Senate Finance Committee agrees to print bill to add Office of Administrative Hearings to statewide cost-allocation model

The Senate Finance Committee voted by unanimous consent at its meeting to print a bill that would give the Division of Financial Management statutory authority to include the Office of Administrative Hearings in the statewide cost allocation program known as SWICAP and permit direct billing to the Department of Health and Welfare.

The bill would start a cost-estimation process in fiscal year 2026 and, according to committee staff, would fully move the Office of Administrative Hearings into the SWICAP model by fiscal year 2028. Lori Wolf, administrator for the Division of Financial Management, told the committee the move follows growth in the office’s caseload and agency use since its establishment.

"Thank you, Mr. Chairman, members of the Senate Finance Committee. My name is Lori Wolf and I'm the administrator division of financial management," Wolf said, explaining the background. She said the Office of Administrative Hearings was established in fiscal year 2023 and was initially funded with general funds for start-up operations. As the office added more agencies and handled more administrative appeals, Wolf said the division must estimate costs beginning in FY26 so the office can enter the SWICAP process.

"It's been, initially well, year over year, we're adding more and more agencies to who office of administrative hearings is servicing and providing, administrative appeals for," Wolf said. She described SWICAP as a model that typically uses a two-year look-back period to allocate costs.

Senator Cinder Woodward asked how the resulting charges would be allocated. "And so what will these costs be just to agencies that utilize the service or spread across?" Woodward asked. Wolf replied that the plan is to allocate costs only to the agencies that use the Office of Administrative Hearings and that the two-year cost estimates will clarify which agencies are charged and how much.

A motion to print the bill was made and seconded. The transcript records the mover saying, "Mister chairman, I move with print," and a second from Senator Cook. Committee leadership then sought unanimous consent to print routing slips associated with the bill; the transcript references routing slip numbers as quoted in the meeting record. With no objections recorded, the committee approved printing and the bill will be scheduled for a future hearing where members may ask detailed questions.

Committee members also noted that the Office of Administrative Hearings recently began handling cases for the Department of Health and Welfare; the proposed statutory language would allow the office to direct-bill that department for work it performs on its behalf.

No roll-call vote or recorded tally appeared in the transcript; the action was approved by unanimous consent. The committee adjourned following the unanimous-consent approval.