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Inside stories and real conversations from the Michigan Department of Licensing and Regulatory Affairs. LARA Living Room explores how regulation works, why it matters, and the people making it happen.
LARA Living Room
The Role of MOAHR in Michigan Government
Executive Director Suzanne Sonneborn explains MOAHR’s mission as a Type 1 agency: fair hearings, effective rulemaking, and serving the people of Michigan.
Welcome back to the LARA Living Room. I'm your host, Anastasha Osborn. Today we're diving into one of LARA's type one agencies that you may not hear about every day, but plays a huge role in state government, and that is the Michigan Office of Administrative Hearings and Rules, or as we refer to them, MOAHR. Now, MOAHR oversees Michigan's centralized administrative hearing systems and also manages the state's administrative rulemaking process. From unemployment and benefit services to licensing, regulatory issues, and even corrections-related matters, MOAHR's work touches many parts of people's lives here in Michigan. Joining me is Suzanne Sonneborn, Executive Director of MOAHR, and today we're going to talk about what MOAHR does, why it matters, and how their mission of fairness and accessibility plays out every single day. Before assuming this role in February of 2020, Suzanne served as Chief Legal Counsel to Attorney General Dana Nessel and has also previously served as an administrative law judge, as deputy legal counsel to former Governor Jennifer Granholm, and as an Assistant Attorney General under Attorneys General Frank Kelly, Jennifer Granholm, and Mike Cox. Suzanne is a 1992 graduate of Michigan State University and a 1996 graduate of Western Michigan University, Cooley Law School. If you are a recurring LARA living room listener, then you know the drill. Go ahead and fill up your coffee, grab a seat, and get comfortable because you are now in the LARA Living Room. Thank you for joining me today, Suzanne. Before we get into the details, I just want to start broad so listeners can understand the foundation kind of of your work. So for someone who may have never heard of the Michigan Office of Administrative Hearings and Rules, or as we refer to you as MOAHR before, how would you describe what your office does in just a few sentences?
Suzanne Sonneborn:First, thank you so much, Anastasha, for inviting me to be a guest on LARA's Living Room podcast and to be able to share some insights with your audience on our team's important work here at MOAHR. So, as the name suggests, MOAHR is a centralized administrative hearing system with several divisions of administrative law judges and administrative support team members who provide an administrative hearings service to the public and to several departments and agencies. Essentially, when a state agency makes a decision about a license or benefits, for example, that a person disagrees with, they often have a right to dispute that decision in an administrative hearing. MOAHR provides those hearings. And MOAHR is also the office that oversees the administrative rulemaking for all State Departments.
Anastasha Osborn:Okay, so good. That helps us give you a little bit of foundation of the work. So now MOAHR is what's known as a Type 1 agency under Michigan law. And that sounds kind of technical, but I'm sure it has a real purpose. So can you explain what it means to be a Type 1 agency and then how that impacts the work that MOAHR does within LARA and then also across state government?
Suzanne Sonneborn:Sure. So a Type 1 agency is an agency under the administration of the principal department in which it is housed, but it operates independently of the principal department in carrying out its substantive duties and functions, except that all budgeting, procurement, and related management functions remain under the supervision of the head of that principal department. So what that means in practice here at MOAHR is that MOAHR operates independently of LARA in its oversight of the administrative hearings and rulemaking processes, but we are supported by LARA with respect to these other functions like budgeting and procurement, as I just mentioned.
Anastasha Osborn:Wonderful. And most people might not realize how many different areas that MOAHR actually touches through hearings. So what kind of cases or hearings does MOAHR's administrative law judge and staff handle, and how does that impact everyday Michiganders?
