HB 2599
Initials PRB Page 1 Senate Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
House: COM DPA 10-0-0-0 | 3
rd
Read 59-0-1-0
Senate: COM DPA 9-0-0-0 | 3
rd
Read 17-10-3-0
HB 2599: administrative hearings; GRRC
Sponsor: Representative Grantham, LD 12
Senate Engrossed
Overview
Makes various revisions to laws relating to occupational licensure, review of agency rules and
appealable agency actions.
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
Occupational Licensure
1. Directs a regulating entity, prior to denying an occupational license, to submit the application
and the reason for the denial to the Governor for review. (Sec. 2)
2. Requires regulating entities to notify the Governor of any required time frames for approving
or denying the license application. (Sec. 2)
3. Prescribes licensure posting and tracking requirements for certain types of occupational
licenses. (Sec. 2, 3)
4. Defines regulating entity. (Sec. 2, 3)
Agency Rulemaking
5. 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. 5)
6. Expands petitions to GRRC to include allegations that the rule or practice exceeds the
agency's statutory authority. (Sec. 7)
7. Limits petitions and agency statements to GRRC to five double-spaced pages. (Sec. 7)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2599
Initials PRB Page 2 Senate Engrossed
8. Lowers, from four to three, the number of GRRC members that may request a hearing on an
appeal. (Sec. 7)
9. Authorizes GRRC to hold a hearing if it receives information that an agency practice, policy
statement, final rule or regulatory licensing requirement exceeds the agency's statutory
authority or is not specifically authorized by statute. (Sec. 7)
10. Permits GRRC to determine if an existing agency practice, policy statement, final rule or
regulatory licensing requirement exceeds the agency's statutory authority or is not specifically
authorized by statute. (Sec. 7)
11. 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. 7)
12. 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. 7)
13. Requires GRRC, rather than allows, to modify, revise or declare an agency practice, final rule
or licensing requirement void. (Sec. 7)
14. Specifies an agency may only pursue a practice, policy statement or licensing requirement
that has been declared void or altered by GRRC pursuant to a new rulemaking. (Sec. 7)
15. Asserts GRRC decisions must be made by a majority of members who are present and voting
on the issue. (Sec. 7)
16. 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. 7)
17. Requires prior written Governor approval for a state agency to conduct any rulemaking. (Sec.
8)
18. Outlines requirements and process for state agency rulemaking. (Sec. 8)
19. Defines state agency. (Sec. 8)
Appealable Agency Action
20. Revises the minimum contents of a notice of an appealable agency action. (Sec.10)
21. 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. 11)
22. Allows an adversely affect party to present evidence that a provision in the license violates a
specifically applicable state or federal requirement. (Sec. 11)
23. Permits the licensee and agency director to present additional evidence supporting the issuing
of the license. (Sec. 11)
24. Directs the administrative law judge to provide a copy of the final decision to all parties, rather
than just the agency. (Sec. 12)
25. Specifies a license is not stayed unless the affected individual applies to the superior court for
a stay order pending final disposition. (Sec. 12)
26. Allows a licensee to accept the administrative law judge's decision as the final decision, with
exceptions. (Sec. 12)
27. 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. 12) HB 2599
Initials PRB Page 3 Senate Engrossed
28. Permits a licensee to forgo an administrative appeal and seek judicial review of an agency's
grant, denial, modification or revocation of certain permits. (Sec. 13)
Miscellaneous
29. Entitles a licensee who prevails in an appeal of an agency's final decision to recover
reasonable attorney fees and incurred costs. (Sec. 1)
30. Instructs an agency inspector, after conducting an inspection, to offer to review the findings
of the inspection and possible agency actions. (Sec. 4)
31. Clarifies the deficiencies identified in an inspection report are alleged. (Sec. 4)
32. Revises the conditions under which the agency will not provide the inspected person the
opportunity to correct the alleged deficiencies. (Sec. 4)
33. Defines pertinent terms. (Sec. 1, 9, 13)
34. Repeals enacted laws deemed invalid. (Sec. 6)
35. Makes technical and conforming changes. (Sec. 1, 4, 7, 9, 10, 11, 13)
Senate Amendments
1. Prohibits an agency from making a rule that is not specifically authorized by statute.
2. Removes the requirement that a GRRC decision regarding an agency rule include findings of
fact and conclusions of law.
3. Specifies the requirement to recommend eliminating three existing rules, regarding new
rulemaking, does not apply to rules that are necessary to:
a) Secure or maintain assumption of federal regulatory programs;
b) Comply with an auditor general recommendation; or
c) Address a new statutory requirement.
4. Specifies a notice of an appealable agency action must include information regarding
questions of law only if applicable.
5. Specifies the authorization for a licensee to accept the administrative law judge's decision
regarding an appealable agency action does not apply to any appealable agency actions of
the Department of Water Resources.
6. Makes clarifying changes.