ARIZONA STATE SENATE
Phoenix, Arizona
state agencies;
administrative procedures; rules
Purpose
Makes various changes to the Arizona Administrative Procedures Act regarding practices and procedures in the rulemaking process. Establishes a regulatory reform and enforcement study committee. Applies licensing time frame rules requirements to the State Land Department.
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.
During the 2001 interim, the Ad Hoc Regulatory Reform and Enforcement Study Committee held two hearings to inquire into various regulatory issues and to review regulatory laws and practices. The study committee recommended various changes to the Arizona Administrative Procedures Act relating to effective dates of rules, substantive policy statements, sound science provisions, annual rulemaking agendas and duplicative information in the rulemaking process. The study committee also inquired into agency compliance with the licensing time frame rules required by statute and the substantive policy statement directory certification required by statute. The study committee agreed that the State Land Department should comply with the required licensing time frame rules. The study committee also recommended the re-establishment of the study committee to continue the deliberations and review of various regulatory issues. S.B. 1339 codifies the recommendations adopted by the study committee.
There is no anticipated fiscal impact to the state general fund associated with this bill.
Provisions
Rulemaking Process
1. Expands the definition of “preamble” to include a reference to a study relevant to the rule that the agency reviewed and either did or did not rely on in its evaluation of or justification for the rule.
2. Prohibits the Governor’s Regulatory Review Council (GRRC) from approving a rule if the agency failed to provide in the preamble a reference to a study relevant to the rule that the agency reviewed and either did or did not rely on in its evaluation of or justification for the rule.
3. Requires the Secretary of State to affix the time and date of filing to each rule document and preamble following the approval and filing of a certain exempt rule by the Attorney General.
4. Requires, by December 1 annually, 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.
5. Requires the annual regulatory agenda to include all pre-rule makings, rules currently under development, reviews of existing rules, canceled or completed rule making and privatization options and nontraditional regulatory approaches to be considered by the agency.
6. Delays the effective date of a rule to 90 days after the filing of the rule and preamble in the Office of the Secretary of State, unless the rulemaking agency includes in the preamble information reasons justifying the need for the rule to be effective immediately. Provides the reasons that justify an immediate effective date.
7. Allows a rulemaking agency to specify an effective date more than 90 days after the filing of the rule in the Office of the Secretary of State if the agency determines that good cause exists for and the public interest will not be harmed by the later date.
8. Requires GRRC to verify that a rule with an immediate effective date satisfies the reasons justifying an immediate effective date. Requires GRRC to approve a rule with an immediate effective date by a two-thirds of the voting quorum present.
9. Allows a person to submit written comments or testify at a council meeting relating to a rule with an immediate effective date. Allows GRRC to act in the absence of comments.
10. Eliminates the requirement that an agency prepare and submit a concise explanatory statement to GRRC as a separate document when it submits a final rule and consolidates its provisions into the preamble of the rule.
11. Eliminates the requirement that an agency submit an economic, small business and consumer impact statement to GRRC as a separate document when it submits a rule and includes the entire statement in the preamble of the rule.
12. Requires agencies to ensure that the first page of each substantive policy statement includes a notice stating the advisory nature of the substantive policy statement and the ability to petition GRRC.
Study Committee
13. Establishes a regulatory reform and enforcement study committee, terminating February 1, 2004. Prescribes the membership of the study committee and sets forth the regulatory issues for the study committee to review.
14. Allows the study committee to use staff from the legislative and executive branches as needed.
15. Requires the study committee to submit a report of its findings and recommendations to the Legislature and the Governor by December 15, 2003.
State Land Department
16. Applies the licensing time frame rules requirements to licenses issued by the State Land Department.
17. Requires, by June 30, 2003, the State Land Department to have in place final rules establishing an overall time frame for granting or denying each type of license it issues.
18. Requires, by December 31, 2002, the State Land Department to submit its overall time frame rules to GRRC.
19. Specifies that the rule regarding the overall time frame for each type of license must state separately the administrative completeness review time frame and the substantive review time frame.
Miscellaneous
20. Makes technical and conforming changes.
21. Provides for a general effective date.
Prepared by Senate Staff
February 15, 2002