NC S535

Establishes automatic adoption of administrative law judge decisions if an agency does not file exceptions within 15 days of receiving the official record in a contested case.

Reduces decision timelines for agencies from 60 days to 45 days, and extension periods from 60 days to 30 days; agencies are deemed to have adopted the ALJ decision if they do not meet these deadlines.

Changes the standard for agency review of ALJ findings from "clearly contrary to preponderance of evidence" to "supported by substantial evidence" and requires agencies to provide specific written reasons for rejecting ALJ findings.

Modifies judicial review standards to conduct de novo review when agencies do not adopt ALJ decisions, and adds a third initial determination requiring courts to evaluate whether agencies stated specific reasons for rejecting recommended decisions.

Applies the changes to all contested cases commenced on or after the bill's effective date.