ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	House: GOV DPA 5-4-0-0 | 3rd Read 31-27-2-0 Senate: GOV DPA 5-3-0-0 | 3rd Read 16-14-0-0

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HB 2254: rulemaking; regulatory costs; legislative ratification

Sponsor: Representative Wilmeth, LD 2

Senate Engrossed

Overview

Requires a proposed rule (Rule) that will increase regulatory costs by over $500,000 within two years after implementation to be ratified by the Legislature. 

History

The Administrative Procedures Act provides procedures for agency rulemaking and for appealing agency decisions. Specifically, Title 41, Chapter 6, Article 3 outlines the statutory requirements for state agencies regarding rulemaking authority. These requirements are designed to ensure adequate public participation in the rulemaking process.

The Administrative Rules Oversight Committee (Committee) was established to have oversight over any rules except those rules exempt by A.R.S. § 41-1005. The committee can review any proposed or final rule, expedited rule, or agency practice alleged to constitute a rule or substantive policy statement for conformity with statute and legislative intent. (A.R.S. §§  41-1046, 41-1047 and 41-1048).

Provisions

1. States that if a Rule is estimated to increase regulatory costs or have an adverse impact on economic growth, more than $500,000 within two years, the Rule may not become effective until the Legislature enacts legislation to ratify the Rule. (Sec. 1)

2. Requires an agency, no later than 30 days before the next regular legislative session, to submit the Rule to the Committee and instructs the Committee to submit the proposed rule to the Legislature as soon as practicable. (Sec. 1)

3. Allows any Legislator to introduce legislation to ratify the proposed rule. (Sec. 1)

4. Specifies the Rule is exempt from the 120-day time limit for an agency to submit the rule to the Governor's Regulatory Review Council or terminate the proceedings. (Sec 1)

5. Restricts an agency from filing a final rule with the SOS before obtaining Legislative approval of the rule. (Sec. 1)

6. Directs the agency to terminate the proposed rulemaking if the Legislature does not enact legislation to ratify the proposed rule during the current legislative session. (Sec. 1)

7. Stipulates the legislative ratification of a Rule does not apply to emergency rules. (Sec. 1)

8. Asserts an applicable Rule, beginning on the effective date, is void and unenforceable unless it is adopted through legislative ratification. (Sec. 1)

Senate Amendments

1. Stipulates that a Rule that is estimated to increase regulatory costs over $500,000 within five years, instead of two, may not become effective until ratified by the legislature.

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                        HB 2254

Initials FK        Page 0 House Engrossed

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