ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: RA DP 4-3-0-0

HB 2713: agency actions; procedures; fee awards

Sponsor:  Representative Grantham, LD 12

Caucus & COW

Overview

Makes various changes regarding the awarding of fees and other expenses against the state, city, town or county.  Makes various administrative procedural changes regarding licensees and licensing decisions made by an agency. 

History

A party that prevails by an adjudication against this state, city, town or county can be awarded fees and other expenses by a court in addition to any costs that are awarded under certain outlined conditions (A.R.S. § 12-348).          

The Regulatory Bill of Rights (RBR) provides rights to a person to ensure fair and open regulation by a state agency.  Each state agency that conducts audits, inspections or other regulatory enforcement must create and clearly post on the agency's website a Small Business Bill of Rights (SBBR) by selecting the applicable rights in the RBR and any other agency specific statutes and rules.  A written document of the SBBR must be provided by the agency to the authorized on-site representative of the regulated small business.  The agency notice of the SBBR must include the process in which a small business may file a complaint with the agency.  The agency notice must also state that if the regulated person has made a reasonable effort to resolve an issue with an agency and has not been successful, the regulated person can contact the Office of Ombudsman-Citizens Aide (A.R.S. § 41-1001.01). 

Provisions

Award of Fees and Other Expenses Against the State or a City, Town or County (Sec. 1)

1.    Removes language prohibiting an expert from being eligible for compensation at a rate in excess of the highest rate of compensation for experts paid by this state, city, town or county. 

2.    Removes language stating that an award of attorney fees may not exceed the amount that the prevailing party has paid, agreed to pay or a maximum amount of $75 per hour unless the court determines that an increase in the cost of living or a special factor justifies a higher fee.   

3.    Removes language that states an award of fees against a city, town county must not exceed $10,000. 

4.    Changes the amount for an award of fees when a party prevails by adjudication against the state, city, town or county to not exceed $125,000, rather than $75,000, for fees incurred at each judicial appeal.

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteAdministrative Procedure

5.    Modifies the definition of licensing to include:

 

a)    An existing permit, certificate, approval, registration, charter or similar form of permission, approval or authorization obtained from an agency by the holder of the license; and

b)    The agency process regarding the change, reduction or modification of a license.  (Sec. 2) 

6.    Defines licensing decision as any action by an agency to grant or deny any request for permission, approval or authorization issued in response to any request from an applicant for a license or exercise authority of the license by the license holder.  (Sec. 2) 

7.    Adds a provision to the RBR that states a person is entitled to have an agency not base a decision regarding any filing submitted to an agency on a requirement or condition that is not specifically authorized by statute, rule or state tribal gaming compact.  (Sec. 3)

8.    Prohibits an agency from basing a decision regarding any filing by a licensee on a requirement or condition that is not specifically authorized by statute, rule or state tribal gaming compact.  (Sec. 5) 

9.    States that a general grant of authority in statute does not constitute a basis for imposing a requirement or condition for approval of a decision on a filing submitted by a licensee unless a rule is made that authorizes the requirement or condition.  (Sec. 5)

10.  Modifies the definition of appealable agency action to include the administrative completeness of an application.  (Sec. 7) 

11.  States that a determination by an agency that an application is not administratively complete is an appealable agency action, which if timely initiated, entitles the applicant to an adjudication on the merits of the completeness of the application.  (Sec. 6) 

12.  States that, except as otherwise noted, the administrative procedure statutes governing inspections, audits, applicability and exceptions apply:

a)    To all state agencies that conduct inspections and audits; and

b)    If a conflict arises between the rights of a regulated person pursuant to this section and the rights of a regulated person pursuant to another statute, this section governs.  (Sec. 4)

Miscellaneous

13.  Makes technical changes.  (Sec. 6, 7)

14.  Makes technical and conforming changes.  (Sec. 1-5)

15.  Contains an applicability clause.  (Sec. 8)

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19.  Initials JR              Caucus & COW

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