State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2182: permit; license; denials; agency hearing

PRIME SPONSOR: Representative Grantham, LD 12

BILL STATUS: House Engrossed

 

 

Overview

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteOutlines additional requirements for approval or denial of an application of a license or permit. Modifies certain processes and procedures relating to adjudicative proceedings and administrative hearings.

History

A.R.S. Title 41, Chapter 6 Article 10 outlines the administrative hearing procedures for all contested cases and appealable agency actions, with specified exemptions. A.R.S. Title 41, Chapter 6, Article 6 outlines the adjudicative hearing procedures for contested cases of agencies exempt from the administrative hearing process. All parties in a contested case are afforded an opportunity for a hearing after reasonable notice (A.R.S. § 41-1061). In a contested case, a hearing may be conducted in an informal manner and without adherence to the rules of evidence required in judicial proceedings. Neither the manner of conducting the hearing or the failure to adhere to the rules of evidence can be used as grounds for reversing any administrative decision (A.R.S. § 41-1062).

Provisions

License and Permit Requirements (Sec. 1,2,5)

1.       Requires an agency, municipality or county to specify the criteria for approval of a license or permit in clear and unambiguous language.

a.       Specifies that in any court proceeding involving a denial of a license or permit, a court of competent jurisdiction determines whether the language is clear and unambiguous.

2.       Requires an agency to approve or deny an application within 30 days, unless otherwise specified by law or rule.

3.       Specifies that an applicant for a license or permit from a municipality or county is entitled to approval or denial of within 30 days after submission, unless otherwise specified by law or rule.

4.       Stipulates an application is deemed approved if the agency does not take action within 30 days.

5.       Stipulates that an agency's criteria for approval of a license or permit are presumed clear and unambiguous if a written clarification is issued or a rule is adopted.

o   Currently, an individual is allowed to request a clarification of an agency's interpretation or application of a statute, rule, delegation agreement or substantive policy statement before submitting an application for a license (A.R.S. § 41-1001.02).

Adjudicative Proceedings (Sec. 3)

5.       Removes language:

a.       Allowing a hearing to be conducted without adherence to the rules of evidence in judicial proceedings; and

b.       Prohibiting the manner of conducting a hearing from being used as grounds for reversing any administrative decision.

6.       Outlines criteria that must be met for a hearing to be conducted in an informal manner as follows:

a.       The parties must agree to an informal hearing;

b.       The agency is statutorily authorized to use an informal hearing;

c.        There is no disputed issue of material fact; or

d.       There is a disputed issue of material fact and the matter involves an amount less than $1,000.

7.       Requires an agency to state their selection of an informal hearing in the notice of hearing.

8.       Requires any objection to the use of an informal hearing to be made in the party's pleading.

9.       Directs the presiding officer to resolve an objection to the use of an informal hearing:

a.       On the basis of the pleadings and any written submission in support of the pleadings; and

b.       In favor of the licensee for a disciplinary proceeding involving an occupational license.

10.   Allows the presiding officer to:

a.       Deny the use of an informal hearing; or

b.       Require a formal hearing after an informal hearing is commenced if it is determined that:

                        i.      Cross-examination is necessary; and

                      ii.      The delay, burden or complication due to allowing cross-examination in the informal hearing will be more than minimal.

Administrative Hearings (Sec. 4)

11.   Removes language prohibiting the manner of conducting a hearing or the failure to adhere to the rules of evidence from being used as grounds for reversing any administrative decision.

12.   Requires the presiding officer to regulate the course of the hearing and allow the parties to offer comments on the issues.

a.       Specifies that the presiding officer may allow others to offer comments on the issues.

13.   Allows the presiding officer to limit the use of witnesses, testimony, evidence and argument.

14.   Allows the presiding officer to limit or prohibit the use of pleadings, invention, discovery, prehearing conferences and rebuttal.

15.   Specifies that an agency, rather than an applicant, has the burden of persuasion at a hearing on the agency's denial of a license or a permit or a request for modification of a license or permit.

16.   Specifies that the burden of proof is at least the preponderance of evidence.

Miscellaneous

17.   Makes technical and conforming changes. (Sec. 3-5)

 

 

 

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Fifty-fourth Legislature                           HB 2182

First Regular Session                Version 3: House Engrossed

 

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