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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
nonhealth professions; occupations; regulations.
Purpose
Modifies criteria for the regulation of nonhealth professions and occupations and adds to the factors legislative committees of reference (CORs) must consider in agency and regulation reviews. Defines terms relating to professional and occupational regulation.
Background
To practice or perform a regulated profession or occupation in Arizona, a person must meet certain qualifications and apply to the designated board or agency for the appropriate license, certificate or authorization. The laws and rules regarding qualifications, application, renewal and expiration of each authorization to practice vary across the professions and occupations (A.R.S. Title 32).
A nonhealth profession or occupation may only be regulated if: 1) the unregulated practice can clearly harm or endanger public health, safety or welfare; 2) actual or anticipated public benefit clearly exceeds the costs the regulation imposes on consumers, businesses and individuals; 3) the public needs and is expected to benefit from an assurance of professional ability; and 4) private certification or other alternatives cannot effectively protect the public.
A COR must review proposed legislation to regulate a nonhealth profession or occupation for the first time according to the statutory criteria (nonhealth regulation sunrise review). If the COR finds regulating a profession or occupation necessary, regulation must be in the least restrictive manner and not imposed to protect a discrete interest group from economic competition (A.R.S. § 32-4401). CORs also evaluate the need to continue a state agency according to outlined factors (sunset review) and must recommend continuing, revising, consolidating or terminating the agency (A.R.S. Title 41, Chapter 27).
Title 32 of the Arizona Revised Statutes contains statute relating to Professions and Occupations. Title 41 of the Arizona Revised Statutes contains statute relating to State Government.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Regulation of Nonhealth Professions and Occupations
1. Modifies criteria for state regulation of a nonhealth profession or occupation to require:
a) credible evidence of harm that unregulated practice threatens public health, safety or welfare, rather than that unregulated practice can clearly harm or endanger public health, safety or welfare;
b) that the public needs and is expected to benefit from government regulation, rather than from the assurance of initial and continuing professional ability; and
c) that the public cannot be protected by less restrictive regulations as outlined, rather than by private certification or other alternatives.
2. Prohibits the regulation of a profession or occupation for the exclusive purpose of protecting a profession or occupation, rather than a discrete interest group, from economic competition.
Sunrise Reviews
3. Requires a COR conducting a nonhealth regulation sunrise review to provide findings and recommendations to the standing committee to which proposed legislation is assigned that address:
a) the appropriate type of regulations, if any, according to the statutory criteria;
b) if applicable, the appropriate scope of practice and personal qualifications required for a government certification or occupational or professional license; and
c) the extent to which failure to regulate a profession or occupation will result in the loss of insurance, an impact to a required federal license or registration, an impact to the ability to practice in other states or as required by federal law and the loss of constitutionally afforded practices.
4. Allows the COR, in evaluating regulation criteria, to request information from state agencies that contract with individuals in regulated occupations and others with knowledge of the occupation or labor-market economics.
5. Removes a list of specified forms of evidence of actual harm that may be reviewed by a COR in determining initial regulation.
6. Specifies that the least restrictive manner requirement and criteria for state regulation do not preempt federal regulations or require a private certification organization to grant or deny certification.
Sunset Reviews
7. Requires a COR conducting a sunset review of any agency to consider the agency's ability to timely investigate complaints within its jurisdiction.
8. Allows a COR conducting a sunset review of any agency to make more than one of the statutorily outlined recommendations.
9. Requires a COR conducting a sunset review of an agency that administers an occupational regulation to consider the extent to which:
a) the regulation is in the least restrictive manner and meets the criteria for regulation; and
b) failure to regulate the profession or occupation will result in the loss of insurance, an impact to a required federal license or registration, an impact to the ability to practice in other states or as required by federal law and the loss of constitutionally afforded practices.
10. Allows a COR conducting a sunset review of an agency that administers an occupational regulation to recommend that the Legislature:
a) repeal the occupational or professional license;
b) convert the occupational or professional license to a less restrictive regulation; and
c) instruct the agency to seek legislation or adopt rules to reflect the COR's recommendations to impose less restrictive regulations, change requisite personal qualifications or redefine the scope of practice of an occupational or professional license.
Definitions
11. Defines less restrictive regulation, from least to most restrictive, as:
a) nongovernment regulation, including private certification, deceptive trade practice laws and mandatory disclosure of good or service attributes;
b) regulation of the process of providing the specific good or service;
c) regulation of the facility where the specific good or service is sold;
d) inspection regulations;
e) bonding requirements;
f) insurance requirements;
g) government registration;
h) government certification; and
i) occupational or professional license.
12. Defines occupational regulation, government certification, government registration, occupational or professional license, lawful occupation, personal qualifications and private certification.
Miscellaneous
13. Transfers, from Title 32 to Title 41 of the Arizona Revised Statutes, statute governing the regulation of nonhealth professions and occupations.
14. Makes technical and conforming changes.
15. Becomes effective on the general effective date.
Prepared by Senate Research
January 25, 2021
LB/kja