Section 1. That section 84-901, Reissue Revised Statutes of Nebraska, 1943, be amended to read as follows:

84-901. As used in this article: (1) Agency means each board, commission, department, officer, division, or other administrative office or unit of the state government authorized by law to make rules, except the Adjutant General’s office as provided in Chapter 55, the courts, including the Nebraska Workmen’s Compensation Court, and the Legislature; (2) rule means any rule, regulation, or standard issued by an agency, including the amendment or repeal thereof whether with or without prior hearing and designed to implement, interpret, or make specific the law enforced or administered by it or governing its organization or procedure but not including regulations concerning the internal management of the agency not affecting private rights, private 1511 interests, or procedures available to the public, and not including permits, certificates of public convenience and necessity, franchises, rate orders, and rate tariffs, and any rules of interpretation thereof, and for the purpose of this act every rule which shall prescribe a penalty shall be presumed to have general applicability or to affect private rights and interests; and (3) contested case means a proceeding before an agency in which the legal rights, duties, or privileges of specific parties are required by law or constitutional right to be determined after an agency hearing.

Sec. 2. In addition to other rule-making requirements imposed by law:

(1) Each agency shall adopt rules governing the formal and informal procedures prescribed or authorized by this act. Such rules shall include rules of practice before the agency together with forms and instructions.

(2) To assist interested persons dealing with it, each agency shall so far as deemed practicable supplement its rules with descriptive statements of its procedures.

(3) Prior to the adoption of any rule authorized by law or the amendment or repeal thereof, the adopting agency shall so far as practicable publish or otherwise circulate notice of itsi ntended action and afford interested persons an opportunity to submit data or views orally or in writing.

Sec. 4. (1) The validity of any rule may be determined upon a petition for a declaratory judgment thereon addressed to the district court of Lancaster County if it appears that the rule or its threatened application interferes with or impairs or threatens to interfere with or impair the legal rights 1512 or privileges of the petitioner. The agency shall be made a party to the proceeding. The declaratory judgment may be rendered whether or not the petitioner has first requested the agency to pass upon the validity of the rule in question.

(2) The court shall declare the rule invalid if it finds that it vioaltes constitutional provisions, exceeds the statutory authority of the agency, or was adopted without compliance with the statutory rule-making procedures.

Sec. 5. On petition of any interested person, any agency may issue a declaratory ruling with respect to the applicability to any person, property, or state of facts of any rule or statute enforceable by it. A declaratory ruling, if issued after argument and stated to be binding, is binding between the agency and the petitioner on the state of facts alleged unless it is altered or set aside by a court. Such a ruling is subject to review in the manner provided in the code of civil procedure. Each agency shall prescribe by rule the form for such petitions and the procedure for their submission, consideration, and disposition.

Sec. 6. In any contested case all parties shall be afforded an opportunity for hearing after reasonable notice. The notice shall state the time, place, and issue involved, but if, by reason of the nature of the proceeding, the issues cannot be fully stated in advance of the hearing of if subsequent amendment of the issues is necessary, they shall be fully stated as soon as practicable. Opportunity shall be afforded all parties to present evidence and argument with respect thereto. The agency shall prepare an official record, which shall include testimony and exhibits, in each contested case, but it shall not be necessary to transcribe shorthand notes unless requested for purpose of rehearing. Informal disposition may also be made of any contested case by stipulation, agreed settlement, consent order, or default. Each agency shall adopt appropriate rule of procedure for notice and hearing in contested cases.

1513 Sec. 7. In contested cases:

(1) An agency may admit and give prbative effect to evidence which possesses a probative value commonly accepted by reasonably prudent men in the conduct of their affairs. It shall give effect to the rules of privilege recognized by law. It may exclude incompetent, irrelevant, immaterial, and unduly repetitious evidence.

(2) An agency may administer oaths, issue subpoenas, compel the attendance of witnesses, and the production of any papers, books, accounts, documents, and testimony, and cause the depositions of witnesses residing either within or without eh state to be taken in the manner prescribed by law for taking depositions in civil actions in the district court.

(3) All evidence including records and documents in the possession of the agency of which it desires to avail itself shall be offered and make a part of the record in the case. No other factua information or evidence shall be considered in the deterination of the case. Documentary evidence may be received in the form of copies or excerpts or by incorporation by reference.

(4) Every party shall have the right of cross-examination of witnesses who testify and shall have the right to submit rebuttal evidence.

(5) An agency may take notice of judicially cognizable fact and in addition may take notice of general, technical, or scientific facts within its specialized knowledge. Parties shall be notified either before or during the hearing, or by reference in preliminary reports or otehrwise, of the material so noticed. They shall be afforded an opportunity to contest the facts so noticed. An agency may utilize its experience, technical competence, and specialized knowledge in the evaluation of the evidence presented to it.

Sec. 8. Every decision and order adverse to a party to 1514 the proceeding, rendered by an agency in a contested case, shall be in writing or stated in the record and shall be accompanied by findings of fact and conclusions of law. The findings of fact shall consist of a concise statement of the conclusions upon each contested issue of fact. Parties to the proceeding shall be notified of the decision and order in person or by mail. A copy of the decision and order and accompanying findings and conclusions shall be delivered or mailed upon request to each party or his attorney of record.

Sec. 9. If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application. To this end the provisions of this act are declared to be severable.

Sec. 10. This act is intended to constitute an independent act establishing minimum administrative procedure for all agencies.

Sec. 11. That original section 84-901, Reissue Revised Statutes of Nebraska, 1943, is repealed.