§ 68-11-1610 — Contested case hearings - Petition - Procedure - Arbitration and mediation alternatives - Orders - Costs

(a) Within fifteen (15) days of a denial by the commission of all or part of an application, an applicant may petition the commission in writing for a hearing. The petition must be filed with the executive director. Notwithstanding another law, an applicant is barred from filing a petition for a contested case hearing after the fifteen-day period, and the commission has no jurisdiction to consider a late-filed petition. Upon receipt of a timely filed petition, the commission shall initiate a contested case proceeding as provided in this section. (b) The contested case hearing required by this section must be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, except as otherwise provided in this section. (c) Contested cases initiated pursuant to this section must be heard by an administrative law judge sitting alone. Petitions for contested cases received by the commission must be forwarded immediately to the administrative division of the secretary of state's office for assignment to an administrative law judge. (d) The administrative law judge to whom a case has been assigned shall convene the parties for a scheduling conference within fifteen (15) days of the date the petition for a contested case is filed. At the scheduling conference, the parties shall state their respective positions on the mediation alternative described in this section. If the parties are unable to agree on a mediation alternative, then the scheduling order for the contested case adopted by the administrative law judge must establish a schedule that results in a hearing completed within one hundred eighty (180) days of the date on which the petition for a contested case was received by the commission, with the initial order to be entered within sixty (60) days of the date the hearing is completed. Extensions of time or variances from the scheduling order must be granted sparingly, and only because of unforeseen developments that would cause substantial prejudice to a party. (e) As an alternative to the contested case process described in subsection (c), the parties may agree to mediation of the issues raised in the contested case. The mediator must be designated by mutual agreement of the parties. The parties may designate a mediator who is not listed as a qualified Supreme Court Rule 31 mediator, but such mediator shall observe the standards of professional conduct set forth in Appendix A to Supreme Court Rule 31, to the extent applicable. The mediator's fee must be shared equally among the parties, except that the state is not required to contribute to payment of the mediator's fee. If mediation results in agreement of the parties, then the agreement must be memorialized in the order terminating the contested case. A mediation proceeding under this subsection (e) is not subject to the scheduling order requirements set forth in subsection (d). (f) The general assembly declares the public policy of this state to be that certificate of need contested cases should be resolved through mediation, and the parties to such proceedings are encouraged to pursue this alternative. (g) Judicial review of the commission's final order in a contested case is as provided by law. (h) Costs of the contested case proceeding and appeals, including the administrative law judge's costs, deposition costs, expert witness fees, and reasonable attorney fees, must be assessed against the losing party in the contested case. If there is more than one (1) losing party, then the costs must be divided equally among the losing parties. Costs must not be assessed against the commission. (i) This section governs all contested cases relative to approval or denial decisions by the commission.

Legislative History

Amended by 2024 Tenn. Acts, ch. 985,s 20, eff. 7/1/2024. Amended by 2022 Tenn. Acts, ch. 1119, Secs.s 135, s 170 eff. 7/1/2022. Amended by 2021 Tenn. Acts, ch. 557, s 1, eff. 10/1/2021. Amended by 2016 Tenn. Acts, ch. 1043, s 18, eff. 7/1/2016. Acts 2002, ch. 780, § 4; 2004, ch. 942, §§ 7 - 12.