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.
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 also recommended the re-establishment of the study committee to continue the deliberations and review of various regulatory issues. S.B. 1339 codifies many of 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. States that an agency is not prohibited from undertaking a rulemaking action even if that action has not been included in the agency's annual regulatory agenda.
7. Delays the effective date of a rule to 60 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.
8. Allows a rulemaking agency to specify an effective date more than 60 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.
9. 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.
10. Prohibits the Attorney General from approving a rule with an immediate effective date unless the Attorney General finds the rule satisfies the reasons justifying an immediate effective date.
11. Specifies that an existing rule maintains its validity until the new or amended rule that is filed with the Secretary of State is effective.
12. 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.
13. 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.
14. 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 the agency for a review of the statement.
Study Committee
15. 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.
16. Allows the study committee to use staff from the legislative and executive branches as needed.
17. Requires the study committee to submit a report of its findings and recommendations to the Legislature and the Governor by December 15, 2003.
Miscellaneous
18. Makes technical and conforming changes.
19. Provides for a general effective date.
Amendments
Adopted by Committee
1. Restores current law with respect to including the economic, small business and consumer impact statement as a summary statement in the preamble of a rule-making and as a separate document when an agency submits a rule.
2. Makes conforming changes relating to the elimination of the requirement that an agency prepare and submit a concise explanatory statement to GRRC as a separate document when it submits a rule.
3. Clarifies that an agency is not prohibited from undertaking any rule making action even if that action has not been included in the agency's annual regulatory agenda.
4. Prohibits 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 its evaluation of or justification for the rule.
5. Shortens, from 90 days to 60 days, the delay of an effective date of a new or amended rule after the rule and preamble are filed in the office of the Secretary of State.
6. Exempts auctions, leases or exchanges of state trust land and rules relating to State Land Department contracts from the time frame requirements.
Amendments
Adopted by Committee of the Whole
1. Eliminates the provisions relating to licensing time frames for the State Land Department.
2. Clarifies provisions regarding the immediate effective dates of some rules.
3. Makes conforming changes in the Attorney General's review of rules.
4. Makes other technical corrections.
Senate Action
COM 3/13/02 DPA 4-2-0-0
3rd Read 3/27/02 23-7-0-0
Prepared by Senate Staff
March 27, 2002