Assigned to COMPS FOR
COMMITTEE
Assigned to COMPS FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
occupational regulation; municipalities; counties
Purpose
Prohibits cities, towns or counties from imposing new licensing requirements, levying new occupational fees or increasing any existing occupational fees on an individual.
Background
A municipality may not base a licensing decision on a requirement or condition that is not specifically authorized by statute, rule, ordinance or code. A general grant of authority does not constitute a basis for imposing a licensing requirement (A.R.S. § 9-832). Unless authorized by federal, state or local law, a city or town may not take any action that materially increases the regulatory burdens on a business unless there is a threat to the health, safety and welfare of the public that has not been addressed by legislation or industry regulation within the proposed, regulated field (A.R.S. § 9-841). Municipalities are also required to avoid duplication of other laws that do not enhance regulatory clarity (A.R.S. § 9-834).
State boards and commissions are statutorily established to license and regulate various professions and occupations. A board or commission may not base a licensing decision in whole or in part on a requirement or condition that is not specifically authorized by statute or rule (A.R.S. § 41-1030). Unless covered by an explicit exemption, a rule related to occupational licensing requires approval by the Governor's Regulatory Review Council (GRRC). GRRC may not approve a rule unless the probable benefits of the rule outweigh the probable costs. The board or commission must demonstrate that it has selected the alternative that imposes the least burden and costs necessary to achieve the underlying regulatory objective (A.R.S. § 41-1052).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a city, town or county licensing authority (local licensing authority) from imposing any new occupational fees or licensing requirements for an occupation, trade or profession.
2. Prohibits a local licensing authority from increasing the amount of any existing occupational fees on an occupation, trade or profession.
3. Requires a local licensing authority to discontinue any existing occupational fees or licensing requirements if the state imposes a new occupational fee or licensing requirement on an occupation, trade or profession that is not currently regulated by the state.
4. Allows a local licensing authority to continue regulating an existing occupation, trade or profession that is currently subject to an occupational fee or licensing requirement.
5. Defines licensing requirement as a:
a) rule, regulation, practice or policy that allows an individual to use an occupational title or work in a lawful occupation, trade or profession; or
b) a regulatory requirement that prevents an individual from using an occupational title.
6. Defines licensing authority as any city, town or county department, board, commission or office that has the authority to impose an occupational fee or licensing requirement on any occupation, trade or profession.
7. Defines occupational fee as a fee or tax imposed on an individual to use an occupational title or work in a lawful occupation, trade or profession.
8. Becomes effective on the general effective date.
Prepared by Senate Research
February 7, 2018
GH/lb