 1997, the OAH conclusion rate was 96% (4% more cases filed than concluded). As required by statute, all appealable agency actions are scheduled for a date no later than 60 days from the request of a party, except where otherwise requested. Most contested cases, with the exception of ROC cases scheduled in remote locations, are scheduled within 60 days of the request of the agency.

Now a look to where we are going...
ALJ Assignment Each administrative law judge is assigned to various types of cases. Each is required to conduct extensive self-study in the applicable rules and statutes governing the subject matter, as well as attend continuing legal education. The OAH has recently implemented agency sections, dubbed "cadres". The cadres are composed of a pool of judges to allow flexibility in scheduling and make the best use of ALJ time, while encouraging accelerated development and refinement of expertise as necessary in certain cases. Agency assignments are based on the previous experience of the administrative law judge, including formal education, former employment, self-study, hearings previously conducted, interest and willingness to undertake continuing education in the subject matter.

Rules
I have always considered rules a double- edged sword. If not well thought out, they can easily become ends unto themselves, straightjacketing everyone into rigid procedures. On the other hand, rules offer guidance to those unfamiliar with the process and provide predictablity. With 18 months of experience, the OAH is now confidently drafting rules to reflect and encouage the practices which have been found to work well. Its latest draft is available upon request or can be found on the Internet at www.azoah.com under "Pending Projects". We are making every effort to limit the number of rules and avoid unnecessary complexity. Any comments are welcome.

Expansion
The OAH has planned for the inclusion of now-exempted agencies should the Legislature move in that direction. Rather than modify its current structure, which has worked well, the OAH proposes to create free-standing mirrors of itself connected by a common mission and protocols. In cases where there is a large preexisting hearing department, the plan would be to reconfigure, applying OAH case management and standards, rather than disband and absorb. In other cases, smaller units would be combined to create viable organizations. In any case, the OAH would plan to enhance current practice consistent with the mission of the OAH.

Lastly...
Many people have contributed to the success of regulatory reform this last fiscal year. It is fitting to end the year with a thank you.