HB 2599
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
HB 2599: administrative hearings; GRRC
Sponsor: Representative Grantham, LD 12
Committee on Commerce
Overview
Makes various revisions relating to reviewing agency rules and appealable agency actions.
Establishes a dispute resolution process for disputes involving an interim agency action.
History
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
Agency Rulemaking Review
1. 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. 3)
2. Expands petitions to GRRC to include allegations that the rule or practice exceeds the
agency's statutory authority. (Sec. 5)
3. Limits petitions to GRRC to five double-spaced pages. (Sec. 5)
4. Lowers, from four to three, the number of GRRC members that may request a hearing on an
appeal. (Sec. 5)
5. Limits agency statements to GRRC address certain allegation to five double-spaced pages.
(Sec. 5)
6. 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. 5)
7. 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. 5)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2599
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8. Requires GRRC, rather than allows, to modify, revise or declare an agency practice, final rule
or licensing requirement void. (Sec. 5)
9. Specifies an agency may only pursue a practice or licensing requirement that has been
declared void or altered by GRRC pursuant to a new rulemaking. (Sec. 5)
10. Asserts GRRC decisions must be made by a majority of members who are present and voting
on the issue. (Sec. 5)
11. 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. 5)
Appealable Agency Action
12. Outlines the minimum contents of a notice of appealable agency action. (Sec.7)
13. Permits an agency to require a bond of up to $50,000 from the party filing the appeal to cover
the agency's reasonable costs should the party lose the appeal. (Sec. 7)
14. 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. 8)
15. Allows an adversely affect party to present evidence that the license violated a specifically
applicable state or federal requirement. (Sec. 8)
16. Permits the licensee or agency director to present additional evidence supporting the issuing
of the license. (Sec. 8)
17. Directs the administrative law judge to provide a copy of the final decision to all parties, rather
than just the agency. (Sec. 9)
18. Specifies a license is not stayed unless the affected party applies to the court for a stay order
pending final disposition. (Sec. 9)
19. Allows a licensee to accept the administrative law judge's decision as the final decision. (Sec.
9)
20. 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. 9)
Dispute Resolution
21. Establishes an informal dispute resolution process for disputes involving an interim agency
action. (Sec. 10)
22. Allows a license who is not satisfied with the agency's response to submit a written request
for a final interim agency action decision from the agency's director. (Sec. 10)
23. Permits a license to submit a written request for dispute resolution before a qualified
professional. (Sec. 10)
24. Allows a party to submit a written request for dispute resolution before a qualified professional.
(Sec. 10)
25. Requires the requesting party to pay the full cost of the qualified professional's services. (Sec.
10)
26. Directs payment for services be deposited into an appeals program fund. (Sec. 10)
27. Requires an agency to establish and administer an appeals program fund for paying qualified
professionals. (Sec. 10) HB 2599
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28. Exempts the appeals program fund from lapsing of appropriations. (Sec. 10)
29. Specifies the agency may require a bond of up to $25,000 to cover the agency's costs should
the party lose the appeal. (Sec. 10)
30. Directs the agency to maintain a list of at least eight qualified professionals to conduct dispute
resolutions in which the parties mutually select. (Sec. 10)
31. Specifies the inclusion of a qualified professional to the agency's list does not equate to
employment. (Sec. 10)
32. Allows for the mutual selection of a qualified professional not on the agency's list but who is
otherwise qualified. (Sec. 10)
33. Directs the person who requested dispute resolution and the agency to submit specified
information to the qualified professional. (Sec. 10)
34. Creates a rebuttable presumption that the agency-issued license is protecting public health,
welfare and the environment and meets state and federal requirements if the license
substantially complied with licensing requirements. (Sec. 10)
35. Allows an adversely affect party to present evidence that the license violated a specifically
applicable state or federal requirement. (Sec. 10)
36. Permits the licensee and agency director to present additional evidence supporting the issuing
of the license. (Sec. 10)
37. Provides duties for the qualified professional in recommending a dispute resolution. (Sec. 10)
38. Requires the agency director to issue a final written resolution. (Sec. 10)
39. Specifies the time is tolled for compliance with any investigation or other requirement that is
associated with the subject of the dispute resolution unless superseded by a judicial order.
(Sec. 10)
40. Provides for a judicial review of an agency's final written resolution. (Sec.10)
41. Specifies dispute resolution before a qualified professional do not apply to contested cases or
appealable agency actions. (Sec. 10)
Miscellaneous
42. Entitles a licensee who prevails in an appeal of an agency's final decision to recover
reasonable attorney fees and incurred costs. (Sec. 1)
43. Instructs an agency inspector, after conducting an inspection, to review the findings of the
inspection and possible agency actions. (Sec. 2)
44. Clarifies the deficiencies identified in an inspection report are alleged. (Sec. 2)
45. Revises the conditions under which the agency will not provide the inspected person the
opportunity to correct the alleged deficiencies. (Sec. 2)
46. Applies agency inspection reporting requirements and modifies the information contained in
the report regarding the Department of Environmental Quality. (Sec. 2)
47. Specifies the governance of administrative proceedings regarding federally delegated
programs and nonfederally delegated programs. (Sec. 11)
48. Defines pertinent terms. (Sec. 6, 10)
49. Repeal enacted laws deemed unconstitutional. (Sec. 4)