REPORT TITLE: 
Administrative procedure;
alternative dispute resolution


DESCRIPTION:
Gives discretion to an agency in administrative decisionmaking
to require parties to first participate in an alternative
dispute resolution process.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2845
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                     A BILL FOR AN ACT

RELATING TO ADMINISTRATIVE PROCEDURE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that the alternative
 
 2 dispute resolution (ADR) process has proven to be a successful
 
 3 tool in many different forums throughout the country and State
 
 4 and can be less costly and time consuming and yield a better
 
 5 result than traditional adversarial proceedings.  The ability to
 
 6 use ADR under the administrative procedure law may prove to be a
 
 7 powerful tool for the community and agencies in working out
 
 8 satisfactory solutions to many issues where other forums have
 
 9 been unsuccessful.
 
10      The legislature finds that authorizing an agency to require
 
11 parties to participate in an ADR process provides an opportunity
 
12 for parties to get different views and perspectives, tailor
 
13 creative solutions that may be outside the scope of a formal
 
14 hearing, clarify the issues causing the dispute, and foster the
 
15 rebuilding of a damaged relationship.
 
16      The purpose of this Act is to provide an ADR method to
 
17 parties of a contested case hearing under the administrative
 
18 procedure law.
 

 
Page 2                                                     2845
                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 2.  Chapter 91, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "�91-     Alternative dispute resolution.  (a)  Any agency,
 
 5 in its discretion or upon written request by a party, may require
 
 6 the parties to a contested case hearing under section 91-9 to
 
 7 participate in a nonbinding alternative dispute resolution
 
 8 process prior to the hearing.
 
 9      (b)  The parties may jointly select a neutral person to
 
10 conduct the alternative dispute resolution process and notify the
 
11 agency in writing of its selection within twenty days of the
 
12 agency's notice of referral to alternative dispute resolution.
 
13 In the event the parties are unable to jointly select a neutral
 
14 person within twenty days from the date of the referral to
 
15 alternative dispute resolution, each party shall submit three
 
16 names of prospective neutral persons to the agency by a date
 
17 determined by the agency.  The agency shall combine all the names
 
18 submitted by the parties and allow each party to rank the party's
 
19 preferences for all prospective neutral persons submitted.  The
 
20 agency shall select the person receiving the highest rank on the
 
21 combined list as the neutral person.  All costs of the neutral
 
22 person shall be borne equally by the parties to the contested
 
23 case unless otherwise agreed or provided by law."
 

 
Page 3                                                     2845
                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 3.  New statutory material is underscored.
 
 2      SECTION 4.  This Act shall take effect upon its approval.
 
 3 
 
 4                           INTRODUCED BY:_________________________