Suzanne Sonneborn:Well, for perspective, in 2024, MOAHR processed 94,937 hearing requests. MOAHR conducted 91,673 administrative hearings, and we closed 100,157 cases. While our highest volume areas are unemployment appeals and corrections cases, the portfolio of these cases and hearings handled by MOAHR's administrative law judges and the range of complexity of these cases is extensive. It's probably best to describe them in the several categories or areas in which we are set up. So we have benefit services. This includes hearings related to Medicaid program eligibility, services and providers, food assistants, cash assistance, housing assistance, and hearings for adoption subsidy programs. We also hold unemployment appeals hearings. These are appeals referred by the unemployment insurance agency related to worker benefit entitlement, employer liability, and identity fraud issues. We hold licensing hearings. This includes hearings referred by various agencies and bureaus, such as the Liquor Control Commission, the Department of Insurance and Financial Services, the Michigan State Police and Michigan Commission on Law Enforcement Standards, the Bureau of Services for Blind Persons, Business Enterprise Program Licensing, Corporations Securities and Commercial Licensing and Corporate Oversight, Healthcare Professional Licensing and Occupational Licensing, to name a few. We also hold hearings for the Michigan Department of Corrections. These include cases of Class I misconducts, visitor restrictions, risk classifications, excess legal property, classifications to segregation, as well as parole violation hearings. Finally, the last category is regulatory actions. These hearings include issues originating, for example, with the Michigan Occupational Safety and Health Administration. These can be worker safety issues. The Cannabis Regulatory Agency, the Department of Education, these include special education, teacher tenure, nutrition, the Department of Environment, Great Lakes and Energy. These include environmental and permitting issues. The Department of Insurance and Financial Services, these include financial and insurance matters, the Department of Transportation, which is traffic standards, road construction, billboard regulation, et cetera. The Michigan Public Service Commission, which is utility and telecommunications law, the Michigan Employment Relations Commission, which is unfair labor practices, public strikes, petitions for representation, elections, and finally the Department of Civil Rights. So as you can see from a practical standpoint, across the board, there are a variety of hearings we hold here at MOAHR. And whether the hearing involved, for example, an unemployment appeal, a dispute over benefits or cash assistance, a utility regulatory matter, a prisoner misconduct hearing or parole violation hearing, an environmental permit case, a proper school placement for a student, or a business owner's licensure to continue operations. The cases and hearings handled here impact Michigan residents, businesses, licensees, and companies. And while these impacts may vary depending on the nature of the case, each case is governed by our core mission. And that's a mission to provide all parties who have a case before MOAHR with a hearings process that is led by fairness, due process, flexibility, prompt communication, and a timely resolution of disputes, and above all, a respect for the rule of law.
Anastasha Osborn:Wow. So it sounds like a theme that I keep hearing in your work really is about fairness and accessibility. So how do you ensure that the hearing process is impartial and respectful for everyone involved, you know, whether they're an individual citizen or a large organization?
Suzanne Sonneborn:Well, that's a great question, Anastasha. MOAHR's organizational mission is to provide a timely, professional, sound, impartial, and respectful administrative hearings process and rule promulgation process that is consistent with all legal requirements. Intrinsic to this mission as it relates to the administrative hearings process is the expectation that administrative law judges respect and honor their roles in this process as a public trust, and that they strive to enhance and maintain confidence in our legal system and in the provision of access to administrative justice. As public servants and as members of the legal profession, I do not believe that this is a high bar. And in fact, it's a bar that we all strive to and should meet each day. But it's also a bar for administrative support team members, which include legal secretaries, office assistants, and schedulers in the customer service that they provide to parties and members of the public who are often reaching out with questions and require assistance. And more often than not, this may be their first interaction with our office or with a legal proceeding. And it may also be a very challenging time for them when they are not at their best. So when our team members answer these calls and provide hearings-related information, they need to do so with professionalism and respect and kindness. And they do. And when they do this, it removes a barrier to access, which I think too contributes to the credibility of our mission and also helps to strengthen confidence in our legal system. This is also a role that I take very seriously in my oversight of this agency. I'm committed to cultivating and maintaining a work environment where fairness is a practice and not just a concept. And where every party interacting with our team and appearing before our administrative law judges leaves that interaction and the disposition of their case with the knowledge that they were respected, heard, and provided with a fair and impartial hearing. Regardless, or more importantly, even when the outcome of that case was not in their favor. So a few ways our management team do this is through a rigorous hiring and training process. When I assumed my role here, I have been determined to and have been on the hiring panel for every new administrative law judge who has joined our team. And I will continue to do that. Last year I was grateful to oversee the development of our agency's first formalized code of conduct for administrative law judges. And we modeled this code after the American A Bar Association's model code of judicial conduct for state administrative law judges. And this code is something that we intend to, you know, provide guidance to assist our ALGs within establishing and maintaining high standards of judicial and personal conduct. So this is a long answer to your question, but it really is important, I think, to explain in detail the ways in which we strive to provide a fair and impartial hearings process here at MOAHR.
