ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: COM DPA 10-0-0-0 | 3rd Read 59-0-1-0

Senate: COM DPA 9-0-0-0 | 3rd Read 17-10-3-0

Final Pass: 58-0-2-0


HB 2599: administrative hearings; GRRC

Sponsor: Representative Grantham, LD 12

Transmitted to the Governor

Overview

Makes various revisions to laws relating to occupational licensure, review of agency rules and appealable agency actions.

☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteHistory

Pursuant to A.R.S. § 41-1033, a person may petition an agency to either make, amend or repeal or final rule or to review an existing agency practice to consider revising, repealing or making into a rule. The agency, within 60 days after submission, must either: 1) reject the petition; 2) initiate rulemaking proceedings; or 3) make a rule.

A person may petition the Governor's Regulatory Review Council (GRRC) to request a review of an agency's final rule, an existing agency practice, a regulatory licensing requirement or an appeal of an agency's rejection of a person's petition to review a rule or agency practice.

GRRC reviews Arizona regulations to ensure that they are necessary and to avoid duplication and adverse impact on the public. GRRC also assesses whether Arizona regulations are beneficial, clear, consistent with legislative intent, legal, and within the agency's statutory authority. If an Arizona regulation does not meet these criteria, GRRC may return it to the agency for further consideration. GRRC also reviews reports on existing Arizona regulations.

Provisions

Occupational Licensure

1.   Directs a regulating entity, prior to denying an occupational license, to submit the application and the reason for the denial to the Governor for review. (Sec. 2)

2.   Requires a regulating entity to notify the Governor of any required time frames for approving or denying the license application. (Sec. 2)

3.   Prescribes licensure posting and tracking requirements for certain types of occupational licenses. (Sec. 2, 3)

4.   Defines regulating entity. (Sec. 2, 3)

Agency Rulemaking

5.   Includes the standard of being consistent with the statute and reasonably necessary to carry out the purpose of the statute regarding agency rule validity. (Sec. 5)

6.   Prohibits an agency from making a rule that is not specifically authorized by statute. (Sec. 5)

7.   Expands petitions to GRRC to include allegations that the rule or practice exceeds the agency's statutory authority. (Sec. 7)

8.   Limits petitions and agency statements to GRRC to five double-spaced pages. (Sec. 7)

9.   Lowers, from four to three, the number of GRRC members that may request a hearing on an appeal. (Sec. 7)

10.  Authorizes GRRC to hold a hearing if it receives information that an agency practice, policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority or is not specifically authorized by statute. (Sec. 7)

11.  Permits GRRC to determine if an existing agency practice, policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority or is not specifically authorized by statute. (Sec. 7)

12.  Directs GRRC to provide the petitioner and the agency equal amount of time for oral comments and to provide time for comments by public members. (Sec. 7)

13.  Clarifies that, on the determination by GRRC, a regulatory licensing requirement that exceeds the agency's statutory authority nor is authorized by statute is void. (Sec. 7)

14.  Requires GRRC, rather than allows, to modify, revise or declare an agency practice, final rule or licensing requirement void. (Sec. 7)

15.  Specifies an agency may only pursue a practice, policy statement or licensing requirement that has been declared void or altered by GRRC pursuant to a new rulemaking. (Sec. 7)

16.  Asserts GRRC decisions must be made by a majority of members who are present and voting on the issue. (Sec. 7)

17.  Removes the requirement that a GRRC decision regarding an agency rule include findings of fact and conclusions of law. (Sec. 7)

18.  Specifies GRRC may not base any decision concerning compliance with rule validity requirements in issuing a final rule or policy statement on whether any party or person commented on the rulemaking or policy statement. (Sec. 7)

19.  Requires prior written Governor approval for a state agency to conduct any rulemaking. (Sec. 8)

20.  Outlines requirements and process for state agency rulemaking. (Sec. 8)

21.  Defines state agency. (Sec. 8)

Appealable Agency Action

22.  Revises the minimum contents of a notice of an appealable agency action. (Sec.10)

23.  Creates a rebuttable presumption that the agency-issued license is protecting public health, welfare and the environment if the license substantially complied with licensing requirements. (Sec. 11)

24.  Allows an adversely affect party to present evidence that a provision in the license violates a specifically applicable state or federal requirement. (Sec. 11)

25.  Permits the licensee and agency director to present additional evidence supporting the issuing of the license. (Sec. 11)

26.  Directs the administrative law judge to provide a copy of the final decision to all parties, rather than just the agency. (Sec. 12)

27.  Specifies a license is not stayed unless the affected individual applies to the superior court for a stay order pending final disposition. (Sec. 12)

28.  Allows a licensee to accept the administrative law judge's decision as the final decision, with exceptions. (Sec. 12)

29.  Outlines a process for determining a final decision if the licensee does not accept the administrative law judge's decision as the final decision. (Sec. 12)

30.  Specifies the authorization for a licensee to accept the administrative law judge's decision regarding an appealable agency action does not apply to any appealable agency actions of the Department of Water Resources. (Sec. 12)

31.  Permits a licensee to forgo an administrative appeal and seek judicial review of an agency's grant, denial, modification or revocation of certain permits. (Sec. 13)

Miscellaneous

32.  Entitles a licensee who prevails in an appeal of an agency's final decision to recover reasonable attorney fees and incurred costs. (Sec. 1)

33.  Instructs an agency inspector, after conducting an inspection, to offer to review the findings of the inspection and possible agency actions. (Sec. 4)

34.  Clarifies the deficiencies identified in an inspection report are alleged. (Sec. 4)

35.  Revises the conditions under which the agency will not provide the inspected person the opportunity to correct the alleged deficiencies. (Sec. 4)

36.  Defines pertinent terms. (Sec. 1, 9, 13)

37.  Repeals enacted laws deemed invalid. (Sec. 6)

38.  Makes technical and conforming changes. (Sec. 1, 4, 7, 9, 10, 11, 13)

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42.                    HB 2599

43.  Initials PRB           Page 0 Transmitted

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