HB2157 - 532R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 41-2953, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2953. Joint legislative audit committee sunset powers and duties; report by auditor general and committees of reference; sunset review reports; performance audits

A. The joint legislative audit committee shall designate the chairman of each committee of reference and shall assign agencies to the respective committees of reference according to subject matter for performance review.

B. The auditor general shall provide to the committee a list of agencies scheduled for termination in the next sunset termination schedule, plus an estimate of the audit hours necessary to conduct a sunset review of each agency, not less than twenty months prior to before the termination date for such agencies. Not less than nineteen months prior to before such a termination date, the committee shall meet to review the information submitted by the auditor general, shall select which agencies are subject to sunset review by the auditor general and which agencies are subject to sunset review by the committees of reference and shall determine the priority of review by the auditor general or the committees of reference. If the auditor general or the committees of reference are unable to complete the sunset review of a selected agency, the committee shall oversee the preparation of proposed legislation to place such an agency in the following sunset termination schedule and is responsible for the introduction of such legislation. Those agencies not selected for sunset review by the committee shall terminate pursuant to article 2 of this chapter unless otherwise continued by the legislature.

C. The committee shall initiate the sunset review not less than seventeen months prior to before the termination date for each agency which that is selected pursuant to subsection B of this section and scheduled for termination pursuant to article 2 of this chapter. The draft sunset review report shall be completed not less than eleven months prior to before the date established by article 2 of this chapter for termination. Before such a report is submitted, the state agency affected shall be given an opportunity to review the draft report and submit written comments or rebuttal which that shall be included in the preliminary sunset review report. The agency shall have not more than forty calendar days to review the draft report for comment or rebuttal. The preliminary sunset review report shall be submitted to the governor, to each member of the committee, to the committee of reference and to the affected agency by October 1 of the year prior to before the scheduled termination date of the agency.

D. The committee may direct the auditor general or the committees of reference to conduct a performance audit, as defined in chapter 7, article 10.1 of this title, or a special performance audit of any agency as defined in section 41‑2952.

E. If an agency is continued, the joint legislative audit committee may direct the auditor general or the committees of reference to conduct a follow‑up review of the agency to determine how the agency has performed its statutory functions or corrected deficiencies of prior sunset review, or both. END_STATUTE

Sec. 2. Section 41-2954, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2954. Committees of reference; membership; vacancies; performance review reports; hearings; recommendations; subpoena powers

A. The chairperson of each standing committee of both legislative houses shall appoint a subcommittee of five members. Not more than three appointees of each house shall be of the same political party. The subcommittees shall jointly constitute a committee of reference in their respective subject matter areas. The president of the senate or the speaker of the house of representatives may appoint a person to fill a vacancy on a committee of reference by filing a letter with the secretary of the senate or the chief clerk of the house of representatives.

B. After receipt of the preliminary sunset review report, the committee of reference shall hold at least one public hearing to receive testimony from the public and from the officials of the agency involved. The agency involved shall prepare a presentation for the first public meeting that addresses the elements of the written statement required by subsection F of this section.

C. The committee of reference shall hold public hearings for the following purposes:

1. To determine the actual need of the agency to regulate or direct the particular activity.

2. To determine the extent to which the statutory requirements of the agency are necessary and are being met.

3. To receive testimony from the public as to the relationship of the agency with the public.

4. To receive testimony from the executive director or other head of the agency as to reasons for the continuation of the agency.

D. The committee of reference shall consider but not be limited to the following factors in determining the need for continuation or termination of each agency:

1. The objective and purpose in establishing the agency and the extent to which the objective and purpose are met by private enterprises in other states.

2. The extent to which the agency has met its statutory objective and purpose and the efficiency with which it has operated.

3. The extent to which the agency serves the entire state rather than specific interests.

4. The extent to which rules adopted by the agency are consistent with the legislative mandate.

5. The extent to which the agency has encouraged input from the public before adopting its rules and the extent to which it has informed the public as to its actions and their expected impact on the public.

6. The extent to which the agency has been able to investigate and resolve complaints that are within its jurisdiction.

7. The extent to which the attorney general or any other applicable agency of state government has the authority to prosecute actions under the enabling legislation.

8. The extent to which agencies have addressed deficiencies in their enabling statutes that prevent them from fulfilling their statutory mandate.

9. The extent to which changes are necessary in the laws of the agency to adequately comply with the factors listed in this subsection.

10. The extent to which the termination of the agency would significantly affect the public health, safety or welfare.

11. The extent to which the level of regulation exercised by the agency compares to other states and is appropriate and whether less or more stringent levels of regulation would be appropriate.

12. The extent to which the agency has used private contractors in the performance of its duties as compared to other states and how more effective use of private contractors could be accomplished.

13. The extent to which the agency potentially creates unexpected negative consequences that might require additional review by the committee of reference, including increasing the price of goods, affecting the availability of services, limiting the abilities of individuals and businesses to operate efficiently and increasing the cost of government.

E. The committee of reference shall deliver the final sunset review report of its recommendations to the committee, the president of the senate, the speaker of the house of representatives, the governor, the auditor general and the affected agency by December 1. Such recommendations shall include one of the following:

1. That the state agency be continued.

2. That the state agency be revised or consolidated.

3. That the state agency be terminated pursuant to this chapter.

F. The final sunset review report by the committee of reference shall also include a written statement prepared by the agency involved that contains:

1. An identification of the problem or the needs that the agency is intended to address.

2. A statement, to the extent practicable, in quantitative and qualitative terms, of the objectives of such an agency and its anticipated accomplishments.

3. An identification of any other agencies having similar, conflicting or duplicate objectives, and an explanation of the manner in which the agency avoids duplication or conflict with other such agencies.

4. An assessment of the consequences of eliminating the agency or of consolidating it with another agency.

G. The committee shall oversee the preparation of any proposed legislation to implement the recommendations of the committees of reference and is responsible for the introduction of such legislation.

H. If an agency is continued, it is not necessary to reappoint any member of the governing board or commission of the agency. Such The members are eligible to complete their original terms without reappointment or reconfirmation.

I. Each committee of reference shall have the power of legislative subpoena pursuant to chapter 7, article 4 of this title. END_STATUTE