Anastasha Osborn:Suzanne, I just want to say how much I appreciate what you just shared. I think I speak for a lot of people when I say that your mindset, you know, one that's grounded in this fairness, intentional leadership, and deep respect for all parties, is not only refreshing, I think it's also really essential in this line of work. And so the care I feel you're putting into everything from your hiring to developing a formal code of conduct that you talked about, I feel like that truly sets a tone for integrity and accountability. And I feel like it really matters, especially in systems where people's trust can be fragile. And so I just want to say thank you for leading with that kind of thoughtfulness. And then I kind of want to jump into um hearings. So, or alongside, I guess, the hearings, more also oversees the state's administrative rulemaking process, which is just another piece I think the public doesn't always get to see. So, could you walk us through what that role looks like and how does a rule go from an idea to something that actually gets adopted?
Suzanne Sonneborn:Sure. So while most ideas for improving regulations through the administrative rulemaking process come from state agencies, it's also possible for an individual to request that a state agency make or change a rule. And either way, when a state agency recognizes the need for a new rule or a change to a rule, or that a rule is no longer needed and should be rescinded, the agency will begin that process by submitting what's called a request for rulemaking or an RFR. This RFR provides an overview of the purpose of the proposed rules and it identifies any problems that the proposed rules are intended to address. Once that's been submitted, the agency works with stakeholders and subject matter experts to draft proposed rules in a format that allows the reader to identify what those changes are going to be. The agency then prepares what's called a regulatory impact statement or an RIS and a cost-benefit analysis or a CBA that discusses how the proposed rules would impact both the agency and the regulated community. Once that occurs, the agency then holds a public hearing. And this is an opportunity where individuals are encouraged to submit either written or verbal comments regarding issues or proposed improvements to the rules. The agency will then consider all of those comments and determine whether to incorporate any of them into the changes to the rules. Once that happens, MOAHR will review the rules to ensure that the agency has statutory authority to make the rules and that the rules conform to basic legal principles. More will also edit those rules to conform with style and formatting requirements. The Legislative Service Bureau will then review the rules and issue what's called a formal certification. And what this does is it confirms that the rules conform with all style and formatting requirements. The next step is that a report containing all of the rulemaking documents, including the proposed rules and the comments from the public, is submitted to the Joint Committee on Administrative Rules, known as JCAR. JCAR is a legislative committee consisting of five members of the Senate and five members of the House of Representatives. JCAR has 15 session days to consider the rules. If JCAR does not object or request changes to the rules or introduce bills covering the same subject matter of the rules, then once those 15 session days have expired, the rules can be filed with the Office of the Great Seal and are effective either immediately or upon a date that is identified in those rules. On average, it takes approximately one year to promulgate a rule through this process.
Anastasha Osborn:Wow. Thank you. So I guess, Suzanne, as we kind of close out, what's on the horizon for MOAHR? And are there any priorities or initiatives you're especially excited about in the year ahead?
Suzanne Sonneborn:So I think at this time, MOAHR's main focus and priority is to primarily continue to navigate what I would characterize as an uncertainty and fluctuating case volume with our existing resources while making sure that both the administrative hearings and the rulemaking processes are administered with integrity and fairness. I am so grateful and humbled to work with such an outstanding team of professionals who share this focus and priority on a daily basis.
unknown:Wonderful.
Anastasha Osborn:Well, thank you so much for being here today, Suzanne. I really appreciate your time and your information that you were able to share.
Suzanne Sonneborn:Thank you so much, Anastasha, for giving me this opportunity to share what we do here at MOAHR.
Anastasha Osborn:Absolutely.
Suzanne Sonneborn:Thank you.
Anastasha Osborn:That wraps up today's conversation with Suzanne. I hope this helped you, as the listener, have a better understanding what MOAHR is, the role that they play across state government, and how they work to ensure a fair and impartial process for all Michiganders. And if you've enjoyed this episode, be sure to subscribe so you don't miss future conversations here in the LARA living room. And as always, from our living room to yours, we'll see you next time.
