HB2724 - 541R

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

Section 1. Section 41-1033, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1033. Petition for a rule or review of an agency practice, substantive policy statement, final rule or unduly burdensome licensing requirement; notice

A. Any person may petition an agency to do either of the following:

1. Make, amend or repeal a final rule.

2. Review an existing agency practice or substantive policy statement that the petitioner alleges to constitute a rule.

B. An agency shall prescribe the form of the petition and the procedures for the petition's submission, consideration and disposition. The person shall state on the petition the rulemaking to review or the agency practice or substantive policy statement to consider making into a rule.

C. Not later than sixty days after submission of the petition, the agency shall either:

1. Reject the petition and state its reasons in writing for denial rejection to the petitioner.

2. Initiate rulemaking proceedings in accordance with this chapter.

3. If otherwise lawful, make a rule.

D. The agency's response to the petition is open to public inspection.

E. If an agency rejects a petition pursuant to subsection C of this section, the petitioner has thirty days to appeal to the council to review whether the existing agency practice or substantive policy statement constitutes a rule. The council chairperson shall place this appeal on the agenda of the council's next meeting if at least three council members make such a request of the council chairperson within two weeks after the filing of the appeal.

F. A person may petition the council to request a review of a final rule based on the person's belief that the final rule does not meet the requirements prescribed in section 41‑1030.

G. A person may petition the council to request a review of an existing agency practice, substantive policy statement, final rule or regulatory licensing requirement that is not specifically authorized by statute pursuant to title 32 based on the person's belief that the existing agency practice, substantive policy statement, final rule or regulatory licensing requirement is unduly burdensome or is not demonstrated to be necessary to specifically fulfill a public health, safety or welfare concern. If the council determines that the existing agency practice, substantive policy statement, final rule or regulatory licensing requirement applies to a profession for which the average wage in that profession in this state does not exceed two hundred percent of the federal poverty guidelines for a family of four, the council shall review the existing agency practice, substantive policy statement, final rule or regulatory licensing requirement as prescribed by this section. This subsection does not apply to an individual or institution that is subject to title 36, chapter 4, article 10 or chapter 20.

H. A person may petition the council to request a review of an existing agency practice, substantive policy statement, enforcement action or final rule of an agency established under title 16, chapter 6 based on the person's belief that the existing agency practice, substantive policy statement, enforcement action or final rule does not meet the requirements of chapter 6 of this title, exceeds the agency's statutory authority or violates this state's constitution or the United States Constitution.

H. I. If the council receives information that indicates an existing agency practice or substantive policy statement may constitute a rule, that a final rule does not meet the requirements prescribed in section 41‑1030, or that an existing agency practice, substantive policy statement, final rule or regulatory licensing requirement does not meet the guidelines prescribed in subsection G of this section or that an existing agency practice, substantive policy statement, enforcement action or final rule of an agency established under title 16, chapter 6 does not meet the guidelines prescribed in subsection H of this section and at least four council members request of the chairperson that the matter be heard in a public meeting:

1. Within ninety days after receipt of the fourth council member's request, the council shall determine whether:

(a) The agency practice or substantive policy statement constitutes a rule. , whether

(b) The final rule meets the requirements prescribed in section 41‑1030. or whether

(c) An existing agency practice, substantive policy statement, final rule or regulatory licensing requirement meets the guidelines prescribed in subsection G of this section.

(d) An existing agency practice, substantive policy statement, enforcement action or final rule of an agency established under title 16, chapter 6 does not meet the guidelines prescribed in subsection H of this section.

2. Within ten days after receipt of the fourth council member's request, the council shall notify the agency that the matter has been or will be placed on an agenda.

3. Not later than thirty days after receiving notice from the council, the agency shall submit a statement to the council that addresses whether:

(a) The existing agency practice, substantive policy statement constitutes a rule. or whether

(b) The final rule meets the requirements prescribed in section 41‑1030. or whether

(c) An existing agency practice, substantive policy statement, final rule or regulatory licensing requirement meets the guidelines prescribed in subsection G of this section.

(d) an existing agency practice, substantive policy statement, enforcement action or final rule of an agency established under title 16, chapter 6 does not meet the guidelines prescribed in subsection H of this section.

I. J. For the purposes of subsection H I of this section, the council meeting shall not be scheduled until the expiration of the agency response period prescribed in subsection H I, paragraph 3 of this section.

J. K. An agency practice, substantive policy statement, final rule or regulatory licensing requirement considered by the council pursuant to this section shall remain in effect while under consideration of the council. If the council ultimately decides the agency practice or substantive policy statement constitutes a rule or that the final rule does not meet the requirements prescribed in section 41‑1030, the practice, policy statement or rule shall be considered void. If the council determines that the existing agency practice, substantive policy statement, final rule or regulatory licensing requirement is unduly burdensome or is not demonstrated to be necessary to specifically fulfill a public health, safety or welfare concern and meets the requirements of subsection G of this section, the council may modify, revise or declare void any such existing agency practice, substantive policy statement, final rule or regulatory licensing requirement. If, based on a person's belief that the existing agency practice, substantive policy statement, enforcement action or final rule does not meet the requirements of chapter 6 of this title, exceeds the agency's statutory authority or violates this state's constitution or the United States Constitution, the council determines that the existing agency practice, substantive policy statement, enforcement action or final rule of an agency established under title 16, chapter 6 does not meet the guidelines prescribed in subsection H of this section, the council may modify, revise or declare void any such existing agency practice, substantive policy statement, enforcement action or final rule.

K. L. A council decision pursuant to this section shall include findings of fact and conclusions of law, separately stated. Conclusions of law shall specifically address the agency's authority to act consistent with section 41‑1030.

L. M. A decision by the agency pursuant to this section is not subject to judicial review, except that, in addition to the procedure prescribed in this section or in lieu of the procedure prescribed in this section, a person may seek declaratory relief pursuant to section 41‑1034.

M. N. Each agency and the secretary of state shall post prominently on their websites notice of an individual's right to petition the council for review pursuant to this section. END_STATUTE