Assigned to COMPS AS
PASSED BY COW
Assigned to COMPS AS
PASSED BY COW
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
AMENDED
occupational
regulation; municipalities; counties; prohibition
(NOW: occupational regulation; municipalities; counties; hearing)
Purpose
Requires a local government to hold a public hearing to demonstrate necessity before adopting an occupational licensing requirement on any occupation, trade or profession.
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
2. Requires a local government to hold a public hearing, with notice, before adopting an occupational licensing requirement on any occupation, trade or profession.
3. Sunsets existing occupational licensing requirements three years from the general effective date, unless the local government holds a public hearing at least three months before requirement expiration to demonstrate necessity.
4. Sunsets all occupational licensing requirements five years after adoption, unless the local government holds a public hearing.
5. Requires a local government that adopts an occupational licensing requirement to establish administrative rules and procedures for application and enforcement.
6. Allows a local government to:
a) assign or delegate administrative powers and duties to any agency, as necessary;
b) create administrative agencies;
c) provide supporting officials; and
d) provide funds for the compensation of supporting officers, employees and agencies.
7. Allows a local government to impose an occupational licensing requirement on an individual who works or seeks employment at:
a) a structured sober living home;
b) an establishment that provides an adult service;
c) an adult oriented business; or
d) a public airport.
8. Exempts business licenses, facility licenses, building permits, zoning regulations and land use regulations from the definition of occupational licensing requirement.
9. Defines occupational 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;
b) a regulatory requirement that prevents an individual from using an occupational title; or
c) a fee or tax imposed on an individual to work in a lawful occupation.
10. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Adopted the strike-everything amendment.
2. Extends sunset timeframes from three years to five years.
3. Removes private action permissibility.
4. Removes state licensing preemption.
5. Modifies the definition of licensing requirement.
Amendments Adopted by Committee of the Whole
1. Allows a local government to impose an occupational licensing requirement on an individual working or seeking work at a public airport.
2. Clarifies that the structured sober living home exemption applies to a person working or seeking work in a sober living home.
3. Combines the definitions of occupational fee and licensing requirement into the definition of occupational licensing requirement.
4. Makes technical and conforming changes.
Senate Action
COMPS 3/19/18 DPA/SE 6-1-1
Prepared by Senate Research
April 5, 2018
GH/lb