Sponsors (3)
The bill expands access to neutral federal courts for parties in agency proceedings—likely improving perceived fairness for many—at the cost of more litigation, longer delays, and greater administrative burdens on agencies.
Individuals, small-business owners, and taxpayers sued in agency hearings can move their cases to the U.S. district court in their home district or principal place of business, giving them access to a neutral federal forum and potentially more consistent, impartial outcomes than agency adjudication.
Federal employees and government contractors get clearer rules because the bill defines 'agency hearing officer' to include ALJs and other authorized agency employees, reducing ambiguity about when removal protections and related rules apply.
Individuals, small businesses, and taxpayers will likely face higher litigation costs and longer delays as disputes shift from faster agency processes to U.S. district courts, and agencies (including state and local entities interacting with federal processes) will incur increased workload and resource needs.
Individuals and small businesses may engage in more forum-shopping because the broader definition of 'agency hearing officer' (to include non-ALJ agency employees) creates additional avenues to seek federal-court review of diverse agency actions.
Based on analysis of 2 sections of legislative text.
Allows persons faced with an agency hearing to remove the adjudication to a federal district court in their residence or principal place of business using federal removal procedures.
Amends the Administrative Procedure Act provision on who may obtain judicial review to add a new removal right: a person against whom an action is brought before an agency hearing officer may remove that action to a U.S. district court where they live or have their principal place of business by filing a notice of removal under the federal removal statute. The bill also formalizes the opening language of the statute and defines “agency hearing officer” to include administrative law judges and other agency employees authorized to hear the matter. The change shifts certain agency adjudications from agency forums into federal district courts, likely increasing district court caseloads and changing litigation strategy for individuals and entities facing agency enforcement or adjudication, while reducing reliance on agency-based hearings as the sole adjudicatory forum.
Introduced January 15, 2025 by Harriet Hageman · Last progress January 15, 2025