Court Opinion

ID: 9762432
Source: CourtListenerOpinion
Date Created: 2023-08-29 02:23:29.497767+00
Date Added: 2024-06-11T07:29:34.348264
License: Public Domain

WINTERSHEIMER, Justice,
dissenting.
I respectfully dissent from the principles enunciated in the majority opinion because I believe that the prepayment provision meets constitutional requirements and is authorized by statute. It encompasses a reasonable regulation and comes only after a full, albeit informal, hearing before the administrative agency. The issue common to all of the appeals is the prepayment requirement.
One of the principal problems presented by these cases is the question of nomenclature and the proper labeling of the procedures in question. The basic system for adjudicating alleged violations of surface mining law pursuant to K.R.S. 350.130 provides that the operator or permitee is cited for the violation by the issuance of a notice of noncompliance and order for remedial measures and/or a cessation order. This gives the defendant notice of violations and directs remedial measures. Thereafter, pursuant to 405 KAR 7:095, civil penalties are assessed by the agency. At the time of this action after a penalty has been assessed and the defendant notified of the amount, a preliminary hearing was automatically set for 405 KAR 7:090 § 4. This public fact finding hearing has been called informal although it is adversarial and there is no requirement of prepayment of any penalty before this hearing is held. 405 KAR 7:090 § 4(4)(a). A hearing officer, who is a local private attorney, conducts the hearing which has as its purpose to provide a due process review of the citation of the violation and to encourage settlement. A transcript is not made of this hearing. Thereafter, a preliminary determination which consists of written findings made by the hearing officer is issued. After the hearing officer issues the preliminary determination,' the defendant has the right to request a second, de novo formal hearing pursuant to 405 KAR 7:090 § 4(9). A request for a formal hearing must be accompanied by the payment of an amount equal to the proposed penalty. In this case, the appellant failed to prepay the amount and thus did not receive what is called the formal second hearing.
K.R.S. 350.028 establishes a procedure involving a two-tiered procedure. K.R.S. 350.465(3)(i) permits the agency to require prepayment of the assessed civil penalty prior to a contest on the amount of the assessment. The appellant argues that he is entitled to the second hearing prior to a contest on the fact of the violation and that he is not given one under the regulatory system. The preliminary hearing, although informal, does provide full due process and an opportunity to contest both the fact of the violation and the amount of the assessment. The regulation conflicts with the statute and that neither are unconstitutional. The preliminary hearing is an opportunity to dispute both the amount of the assessment and the claim of violation. It is held prior to any requirement of payment. The administrative defendants receive full due process and the regulation does not exceed the authority of the statute. K.R.S. 350.465(3)(i).
405 KAR 7:090 § 4 IT 4 provides that the operator does not have to pay the proposed amount into an escrow account prior to the preliminary hearing. The preliminary hearing is adjudicatory in nature, counsel is permitted; there is a right to cross-examine the witnesses whether the defendant is represented by counsel or not; there is a written determination of the hearing officer’s decision; the defendant has a right to subpoena witnesses and an impartial hearing officer is provided. All that is absent is the requirement of a transcript. There is *5no prohibition of a transcript. The hearing officer does not also investigate charges; his only function is to hear and decide cases.
The primary differences between the formal hearing and the informal hearing is that the agency does not record the preliminary hearing and discovery is not permitted before the preliminary hearing. Neither of these provisions is necessary to satisfy due process. An extended discussion of due process and discovery is undertaken by the Connecticut Supreme Court in Pet v. Dept. of Health Services, et al., 207 Conn. 346, 542 A.2d 672 (1988).
The fact that no transcript is made by the Cabinet does not render the first hearing constitutionally invalid. Cf. Mathews v. Eldridge, 424 U.S. 319, 96 S.Ct. 893, 47 L.Ed.2d 18 (1976); Jaksa v. Regents of the University of Michigan, 597 F.Supp. 1245 (E.D.Mich.1984).
Clearly, the hearing provided prior to the payment of the penalty must satisfy due process pursuant to Goldberg v. Kelly, 397 U.S. 254, 90 S.Ct. 1011, 25 L.Ed.2d 287 (1970). The fundamental requirement of due process is the opportunity to be heard at a meaningful time and in a meaningful manner. Consequently the principle does require adequate notice, detailed reasons for the action and an effective opportunity to defend by confronting adverse witnesses and presenting evidence and argument. It also involves the right to confront and cross-examine and the right to counsel. In addition, the decision maker should state the reasons for the determination and indicate the evidence relied on although the statement need not be a full opinion. Goldberg, supra. The preliminary hearing outlined by the statute and the regulation meets all the requirements of federal law and satisfies due process.
Under the Kentucky system, the defendant receives a full adversarial hearing pri- or to the requirement for any payment. If the defendant obtains a second formal de novo hearing, he could receive a return of the funds. The government has a legitimate interest in avoiding frivolous appeals and seeing to it that the penalties are paid. Balancing the two interests, the prepayment provision satisfies due process. The claim of indigency is unconvincing if you consider the first hearing to be a full and complete proceeding. The inability to prepay does not violate the equal protection clause of the federal constitution. See United States v. Thompson Bros. Coal, Inc., 532 F.Sup. 979 (W.D.Pa.1982). In at least one of these cases, it is not clear that the defendant even qualifies as an indigent person. The procedure used by the agency satisfies the Kentucky constitutional requirements.
The provision for an “informal” hearing would have no meaning if it did not provide a full opportunity to contest the issues raised by the agency. In view of the majority opinion, the agency should review its procedures in regard to the names given to the various types of hearing and issue appropriate regulations. The fact that the second hearing is de novo, of course raises problems with the necessity of any first hearing.
Under the circumstances presented in these cases, I do not believe that either the statute or the regulation is unconstitutional.