Assigned to COM                                                                                                              AS PASSED BY THE SENATE

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

VETOED

FINAL REVISED

FACT SHEET FOR H.B. 2537

 

regulatory reform

 

Purpose

 

Modifies the statutes regarding agency regulatory approval process to require annual agency regulatory agendas and the referencing of studies underlying a rulemaking. Establishes a regulatory reform and enforcement study committee.

 

Background

 

In the late 1990s, a series of legislative efforts resulted in the reform of state regulatory procedures, including the state rulemaking procedures and establishment of a comprehensive bill of rights for persons subject to the regulatory jurisdiction of the state. These efforts to strengthen the administrative procedures of state agencies, generally referred to as regulatory reform, continue based on ongoing evaluation of the results of regulatory reform on the practices of state agencies.

 

H.B. 2537 requires agencies to prepare and make available to the public its regulatory agenda for the following year and to reference in the preamble any study it has prepared and reviewed and did not rely on in its evaluation of or justification for a rule. H.B. 2537 also establishes a regulatory reform and enforcement study committee to conduct hearings and inquire into various regulatory issues.

 

There is no anticipated fiscal impact to the state general fund associated with this bill.

           

            In her veto message the Governor stated that the bill was vetoed “to protect the integrity of the legislative process.”  She noted that a mistake occurred in the Senate, for which a workable solution could not be found to correct the mistake.  She also stated that if there is a question of this nature it is best to set this legislation aside and revisit it again next session.  The Governor concluded that there is no compromise when it comes to maintaining the integrity of the process.

 

Provisions

 

  1. Requires, by December 1 of each year, each agency to prepare and make available to the public the regulatory agenda for the agency for the following calendar year. Excludes self-supporting regulatory boards from this requirement.

 

 

 

  1. Requires the annual regulatory agenda to include all pre-rule makings, rules currently under development, reviews of existing rules, cancelled or completed rule makings, and privatization options and nontraditional regulatory approaches to be considered by the agency.

 

  1. Expands the definition of "preamble" to include a reference to any study that the agency prepared or reviewed and did not rely on in its evaluation of or justification for the rule.

 

 

  1. Prohibits the Governor’s Regulatory Review Council (GRRC) from approving a rule if the agency failed to provide in the preamble a reference to any study the agency prepared or reviewed, whether or not the agency relied on the study, in its evaluation of or justification for the rule.

 

  1. Requires the agency to include in the preamble information on where the public may obtain or review the study, all data underlying the study, any analysis of the study and other supporting materials.

 

  1. Establishes a regulatory reform and enforcement study committee. Prescribes the membership of the study committee and sets forth the regulatory issues for the study committee to review.

 

  1. Requires the study committee to submit a report of its findings and recommendations to the Legislature and the Governor by December 15, 2001.

 

  1. Allows the study committee to use the services of legislative and executive staff.

 

  1. Terminates the study committee on February 1, 2002.

 

  1. Makes a technical change.

 

  1. Provides for a general effective date.

 

Amendments Adopted by Commerce Committee

 

Increases, from 3 to 4, the Senate members on the study committee.*

 

Amendments Adopted by Committee of the Whole

 

            Removes the number of new FTE's estimated to be necessary to implement each rule from the list of items required to be included in the annual regulatory agenda.

 

House Action                                                               Senate Action

 

RGO               3/9/01  DPA   8-0-0-2                       COM               4/4/01     DPA     6-0-0-0

3rd Read           3/19/01             50-6-4-0                     3rd Read           4/19/01                25-5-0-0

 Final Read      4/30/01             40-18-2-0

 

*          An engrossing error occurred on the Commerce Committee amendment. A proposed amendment that added the attorney general (AG) or the AG's designee to the study committee was inadvertently included in the engrossed committee amendment. This provision is currently incorporated in the bill.

 

Vetoed by the Governor 5/4/01

Prepared by Senate Staff

May 15, 2001