Arizona 2023 2023 Regular Session

Arizona House Bill HB2254 Comm Sub / Analysis

Filed 05/17/2023

                      	HB 2254 
Initials FK 	Page 1 	Transmitted 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
First Regular Session 
House: GOV DPA 5-4-0-0 | 3rd Read 31-27-2-0 
Senate: GOV DPA 5-3-0-0 | 3rd Read 16-14-0-0 
Final Read: 31-27-1-0-1  
 
HB 2254: rulemaking; regulatory costs; legislative ratification 
Sponsor: Representative Wilmeth, LD 2 
Transmitted to the Governor 
Overview 
Requires a proposed rule (Rule) that will increase regulatory costs by over $500,000 within two 
years after implementation to be ratified by the Legislature.   
History 
The Administrative Procedures Act provides agency rulemaking procedures and appeals agency 
decisions. Specifically, Title 41, Chapter 6, Article 3 outlines the statutory requirements for state 
agencies regarding rulemaking authority. These requirements are designed to ensure adequate 
public participation in the rulemaking process. 
The Administrative Rules Oversight Committee (Committee) was established to oversee any rules 
except those exempt by A.R.S. § 41-1005. The committee can review any proposed or final rule, 
expedited rule, or 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 or have an adverse impact on 
economic growth, more than $500,000 within five years, 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