WSR 03-16-039

EXPEDITED RULES

OFFICE OF

FINANCIAL MANAGEMENT

[ Filed July 30, 2003, 3:17 p.m. ]

     Title of Rule: Process by which wage overpayments to state employees can be recouped.

     Purpose: The rules are necessary to define the adjudicative hearing procedures that will apply if an employee appeals an agency decision regarding a wage overpayment pursuant to chapter 34.05 RCW.

     Statutory Authority for Adoption: Chapter 77, Laws of 2003.

     Summary: The proposed rules set forth the procedures the agencies and appellant employees are to use when appealing an agency determination regarding a wage overpayment.

     Reasons Supporting Proposal: The rules are needed to set forth the specific procedures to be used when appealing an agency determination regarding a wage overpayment. The statute does not provide sufficient detail regarding these procedures. The rules will clarify each party's responsibility in this process.

     Name of Agency Personnel Responsible for Drafting: Millie Lund, Point Plaza Building, 6639 Capitol Boulevard, Tumwater, WA, 664-7678; Implementation and Enforcement: Wendy Jarrett, Point Plaza Building, 6639 Capitol Boulevard, Tumwater, WA, 664-7675.

     Name of Proponent: Office of Financial Management, governmental.

     Rule is not necessitated by federal law, federal or state court decision.

     Explanation of Rule, its Purpose, and Anticipated Effects: The rules set forth the information the agency is to provide to the Office of Administrative Hearings (OAH) when it receives a notice from an employee that he or she wishes to appeal an agency determination regarding a wage overpayment. It also sets forth the time period during which the agency must transmit the information to OAH. The rules state that OAH is responsible to issue the notice of hearing to the employee and the agency and sets forth the requirements to be followed at the hearing. The rules specify that OAH will follow the model rules of procedure set forth in chapter 10-08 WAC in the adjudicative proceedings. The rule sets forth good cause exceptions to the statutory time requirements.

     Proposal does not change existing rules.

NOTICE

     THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THE USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Jennifer Strus, Office of Financial Management, P.O. Box 43113, Olympia, WA 98504-3113 , AND RECEIVED BY October 6, 2003.


July 30, 2003

Jennifer Strus

Director of Legal Affairs


NEW SECTION
WAC 82-04-010      (1) Once the appellant has notified the agency that he or she wishes to appeal the agency's review decision, the agency shall transmit the appellant's application for an adjudicative proceeding (request for hearing) to the office of administrative hearings (OAH) within ten business days after receiving it from the appellant.

     (2) In any wage overpayment matter that is appealed, the agency shall provide OAH with the following information:

     (a) The name of the agency contact in the matter and any contact information;

     (b) The name of the appellant and any contact information, including address and telephone number;

     (c) The name and address of the agency contact for billing purposes; and

     (d) The name and address of the agency contact where the file should be sent after OAH closes the adjudicative proceeding.

     (3) The agency shall transmit all requests for hearing to the following address: Office of Administrative Hearings, 919 Lakeridge Way SW, P.O. Box 42488, Olympia, WA 98504-2488; (360) 664-8717; fax (360) 664-8721.

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NEW SECTION
WAC 82-04-020      Within ten business days of receipt of the appellant's request for hearing, the agency shall also transmit to OAH the relevant case file, including documents that the agency intends to use as exhibits in the hearing. The case file and documents may be transmitted to OAH together with the request for hearing. If the case file and documents are exceptionally voluminous, the agency should contact OAH for instructions before transmitting them.

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NEW SECTION
WAC 82-04-030      (1) It shall be the responsibility of OAH to issue the notice of hearing to the appellant and the agency.

     (2) Either party may request a prehearing conference.

     (3) The hearing shall be held telephonically unless the rights of the parties will be prejudiced thereby or at the discretion of the administrative law judge (ALJ).

     (1) The hearing shall be recorded electronically and no transcript is required, unless specified otherwise in law or rule.

     (5) In any adjudicative proceedings for wage overpayments, the ALJ shall apply the model rules of procedure, set forth in chapter 10-08 WAC, which shall govern the proceedings regardless of WAC 10-08-001(4) or other agency procedural rules to the contrary.

     (1) All costs of the hearing shall be borne by the agency and OAH shall bill the agency for the hearing costs incurred.

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     Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.
NEW SECTION
WAC 82-04-040      The ALJ shall hear the evidence presented by both the appellant and the agency regarding the wage overpayment. The ALJ shall decide based upon that evidence whether a wage overpayment has occurred and, if so, what amount appellant owes the agency. Recoupment of an overpayment shall be conducted pursuant to chapter 77, Laws of 2003 (Substitute House Bill 1738) and the ALJ shall not have authority to decide repayment issues.

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NEW SECTION
WAC 82-04-050      The decision of the ALJ in any wage overpayment adjudicative proceeding shall be considered a final order.

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NEW SECTION
WAC 82-04-060      (1) If a person with a right to an adjudicative proceeding under chapter 77, Laws of 2003, files a request for hearing after the period for doing so has passed, the person must show good cause why the request for hearing should be granted.

     (2)(a) If the ALJ finds good cause for filing a late hearing request, the ALJ shall conduct a hearing on the merits.

     (b) If the ALJ does not find good cause for filing a late hearing request, the agency's overpayment decision is deemed final and the agency shall proceed to collect the wage overpayment as provided in chapter 77, Laws of 2003.

     (3) As used in this section, "good cause" means a substantial reason or legal justification for failing to file a request for an adjudicative proceeding within the time period mandated by statute.

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NEW SECTION
WAC 82-04-070      For purposes of adjudicative proceedings of state employee wage overpayments, the exclusions to the administrative procedure act found in RCW 34.05.030 do not apply.

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