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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
AMENDED
agency actions; procedures; fee awards
Purpose
Increases the maximum allowable amount of court fees that may be awarded to the prevailing party in certain cases against the state or a city, town or county. Modifies statutory requirements relating to occupational licensees and applicants for occupational licensure.
Background
A court must award fees and other expenses to any party other than the state or a city, town or county that prevails in an adjudication on the merits of certain cases, including a: 1) civil action brought by the state or a city, town or county against a party; 2) court proceeding to review an agency decision; and 3) special action brought by a party to challenge an action by the state or a city, town or county against a party. A court must base any award of fees on the prevailing market rates for the kind and quality of services furnished with statutory caps for expert witnesses, attorney fees and other fees and expenses. In court actions that involve certain taxation-related circumstances, statute allows a higher maximum rate to be paid to expert witnesses and attorneys and allows for a higher total cap for all fees and other expenses paid to a prevailing party other than the state or a city, town or county (A.R.S. § 12-348).
The Administrative Procedures Act outlines requirements for state agency rulemaking, licensing timeframes and approval, administrative hearings and occupational regulation (A.R.S. Title 41, Chapter 6). A state agency cannot base a licensing decision on a licensing requirement or condition that is not specifically authorized by statute, rule or the Tribal Gaming Compact (A.R.S. § 41-1030). If a state agency determines that an application for licensure is not administratively complete, the agency must include a comprehensive list of the deficiencies to the applicant. The application is not considered complete until the requested information is received by the state agency (A.R.S. § 41-1074).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Awarding of Court Fees and Other Expenses in Certain Court Actions
1. Removes the ineligibility of a court expert to receive compensation in excess of the highest rate of compensation paid by the state or a city, town or county expert for court actions that do not involve certain taxation-related circumstances.
2. Removes the cap on the awarding of attorney fees in court actions that do not involve certain taxation-related circumstances in excess of:
a) the amount that the prevailing party has paid or agreed to pay to an attorney; or
b) a maximum amount of $75 per hour.
3. Applies the $350 per hour cap for the awarding of attorney fees to the prevailing party in certain taxation-related actions to actions against the state or a city, town or county not related to taxation.
4. Increases, from $10,000 to $125,000, the maximum amount of court fees that may be awarded in actions not related to taxation against a city, town or county.
5. Increases, from $75,000 to $125,000, the maximum amount of court fees that may be awarded to a party in certain actions relating to taxation against the state or a city, town or county.
6. Caps the maximum amount of court fees that may be awarded in actions not related to taxation against the state at $125,000.
7. Applies changes to the awarding of court fees and other expenses to all proceedings that are pending on or filed after the general effective date.
Licensing Regulation and Appealable State Agency Actions
8. Prohibits a state agency from basing a decision regarding any filing or other matter submitted by a licensee on a requirement or condition that is not specifically authorized by statute, rule, federal law or regulation or the Tribal Gaming Compact.
9. Entitles a person to have a state agency not base a decision regarding a filing or other matter submitted to the agency on a requirement or condition that is not specifically authorized by statute, rule, federal law or regulation or the Tribal Gaming Compact.
10. Specifies that a general grant of statutory authority does not constitute a basis for imposing a requirement or condition for approval on any filing or other matter submitted by a licensee, unless a rule is made according to a general grant of authority that specifically authorizes the requirement or condition.
11. Deems, as an appealable agency action, a determination by a state agency that a license application is not administratively complete and entitles the applicant to an adjudication on the merits of the administrative completeness of the application, except for applications submitted to the Arizona Department of Water Resources (ADWR) pursuant to statutory requirements.
12. Specifies that statutory requirements relating to inspections and audits of a regulated person's premises by state agency inspectors, auditors or regulators apply to all state agencies that conduct inspections and audits.
13. Specifies that statutory inspection and audit requirements govern if a conflict arises between a regulated person's rights pursuant to statutory inspection and audit requirements and another section of statute.
14. Defines an appealable agency action relating to statutory requirements of the Administrative Procedures Act.
15. Modifies the definition of licensing relating to the statutory requirements of the Administrative Procedures Act to:
a) include an agency process regarding the change, reduction or modification of a license; and
b) apply to an existing permit, certificate, approval, registration, charter or similar form of permission, approval or authorization obtained from an agency by the license holder.
16. Defines licensing decision to include any state agency action to grant or deny a request for permission, approval or authorization issued in response to an applicant for a license or to a license holder to exercise authority within the scope of the license.
17. Includes, in the definition of an appealable agency action relating to uniform administrative hearing procedures, the administrative completeness of an application.
Miscellaneous
18. Makes technical and conforming changes.
19. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Allows a state agency to base a decision regarding a filing or other matter submitted by a licensee on a requirement or condition that is authorized by federal law or rule.
2. Specifies a determination that an application submitted to ADWR is not administratively complete is not an appealable agency action and does not entitle the applicant to an adjudication on the merits of the administrative completeness of the application.
House Action Senate Action
RA 2/3/20 DP 4-3-0-0 GOV 3/9/20 DPA 5-2-0
3rd Read 2/17/20 31-29-0
Prepared by Senate Research
March 11, 2020
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