HB 2254
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
House: GOV DPA 5-4-0-0
HB 2254: rulemaking; regulatory costs; legislative ratification
Sponsor: Representative Wilmeth, LD 2
Caucus & COW
Overview
Requires a proposed rule (Rule) that will increase regulatory costs in excess of $500,000 within
two years after implementation to be ratified by the Legislature.
History
The Administrative Procedures Act provides procedures for agency rulemaking and for appealing
agency decisions. Specifically, Title 41, Chapter 6, Article 3 outlines the statutory requirements
for state agencies in regard to rulemaking authority. These requirements are designed to ensure
adequate public participation in the rulemaking process.
The Administrative Rules Oversight Committee (Committee) was established to have oversight
over any rules except those rules exempt by A.R.S. § 41-1005. The committee can review any
proposed or final rule, expedited rule, agency practice alleged to constitute a rule or substantive
policy statement for conformity with statute and legislative intent. (A.R.S. §§ 41-1046, 41-1047
and 41-1048).
Provisions
1. States that if a Rule is estimated to increase regulatory costs in excess of $500,000, or have
an adverse impact on economic growth, the Rule may not become effective until the
Legislature enacts legislation to ratify the Rule. (Sec. 1)
2. Requires an agency, no later than 30 days before the next regular legislative session, to
submit the Rule to the Committee and instructs the Committee to submit the proposed rule to
the Legislature as soon as practicable. (Sec. 1)
3. Allows any Legislator to introduce legislation to ratify the proposed rule. (Sec. 1)
4. Specifies the Rule is exempt from the 120 day time limit for an agency to submit the rule to
the Governor's Regulatory Review Council or terminate the proceedings. (Sec 1)
5. Restricts an agency from filing a final rule with the SOS before obtaining Legislative approval
of the rule. (Sec. 1)
6. Directs the agency to terminate the proposed rulemaking if the Legislature does not enact
legislation to ratify the proposed rule during the current legislative session. (Sec. 1)
7. Stipulates the legislative ratification of a Rule does not apply to emergency rules. (Sec. 1)
8. Asserts an applicable Rule, beginning on the effective date, is void and unenforceable unless
it is adopted through legislative ratification. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2254
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Amendments
Committee on Government
1. Adds that any rule that will have an adverse impact on economic growth in excess of $500,000
within two years of after implementation is subject to legislative ratification.